You are here:

Human Resources/Canadian Direct Deposit

Advertisement


Question
Good Afternoon,

I am inquiring to see if our US based company can make Direct Deposit, for biweekly paychecks, mandatory for our Canadian associates. We operate specifically in Ontario and BC. Are there any provincial or government laws that would prevent this? The associates would have the choice of where their funds go, either checking/savings or some type of cash card account.

Thank you for your time!

Answer

In British Columbia, payments of wages to employees must be made at least twice a month or more frequently. Moreover, a pay period must not be longer than 16 days, and all wages earned in a pay period must be paid within eight days after the end of the pay period.

Employers are permitted to implement a direct deposit system after obtaining the consent of their employees by contract or by collective agreement, as long as the deposit goes into a financial institution of the employees' choice. If an employee does not have a bank account at a financial institution, employers must pay the wages by cash or cheque.


In Ontario, payments of wages to employees are not addressed by legislation. However, the payment of wages must be made no later than the regular established payday.

Employers are permitted to implement a direct deposit system without consulting or obtaining the consent of their employees, as long as the deposit goes into a financial institution of the employees' choice. If an employee does not have a bank account at a financial institution, employers must pay the wages by cash or cheque.

There are some conditions imposed concerning direct deposits. An employer may only pay wages to the employee via direct deposit if: the account is in the employee's name; no person other than the employee or a person authorized by the employee has access to the account, and, unless the employee agrees otherwise, the financial institution is located within a reasonable distance from the location where the employee usually works.


If you need instruction on other provinces in Canada let me know.

Shirley  

Human Resources

All Answers


Answers by Expert:


Ask Experts

Volunteer


Shirley McAllister, CPP, PHR

Expertise

I can answer questions pertaining to Compensation, Health Benefits, Retirement Plans, Payroll,Payroll taxes, Employee selection, Employee Termination, Training, and Employee Incentives. I have offices in U.S., Canada, UK, South Africa,Australia and NZ. I am most confident in the U.S. and Canadian but have knowledge of the internationals. I do not have extensive knowledge of South Africa, Australia and New Zealand. I do have some Human Resource Knowledge in those areas. Please do not ask me homework questions, I do not have time to answer them.

Experience

I currently hold both the U.S. and Canadian Payroll Certifications. I currently hold the SHRM PHR certification. I have worked in the Human Resources area with high emphasis on compensation and benefits for 25 years at the same company. My company is an international company and I work with our International offices whenever there is a Human Resource area needing addressed. I volunteer on the American Payroll Association hotline and have for the last 10 years or so. I answer many questions each week for other payroll and HR professionals, mostly on taxes, benefits and compensation issues. I have been the trustee for our 401K plan for Retirement benefits and our 125 Cafeteria Plan for Health Insurance benefits.

Organizations
SHRM, National APA, National DOLEA, State National Mentoring Network I.O.M.A. Advisory Board

Publications
I.O.M.A. BNA

Education/Credentials
Boise State University Human Resource Certificate Program PHR through SHRM CPP through American Payroll Association Payroll Administrator and Payroll Supervisor certification through Canadian Payroll Association Published writer of Payroll and Benefit articles in a payroll Publication 25 years experience in an International Company

Awards and Honors
Citation of Merit 8 years in a row for hotline service for A.P.A. Honor Award for child mentoring service through RSVP and National Mentoring A "Pat on the Back" award for outstanding leadership as a Youth Group Leader by "The Salvation Army." Runner up for Employee of the Year at my Company twice and Employee of the month 4 times.

Past/Present Clients
I used to answer questions on Ask.com when they had a similar quesition and answer section. I volunteer for APA hotline I also belong to several HR forums when I often answer questions

©2016 About.com. All rights reserved.