When it comes to hiring and managing employees, it’s crucial for businesses to be aware of their legal obligations and have the necessary resources in place. This article provides a comprehensive guide to various aspects of human resources, including hiring employees, engaging independent contractors, workplace regulations, and useful tools for managing Staff.

Hiring Employees

  • Legal obligations according to the Ontario Employment Standards Act
  • Determine your hiring needs and create a detailed job description.
  • Post the job to attract suitable candidates.
  • Shortlist and interview applicants.
  • Select the successful candidate and provide training and orientation.
  • Consider seeking assistance from employment agencies to avoid costly hiring mistakes.
  • It’s a good idea to have an employee job description and an employment contract along with an Employee Handbook.

Employer Obligations

Employees generally have an exclusive, and sometimes long-term, relationship with the employer. If it’s long-term stability that your organization requires, choosing to hire a full-time or part-time employee typically gives you the consistency, dependability and availability that you desire.

  • Employees can be categorized as either: Indefinite (full-time or part-time)—established start date with no set end date (employment continues until either party chooses to end the relationship) or fixed-term (full-time or part-time)—established start and end dates
  • Employees have specific entitlements under employment standards legislation that must be met by the employer
  • Employers have mandatory, statutory obligations with respect to salary deductions and remittances (e.g. CPP and EI payments).
  • Register for EI Benefits for Self Employed Individuals
  • Employers are responsible for any notice and severance requirements as prescribed by employment standards legislation, at a minimum.

Hiring Independent contractors or consultants

An independent contractor (or consultant) is typically someone who can provide you with short-term, niche expertise to support your business needs. Whatever your requirements, there is expertise available, locally or internationally. Check out the CRA Guide on hiring independent contractors.

  • Independent contractors are not employees and do not have employee benefits or covered by the employment standards legislation.
  • Independent contractors assume the risk of having the project or assignment cancelled midstream and have control over when, how and where work is completed.
  • Independent contractors often work with other companies at the same time and generally use their own equipment
  • Independent contractors submit invoices to the company to receive payment for the work completed.
  • You are not responsible for paying the independent contractor’s taxes or any other payments required by the Canada Revenue Agency (CRA).

You are not obligated to pay for any notice or severance and you may terminate the agreement subject to the terms in the contract.

Human Resource Links

Business Advisory Centre Durham (BACD): Offers free advisory meetings for business owners. Schedule yours by calling 905.668.4949 or clientservices@bacd.ca