As an employer, it is your sole responsibility to ensure that you are informed about all areas of employment. Not only that, but you should make sure that your employees have access to the information and resources that they require to be fully informed.
Areas of employment that all employers should be well versed in are maternity leave and parental leave.
In Canada, maternity and parental leave are available to expectant parents to provide financial assistance. While this financial assistance is a life-changing benefit that helps Canadians grow their families without having to return to work too early, there are certain rules and regulations that must be followed.
In this comprehensive guide, we will cover everything that employers need to know about maternity leave in Canada. For more information, keep reading!
What is Maternity Leave?
Maternity leave is a form of federal employment leave and financial assistance.
It can make all the difference for Canadians who are looking to grow their family while having time to bond, recover and spend quality time - without added financial stress.
Employment Insurance (EI), maternity, and parental benefits provide financial assistance to Canadians who meet certain criteria, including:
- Canadians who are away from work due to a pregnancy.
- Canadians who are away from work due to having given birth recently.
- Parents who are away from work to care for their newborn or newly adopted child.
Learn more about the Canadian maternity leave policy here!
What Are Parental Benefits?
EI parental benefits provide financial assistance to biological, adoptive or legally recognized parents. This assistance is offered while parents are providing care to their newborn or newly adopted child, or children.
How Does Maternity Leave Work?
Before you can begin the process of helping your employees obtain their maternity or parental benefits, it’s important to first gain a complete understanding of how each leave works.
EI maternity benefits are offered to both biological mothers and surrogate mothers who qualify and must take time away from work due to a pregnancy or recent birth.
Maternity leave must be applied for as soon as an eligible person stops working. If they apply more than four weeks after their last day of work, they may lose access to benefits.
As an employer, it’s important that you relay this information to your employees, or point them in the right direction toward helpful resources to learn more. With the right approach, you can help ensure that your employees receive parental benefits and/or maternity leave without hassle.
Eligibility for Maternity Leave and Parental Benefits in Canada
An employee may be eligible for EI maternity and parental benefits if they meet the following criteria:
- They are employed in insurable employment.
- They meet the specific criteria to receive EI maternity or parental benefits.
- Their normal weekly earnings are reduced by more than 40%.
- They have accumulated at least 600 hours of insurable employment during the qualifying period, or, they are self-employed fishermen and have earned enough money during the qualifying period.
If eligible for maternity leave and/or parental benefits, the employee can look forward to a maximum of 15 weeks of EI maternity leave.
The 15 weeks of maternity leave can begin as early as 12 weeks prior to their expected date of birth and can end as late as 17 weeks after the actual date of birth.
If the employee is eligible for parental benefits, they may extend their time away from work past the 15-17 weeks of maternity leave.
Benefits of Maternity and Parental Leave
Now that we have a better understanding of what maternity and parental leave are and how it works, let’s dive deeper into what the actual benefits are!
Maternity Benefits
Maternity benefits are available to a person who is away from work due to or having recently given birth. These benefits cannot be shared between parents. However, the person who is receiving maternity benefits may also qualify for parental benefits.
Once an employee has applied and been approved for maternity benefits, they can look forward to the following:
- A maximum of 15 weeks of EI maternity benefits.
- The 15 weeks can start as early as 12 weeks before the expected date of birth.
- They can end as late as 17 weeks after the actual date of birth.
- The basic rate for calculating EI maternity benefits is 55% of the average weekly insurable earnings for the employee, up to a maximum amount.
- Receiving a maximum of $638.00 per week. Since January 1st, 2022, the maximum yearly insurable earnings amount is $60,300.
Standard Parental Benefits
Standard parental benefits are available to eligible parents of a newborn or a newly adopted child.
Once an employee has been approved for standard parental benefits, they can look forward to:
- Receiving financial aid for a maximum of 35 weeks, which must be claimed within a 52-week period. Or, 12 months after the week that the child was born or placed with the purpose of a legal adoption.
- A weekly benefit rate of 55% of their average weekly insurance earnings, with a maximum amount.
- Both parents can share the 35 weeks of standard parental benefits.
Extended Parental Benefits
Extended parental benefits offer the same as standard parental benefits, but with the addition of:
- Being paid for a maximum of 61 weeks.
- Can be claimed within a 78-week period, or, 18 months after the child was born or placed with the intent of legal adoption.
The Main Differences of Maternity and Parental Leave
What sets maternity leave and parental leave apart is:
- Maternity leave is intended for eligible biological or surrogate mothers who cannot work because they have recently given birth or are pregnant.
- Parental leave is intended for eligible parents who are caring for a newborn or newly adopted child.
What employees must take note of, is that the total number of weeks of eligible EI maternity or parental benefits does not change if you have multiple births, such as twins or triplets, or if you adopt more than one child at once.
What Do Employers Need to Know About Maternity Leave Canada?
When it comes to maternity and parental benefits in Canada, there are a number of things that employers should know and factors that should be taken into consideration.
It’s imperative that employees are not only treated fairly and with respect but also that decisions are made lawfully and in a compliant manner.
What is Maternity-Related Reassignment and Job Modification?
An employee who is currently pregnant or nursing may make a request to their employer for a job modification. This may affect the function of their current position, or result in reassignment to another position if their current situation poses a risk to their health, the health of the fetus, or a nursing child.
Employers should note that this request may be accompanied by a certificate from a medical practitioner. The certificate must indicate how long the risk can last and identify if any activities or conditions should be avoided to eliminate that risk completely while in the workplace.
As an employer, you have certain obligations to your employees that must be adhered to.
You must:
- Examine the request made by the employee and modify their job functions, or reassign them.
- Acknowledge that an employee who has made such a request is entitled to leave with pay while you are examining the request and until their job has either been modified or they have been reassigned. Or, until you have informed them that you are unable to fulfill their request.
In the case that a request for modification or reassignment isn’t within reason or able to be completed, your employee may take an unpaid leave of absence. They may do so until the situation as noted in their medical certificate no longer poses a risk.
Who is Entitled to Maternity Leave?
Female employees are entitled to maternity leave, given that they meet certain criteria. This includes that they have completed six consecutive months of continuous employment with your organization, prior to when their leave begins.
Who is Entitled to Parental Leave?
Parental leave, and extended parental benefits, are available for natural or adoptive parents. Managers and professionals alike who have completed six consecutive months of continuous employment prior to their leave beginning are entitled to parental leave and/or extended benefits.
How Much Leave is an Employee Eligible for?
Employees are eligible for up to 17 weeks of maternity leave, with an additional 63 weeks of paid parental leave if they assume the care of a newborn or newly adopted child. The total duration of both maternity and parental leave may not exceed 78 weeks unless an exception is granted.
What Happens to the Employee’s Job Upon Their Return from Maternity Leave or Parental Leave?
Your employee must be reinstated to their former position or a comparable position. Their position must be in the same location and with the same seniority, wages and benefits.
For more information, we suggest reading this helpful guide with information regarding labour standards for maternity-related reassignment and leave, maternity leave and parental leave from the Government of Canada.
How to Better Support an Employee Taking Maternity Leave
Whether an employee has informed you of their intent to take an upcoming maternity or obtain parental benefits, or you simply want to be prepared for this in the future, it’s imperative that as an employer you understand how to best support them in this journey.
Here are some of the best ways that you can support your employees who are taking maternity or parental leave!
Maintain Regular Communication
Stay in touch with the employee during their maternity leave to check in on their well-being and progress. This helps the employee feel connected to the workplace and reduces the feeling of isolation.
Provide a Clear Plan for Their Return
Discuss the employee's return to work well in advance. Determine the date and establish expectations regarding their role, workload, and any necessary training or updates.
Offer Flexible Work Arrangements
Consider flexible work options such as part-time schedules, remote work, or job sharing to accommodate the employee's needs as they transition back to work. This promotes work-life balance and can help ease the transition.
Provide Breastfeeding Support in the Workplace
Create a supportive environment for breastfeeding mothers by offering a designated nursing area, providing breaks for pumping, and ensuring that colleagues are aware and respectful of the employee's needs.
Offer Childcare Assistance
Assist the employee in finding reliable and affordable childcare options. This can include providing information about local resources, offering subsidies, or partnering with childcare providers.
Provide Resources for Work-Life Integration
Offer resources or workshops on work-life balance, stress management, and time management. This helps the employee navigate the challenges of balancing work and family responsibilities.
Encourage a Supportive Workplace Culture
Foster a culture that values work-life balance and supports employees during major life transitions. This includes promoting understanding and empathy among colleagues and discouraging negative attitudes towards maternity leave.
Celebrate Their Return
Welcome the employee back after their maternity leave with a warm reception or a small celebration. This shows appreciation for their commitment and helps them feel valued and motivated.
Provide Career Development Opportunities
Offer opportunities for professional growth and advancement, such as training programs, mentorship, or special projects. This demonstrates that the employer values the employee's long-term career progression.
Ensure Legal Compliance
Familiarize yourself with the laws and regulations surrounding maternity leave in your jurisdiction. Ensure that you comply with all legal requirements, including providing the necessary time off and benefits.
The Importance of Supporting Your Employees
By implementing these strategies, employers can create a supportive and inclusive environment that values the well-being and needs of employees taking maternity leave.
This not only helps retain talented employees but also contributes to a positive workplace culture.
Information About Employment in Canada
For more information about employment in Canada, including maternity and parental benefits, please visit the Government of Canada website. This helpful resource will provide you with the most recent and factual information about Canadian employment, maternity leave and beyond!
For employers who could benefit from support in all things employment, especially with remote, global employees, we suggest learning more about Employer of Record services.
Partner With Borderless Today
From hiring and paying your remote workers to managing a global team long-term, Borderless is your trusted Employer of Record in Canada. For more information about our services, contact us today!
For those looking for more information about global employment, we encourage you to read the informative resources in our blog. From supplementary benefits and check-in questions for team meetings to team building activities and more, we have everything you need to hire, pay and manage a remote, global team.
Disclaimer: Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
