Requirements for Hiring Employees in Quebec

Hire staff in Canada with NNRoad’s services. Contact NNRoad to discuss how we can help you hire staff legally and compliantly. Read on below for an overview of hiring employees in Quebec.

Contract of Hiring Employees in Quebec

Two types of employment contracts can be found – fixed-term or open-ended. Contracts can be written or agreed upon orally.

The Revenue Agent Model is the most common method of employment, entailing that benefits and payroll are administrated by the local company. The company should also be registered as an employer.

Immigration Requirements

Employers must obtain a Quebec certificate of acceptance, or CAQ, for their employees. The employee must receive a work permit from the Citizenship and Immigration Office in Canada once the CAQ application is accepted.

HR & Labor in Quebec

Working hours: Full-time employees will work 40 hours a week, specifically 8 hours a day. Employers must have a written agreement with employees if they choose a workday that is longer than 8 hours. Employees should receive a break after 5 hours of consecutive work. If an employee has worked overtime, they will be paid 1.5 of the set wage.

Minimum working age: Employees can start working at the age of 14 but should not work during school hours between ages 14-17.

Payroll Services in Quebec

Paydays are discussed and decided by employees and employers. Salaries are disbursed to employees either bi-weekly, bi-monthly, or monthly.

Social Security in Quebec

Quebec labor law sustains than an employee is required to make contributions to the Quebec Pension Plan (QPP) for employees working in Quebec and to Employment Insurance (EI) based on annual earnings. Contributions made by an employee are creditable against that individual’s federal and provincial income tax liability.

EI is a federal payroll tax required to be deducted from an individual’s remuneration if the individual is employed in Canada and is receiving insurable employment earnings. The employer is responsible for withholding and remitting the individual’s portion as well as remitting the employer portion.

Social Security Deductions in Quebec

The CPP operates throughout Canada, except in Québec, where the Québec Pension Plan (QPP) provides similar benefits.

Quebec Pension Plan contributions are required to be deducted from an individual’s remuneration if the individual is employed in Quebec, between ages 18 and 70, and receiving pensionable earnings.

Annual contribution rates in Quebec:

Employee Contribution Rates: 

• Quebec Pension plan: 5.4% of the employee’s annual gross salary.
• Employment  Insurance: 1.30% of the employee’s annual gross salary.
• Total cost: From 6.70%

Employer Contribution Rates: 

• Quebec Pension plan: 5.4% of the employee’s annual gross salary.
• Employment Insurance (EI): From 1.103% to 1.238% of employee’s annual gross salary.
• Health Service Fund (HSF): CAD 1 million or less: 2.3% of employee’s annual gross salary.
• Health Service Fund (HSF): More than CAD 5 million: 4.26% of employee’s annual gross salary.
• Total cost: From 8,803% to 10,898%

*Note:

• Canadian Dollar (CAD)

Individual Income Tax & Benefits in Quebec

Individual Income Tax

Individuals file taxes on an annual basis. Individuals in Quebec are subject to income tax of Quebec on worldwide annual income.

*Note:

• Canadian Dollar (CAD)

Personal Deductions

Deductible non-business expenses include alimony and maintenance payments, certain child care expenses, and eligible moving expenses for relocation within Canada.

Personal Allowances

Individuals are also able to deduct 15% of the following fees/expenses: pension income, tuition fees, interest on student loans, medical expenses, adoption, charitable donations, government pension plan, and employment.

Federal personal allowances in Quebec take the form of tax credits:

Basic personal amount: CAD 15,012

The amount for an eligible dependent: CAD 15,012

Pension income amount: CAD 2,805

Age Amount: CAD 3,158

*Note:

• Canadian Dollar (CAD)

VAT/ GST Rates

5% GST & 9.975% QST

Employee Termination Policies in Quebec

Quebec labor law sustains that an employer must give the employee a written notice of termination of employment before terminating his contract of employment or laying him off for a period of more than 6 months.

At the end of a contract for a fixed term or if the employee has completed the task for which he had been hired, the employer is not required to give this notice.

However, an employer is not required to give a notice of termination of employment to an employee credited with less than 3 months of uninterrupted service.

The time periods for giving the employee the notice vary according to his length of uninterrupted service.

Length of uninterrupted service

3 months to 1 year/ One week noticed period

1 to 5 years/ 2 weeks notice period

5 to 10 years/ 4 weeks notice period

10 years or more/ 8 weeks noticed period

Severance Pay

The term “collective dismissal” refers to circumstances in which an employer terminates 10 or more employees over a period of two months. Special rules and notice requirements must be followed.

Probationary Period in Quebec

The average probationary period in Canada is one day short of three (3) months. If an employee has worked for less than three months, no notice of termination or severance pay is required. After this, at least two weeks’ notice or wages in lieu of notice is required in the event of termination.

Rest & Holiday Leaves in  Quebec

Annual Leaves:

Maternity leave

Quebec labor law sustains that employees are entitled to a maternity leave without pay of a maximum duration of 18 continuous weeks.

Vacation Leave

The length of the vacation is established based on the employee’s period of uninterrupted service. As for the amount of the indemnity, it varies according to the wages earned during the reference year in effect in the enterprise.

Public Holidays

Québec employees are entitled to an indemnity or a compensatory leave for each of the following statutory holidays

• New Year – January 1
• Bank Holiday – January 2
• February 12 (British Columbia only)
• Islander Day – February 19 (Prince Edward Island only)
• Heritage Day – February 19 (Nova Scotia only)
• Family Day – February 19 (Alberta, New Brunswick, Ontario and Saskatchewan only)
• Louis Riel Day – February 19 (Manitoba only)
• Heritage Day – February 23  (Yukon only)
• Good Friday – March 30
• Easter Monday – April 2
• Victoria Day (National Patriots’ Day in Quebec) – May 21
• Quebec’s National Day – June 24 (Quebec only)
• Discovery Day – June 25 (Newfoundland and Labrador only)
• Canada Day – July 1
• Orangeman’s Day – July 9 (Newfoundland and Labrador only)
• Thanksgiving Day – November 22
• Christmas Day – December 25
• Boxing Day – December 26

Want to know more about hiring employees in Quebec, Canada? Contact NNRoad to help successfully expand your business to Quebec or any other international destinations!