A thriving business is built on the strength of its employees, making it essential not only to attract top talent but also to retain them by offering competitive benefits. Ensuring that your workforce receives the full range of protections and benefits they're entitled to under national employment standards is crucial for fostering a positive and productive work environment. In Canada, expecting mothers and new parents are entitled to comprehensive maternity and parental leave benefits, allowing them to focus on their families without the added financial stress of unpaid leave.
Whether you're looking to hire in Canada or establish a business here, understanding employee leave entitlements and benefits is essential. To make your planning easier, we’ve put together a comprehensive guide on maternity and parental leave in Canada.
Want to learn more? Keep reading for key details on maternity and parental leave benefits, and how to keep your business compliant while supporting your employees.
Maternity and parental leaves vs. benefits
In Canada, maternity and parental benefits are provided through the federal Employment Insurance (EI) program to eligible employees, offering financial support during their leave. These benefits, which are consistent across the country, represent the payments an employee receives from EI while they are on maternity or parental leave.
Maternity leave is often used as a blanket term to refer to both maternity leave (up to 15 weeks) and parental leave (ranging from 35 to 61 weeks), even though they are two separate entitlements under Canadian law.
Typically, maternity leave is taken first, allowing new mothers to recover from childbirth and bond with their newborn. Parental leave usually follows, providing additional time to care for the child. Both parents can share the parental leave, and in some cases, they can take it simultaneously, depending on their eligibility and the employer’s policies.
One important consideration is that once an employee selects a specific benefit type, they cannot change it after submitting their application.
Maternity and parental leave
Maternity leave generally begins at 15 weeks before the due date, but in some provinces, it may extend up to 19 weeks. When it comes to parental leave, employees have two choices: standard or extended leaves. Standard parental leave allows up to 52 weeks off, which can be shared between both parents, with a maximum of 35 weeks available to any one parent. Extended parental leave offers up to 78 weeks off, which can be shared between parents, with one parent being eligible for up to 61 weeks.
It’s important to distinguish between maternity and parental leave. Maternity leave is specifically given to the pregnant person and usually starts either just before or immediately after childbirth. Parental leave, on the other hand, is available to both parents and applies whether they are caring for a newborn or an adopted child. Keep in mind that the exact duration and rules for these leaves can vary by province, which is explained further in the table below.
Paternity leave in Canada
In Canada, there typically is no specific “paternity leave” designated for fathers. Instead, parental leave is available to both parents, allowing either or both to take time off to care for their child, whether biological or adopted.
Maternity and parental leave by province
Canada consists of various provinces and territories, each with its own set of employment standards that determine the specific leave entitlements for parents. While federal benefits through Employment Insurance (EI) are consistent across the country, the length of maternity and parental leave can vary depending on provincial regulations.
The table below outlines the maternity and parental leave entitlements across Canada, showcasing the variations in leave lengths and any additional region-specific benefits. This guide helps both employers and employees stay informed about their rights and obligations in each province.
Maternity and parental benefits for Canadian employees
Canadian employees are eligible to receive maternity benefits equal to 55% of their earnings, up to a maximum of $668 a week.These benefits are consistent across the country. To receive these benefits, the individual must provide proof of pregnancy by signing a statement declaring the expected due date or the actual birth date.
For parental leave, employees can choose between standard or extended benefits. Standard benefits grant employees 55% of their earnings, with the same maximum of $668 per week, while extended benefits grant employees 33% of their earnings, capped at $401 per week. It is important to note that while surrogates are eligible to receive maternity benefits, they do not qualify for parental benefits.
To claim parental benefits, the parent must sign a statement confirming the child’s date of birth, or in cases of adoption, the placement date along with the name and address of the adoption authority. In situations where the child is not legally adoptable, parental benefits may still be payable if the parent declares that the placement is considered permanent. In these cases, the Commission may request additional proof certifying that the child has been placed by a recognized authority and that the arrangement is not temporary.
In unfortunate cases of miscarriage, pregnancy termination, or stillbirth, employees may still be eligible for financial support. If the pregnancy ends before the 20th week, employees can apply for Employment Insurance (EI) sickness benefits. However, if the pregnancy ends at or after 20 weeks, employees are entitled to maternity benefits, though paternal benefits are not available in these cases.
How to qualify for maternity and parental benefits
To qualify for maternity or parental benefits, an individual must meet the following criteria:
- Insurable Employment: They are employed in insurable employment.
- Maternity benefits: The individual must be pregnant or have recently given birth.
- Parental benefits: The individual must either be a biological, adoptive, or legally recognized parent caring for their newborn or newly adopted child.
- Income Reduction: Their regular weekly earnings have decreased by more than 40% for at least one (1) week.
- Insured Work Hours: They have accumulated at least 600 insured hours of work in the 52 weeks before the start of the claim or since the start of the last claim, whichever period is shorter.
Eligibility Period for Maternity and Parental Benefits
Maternity Benefits
Employees can begin receiving maternity benefits as early as 12 weeks before their due date or the date they give birth. However, they must start claiming these benefits no later than 17 weeks after the birth or their due date, whichever happens later.
Parental Benefits
Parental benefits must be claimed within a set timeframe, beginning from the week the child is born or, in the case of adoption, the week the child is placed with the individual.
The applicable timeframes are as follows:
- Standard Parental Benefits: These benefits must be claimed within 12 months (52 weeks) of the child’s birth or placement.
- Extended Parental Benefits: Employees must claim these benefits within 18 months (78 weeks) of their child’s birth or placement.
Employees must provide their employer with at least four weeks’ notice before taking leave. They are also responsible for planning and applying for their maternity benefits in advance. Additionally, employees are also required to give notice to their employees at least four weeks before they plan to return to work.
How to Apply for Maternity and Parental Benefits
To determine if an employee qualifies for these benefits, they will need to submit an online application. The online system will guide the applicants step-by-step through the process, providing detailed instructions to fill out the form correctly.
What Information Do Employees Need to Apply?
When applying for Employment Insurance (EI), employees will need to provide the following personal information:
- Social Insurance Number (SIN): If the SIN begins with a 9, the applicant must also provide proof of immigration status and a valid work permit.
- Last name at birth of one of the applicant's parents.
- Mailing and residential addresses, including postal codes: If the individual does not have a permanent address, they must apply in person at the nearest Service Canada Centre.
- Banking details for setting up direct deposit, including:
- Name of the financial institution
- Branch (transit) number
- Account number
For individuals who are currently or were recently employed, the following information is required:
- The names and addresses of all employers from the past 52 weeks, including the dates of employment and the reasons for separation from each job.
- A detailed explanation if the individual resigned or was dismissed from any of these positions.
- The dates and earnings of the highest-paid weeks (Sunday to Saturday) within the last 52 weeks or since the start of the most recent EI claim, whichever is shorter.
This information, along with the Record of Employment, will be used to calculate the weekly EI benefit amount.
Who pays for the benefits
Maternity and parental leave benefits in Canada are primarily funded by the federal government through the Employment Insurance (EI) program. To access these benefits, both employees and employers contribute to EI premiums through payroll deductions. Employees pay a percentage of their insurable earnings into EI, while employers contribute 1.4 times the employee contribution. These premiums help fund maternity and parental leave payments.
While Canadian employers are not required by law to provide financial support during maternity or parental leave, many companies choose to offer top-up benefits. This top-up is a voluntary payment from employers, designed to supplement the EI benefits, often bringing the employee’s income up to 100% of their salary. The amount and duration of top-up benefits can vary widely depending on company policies and employment contracts.
For instance, some employers may provide top-up benefits for a portion of the leave, such as the first 12 weeks, while others may offer it for the entire leave period. These top-up programs are often part of a company’s broader employee benefits package and are aimed at promoting employee retention and satisfaction during parental leave.
It's also worth noting that some industries and unions in Canada negotiate top-up benefits as part of collective agreements, meaning certain sectors or roles may have more generous maternity or parental leave policies compared to the minimum set by law.
Requirements for employers in Canada
While Canadian employers are not required to directly pay for their employee's maternity and parental benefits, they do have several legal obligations toward employees on leave. Here are some of the key responsibilities:
- Confidentiality: Employers must maintain the confidentiality of any information related to an employee’s pregnancy or adoption.
- Workplace Accommodations: Employers are required to make necessary accommodations to ensure the health and safety of pregnant employees. For instance, in provinces like Ontario and British Columbia, employers are legally mandated to provide breastfeeding and milk expression rooms, along with proper storage facilities.
- Time Off for Medical Appointments: The employer must allow employees to take time off for pregnancy-related medical appointments. Whether this time is paid or unpaid depends on the employer's internal workplace policies.
- Workload Management: Employers are responsible for managing the workload of an employee going on leave. This can involve redistributing tasks among existing staff or hiring a temporary replacement if necessary.
- Job Protection: Employers cannot terminate an employee due to pregnancy, as this could result in discrimination or wrongful termination claims. Upon return from leave, employers must provide the employee with their original position or a similar role that matches their skills and qualifications, with equal or better pay and benefits.
- Back-to-Back Leave Protection: In cases where an employee takes back-to-back maternity and parental leaves, employers are obligated to provide the same job protection and accommodations as with any other leave.
One key distinction between Canada and other countries, such as the United States, is that the government funds maternity and parental leave benefits through the Employment Insurance (EI) program, rather than employers. However, employers are responsible for following both federal and provincial employment laws, which may vary by province. This is especially important for businesses with multiple locations across Canada, as leave entitlements and regulations differ provincially.
How Thirdsail can help
Offering competitive leave policies is essential for attracting and retaining top talent. If you're unsure where to begin, partnering with an Employer of Record (EOR) like Thirdsail can simplify the process.
At Thirdsail, we help businesses worldwide hire employees in Canada, without the need to establish a local subsidiary. We ensure compliance with Canadian employment laws, including maternity and parental leave regulations, so you can focus on growing your team confidently and efficiently.
