Last week, we covered one issue that might be of interest to those wanting to do business in Canada: employment contracts. This week, we would like to highlight another section of Norton Rose Fulbright Canada’s guide to Doing business in Canada: employee benefits and pensions.
In Canada, employee benefits and retirement income programs are provided through a combination of public plans, private employer-sponsored plans and self-directed plans.
Public plans vary from province to province. Most are established and managed by the federal or relevant provincial governments and are funded through general tax revenues or employer and/or employee contributions. Whether an employee is eligible to these plans may depend on whether or not that employee has or is working.
Private plans are established and funded by employers for the benefit of their employees although, in some cases, the costs of providing the benefits are paid, in part, by the employees.
Whatever the nature of the plan, they are often expensive to maintain and will have significant cost implications for any acquisition.
The chapter on Employee Benefits and Pensions in our guide to Doing business in Canada goes into further detail on public and private plans. It also addresses applicable laws, due diligence on the acquisition of an existing business, and the purchaser’s approach to pension and employee benefit plans.
For more on Doing business in Canada in which we provide a general overview of the principal corporate, tax and other legal considerations for foreign businesses wishing to establish or acquire a business in Canada, visit our website.