6 Things You Should Know Before Hiring Seasonal Workers

As the holiday season approaches, many small businesses find themselves busier than ever. Retailers see higher sales, service-based companies handle more appointments, and offices often face year-end deadlines. To manage the extra workload, hiring seasonal staff can be a great solution, but it’s not without its challenges.

Before you bring on short-term employees, it’s important to understand the HR and payroll implications that come with seasonal hiring in Canada. Here’s what to consider to make sure your business stays compliant, efficient, and ready for a successful season.

1. Understand What “Seasonal Employment” Means

Seasonal staff are employees hired for a specific period, often to help during peak seasons or special projects. In Canada, these employees are still protected under federal and provincial employment laws meaning they’re entitled to many of the same rights and benefits as permanent employees.

This includes:

• Minimum wage

• Overtime pay (if applicable)

• Statutory holiday pay

• Vacation pay (typically 4% of earnings)

• Employment Insurance (EI) and Canada Pension Plan (CPP) contributions

Even though their employment is temporary, you’re still responsible for ensuring these legal requirements are met.

2. Plan Your Hiring Timeline Early

Seasonal hiring tends to ramp up in late fall, which means competition for qualified workers can be fierce. Start your recruitment process early, ideally in September or early October, to give yourself time to interview, train, and onboard new hires before the holiday rush.

When advertising positions, be clear about:

• The expected duration of employment

• Hours of work and schedule flexibility

• Pay rates and any potential overtime

• Key responsibilities

Transparency helps attract the right candidates and sets expectations from the start.

3. Don’t Skip Onboarding and Training

It’s tempting to throw new hires straight into the mix during busy times, but taking the time to properly train them can save you from costly mistakes later.

Provide a condensed but effective onboarding process that covers:

• Workplace policies and safety procedures

• Customer service standards

• Payroll processes (such as how and when they’ll be paid)

Even if they’re only with you for a few weeks, seasonal employees represent your brand, so invest a little time upfront to ensure they’re set up for success.

4. Payroll and Tax Responsibilities

Seasonal employees must be included in your regular payroll system, just like any other staff member. That means you’re responsible for:

• Withholding income tax

• Deducting and remitting EI and CPP contributions

• Issuing T4 slips at year-end

If you hire independent contractors instead of employees, make sure they truly qualify as contractors under CRA guidelines. Misclassifying workers can lead to penalties and back payments for payroll taxes.

Pro tip: Using a cloud-based payroll system can help automate these deductions and ensure compliance with CRA deadlines during your busiest time of year.

5. Factor in Termination and End-of-Contract Rules

Even though seasonal employees are hired for a defined term, you still need to handle the end of their employment correctly. If their contract specifies an end date, no termination notice is required when it concludes. However, if you end the contract early, you may still owe notice or pay in lieu, depending on provincial labour standards.

Make sure contracts clearly outline:

• The start and end date of employment

• The possibility (or not) of extension

• Termination terms and notice requirements

Having this in writing protects both your business and your employees.

6. Consider Bringing Back Your Best Seasonal Staff

After the busy period, take note of who performed well. Keeping a list of reliable seasonal workers can make next year’s hiring process much smoother and save time on recruitment and training. Maintaining those relationships can also boost your reputation as a fair and organized employer.

Are You Planning on Hiring Seasonal Staff?

Hiring seasonal staff can be an excellent way to handle increased demand without overextending your permanent team. But to do it right, you need to plan ahead, understand your HR and payroll responsibilities, and ensure compliance with employment laws.

Need help setting up payroll or managing seasonal employment contracts? Our accounting and HR experts can help you stay organized, compliant, and ready for a successful holiday season.