In Canada, a company is either an employer or they are not. Terms such as “employer of record” can be misleading when it comes to navigating the employment relationship. The details of the relationship are what really matter in the eyes of the law.
Do you know if your GEO/PEO/EOR qualifies as a legitimate employer? Its simpler than you think to make this determination. Simply use the six-point criteria below.
01 REVENUE CANADA APPROVAL
Written confirmation from Revenue Canada (the US equivalent of
IRS) recognizing that the PEO is the legitimate employer. In addition,
the PEO is registered as an employer with Revenue Canada and
has full remittance numbers as an employer.
02 DEGREE OF CONTROL
The degree of control an employer has over the employee
constitutes an important factor in determining who the actual
employer is. Confirm the extent of control the PEO has over their
03 CONTRACTUAL RELATIONSHIP
Contractual agreements such as an employment agreement
should be in place to clarify who the employer is and tie the
employment relationship to the governing labour legislation.
04 HR SERVICES PROVIDED
- Performance Evaluations
- Discipline & Termination
- Safety & Training
- Group Benefits
It is strongly encouraged that the PEO work with fully accredited HR
professionals on the day-to-day employee issues to ensure
compliance and minimized risk.
The PEO is registered with Workers’ Comp as an employer in the
jurisdiction under which it operates. They maintain liability insurance
for their employees.
Need support? Reach out to the team of professionals at The OI Group for help navigating Canadian employment relationships.