Legal & Contracting in Canada

Essentials guide · Source-checked research98% of statements checked against a source48 checked against an official source1 checked against a secondary sourceChecked 2026-10-19Not yet professionally reviewed

• Under federal labour standards an employer must give at least 2 weeks' written notice of termination or pay in lieu, rising to 1 week per completed year of service up to 8 weeks for employees with 3 or more years, and employees with 12 months' continuous service are also entitled to severance pay.

  Federally regulated employers only (Canada Labour Code). No notice is required in the first 3 months. Severance is the greater of 2 days' wages per year of service or 5 days' wages. Provincial rules and common law reasonable notice differ.Employment and Social Development Canada · checked 2026-10-19

• PIPEDA, the federal private-sector privacy law, applies to every organisation's collection, use and disclosure of personal information in the course of commercial activities, and to employee information of federal works, undertakings or businesses.

  Federal. Provinces with substantially similar private-sector laws (the OPC names none on the pages read) may displace PIPEDA for intra-provincial activity.Department of Justice Canada (Justice Laws) · checked 2026-10-19

• PIPEDA does not prohibit transfers of personal information outside Canada, but the transferring organisation remains responsible and must use contractual or other means to ensure comparable protection while a third party, including one outside Canada, processes the information.

  Federal (PIPEDA Principle 4.1.3). OPC guidance on third-party service providers issued 10 September 2026.Office of the Privacy Commissioner of Canada · checked 2026-10-19

• The Companies' Creditors Arrangement Act applies to insolvent corporations owing more than CAD 5 million and is carried out under court supervision, with a court-appointed monitor and a stay of proceedings in the initial order.

  Federal insolvency law. Smaller debtors restructure through proposals or bankruptcy under the Bankruptcy and Insolvency Act.Office of the Superintendent of Bankruptcy (ISED) · checked 2026-10-19

• Bribing a foreign public official to obtain or retain an advantage in the course of business is an indictable offence under the Corruption of Foreign Public Officials Act, punishable by up to 14 years' imprisonment.

  Federal. Applies to individuals and organisations.Department of Justice Canada (Justice Laws) · checked 2026-10-19

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