Hiring a remote worker in another province is\u00a0a great way\u00a0to\u00a0access\u00a0a\u00a0larger talent pool. But it also\u00a0means\u00a0complying with\u00a0employment, occupational health and safety, and other legal requirements in the province where the employee works. When an employer hires someone who lives or works outside the\u00a0headquarters\u2019\u00a0province,\u00a0there are\u00a0six\u00a0key\u00a0questions\u00a0employers should answer\u00a0to\u00a0help\u00a0ensure\u00a0remote work compliance with\u00a0the\u00a0laws\u00a0that\u00a0apply\u00a0to\u00a0remote\u00a0employees.\u00a0Without the advice of a trusted HR professional or employment lawyer, that chance can quickly turn into an expensive gamble.<\/p>\n\n\n\n
For a start, tax and payroll obligations, employment standards, health and safety legislation, workers\u2019 compensation premium calculations, and contract requirements. And the wording of your remote work policy all needs to be ironclad. Overlooking even one of these areas exposes employers\u00a0to payroll\u00a0errors, statutory breaches, and costly legal issues. Often, these problems only appear after something has gone wrong.<\/p>\n\n\n\n
The employment laws that apply to a remote worker in Canada are\u00a0generally\u00a0determined\u00a0by where the work is physically performed.\u00a0Federally regulated employers follow the\u00a0Canada Labour Code<\/em>\u00a0regardless of\u00a0the\u00a0province\u00a0or territory\u00a0in which\u00a0the employee works. But most employers are governed by the employment standards legislation of the province or territory where the remote worker lives and\u00a0performs their\u00a0work.\u00a0Payroll and source deductions\u00a0generally follow\u00a0the\u00a0Canada Revenue Agency\u2019s (CRA)\u00a0province of employment rules. Occupational health and safety obligations apply\u00a0under the laws of the\u00a0jurisdiction\u00a0in which\u00a0the employee\u00a0works,\u00a0including\u00a0employees working from home.<\/p>\n\n\n\n Since the COVID-19 pandemic, when remote work became the \u201cnew normal,\u201d many employers changed their recruitment strategies to source talent across Canada. Occasionally, this included adding a jurisdiction or jurisdictions where the employer may not have a regular business presence. Recruiting remote workers can expand an employer\u2019s talent pool and allow for greater flexibility. However, there are some important factors employers should consider when introducing remote work arrangements outside their own jurisdictions.<\/p>\n\n\n\n For employment income tax and payroll deduction purposes, a worker\u2019s province or territory is based on the CRA\u2019s province of employment rules. The province of employment is based on:<\/p>\n\n\n\n An establishment of the employer is any place or premise in Canada owned, leased, or rented by the employer and where one or more workers report to work or from which one or more workers are paid. An employee\u2019s home office is generally not considered an establishment of the employer.<\/p>\n\n\n\n If a worker reports to an employer\u2019s establishment in person, then the worker\u2019s province or territory of employment for employment income tax and payroll deduction purposes is the one in which the establishment is located and where the worker reports to work.<\/p>\n\n\n\n Where an employee works remotely full-time and doesn\u2019t physically report to an employer\u2019s establishment, the employer must determine if a full-time remote work agreement exists and whether the employee is reasonably attached to an establishment of the employer to determine their province of employment. The CRA sets out factors that must be used to determine whether an employee is considered attached to the establishment of the employer.<\/p>\n\n\n\n Employers must complete an analysis of these factors to determine an employee\u2019s province of employment.<\/p>\n\n\n\n The Canada Labour Code<\/em><\/a> applies to federally regulated employers<\/a> and their employees, regardless of the province or territory in which the employee works. <\/p>\n\n\n\n Most often, the law of the province or territory where the work is performed governs the employment relationship. For example, a remote worker who physically lives and works exclusively in Alberta but has been hired by an Ontario-based employer is governed by Alberta\u2019s Employment Standards Code<\/em>.<\/a><\/p>\n\n\n\n However, some employment standards legislation provides exceptions. For example, under Ontario\u2019s Employment Standards Act, 2000<\/em> (ESA)<\/a>, an employee whose work is based in Ontario but who travels outside Ontario in the course of their employment is likely still subject to Ontario\u2019s ESA, as their work outside the province is a continuation of the work performed in Ontario.<\/p>\n\n\n\n If a worker moves to a different province or territory and then performs work from that jurisdiction, it\u2019s likely that the employment standards legislation of that new province or territory will apply. However, the precise answer depends on the legislation of the jurisdictions involved and the circumstances of the worker\u2019s employment.<\/p>\n\n\n\n Generally, employers must comply with the occupational health and safety legislation of the jurisdiction where they have employees performing work. Employers with employees working in more than one province or territory may be subject to the OHS legislation of multiple jurisdictions.<\/p>\n\n\n\n In\u00a0many\u00a0jurisdictions, \u201cworkplace\u201d is defined broadly\u00a0enough\u00a0so\u00a0that it\u00a0applies\u00a0when an employee\u00a0is working from home. Employers\u00a0should assess\u00a0a remote worker\u2019s home workstation\u00a0for health and safety risks (like ergonomic risks). They should also\u00a0take reasonable steps to ensure\u00a0that those risks are eliminated or minimized. Employers should also have a plan\u00a0in place\u00a0for\u00a0reporting and\u00a0responding to remote work injuries.<\/p>\n\n\n\n Statutory health and safety obligations differ among provinces and territories. Employers should investigate and understand the potential differences and nuances in legal obligations across provinces and territories.<\/p>\n\n\n\n It is generally the province or territory where the work is performed that determines the province or territory where workers\u2019 compensation premiums are payable.<\/p>\n\n\n\n All workers\u2019 compensation boards in Canada have signed an interjurisdictional agreement (IJA). It\u00a0establishes\u00a0rules for\u00a0determining\u00a0where\u00a0premiums\u00a0are payable\u00a0and\u00a0which\u00a0workers\u2019 compensation\u00a0board has\u00a0jurisdiction\u00a0over a claim. Under this IJA, employers\u00a0may\u00a0be\u00a0required\u00a0to\u00a0pay\u00a0premiums\u00a0to\u00a0one or more\u00a0workers\u2019 compensation boards\u00a0in the\u00a0jurisdictions\u00a0where workers perform work, regardless of whether the employer has a physical office there. The IJA does not apply to certain employers or to industries or occupations that are\u00a0exempt from\u00a0mandatory workers’ compensation coverage in a particular jurisdiction.<\/p>\n\n\n\n If a worker performs work in more than one Canadian province or territory, the employer may need to prorate the worker\u2019s earnings and pay premiums on those prorated earnings based on where the work was performed.<\/p>\n\n\n\n Different considerations may apply when an out-of-province arrangement is only temporary. Some workers\u2019 compensation legislation includes coverage for employees who are injured at work while temporarily working outside a particular province or territory.<\/p>\n\n\n\n Employers should consult the workers\u2019 compensation board in their current\u00a0jurisdiction. Always confirm the process and arrangements when contemplating having a new or existing employee\u00a0work\u00a0in a different\u00a0jurisdiction.<\/p>\n\n\n\n For new remote hires who will be employed or working remotely in another province or territory, include the following provisions:<\/p>\n\n\n\n Be sure to\u00a0review\u00a0and update\u00a0existing contracts. Or, draft new ones for employees who already have employment contracts and who intend to begin working in a different province or territory.<\/p>\n\n\n\n Employers should implement a remote work policy\u00a0that clearly sets out expectations\u00a0for their workers. <\/p>\n\n\n\n Diligently review requests to work outside Canada and engage the appropriate subject matter experts. Questions requiring due diligence about remote work compliance include:<\/p>\n\n\n\n Employers should consider the nuances of remote work compliance among Canada\u2019s jurisdictions before implementing any new out-of-jurisdiction\u00a0working arrangements. Considering potential jurisdictional issues beforehand and putting the requisite agreements, policies, and procedures in place at the start can help you avoid unforeseen legal issues.<\/p>\n\n\n\n Ensure your HR and remote work compliance requirements are met. Start building a safer, more resilient organization that meets all legislative requirements, no matter where your employees work.<\/p>\n\n\n\n Check out our <\/strong>Ultimate Guide to HR Compliance in Canada<\/strong><\/a>.<\/p>\n\n\n\n – Or <\/strong>–<\/p>\n\n\n\n Download our handbook on the <\/strong>Core Policies That Every Policy Manual Needs<\/strong><\/a> today<\/strong>.<\/p>\n\n\n\n Save time administering projects and strategies. Start moving them forward with Canadian-made software and advice services that support remote work compliance, like:<\/strong><\/p>\n\n\n\n Connect with our experts<\/a> or explore our package pricing options<\/a> today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Employers should consider the nuances of remote work compliance among Canada\u2019s jurisdictions before implementing any new out-of-jurisdiction\u00a0working arrangements. Considering potential jurisdictional issues beforehand and putting the requisite agreements, policies, and procedures in place at the start can help you avoid unforeseen legal issues.<\/p>\n","protected":false},"author":26,"featured_media":19326,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[40],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.citationcanada.com\/fr\/wp-json\/wp\/v2\/posts\/5028"}],"collection":[{"href":"https:\/\/www.citationcanada.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.citationcanada.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.citationcanada.com\/fr\/wp-json\/wp\/v2\/users\/26"}],"replies":[{"embeddable":true,"href":"https:\/\/www.citationcanada.com\/fr\/wp-json\/wp\/v2\/comments?post=5028"}],"version-history":[{"count":14,"href":"https:\/\/www.citationcanada.com\/fr\/wp-json\/wp\/v2\/posts\/5028\/revisions"}],"predecessor-version":[{"id":19328,"href":"https:\/\/www.citationcanada.com\/fr\/wp-json\/wp\/v2\/posts\/5028\/revisions\/19328"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.citationcanada.com\/fr\/wp-json\/wp\/v2\/media\/19326"}],"wp:attachment":[{"href":"https:\/\/www.citationcanada.com\/fr\/wp-json\/wp\/v2\/media?parent=5028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.citationcanada.com\/fr\/wp-json\/wp\/v2\/categories?post=5028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.citationcanada.com\/fr\/wp-json\/wp\/v2\/tags?post=5028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The workplace shift that outlived the new normal: Remote work compliance<\/strong><\/h3>\n\n\n\n
1. How is a remote worker\u2019s province or territory of employment determined?<\/strong><\/h2>\n\n\n\n
\n
If the employee reports to work in person<\/strong><\/h3>\n\n\n\n
When the employee works remotely full-time<\/strong><\/h3>\n\n\n\n
2. Which employment legislation applies to the remote worker?<\/strong><\/h2>\n\n\n\n
If federally regulated<\/strong><\/h3>\n\n\n\n
If governed by provincial or territorial legislation<\/strong><\/h3>\n\n\n\n
If a worker moves from one jurisdiction to another<\/strong><\/h3>\n\n\n\n
3. Which health and safety legislation applies to the remote worker?<\/strong><\/h2>\n\n\n\n
4. How should workers\u2019 compensation premiums and compensation be paid?<\/strong><\/h2>\n\n\n\n
Remote work compliance when work is performed in multiple jurisdictions<\/strong><\/h3>\n\n\n\n
5. What should be included in employment contracts?<\/strong><\/h2>\n\n\n\n
\n
When should a remote work policy be given?<\/strong><\/h3>\n\n\n\n
6. What about in remote work arrangements outside of Canada?<\/strong><\/h2>\n\n\n\n
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\n\n\n\nIs your policy manual up to date with the latest employment legislation?<\/strong><\/h2>\n\n\n\n
\n\n\n\nEnsure remote work compliance and drive employee engagement with a trusted HR leader by your side.<\/strong><\/h2>\n\n\n\n
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