Remote Work: Understanding CRA Guidelines
Remote work arrangements have risen in the post-COVID era, and with the CRA’s new guidance for remote work as of January 1, 2024, it is imperative for employers to review their employment contracts to better understand their obligations, particularly with respect to determining the worker’s place of employment.
Under previous guidance, the employee’s place of employment was determined by the physical location where the worker performed their duties. Under the new guidance, employers must first determine if a full-time remote work agreement exists, and whether the employee can be considered as “attached to the employer’s establishment.” In that case, the employee’s place of work will be determined by the physical location of that establishment. Additional factors include where the employee attends in-person meetings, where they receive instructions, and where the employer is response for their supervision.
However, it’s important to note that the CRA guidelines for the place of employment only apply to tax implications, such as deductions, government pension plans, and employment insurance. They do not apply to employment issues such statutory employment standards, occupational health and safety, human rights, and common law entitlements. These issues are determined by a number of factors, including employment contracts and the relationship between the employer and employee’s relative locations.
How can Whitten and Lublin help?
If you are an employer looking to determine your remote employee’s place of work, or review employment contracts to better understand the jurisdictional issues, Whitten & Lublin is here to assist you. Contact us online or by phone at (416) 640-2667.
Author – Aaron Zaltzman