Communication, sensitivity, transparency help employees with big move to Canada
When hiring an employee in another country and relocating her to Canada, a main objective is to minimize the stress and inconvenience to the worker.
There are considerable legal, logistical and settlement issues that must be addressed in a relatively short time frame. The more transparent the process is to the employee, the greater the likelihood the relocation will be a positive experience for her and any accompanying family.
Employers can alleviate many of the usual concerns by understanding the challenges facing these employees and being sensitive to the power imbalance between an employer and an employee. A worker in a foreign jurisdiction may not have immediate access to appropriate advice in accepting an employment offer.
This is the start of the relationship with the prospective employer and care should be taken to ensure it is not perceived as a take-it-or-leave-it situation.
The employer should provide as much information as possible — such as HR policies or manuals that address benefits and obligations — so the employee can make an informed choice. The employee should also be given sufficient detail to evaluate the need to seek legal advice and be advised of legal referral services.
Covering the basics
There are a number of issues employees will need to address, with the employer’s help:
Job description: An employee is entitled to a detailed job description to better understand the job expectations. This should address major duties and whether there will be a need to travel in or outside of Canada.
Risks: The employee should fully understand the risks. For example, if she decides to change employment or accommodation before completion of the work permit process, it would normally be at her own risk unless the employer expressly has agreed otherwise.
Time frame: The employee will need a predictable timeline for the immigration process. How long will the documentation take to process (including work or study permits)? Are there issues that may impact eligibility to obtain a work permit or admissibility to Canada? When should the employee provide notice of termination for her current employment, sever an accommodation lease or wind up family affairs?
Before the process begins, the employee should also know the employer’s position if delays occur around immigration or documentation — will the offer remain in place?
Family: It is important to evaluate the legal status of any family members. For example, if a child is not accompanied by both custodial parents, the employee must present evidence of her relationship to the child and present a legal agreement or court order verifying her care of the child and the child’s relocation to Canada.
Taxes: Departure from a home jurisdiction may trigger departure taxes. This can impact assets held in stock portfolios or the timing of bonus payments. There may be an advantage to transferring pensions. It is a good idea for the employee to obtain tax advice before entering Canada to ensure an appropriate tax plan has been designed and implemented.
Expenses: The employee should know who will be responsible for the payment of direct costs, such as the relocation of family and household goods, immigration (for the employee and family), a spousal work permit, services to assist with spousal employment and children’s study permits.
Termination provisions
Corporate downsizing is a real possibility in an unpredictable employment market, so an employee should have the following questions answered:
• Will the family continue to enjoy health-care coverage and for how long?
• Who will pay for any additional coverage?
• Will the employee have access to the employer’s facilities to commence an alternate job search?
• Will an employment search service be offered?
• How will the termination payment be made — full payment or over time — and is the employee exposed to loss of payment if the employer ceases to carry on business during the notice period?
• How will a termination impact the employee’s immigration status?
• How long can she stay in Canada and is she able to seek alternate employment?
• Can the spouse continue to work on his open work permit?
• Will the children need study permits and what is the role of the employer in helping to acquire supporting documentation?
Arrival considerations
Relocation information can be provided in an employee information kit that contains details on immediate settlement matters such as acquiring a social insurance number, enrolling in a school or clearing customs. The information should be accessible at a dedicated employee site that can be updated as policies are amended and information added, with government links for additional information.
When it comes to health insurance, the employee should be particularly concerned about the appropriate coverage for all family members. There is normally a 90-day waiting period for coverage, depending on the destination province. It is critical to ensure the appropriate private insurance is in place and there is a clear understanding as to who will arrange for and pay for this insurance.
Employees holding temporary status in Canada are subject to terms and conditions. They should be aware of their obligations and ensure there are no breaches of the following:
Duration: The employee must keep track of dates and ensure there is an extension of status applied for in Canada before the duration of employment expires, or the date upon which the employee and family members must leave Canada.
Location: If the employee is planning a change of employment location, she must first secure a new work permit, with the new location, before commencing employment.
Occupation: If the employee will be promoted or assigned to a new position, careful consideration must be given to whether the work permit should be amended to reflect this new job. If a new work permit is required, it must be secured before the new position is assumed.
Employees may be anxious to know whether the employer will support a decision to seek permanent resident status. Some employers stipulate in the relocation policy that support is provided after a specified period (such as six months). This support includes assisting in legal and filing fees and documentation required in the permanent resident process.
Howard Greenberg is a partner with the human resources law firm of Greenberg Turner in Toronto. He can be reached at (416) 943-0288.
