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When Working from Home Makes Employment Jurisdiction Difficult to Pin Down
Remote work has made it easier than ever for employers to hire talent across Canada, and for employees to work from wherever they happen to log in. But when a company is based in one province and an employee works from another, a seemingly simple question can become surprisingly complicated: which province’s employment laws apply?
That question is much easier to answer when the employee has a written employment agreement that clearly states the governing law or the jurisdiction of the employment relationship. However, without such language, the answer may depend on various factors, such as where the employee actually performs the work, where the employer conducts its business, whether the employee ever attends a physical office or work site in the employer’s province, where payroll is administered, and whether any specialized rules apply to the employer’s industry.
In many cases, the province where the employee physically lives and works is highly relevant. For example, an Ontario-based company that hires an employee who works exclusively from Alberta may need to consider Alberta employment standards for that employee, even if the company does not have any offices in Alberta. However, this analysis is not always automatic, and the wording of the employee’s contract, the nature of their work, and the nature of the employer’s operations can all factor into the analysis.
Why the Province Matters
Employment standards are not uniform across Canada. Each province has its own employment standards legislation and rules for minimum employment entitlements, including things like hours of work, overtime, vacation, leaves of absence, public holidays, and termination notice. If the wrong province’s legislation is assumed to apply, the result may be an underpayment, or a broader compliance problem.
Contract for Clarity
A well-drafted employment agreement or remote work policy can reduce uncertainty by identifying the employee’s expected work location, addressing whether the employee may relocate, and setting out the parties’ understanding about governing law.
For employers, it is important to review agreements, policies, payroll practices, and compliance obligations before hiring or approving remote work in another province. For employees, it is important not to assume that the law of the employer’s head office automatically governs every issue. Where you typically perform your work may matter just as much as where your employer is located.
When in Doubt, Get Advice
Cross-provincial remote work arrangements are fact-specific. If there is no clear jurisdiction clause in the employment agreement, or if the employee has moved provinces during employment, it is worth getting legal advice before making assumptions about termination entitlements, payroll obligations, or workplace compliance.
This post is meant to provide information only and is not intended to provide legal advice. Although every effort has been made to provide current and accurate information, changes to the law may cause the information in this post to be outdated.
