40 hours, overtime > 40 hours/week or > 8 hours/day
National Holidays
New Year’s Day
Good Friday
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 10 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 6 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
In the Northwest Territories (NWT) of Canada, employers are responsible for several costs per employee, primarily related to mandatory contributions and deductions. Here’s a breakdown:
1. Canada Pension Plan (CPP) Contributions:
Employer Contribution Rate: Matches the employee’s contribution at 5.95% of pensionable earnings.
Maximum Annual Contribution (2025): $4,034.10 per employee.
2. Employment Insurance (EI) Premiums:
Employer Contribution Rate: 1.4 times the employee’s contribution rate of 1.64%, resulting in an employer rate of 2.296%.
Maximum Annual Premium (2025): $1,508.47 per employee.
3. Workers’ Safety and Compensation Commission (WSCC) Premiums:
Employer Contribution Rate: Varies based on the industry classification and the employer’s safety record. Rates are determined annually by the WSCC.
4. Payroll Tax:
Rate: The NWT imposes a 2% payroll tax on employees’ gross income. While this tax is levied on employees, employers are responsible for withholding it from employees’ pay and remitting it to the Government of the Northwest Territories.
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
There is no specific legislation on labour leasing, but temporary staffing agencies must adhere to employment standards and safety regulations.
Minimum Wage Requirements
The minimum wage is $16.05.
Medical Benefits
Each province provides a medical health plan. There is no requirement for medical benefits, but employers must adhere to employment contract terms if provided.
Probationary Periods
The probationary period lasts for 90 days, during which no termination notice is required.
Termination Notice
The termination notice requirements are as follows: Employees with 90 days to 3 years of service require 2 weeks of notice. Those with 3 to 4 years of service require 3 weeks of notice, and employees with more than 4 years of service require 4 weeks of notice.
Severance
If the worker is laid off after one year or more of continuous employment, the worker is entitled to severance pay. The worker shall have the following options:
Separation Assistance – severance pay of two weeks’ pay per year for the first ten complete years of continuous employment and three weeks’ pay for each succeeding complete year of continuous employment. The total amount of severance pay, which may be paid under this sub-clause, shall not exceed 65 weeks of pay.
Severance Priority – severance pay for two weeks pay for the first complete year of continuous employment, two weeks pay for the second complete year of continuous employment and one week of pay for each succeeding complete year of continuous employment. The total amount of severance pay, which may be paid under this sub-clause, shall not exceed 28 weeks of pay. You shall be provided priority staffing for eighteen months from the last day of the lay-off notice period.
Retraining – during the three month notice period, be eligible for this option if:
three years of continuous employment;
there is a specific vacant position or anticipated vacancy for which no other lay-off qualifies and you may become qualified with retraining; and
the worker and the Employer agree that the retraining can be completed within 12 consecutive months.
Education Assistance -eligible for this option if:
three years of continuous employment;
the proposed program of study relates to positions within the Government; and
proof of acceptance in an educational program.
Education assistance is calculated at 80% of your current salary for a period of up to 12 months.
Pre-hire Checks
Pre-hire checks are permitted with consent and must be relevant to the job.
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