We’ve put together a practical check-list to bear in mind. 

Form 101

It is very important to fill out Form 101 and attach a copy of your ID. 

Employees must fill out Form 101 at the start of each year. Make sure all items are completed, especially D and E, and that the form is duly signed.

Tax Adjustment for Income from More than One Employer 

Persons employed in more than one job must present Tax coordination documents.

Employees can obtain a tax adjustment report and download it through this link. 

Collecting Payroll Data

For your convenience – We’ve included here an example of a salary report that must be filled out every month and sent to us before we can prepare the monthly payroll. 

Work Hours 

Every employer is required by law to log working hours for employees (including full-time employees).

Please find a timesheet in Excel for your perusal.

In order to prepare the payroll, a timesheet with the actual hours worked must be sent to us.

Pension

• Employees who already had an active fund at the time of hiring – 3 months into their employment, the employer must pay the fund a contribution retroactively for the period from the start of employment.
• Employees who did not have an active fund at the time of hiring – contribution must be paid after 6 months of employment
• Regulations require that some employers report in detail to the pension funds regarding pension provisions for their employees.
• Transportation Benefits – Salary slips should indicate the reimbursement for public transportation expenses or, in the case of company cars, the value equivalent of the vehicle.
• Meal Allowances for Employees – Salary slips should show the meal allowances provided by the employer. In this case, meal allowances for employees are recognized as a deductible expense for the employer.

Sick Leave and Pay

Illness of an employee or their child is calculated based on the following conditions:

• According to a medical certificate
• Day 1 – No pay
• Days 2 and 3 – 50% of the salary should be paid
• From Day 4 of the Illness – 100% of the salary should be paid
• Employees may not take advantage of sick leave days beyond the days accrued on the slip

Holidays

• For Hourly or Daily Employees – Holidays are paid after 3 months of employment
• Monthly employees – Holidays are paid from the start of employment

Convalescence Pay

• Due to employees after at least one year.
• Paid out once a year according to the law – See link

All these guidelines are dictated by law. Employers may provide employees with benefits that are over and above, but they may not fall below the threshold stipulated by the law.

The items listed above represent some of the basics of labor laws. For more specific issues (i.e. international workers, pregnancy and maternity, extraordinary terms in employment agreements, collective agreements, etc.) please contact us and we will be happy to answer your questions. 

Our firm also provides employment contract drafting services. 

* This article contains general information only and it should not be construed as advice of any kind.