Are You a Legitimate Employer in Canada? Find Out in 6 Simple Steps.
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. In order to ensure you are a legitimate employer in Canada, keep reading and will explain.
Do you know if your GEO/PEO/EOR qualifies as a legitimate employer in Canada? Its simpler than you think to make this determination. Simply use the six-point criteria below.
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.
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 employees.
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.
HR SERVICES PROVIDED
- Performance Evaluations
- Recruitment
- Discipline & Termination
- Policies
- Safety & Training
- Group Benefits
CREDENTIALS
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.
LIABILITY
The PEO is registered with Workers’ Comp as an employer in the jurisdiction under which it operates. They maintain liability insurance for their employees.
Are You a Legitimate Employer in Canada? Find Out in 6 Simple Steps.
SPEAK TO A CANADIAN PEO EXPERT TODAY!
1.800.668.9852
Also, visit our Canada HR Essentials website for all your Canadian HR needs. Providing comprehensive HR solutions since 1981.
Need support? Reach out to the team of professionals at The OI Group for help navigating Canadian employment relationships.