The initial step in the Quebec hiring process involves identifying potential candidates. To begin your search, consider using a mix of methods such as job postings, advertisements, and collaboration with recruiters. Keep in mind that Quebec imposes strict guidelines on employment and recruitment agencies, so it’s essential to work exclusively with provincially licensed agencies.
The next decision is whether to establish a local subsidiary or opt for an Employer of Record (EOR) arrangement. EORs allow you to hire in Quebec without setting up a local subsidiary and offer various other advantages, which we’ll delve into below.
Once you’ve identified a suitable candidate, it’s time to create an employment offer. If you decide to hire through an EOR, they can assist you in drafting an offer that aligns with local laws and meets the candidate’s expectations. Canadian candidates typically anticipate supplementary health insurance and a retirement match as part of their employment package.
Employment laws vary across countries and within Canada’s provinces. To minimize risk, engage an employment lawyer practicing in Quebec or rely on an EOR to draft your employment contract.
After the candidate accepts, focus on their onboarding and payroll setup. In Quebec, employees contribute to federal and provincial taxes, QPP, QPIP, and EI. Employers must run at least two payrolls monthly, provide detailed earnings and deductions statements, make contributions to QPP, QPIP, and EI, and secure worker’s compensation insurance.
One approach to hiring in Quebec involves opening a local subsidiary or branch. This process entails incorporating a business within the province, setting up a Canadian bank account, and establishing a local payroll and accounting office. However, it’s essential to note that creating a local subsidiary is a significant, long-term commitment, primarily suited for businesses intending to sell or operate extensively in Quebec.
Alternatively, companies can choose to hire through an Employer of Record (EOR). EORs act on behalf of businesses that lack a local presence. They handle administrative tasks related to employment, including payroll management, benefits administration, and compliance guidance.
| Employment Insurance (EI): | 5.95% up to a maximum of $3,867.50 |
| Canada Pension Plan (CPP): | 1.66% up to a maximum of $1,468.77 |
| Health Tax: |
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| Minimum Wage: | $15.75 |
| Hours of Work: | Regular working hours for employees are 40 hours per week before they become eligible for overtime pay. However, there are specific exceptions:
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| Overtime Rate: | 1.5 times an employee’s base wage; employees can opt for time off in lieu |
| Length of Employment | Amount |
|---|---|
| less than 1 year of service | 1 day per full month of service, up to 2 weeks |
| 1 year to less than 3 years | 2 consecutive weeks of vacation |
| 3 years or more | 3 consecutive weeks of vacation |
| Length of Employment | Amount |
|---|---|
| Up to 3 years of service | 4% of gross wages as vacation pay |
| 3 years or more of service | 6% of gross wages as vacation pay |
| Length of Employment | Amount |
|---|---|
| 3 months or less | No notice and/or pay – Probationary Period |
| 3 months to 1 year | 1 week of notice and/or pay |
| 1 year to 5 years | 2 weeks of notice and/or pay |
| 5 years to 10 years | 4 weeks of notice and/or pay |
| 10 years or more | 8 weeks of notice and/or pay |
Canada has a federal system where legislative and executive power is shared between the central government and the provinces and territories. Employment law is the purview of provinces and territories, and of the federal government when it comes to its own and employees and those in federally regulated industries.
Quebec is unique in Canada, with a separate civil law system, its own provincial pension plan, and stringent rules on the use of French in businesses. All other Canadian provinces are governed by the common law system.
The Act Respecting Labour Standards is the core source of employment law in Quebec. It establishes rules for the workplace, including hours of work, minimum wages, vacation entitlements, termination notice periods and more. In addition to the Labour Code, the Quebec Charter of Rights and Freedoms establishes standards for the treatment of employees and the use of French in the workplace.
Bill 96, An Act Respecting French is an important amendment to the Quebec Charter. It establishes new responsibilities for employers that ensure French is the predominant language of work and business in the province.
The Act Respecting Labour Standards and other employment laws apply to all employees in the province. Some employees are partially exempt, such as senior managers, agricultural workers, seasonal plant employees, and home care workers, who are overtime exempt.
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.
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Hiring an employee in Quebec is a straightforward process if you have a established presence in the province or have engaged an Employer of Record. If you are hiring in Quebec for the first time, you will have to navigate setting up a local subsidiary, opening accounts and establishing local payroll. Working with an Employer of Record allows you to skip all of that. An employer of record like Canadian Payroll Services will sign a compliant employment contract with your candidate and then provide an orientation call for their payroll, benefits, and HRIS.
Hiring remote workers in Quebec can take between 1-2 weeks when you work with an Employer of Record.