Introduction

British Columbia (BC) is fast becoming a magnet for international companies, particularly those in tech, finance, and green innovation. But while the business environment is friendly, the employment landscape requires careful navigation. Canada is a federal country, but employment law is largely provincial. That means if you’re hiring or expanding in BC, you need to understand the specific obligations that apply.

Failing to follow local labour laws isn’t just a legal risk - it can impact brand reputation, create costly liabilities, and damage trust with your workforce. As someone who’s helped UK and US companies set up shop in BC, I can tell you this: it’s entirely manageable with the right insight and local alignment.

Quick Tips

• Minimum employment standards are set out in the BC Employment Standards Act - review it regularly.

• Include statutory holiday entitlements and overtime rules in all contracts.

• Don’t confuse Canadian contractors with US-style 1099 arrangements - classification rules differ.

• Respect union rights and collective agreements where applicable - even in white-collar sectors.

• Align payroll practices with BC’s minimum wage and termination requirements.

Understanding the BC Employment Standards Act

The Employment Standards Act (ESA) sets the legal minimums for things like hours of work, termination notice, annual leave, and sick days. These are not optional. Even if you have a global policy, it must be adapted to reflect BC’s rules.

For example, overtime in BC is triggered after 8 hours in a day or 40 hours in a week, unless there’s an averaging agreement in place. This surprises many employers used to European or US norms. I once supported a UK firm that had no daily overtime policy - we helped them bring contracts in line, back-pay affected staff, and negotiate revised terms that still met business needs.

Termination and Severance - Handle with Care

BC’s termination rules are another common tripwire. Unless terminated for just cause, employees are generally entitled to notice or pay in lieu. The minimum ranges from 1 to 8 weeks under the ESA, but courts often award significantly more under common law if contracts lack clear limiting language.

One client came to me after letting go of a senior employee with 4 weeks' pay, believing they were compliant. Unfortunately, the lack of an enforceable contract meant they ended up settling for over six months’ salary. We rebuilt their contracts across the board, adding enforceable termination clauses and dispute resolution mechanisms.

Classification Counts: Employees vs Contractors

Canada takes misclassification seriously. The CRA (Canada Revenue Agency) and WorkSafeBC both scrutinise relationships that look like employment but are labelled as independent contracting. Simply having a contract that says 'contractor' is not enough.

A US company I supported was using contractor arrangements across BC and Alberta. When one contractor filed for employment insurance, the relationship was reviewed and found to be a de facto employment relationship. We worked with local counsel to regularise the setup, register them as an employer, and update payroll systems to comply with provincial and federal tax obligations.

A Real Example: Getting it Right from Day One

A European software firm reached out to ThinkGlobal HR for help expanding into British Columbia. Rather than copy and paste policies from other regions, we built bespoke contracts, set up local payroll with the right deductions, and created a compliant onboarding flow.

Because they prioritised compliance early, they’ve scaled smoothly, avoided disputes, and maintained strong employee relations. Their leadership team now uses the BC market as a springboard for wider Canadian expansion.

Final Thoughts

British Columbia is a great place to do business - but global employers need to respect the local rules. From pay equity and work schedules to termination protections and contractor status, BC’s labour laws are nuanced and enforced.

It’s not about adding red tape. It’s about building fair, sustainable systems that work across borders. And when you do that well, your people - and your business - thrive.

What’s next for your global people strategy?

Book a free compliance check-in or HR audit with ThinkGlobal HR. Whether you’re hiring in Canada for the first time or scaling across provinces, we’ll help you assess risks, review your documentation, and create people systems that support growth and compliance - wherever you operate.