Your benefits plan is already being evaluated online by candidates. This guide walks Canadian SMBs through a 6-step benefits audit to identify gaps, stay competitive, and avoid losing talent during fast-paced spring hiring.

Offboarding employees in Canada is never easy, and beyond the awkward conversations, employers must navigate complex employment standards legislation. This guide explains how to handle individual terminations, including reviewing contracts, documenting performance issues, preparing termination letters, and running final payroll. It also emphasizes respectful communication, offering support, and safeguarding company property during the offboarding process. Employers must carefully determine termination and severance pay obligations, which vary by province and can be impacted by factors like tenure, contracts, and business size. The blog highlights the differences between termination pay and severance pay, as well as payment methods such as lump-sum or salary continuance. For large layoffs, group termination rules add another compliance layer with federal and provincial requirements. By understanding these regulations and leveraging tools like PaymentEvolution’s Offboarding Assistant, businesses can stay compliant while treating employees fairly and professionally.

Terminating an employee in Canada isn’t just an awkward conversation—it’s also a legal minefield shaped by complex employment standards legislation. A major challenge for business owners is understanding the difference between termination pay and severance pay. Termination pay, or pay in lieu of notice, compensates employees during their notice period if they’re dismissed without cause. Severance pay, by contrast, helps employees transition financially after losing their job and is often tied to tenure, payroll size, and provincial rules. The blog explores how these requirements vary across provinces, including examples from Ontario and Alberta. It also clarifies when employers might owe both types of pay simultaneously, depending on factors like years of service and payroll thresholds. To simplify compliance, PaymentEvolution’s Offboarding Assistant automatically calculates obligations for severance, termination, and vacation pay. This ensures employers stay compliant while treating employees fairly during offboarding.

Holiday layoffs have become a rising trend in Canada, with companies like CBC announcing major cuts amid financial pressures. For employees, this means unexpected financial and emotional strain during what should be a season of rest. For businesses, mishandling layoffs risks legal consequences, reputational damage, and plummeting morale. Navigating Canadian employment law—severance pay, notice periods, and compliance—is daunting, especially under public scrutiny. PaymentEvolution’s Offboarding Assistant helps employers calculate termination pay accurately, follow legislation, and manage the process more smoothly. Beyond compliance, empathetic offboarding—clear communication, support resources, and dignity—matters most. By blending technology with human empathy, businesses can handle holiday layoffs responsibly while preserving trust and respect.

The Canada Pension Plan (CPP) enhancements for 2024 introduce major payroll and pension changes for employers and employees. The Year’s Maximum Pensionable Earnings (YMPE) rises to $68,500, while a new ceiling—the Year’s Additional Maximum Pensionable Earnings (YAMPE)—is set at $73,200. Earnings in this new band are subject to CPP2 contributions at 4% (8% for self-employed). For businesses, this means higher matching costs and updated CRA remittances. Employees will notice CPP2 contributions on their T4s, but payroll software like PaymentEvolution automates compliance. Long term, contributors benefit from higher retirement, survivor, and disability pensions—boosting income replacement from 25% to 33.33% over 40 years.

The Offboarding Assistant, launched in June 2023, is Canada’s first digital tool that simplifies employee terminations by translating complex provincial labour laws into clear, automated calculations. Developed by Carleton University researchers Annabelle Sauve and Katie Van Luven with Dr. Raj Singh’s lab, the assistant uses a dialogue-based approach to ensure compliance while keeping the user experience simple. After navigating unclear legislation and technical hurdles, the team created an intuitive solution that helps small businesses avoid costly errors and remain compliant — a unique innovation in Canada’s HR tech space.

Employment legislation can be daunting for small businesses, leading to costly compliance mistakes. Our whitepaper introduces a digital assistant that uses AI and machine learning to interpret employment standards, automate compliance, and generate detailed audit-ready reports. Designed for speed, accuracy, and minimal data entry, this tool empowers Canadian SMEs to navigate complex laws with confidence, save time, and reduce administrative burdens.

Staying compliant with employment standards is overwhelming for small businesses, but non-compliance is costly. That’s why we created the Offboarding Assistant – a first-of-its-kind digital tool built in Canada to simplify termination pay compliance. Using machine learning, it interprets provincial labour laws, asks only the necessary questions, and calculates obligations for severance, vacation, and holiday pay. With a built-in “stay out of jail” (SOOJ) approach and detailed PDF reports, businesses can save time, avoid penalties, and protect both employers and employees.