Canada: Operating a Business

Enterprises Federation

Canada Business
Businessman Information

Search a Company or a Financial Report

COCANADA

Business Setup Procedures

For Further Information

Consult Doing Business Website, to know about procedures to start a Business in Canada.
Canada Business

The Competent Organization

Registering a company can be done through the office of a notary or a lawyer. Each province has a provincial or regional office to make registering easier. Numbered companies are registered within 10 days. In Quebec this is the department of the Enterprise Registrar.

Recovery Procedures

Principle

Going into receivership is possible when it is not possible to pay creditors all they are owed. First, it is advisable to call on a trustee. He will present an offer proposal to the company's creditors. Presenting a proposal stops all the legal procedures started or envisaged by ordinary creditors. It gives the company a certain leeway, allowing it to discuss its financial situation.
For further information about bankruptcy, consult the Office of the Superintendent of Bankruptcy Canada. 

Minimum Debt-to-Capital Ratio Triggering Liquidation

Proof of insolvency must be established by a trustee. See the database of the office of trustees.

Bankruptcy Laws

Bankruptcy and Insolvency Act.

Reorganization and Rehabilitation Laws

Act C-12, the act amending the Bankruptcy and Insolvency Act, the Companies' Creditors Arrangement Act, the Wage Earner Protection Programme Act and chapter 47 of the Statutes of Canada (2005), received royal approval on 14 December 2007. The date of enforcement has not yet been decided.
To see a summary of changes in legislation, click here.

Source: Statistics Canada

For Further Statistics

Statistics Canada

For Further Information About the Labor Market

Quebec Ministry of Labour
Ontario Ministry of Labour

Opening Hours

 

• Legal Weekly Duration

40 or 48 hours according to the province

• Maximum Duration

There is no maximum. On the other hand, there is a minimum of 3 hours a day. An employer who brings in a worker must pay him for 3 hours even if he only works one hour.

• Night Hours

4 pm to 8 am

Working Rest Day

24 to 48 hours

Paid Annual Vacation

4% of salary from the 1st to the 5th year of work, and 6% after the 5th year except for the clothing industry where it is 4% for less than a year, 6% for 1 to 3 years, 8% for 3 years or more.
The equivalent number of days is as follows: 1 year's work = 5 days paid. 2nd to 5th year = 2 weeks paid. 5 years and more = 3 weeks.

Retirement Age

In Canada, the labor laws do not specify the age of retirement for workers, except in the case of certain professions such as the military, judges and firemen.

Child Labor and Minimum Age For Employment

The working age may vary according to the province. Several provinces have set the age at 18 or after the end of secondary studies. Some provinces have more flexible laws and the age is determined by the type of work and the number of hours a day.

Informal Labor Market

In 2004, "moonlighting" corresponded to about 5% of the volume of paid work and it is growing each year in spite of public awareness campaigns.

Pay

Minimum Wage

The minimum wage in Quebec is 8.20 CAD/hour, and 8.25 CAD for the clothing industry and 7.25 CAD for workers who receive tips. In Ontario, the minimum wage is 8.75 CAD. In British Columbia 6 CAD/hour for a first job and 8 CAD for a 2nd job.

Average Wage

CAD 38,998 per year.

Other Forms of Pay

• Pay For Overtime

In Quebec the rate stays the same, unless there is a prior agreement.
In Ontario, over 44 hours a week, each hour worked is paid 1.5 times more.

• Pay For Rest Days Worked

Public holidays are paid double.

• Pay For Night Hours

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• Pay For Overtime at Night

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Social Security Costs

The Areas Covered

Employment insurance, health insurance, pensions.

Contributions

Contributions Paid By the Employer: Employment insurance EI (1.4% up to 584 USD in Quebec and 720 USD for the other provinces), Health insurance RAMQ (2.7%), Canada Pension Plan CPP - QPP (4.95%), Quebec Parental Insurance Plan RQAP (0.583% for the employer).
The rate of health insurance varies according to the province.
Contributions Paid By the Employee: Employment insurance EI (1.46% up to 584 USD in Quebec and 720 USD for the other provinces), Canada Pension Plan CPP - QPP (4.95%), Quebec Parental Insurance Plan RQAP (0.416%)
The rate of health insurance varies according to the province.

Competent Organization

Revenu Québec (Quebec Revenue Agency)
Canada Revenue Agency
Health Insurance Quebec
Ontario Department of Health
Health Insurance British Columbia
New Brunswick Department of Health

Recruitment

Method of Recruitment

Companies still use adverts in newspapers or employment agencies or search engines specialized in job offers. On the other hand, applications are made more and more by Internet or fax, and there is often a first interview over the telephone followed by a face to face meeting.

Recruitment Agencies

The Canada Job Bank and the Quebec employment centres are the official agencies.

Recruitment Websites

Jobboom
Jobaction
Monster
Beljob
Aide Emploi
Workopolis

The Contract

Dispute Settlement

Social Partners

Social Dialogue and Involvement of Social Partners

The labour organizations and trade unions are very strong and well structured in Canada. Quebec is the most unionized province.

Unionization Rate

22.9 % of part-time workers, 31.2% of full-time workers, 30.2 % of permanent workers, 25.8 % of non-permanent workers. These rates have dropped in companies of less than 20 employees and in those of 100 to 500 employees. On the other hand, they have risen in establishments of more than 500 employees and those of 20 to 99 employees.

Unions

FTQ - Quebec workers federation
CSN - Canada national federation of labour organizations and trade unions
CLC-CTC - Canadian Labour Congress
NUPGE - National Union of Public and General Employees
TCA-CAW - Canada Automobile Workers Union
CUPE - Canadian Union of Public Employees

Regulation Bodies

Human Resources and Social Development Canada