Do seasonal workers work for you?
Date: November 2010
Publication: 2010 Fall Issue of Canadian Grapes to Wine
Winery and vineyard owners deal with an increased demand for workers during certain seasons and the employment of casual labour is often a great way to deal with these fluctuations. If you have a small group of permanent, year-round employees and hire additional workers to meet your increased demands in the spring through fall, there are a few things you should consider.
Set appropriate expectations for your workers.
Permanent workers are typically skilled so your focus should be on retention and professional development. Seasonal and casual workers are not generally expected to have high levels of competency, but will be expected to complete the work with minimal training. When employing seasonal workers, key characteristics to look for are reliability, availability, and willingness to work hard.
Consider using a farm labour contractor.
Farm labour contractors can hire and manage casual workers on your behalf through an agreed contract price. This can relieve you of the hassle of researching employer regulations yourself and managing casual employees directly, while also providing more experienced and reliable workers. If this is the method you choose, ensure that your contractor has a current, valid license to operate.
Take advantage of government support.
Navigating through employer regulations when hiring transient or foreign workers can be daunting, but there are programs to assist with meeting the requirements. More information on the Temporary Foreign Worker Program can be obtained through the Human Resources and Skills Development Canada website at: www.hrsdc.gc.ca.
Ensure foreign workers have their paperwork in order.
A foreign worker will need a work permit and should have a TD1 form, which will be certified by a designated government official in his/her home country. All persons working in Canada must possess a unique Social Insurance Number (SIN), including foreign workers. An eligible person who is not a Canadian citizen or a permanent resident is assigned a SIN beginning with the number “9”. If an employee doesn’t have a SIN card, you must inform him/her within three days of employment of how to get one. Information on how to apply can be obtained from Service Canada’s website at: www.servicecanada.gc.ca.
Create a simple checklist for hiring new employees.
Whether your seasonal workers are Canadian or foreign, there are a few things that you will need from them.
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SIN card verified and recorded on their TD1 form
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TD1 completed federally and provincially (which can be obtained electronically through the Canada Revenue Agency (CRA) website at: www.cra.gc.ca)
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Permanent address for their T4
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Agreement on safety issues and employment conditions
Ensure that you understand provincial labour standards.
Employment labour standards vary by province; they include the minimum rates of pay, frequency of payment, age of employment, hours of work, working conditions and specific employer responsibilities. Special rules also apply to agriculture workers. You can find more information for British Columbia at: www.labour.gov.bc.ca or by contacting the applicable ministry of labour in your province.
Ensure you have collected and remitted the appropriate payroll deductions.
From the first dollar your employee earns, you are responsible for collecting and remitting the appropriate payroll deductions. One of the risks that employers face with casual workers is that, once they have left your employment, there is limited opportunity to collect non-deducted employee amounts. On an individual basis, this may seem like a trivial amount; however, these costs can add up when multiplied by several employees. Tables are provided by the CRA, both electronically and in printed form. Your accounting professional can also assist in simplifying this process for your business.
With research, understanding and planning, employers can ensure that their labour force needs are met during peak seasons while limiting their risk of non-compliance and penalties.
The BDO Winery Services Team may be reached at 250 492 6020 or 1 800 993 3313, or by email at: wineries@bdo.ca.