Are you thinking about expanding your workforce by recruiting employees outside the province of Ontario? It cannot be denied that there are many benefits of remote work, for example: no commute, fewer distractions, and individualized workspaces can result in remote workers being more productive than their office counterparts. In addition, with the improved work-life balance that comes with remote work, retention increases while absenteeism decreases.
Remote work settings are not a good fit for all, however, if you feel your organization may benefit from remote workers, read on to explore some of the responsibilities that come along with it.
Employment Standards
ESA Exception (Part III s. 3 (1))
The employment standards set out in this Act apply with respect to an employee and his or her employment if,
- The employee’s work is performed in Ontario; or
- The employee’s work is to be performed in Ontario and outside Ontario but the work performed outside Ontario is a continuation of work performed in Ontario
Even if your organization is based in Ontario, the province in which your employees reside designates their employment standards. This means that your legal responsibilities as an employer increase, and you may be required to track many more employment laws in order to maintain compliance. Given that employees’ sick days, statutory leave entitlements, public holidays, etc. will vary from province to province, some employers choose to adopt “the greater benefit.” Meaning, whichever province has the greatest entitlement, will be applied to all employees. This can become costly and can be applied in many but not all circumstances. The alternative is carefully managing each employee individually, depending on their province of residence. To do this, your systems and your administrative/support personnel must be well equipped to do so.
Health and Safety
Similarly to employment standards, the Occupational Health and Safety standards that apply to employees will depend on their province of residence.
It’s also important to remember that the Occupational Health and Safety Act (OHSA) extends to your remote workers within Ontario, which was solidified in the Working for Workers Five Act, 2024. This means that employers are responsible for maintaining safe work environments, even where a worker performs their work at their residence. Remember that health and safety also extends to mental wellbeing, which can be a challenge for remote workers due to isolation. If you have or are considering remote workers, ensure your safety programs include items like ergonomics, adequate lighting and equipment, and mental health.
Compensation and Benefits
For income tax, CPP and EI withholding purposes, your organization must determine the province of employment (POE). The POE is determined by:
- The type of income
- The residency of the employee
- The establishment of the employer where the employee reports for work
Note that the establishment, as mentioned above, does not need to be a permanent physical location.
Visit the CRA website to determine the POE.
In addition to determining the POE, you also want to regularly evaluate pay structures in consideration of internal equity and varying cost of living, as well as asses benefit offerings. With healthcare in Canada primarily being administered at the provincial level, you will want your benefits provider to have the flexibility to provide fair plans for all employees.
Remote Work Policy
Whether you have employees working remotely within or outside Ontario, it’s best to have a Remote Work Policy which clearly defines guidelines and expectations. Here is a non-exhaustive list of items to include in your policy:
- Expectations regarding communication, availability, and responsiveness
- Other performance and productivity standards
- Information about tools, equipment, and supplies
- IT and technical support standards i.e. internet speed, privacy/security, VPN, multi-factor authentication, public networks, etc.
- What to do if injury occurs
- Home office standards i.e. ergonomics and safety
Hiring remote employees can open up exciting opportunities, but added complexity and careful consideration accompany it. Before expanding your talent search, ensure you are well informed and equipped to meet your legal and HR responsibilities. If you’re not sure where to start, contact the team at people@rlb.ca or visit their website at people.rlb.ca!
