Per Diem Employment Agreement Template for Canada

A Per Diem Employment Agreement is a specialized contract that governs daily-rate employment arrangements in Canada. Unlike traditional employment contracts with fixed salaries or hourly wages, this agreement establishes compensation based on a predetermined daily rate, providing flexibility for both employers and workers in temporary or project-based situations.

When do you need this document?

You need this agreement when hiring employees for short-term projects, seasonal work, or specialized assignments where daily compensation is more practical than traditional pay structures. Healthcare facilities commonly use per diem agreements for nurses and medical staff who work on-call or fill temporary shifts. Construction companies employ this arrangement for skilled tradespeople needed for specific project phases. Consulting firms often engage experts on a per diem basis for short-term client assignments. Educational institutions may hire substitute teachers or guest lecturers under these terms, and event management companies frequently use per diem agreements for temporary staff during conferences or festivals.

Key legal considerations

Your per diem agreement must clearly define the daily rate calculation method, including whether it covers a standard 8-hour day or a different time period. You need to address overtime provisions, as employees working beyond standard hours may be entitled to premium pay under provincial employment standards. The agreement should specify how statutory deductions for CPP, EI, and income tax will be calculated and remitted. Include provisions for workplace safety compliance under provincial occupational health and safety legislation, as per diem employees have the same protection rights as permanent staff. Address termination procedures, notice requirements, and any severance obligations that may apply even in temporary arrangements. Consider including confidentiality and non-disclosure clauses if the employee will access sensitive business information during their engagement.

Legal requirements in Canada

Under the Canada Labour Code and provincial Employment Standards Acts, you must ensure per diem employees receive minimum wage protection when their daily rate is calculated on an hourly basis. Your agreement must comply with federal and provincial human rights legislation, prohibiting discrimination based on protected grounds during hiring and employment. You're required to maintain proper payroll records and issue T4 slips for tax reporting purposes under the Income Tax Act. If your business is federally regulated, additional Canada Labour Code provisions may apply regarding hours of work, rest periods, and holiday entitlements. Provincial privacy legislation may require specific consent clauses for collecting and using employee personal information. Workers' compensation coverage requirements vary by province, and you must ensure per diem employees are properly covered. The agreement should address any applicable provincial vacation pay entitlements, as some jurisdictions require vacation pay to be paid out with each paycheck for temporary employees.