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Probation periods (‘probationary periods’) are permitted in employment contracts in Canada. This means that it is easier for the employer to terminate employment of the contract during this period.
Note, probation periods are permitted but they are not required.
Probationary periods are a common feature in Canadian employment. This designated period at the start of employment allows both the employer and the employee to assess their suitability for the role and the workplace. Employers evaluate the new hire’s skills, performance, and overall fit with the company’s needs while employees use this time to decide whether the job and company culture align with their career goals and values.
While probationary periods are standard practice, they’re not legally mandated across Canada. The specific regulations governing probationary periods largely depend on the province or territory of employment.
Employment contracts play a crucial role in defining and shaping probationary periods in Canada. They offer a way to tailor the probation process while ensuring both the employer and employee understand their rights and obligations, making it a smoother and more predictable experience.
Here’s a breakdown of how employment contracts and probation periods interact in Canada:
Not Always Mandatory, But Highly Recommended
While Canadian law doesn’t always require written employment contracts, they are strongly encouraged. A well-drafted contract offers significant protection and clarity for both employers and employees.
Probationary Periods Within Contracts
Probationary periods are common features in Canadian employment contracts. A clear contract should define the following:
Probationary employees in Canada retain many fundamental workplace rights, even though termination might be easier during this period. Here are some key areas:
The Canadian Human Rights Act (federal) and provincial/territorial human rights codes prohibit discrimination based on protected characteristics like race, gender, disability, religion, sexual orientation, and others. This applies throughout employment, including during probation.
If an employer dismisses you during probation based on a protected characteristic, you could have grounds for a human rights complaint.
Each province and territory sets its own minimum wage and overtime pay rules through Employment Standards Acts. These apply to all employees, including those on probation. You cannot be paid less than the minimum wage or denied overtime pay as legally entitled.
Federal and provincial/territorial occupational health and safety legislation mandates safe workplaces. Employers must identify hazards, provide safety training, and implement measures to protect your well-being. You have the right to refuse unsafe work.
Probationary employees may be eligible for certain unpaid leaves like parental leave or bereavement leave, depending on the specific provincial/territorial regulations and the duration of your employment.
Even during probation, employers cannot terminate you for discriminatory reasons or in retaliation for exercising your legal rights. If you are dismissed, it’s crucial to request a written explanation for termination, especially if you suspect it might be unfair or discriminatory.
Canadian employers must comply with various federal, provincial, and territorial laws. These obligations apply to all employees, even those within their probationary period.
The Canadian Human Rights Act (federal) and provincial/territorial human rights codes prohibit discrimination on protected grounds such as race, gender, disability, religion, sexual orientation, and others.
Employers must create and maintain workplaces free from discrimination and harassment.
Each province and territory has its own Employment Standards Act or similar legislation. These set out rules on:
Federal and provincial/territorial occupational health and safety legislation mandates safe and healthy workplaces. Employers must identify hazards, provide safety training, and implement measures to protect workers.
Employers generally must provide reasonable notice or pay in lieu of notice. Exceptions might exist for serious employee misconduct.
Employers have additional responsibilities under areas like:
Even during a probationary period, the core obligations listed above still apply. Employers cannot use probationary status as an excuse for non-compliance.
Probationary periods offer advantages to both employers and employees in Canada:
For employers, probation period provide a valuable extended window to assess a new hire’s performance, work habits, and overall suitability within the company culture. This real-world observation period allows for early intervention if performance issues arise.
Employers can then address these concerns by offering training or corrective action to get the new employee on track. Additionally, in some provinces, probation periods offer more flexibility in termination for cases of severe unsuitability, minimizing the risks associated with a long-term bad fit.
From the employee’s perspective, probation periods provide a dedicated time to evaluate whether the job aligns with their skills, expectations, and career goals. It’s a chance to assess the company culture and determine if it’s a good fit for them. Probation also offers a valuable learning and adaptation period.
New employees gain a deeper understanding of their specific job duties, build rapport with colleagues, and adjust to the workplace dynamics. If the job ultimately isn’t the right match, probation allows them to move on during this initial period with potentially less impact on their employment history compared to a later resignation.
Effective management during a probationary period in Canada benefits both employers and employees. Here are some best practices to ensure a smooth and successful experience:
From the outset, clearly communicate the expectations for the role, including performance benchmarks and key objectives. Outline the probationary period’s length and the process for providing feedback. Utilize resources like the Canadian Centre for Occupational Health and Safety’s (CCOHS) resources on performance management to establish a fair and transparent framework.
Regular check-in meetings allow for open communication, enabling the employee to ask questions, clarify tasks, and receive constructive feedback on their progress.
Probation is a two-way street. Offer opportunities for the new employee to learn and develop. Provide them with the necessary resources, training programs, and mentorship to succeed in their role.
Encourage them to shadow experienced colleagues and actively participate in team projects. This not only builds their skills but also fosters a sense of belonging within the company culture.
Consider involving them in professional development opportunities or industry webinars to demonstrate your investment in their growth. By investing in their development, you increase their chances of success within the company and during their probationary period.
Your business can easily hire employees in Canada without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
If during the first 3 months of a standard probationary period, no notice is required. For extended probationary periods lasting over 3 months, notice of 1-2 weeks may be required, depending on applicable provincial/territorial labor laws.
Employee’s are not required to give resignation notice during the probationary period, unless resigning above 3 months into an extended probationary period. In cases above 3 months, 1 weeks’ notice is generally required.
The standard probationary period lasts for 3 months in Canada.
Once the contract of employment has been agreed to and signed by the employee, it is not possible to extend the probationary period. However, some employers insist on extended probationary periods, usually lasting for 6 months.
Yes, employers generally have the right to terminate an employee’s contract during the probationary period without notice or pay in lieu thereof, with or without cause, as long as it is not based in discrimination. To mitigate the risk of litigation, justification for the termination should be provided.
Employees do not have to give resignation notice if they resign within the first 3 months of a probationary period. Above 3 months of continual employment, the required resignation notice ranges from 1 weeks’ notice (3 months to 1 year) up to 8 weeks’ notice (8 years+).
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Headquarters – Singapore
71 Robinson Road #13-153
Singapore 068895
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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