Complete Guide to Hiring in Quebec
Why Hire in Quebec?
Quebec is a popular destination for business expansion and employers looking to grow their bilingual workforce. The province has one of the strongest economies in Canada, one of most educated workforces, and boasts the country’s largest population of native French speakers. Hiring in Quebec provides access to a diverse and multicultural population, and the province has a number of government programs in place to support businesses and promote economic growth. Employer of Record and PEO providers in Canada can offer a range of benefits to employers looking to expand into the region or hire workers from Quebec, including support with payroll, benefits administration, and compliance with local labour laws.
- Population: Estimated 8.7 million
- Currency: Canadian dollar (CAD)
- Conversion rate: 1 USD is equal to 1.33305 CAD
- Languages: English and French are the most popular in Quebec, in 2016 it was reported that 94.5% of the population is able to have a conversation in French
- Most Common Languages: : English, French, Arabic, Spanish, Italian, Mandarin
- Capital: Quebec City
- Closest Economic Centres: Montreal with Toronto in the next province over
- Industries: Manufacturing, generation of electric power, mining, pulp and paper, healthcare, social assistance, life sciences and health technologies, Information, and communication technologies
- Time Zones: Eastern Standard Time (EST)
- Date Format: yyyy/mm/dd
- Political System: Constitutional monarchy and parliamentary democracy
- Social System: Welfare state including publicly funded healthcare, subsidized post-secondary education, and employment insurance
Why is Quebec Different From the Rest of Canada?
Quebec is known for its French-speaking majority and unique culture. It is one of only two provinces in Canada where French is recognized as an official language. Quebec has a distinct legal system and a history of advocating for autonomy within Canada. Its unique language and culture have shaped its character and contributed to its distinct identity within the country.
What is Quebec Famous For?
- It is the largest producer of maple syrup in the world
- Hockey is a popular sport in Canada and Quebec has contributed to the growth of the sport in the country
- It is known for its unique culture, which is influenced by French and North American traditions
- Quebec has a rich literary tradition and has produced a number of notable writers
- It has a thriving music, film, and television industry and is known for producing a number of successful artists and productions
- Quebec is home to a number of festivals, including the Montreal International Jazz Festival and the Just for Laughs comedy festival
- It has a rich folklore tradition and is known for its storytelling, legends, and traditions
Hiring in the Province of Quebec
Hiring remote workers in Quebec can be a great way to access a highly skilled and educated workforce, but it is important for employers to be aware of the risks involved, such as misunderstanding taxation laws and worker misclassification. To mitigate these risks, employers should seek guidance from a professional employer organization or legal and compliance experts to ensure compliance with local laws and regulations.
What is the Minimum Wage in Quebec?
The minimum wage in Quebec is currently $14.25 per hour. This rate applies to all employees, regardless of their level of experience or job title. The minimum wage in Quebec is reviewed regularly and may be adjusted based on the cost of living and other economic factors. Employers are required to pay their employees at least the minimum wage set by the government, and any employee who is paid less than the minimum wage is entitled to file a complaint with the appropriate authorities.
What are the Local Labour Laws in Quebec?
There are a number of labour laws that employers need to be aware of when hiring in Quebec, including requirements related to the use of raw materials, equipment, or merchandise, and entitlements to paid leave and holiday time. Employees in Quebec also have the right to participate in a voluntary retirement savings plan and contribute to the Quebec Pension Plan. Maternity leave in Quebec is up to 18 consecutive weeks of unpaid leave, and paternity leave is 5 consecutive weeks of unpaid leave. Holiday time is earned over a period of 12 consecutive months, from May 1st to April 30th, and is known as the vacation entitlement year. Some employers may offer unlimited paid time off on the condition that employees take their minimum paid time off.
How to Pay Remote Workers in Quebec
Employers have two options for paying remote workers in Quebec: opening a legal entity in the country or working with an employer of record. The latter option is more popular and preferred, as it is more cost-effective and faster. An employer of record handles the legal and compliance aspects of hiring and paying employees on behalf of the employer, allowing the employer to focus on their core business activities.
Work With an Employer of Record in Quebec
To work with an employer of record in Quebec, employers will need to enter into a contract outlining the terms and conditions of the arrangement. The process of setting up an arrangement with an employer of record can vary in terms of time and complexity. An arrangement with an employer of record in Quebec can cover tasks related to hiring and paying employees, including payroll, benefits administration, and compliance with local labour laws. This can be beneficial to employers as it allows them to focus on their core business activities and reduces the burden of managing these tasks in-house. It can also be beneficial to employees as it ensures that they are paid accurately and on time, and have access to appropriate benefits.
Open a Legal Entity in Quebec
To open a legal entity in Quebec, employers will need to register the business with the appropriate government agencies, obtain necessary licenses and permits, and follow local laws and regulations. The process of setting up a legal entity in Quebec can vary in terms of time and complexity. Opening a legal entity in Quebec can cover tasks related to doing business in the province, including hiring and paying employees, conducting business activities, and complying with local laws and regulations. This can be beneficial to employers as it allows to operate business directly in Quebec and to have full control over operations, however, it also comes with many responsibilities, including filing business taxes and managing payroll and employment law compliance.
How Do International Businesses Pay Remote Workers in Quebec?
International businesses have a few options for paying remote workers in Quebec, including opening a legal entity in the province and paying employees through a Canadian payroll service, or working with an employer of record to handle the legal and compliance aspects of hiring and paying employees.
What Are the Rates for the Tax Brackets in Quebec?
. In addition to paying federal income tax, individuals in Canada also pay provincial or territorial income tax, with rates and brackets that vary based on the amount of income earned. It’s important to note that these tax rates apply to the federal portion of income tax. Overall, individuals in Canada typically pay two income taxes: one to the federal government and the other to the provincial or territorial government.
The federal income tax rate for different tax brackets in Canada is as follows:
|Quebec Tax rate 2023||2023 Taxable income|
|15.00%||$0 – $49,275|
|20.00%||$49,276 – $98,540|
|24.00%||$98,541 – $119,910|
Quebec Pilot Project
The governments of Canada and Quebec have launched a pilot project under the Temporary Foreign Worker Program (TFWP) to introduce flexibilities for Quebec employers. The project allows employers in Quebec to hire temporary foreign workers in certain occupations if they meet certain requirements. These requirements include having a bachelor’s degree in any field, a minimum of 2 years of work experience, and a score of at least 50 points on a selection grid that assesses language skills and other factors. The project is intended to help address labour shortages in certain sectors in Quebec and to support the economic recovery from the COVID-19 pandemic. The project was launched in 2021 and is currently in place.
Quebec Pension Plan
The Quebec Pension Plan (QPP) is a public insurance plan for workers aged 18 and over who earn more than $3,500 per year from employment in Quebec. It is a compulsory plan that is funded by contributions made by individuals who work in Quebec and their employers. In 2022, the maximum amount that employees can contribute to the QPP is $64,900. The QPP covers retirement, disability, and death.
The QPP was enhanced on January 1, 2019 to help future generations improve their financial security in retirement. The plan is designed to provide income replacement to eligible workers in the event of retirement, disability, or death.
If you are from Quebec and working abroad, you may be entitled to the QPP if you meet certain conditions. Specifically, you must work or have worked in a country that has signed a social security agreement with Quebec, and you must be a resident of Quebec. These agreements allow workers who have contributed to the QPP while working in Quebec to receive credit for those contributions when they work in another country. As a result, workers who are covered by these agreements may be entitled to receive retirement, disability, or survivor benefits from the QPP, even if they are no longer working in Quebec.
Summary of Hiring Workers in Quebec
There are several benefits to hiring in Quebec, particularly for employers who are looking to hire groups of workers or individuals with specific skills or expertise. Some of the pros of hiring in Quebec include:
- Access to a highly educated and skilled workforce: Quebec is home to a number of universities and colleges that produce well-trained and highly skilled workers in a range of fields. This makes it an attractive location for employers who are looking to hire workers with specific skills or expertise.
- Strong labour laws and protections: Quebec has strong labour laws and protections that ensure that workers are treated fairly and receive appropriate compensation and benefits. This can be particularly appealing to employers who are looking to hire workers who will be working remotely or in a different location.
- Cost-effective payroll services: Canadian payroll services can provide cost-effective solutions for employers who are looking to hire workers in Quebec. These services can handle tasks such as payroll, benefits administration, and compliance with local labour laws, allowing employers to focus on their core business activities.
One potential downside of hiring in Quebec is the need to navigate local labour laws and regulations. Employers who are unfamiliar with these laws may find it challenging to ensure that they are in compliance, which can be time-consuming and resource-intensive. However, working with a Canadian payroll service can help to mitigate this risk by providing guidance and support to ensure that employers are meeting their legal obligations.
Hire Your First Employee in Canada With Canadian Payroll Services
As an employer of record, Canadian Payroll Services can help you hire quickly and compliantly in Canada, without having to open a local entity. We handle payroll, onboarding, and local compliance so that you never have to worry about it.