Contracts in Canada

Overview by

The Active Population in Figures

Main Indicators 20062007
Labor Force 17 592 80017 945 800
Labor Force (Annual Growth, %) --
Rate of Activity (%) 63.063.5
Unemployment Rate (%) 6.36.0

Source: Statistics Canada

Employed Persons, by Occupation (% of Total Labor Force)
Management 10.4%
Business, finance and administration 17.5%
Natural and applied sciences and similar professions 6.4%
Health sector 5.2%
Social sciences, teaching, public adminstration and religion 6.8%
Arts, culture, sport and leisure 2.8%
Sales and services 24.5%
Trades, transport and machinery 14.1%
Professions proper to the primary sector 4.3%
Processing, manufacturing and public services 7.7%

Source: Statistics Canada

For Further Statistics
Statistics Canada
For Further Information About the Labor Market
Quebec Ministry of Labour
Ontario Ministry of Labour

Management of Human Resources



Method of Recruitment
Companies still use adverts in newspapers or employment agencies or search engines specialized in job offers. On the other hand, applications are made more and more by Internet or fax, and there is often a first interview over the telephone followed by a face to face meeting.
Recruitment Agencies
The Canada Job Bank and the Quebec employment centres are the official agencies.
Recruitment Websites
Aide Emploi

The Contract

Type of Contract
Work contracts are governed by law. Collective agreements and individual negotiation supplement it.
The formalities of the work contract, hiring conditions and dismissal constraints are rigid.
Breach of Contracts
  • Retirement
There are several ways of retiring: early retirement, automatic retirement and official retirement.
  • Dismissals
The employer initiates dismissals for different reasons:
- redundancy is either individual or mass redundancy
- dismissal for professional misconduct, lack of work, seasonal work
  • Other Possible Methods
Resignation; this is initiated by the employee. On the other hand, he does not receive any severance pay.
Labor Laws
Service Canada, Employment
Labour legislation, on Human Resources and Social Development Canada
Labour Code - Compliance Policy

Dispute Settlement


Conciliation Process

Cases of Dispute
Working conditions, unfair dismissal, sexual and moral harassment, verbal violence, physical violence
  • Legal Framework
When there is a dispute or a disagreement, the parties first try to come to an amicable agreement. If, however, they cannot come to an agreement, the worker must lodge a complaint with the Department of Human Resources. According to the complaint, the Minister can appoint an inspector who carries out an investigation. The Minister assesses, authorizes the settlement and the sentences to be served by the party in the wrong. The party in the wrong does have, however, a right of appeal to have the case reviewed within a precise time limit.
For further information, see the Canada Labour Code.
  • Procedure
Canada Labour Code

Judicial Structures

  • Legal Framework
Canada Labour Code.
  • Competent Legal Body
See the Canada Labour Code.

Social Partners

Social Dialogue and Involvement of Social Partners
The labour organizations and trade unions are very strong and well structured in Canada. Quebec is the most unionized province.
Unionization Rate
22.9 % of part-time workers, 31.2% of full-time workers, 30.2 % of permanent workers, 25.8 % of non-permanent workers. These rates have dropped in companies of less than 20 employees and in those of 100 to 500 employees. On the other hand, they have risen in establishments of more than 500 employees and those of 20 to 99 employees.
FTQ - Quebec workers federation
CSN - Canada national federation of labour organizations and trade unions
CLC-CTC - Canadian Labour Congress
NUPGE - National Union of Public and General Employees
TCA-CAW - Canada Automobile Workers Union
CUPE - Canadian Union of Public Employees
Regulation Bodies
Human Resources and Social Development Canada

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