Companies Turn to Human Resource Outsourcing to Ease Growing Pains
TORONTO, Feb. 22, 2012 /CNW/ - While opening an office in Canada is an
exciting way to expand into new markets, companies unfamiliar with the
differences between the Canadian and American employment landscape can
face many challenges. To ensure the transition is successful, it is
vital that a company understand the legislative differences between
Canada and the U.S., and the consequences of overlooking those
differences. For example, it pays to be aware that in Canada most
employees are entitled to up to 52 weeks protected maternity/parental
leave, and "at-will employment" does not exist.
Companies who fail to adhere to Canada's employment laws can find
themselves in time consuming and costly litigation. Canadian employees
have access to publicly funded legal resources, more time to file a
complaint, and can win large settlements through the Human Rights
Tribunal. Employees can also file complaints against an employer
through Employment Standards Tribunals, again at no financial cost to
the employee but at a significant burden to the employer.
The good news is that there are many resources available to assist new
companies in Canada to navigate the employment law minefield.
Companies can obtain information from government bodies, and can hire
an employment lawyer or a Human Resource Manager well versed in
Canadian legislation. However, for companies who lack the time and
funding, or prefer more flexibility, another solution is to use a total
Human Resource Outsourcing Provider. This is distinct from a
Functional Human Resource Outsourcer that specializes primarily in one
area of HR, such as job placement or payroll.
A total Human Resource Outsourcing Provider is the solution for a
company needing Canadian expertise in all areas of Human Resources and
employment. Such a company will build and implement a Human Resource
infrastructure that is not only in compliance with Canadian
legislation, but fits with the needs and culture of a U.S. company in
Another valuable option for new companies in Canada is a total HR
Outsourcing Provider that can offer Third Party Employment services,
becoming the employer-of-record for some or all employees if a company
lacks the infrastructure to be an employer themselves. This employment
can be short term or long term based on the company's needs. As the
employer, the Third Party Employer should ensure all employment laws
are adhered to and should handle employee payroll, tax remittance,
workers' compensation, registration, separation paperwork, performance
management and conflict resolution, while keeping day-to-day management
of the employee in the client company's hands.
Navigating the Canadian employment law landscape is certainly possible
with education and aligning yourself with the right partners.
About HR Options
HR Options is a total Human Resource Outsourcing Provider in Canada and
the U.S. with a proven track record. HR Options' expert consultants
offer Human Resource Consulting Services and Third Party Employment
Services that are cost effective and flexible in accordance to client
See our website Resources page for a free webinar "Operating in Canada: Do's and Don'ts".
SOURCE HR Options, Inc.
For further information:
Kathryn Benson, Senior Consultant