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Types Of Employment Contracts In Canada

There are so many Types Of Employment Contracts in Canada. It is important to understand the differences, so you can be able to figure out the best type of work that would suit your needs, profile, education (if any), goals, etc.

Permanent Employment

The most common form of employment in Canada is permanent employment. In this position, the employee usually gets a package that involves base salary, health benefits and perhaps some other perks such as bonuses, company stock option plans, personal incentives, etc. Permanent employees often have opportunities for education and personal development.

For this type of position, Normally,  there are different payroll deductions both employee and employer must pay such as the Canada Pension Plan, Income Tax, Employment Insurance (EI), Union Dues (if applicable), etc. Also, this type of employee is qualified for government support (Employment Insurance payments) in the case he or she loses a job for no fault of their own.

Contract/Freelance Employment

An individual can also be employed on contract (or as a freelancer), which is usually all about being paid a fixed amount of money for a particular project with no additional benefits. However, it is possible for contract workers to be allocated benefits in addition to their pay. However, this type of worker can be hired to address a particular problem that exists for a limited time, say several months and that contract worker must leave the company once the contract expires unless a new, longer-term contract is negotiated.

Contract employees are not required to make deductions for the employment insurance or the Canada pension plan, except they are elect to do so. Income tax is paid at the end of each year and in some cases, contract employees may be eligible for employment insurance, however, this has to be determined by the Human Resources and Skills Development Canada and the  Canada Revenue Agency through an interview process.

In order to become a contract employee, most companies usually prefer that you have a registered corporation in order for them to avoid some contingent liabilities if they arise. However, this is not obligated by law. To freelance, you’ll need an individual GST number, which can be obtained from Revenue Canada without having to open a business.

Part-time Employment

Many jobs exist in Canada that offer occasional, weekend, evening, partial day or daily part-time employment. Most of which are service jobs, and are mostly available in the hospitality industry, food stores, retail stores and so on. Depending on the company, these types of jobs are paid differently but they usually pay the minimum wage (currently the average is CAD$10.15 per hour).

Other Types of Employment

There are also other types of employment such as summer jobs, internships, co-operative, seasonal, unpaid voluntary work and so on. Depending where you are in Canada and/or your affiliation with an educational institution, you may get different opportunities.

Volunteering in Canada

Many employers prefer to hire people with experience of working in Canada. If you are studying or have the financial resources to dedicate a few weeks Or few hours per week to volunteer with a non-profit organization in Canada, that could be an advantage when you look for a job because of the following two reasons:

  • You will have proof of “Canadian Experience”
  • You will have demonstrated your concern for others and your willingness to help without expecting benefits. Most Canadian employers will consider those who volunteer before those who do not

You can also see how to detect a fake Canadian job offered to you.