Easter Monday (not a statutory holiday in all provinces)
Victoria Day
Canada Day
Civic Holiday (not a statutory holiday in all provinces)
Labour Day
Thanksgiving Day
Remembrance Day (statutory in some provinces)
Christmas Day
Boxing Day (not a statutory holiday in all provinces)
Leave
Paid general holidays include 7 days – such as New Year’s Day and Canada Day – while vacation benefits consist of 2 weeks after 1 year of employment (equivalent to 4% of wages) and 3 weeks after 8 years (equivalent to 6% of wages).
Employment Contracts
No federal or provincial law mandates written employment contracts but they are highly recommended to address locally mandated issues.
Types of Employment
There are two types of employment: Employees and Independent Contractors.
Employment Costs
Mandatory Employer Costs
a) Canada Pension Plan (CPP) Contributions
Employers match the employee’s contribution.
2024 Rate: 5.95% on earnings between $3,500 and $68,500 (YMPE).
Maximum Employer Contribution (2024):$3,867.50 per employee.
b) Employment Insurance (EI) Premiums
Employers pay 1.4 times the employee’s EI contribution.
2024 Rate: 2.282% on insurable earnings up to $63,200.
Maximum Employer Contribution (2024):$1,442.08 per employee.
c) WorkSafeNB (Workers’ Compensation) Premiums
Employers must register and pay WorkSafeNB premiums.
Rates vary by industry (e.g., office work is lower than construction).
The 2024 average rate is $1.31 per $100 of assessable earnings, but industry-specific rates may be higher or lower.
Employers can check exact rates via WorkSafeNB’s online rate guide.
d) Vacation Pay
Minimum 4% (2 weeks’ pay) for employees with less than 8 years of service.
Minimum 6% (3 weeks’ pay) for employees with 8+ years of service.
Must be paid out annually or accrued.
e) New Brunswick Health and Post-Secondary Education Levy (Payroll Tax)
Applies to businesses with annual payroll over $1.5 million.
Tax rates:
0% if payroll is under $1.5 million.
2.5% on payroll over $1.5 million.
IC Class Factors
Independent Contractor (IC) classification factors include the following: Degree of control of worker; Provision of own tools; Financial risk in own business; Responsibility for hired workers; Chance for profit; Degree of integration into the client’s work flow; Intent of the parties; Written contract
Labor Leasing
Labour leasing agencies must comply with employment standards, and the use of temporary workers does not exempt companies from adhering to applicable laws.
Minimum Wage Requirements
The minimum wage is $15.65 as of April 1, 2025.
Medical Benefits
Each province manages medical benefits. There is no requirement for medical benefits, but employers must adhere to employment contract terms if provided.
Probationary Periods
The probationary period lasts for 6 months, during which no termination notice is required.
Termination Notice
The employer may choose to pay the employee the
wages the employee would have earned during the
applicable two or four week notice period instead of
providing a written notice.
Period of employment
(1) Less than 6 months No notice required
(2) More than 6 months, less than
five years – 2 weeks notice in writing, or
2 weeks pay
(3) 5 years or more – 4 weeks notice in writing, or
4 weeks pa
Severance
See the Termination Notice section
Pre-hire Checks
Pre-hire checks are permitted with consent and must be relevant to the job.
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