Hiring an employee is an exciting milestone for any small business. It also creates legal duties that begin the moment you make an offer. Getting those obligations right from the start protects your company and sets a professional tone for your workplace.
Before you recruit, think about the type of working relationship you need. Will this person be a true employee, or would an independent contractor arrangement make more sense? Employees are covered by the Employment Standards Act and other workplace laws, while contractors are not — but calling someone a contractor doesn’t make it so. If you control when, where, and how they work, they may be legally considered an employee regardless of what the contract says.
Once you know the role, prepare a clear written employment agreement. It should describe the job title, pay, work schedule, vacation, benefits (if any), and how either side can end the relationship. One clause deserves special attention: the section setting out how you may terminate employment and what compensation will apply. That language must comply with BC’s employment standards and be carefully drafted to avoid creating extra obligations. It’s best to have a lawyer prepare or review at least this part of the contract so you know it meets legal requirements and will hold up if challenged.
When you officially hire, you take on payroll duties. You will need to register for a payroll account with the Canada Revenue Agency, withhold income tax, Canada Pension Plan contributions, and Employment Insurance premiums, and remit them on schedule. Employment standards also require you to keep proper records of wages, hours, and statutory holiday pay.
Beyond the paperwork, think about workplace safety and respectful culture. BC’s occupational health and safety rules apply even to small teams, and employers must prevent bullying and harassment. A short orientation and clear policies make expectations obvious for everyone.
Taking care with these steps may feel like extra work at first, but it saves headaches later. You’ll start your business on solid footing and create a positive experience for your new hire.
Planning to add staff to your business? Book a consultation for guidance on contracts, payroll, and workplace standards — including properly drafted termination language — before you make an offer.
