Canada: Employee Benefits & Compensation

Canada's federal government has announced significant temporary changes to Employment Insurance in response to escalating U.S. tariffs, including extended benefit periods and new flexibility for workers who voluntarily left previous jobs. These measures, part of a $7.5-billion support package, will directly impact how Canadian employers navigate workforce decisions during the trade dispute.

La Cour d'appel de l'Ontario a récemment statué qu'un employeur ne peut exiger qu'un employé renonce à sa rémunération en actions non acquise lors de la cessation d'emploi, augmentant les dommages-intérêts de 4,7 millions $ US. Cette décision dans l'arrêt Wigdor c. Facebook Canada Ltd.

In many industries, it is common for workers to incorporate and provide their services through their corporation. Oftentimes, workers want to take advantage of the tax benefits that come with incorporation, including a lower corporate tax rate and deductions only available to corporations. In other cases, the worker may feel incorporation is necessary to obtain work. Although personal incorporation is legitimate, workers who do pursue this incorporation should be wary that the Canada Revenue Agency (CRA) may classify them as a Personal Services Business, a tax classification that effectively strips away the tax benefits a corporation can normally take advantage of.