Essential onboarding documents

One key component of hiring new employees is providing them with the right paperwork. However, HR documentation is a vast landscape, and not many small businesses know which onboarding documents they need to add to their employee onboarding checklist.

This can be challenging to a smooth onboarding process, as employees are more equipped to succeed in their role if they are provided with the correct documentation from day one. It helps them understand your company culture and get integrated into the team.

It also makes the onboarding process more engaging and informative, keeps them aware of their legal entitlements, and overall positions your business as a well-run and effectively managed operation.

All these contribute positively to new hires' perceptions of your business and boost your company's employee retention rates.

In this article, we'll break down the essential documents every Canadian business owner should include in new hire paperwork to help business owners like you create the perfect employee onboarding checklist.

What are the essential onboarding documents your business needs?

As mentioned earlier, there are essential documents every new hire should be provided with as soon as they accept your job offer. These documents are crucial for the HR process, such as collecting and recording important employee information, keeping track of any changes in the workplace and with the employee, and informing the employee of their job responsibilities.

Some of these documents are not legally required but should be included in your employee onboarding checklist as a best practice. These are:

Employment agreement or contract

Having an employment agreement or contract with each of your employees is arguably the most important step you should take as an employer. It helps you establish a strong foundation for the entire employment relationship as it outlines the terms of the employment, details the employee's role and responsibilities, and details their benefits, vacation entitlements, hours of work, and compensation.

An employment contract is legally binding and should also contain all relevant information about the relationship between employer and employee, including clauses on:

• Terminations

• Resignations

• Layoffs

• Non compete 

• Probation

There are also provisions for any substantial changes to the employees' duties, pay, or any other aspect of their employment.

Though it's not legally required, having your new hires sign the employment agreement as soon as they accept your job offer, will protect you as the employer, if there are ever any disagreements between you and your employee.

Personal information forms

Collecting employee information is one of the first onboarding tasks to complete when integrating new hires into your business. Typically, there are no fixed templates for these forms, which are not specific and can be tailored to your business's needs or the job position.

They are made to request personal information like personal email addresses, emergency contact information, and more from the new employee during the onboarding process. Collecting employee information at this point can also be used to verify their identity and work eligibility or carry out a background check.

It's also common to request less formal information, such as the employees' hobbies and interests, to help with engagement and make them feel more welcome within their first few days at the company. This contributes to a stronger team culture, helps you celebrate milestones, and promotes a positive work environment.

Payroll form and Benefits Policy

These forms help you collect information from the employee to process their compensation and file taxes in line with requirements from the Canada Revenue Agency (CRA). Filing the wrong tax information or making the wrong payroll deductions can result in costly fines and penalties, so it's important to ensure you get the correct information during onboarding.

Some of these forms include TD1 (federal and provincial), personal tax credit return forms, social insurance number (SIN), and more.

Getting these forms within the first few days of onboarding is essential, as they can help confirm an employee's eligibility to work in Canada and help set up the right systems to deduct the appropriate tax from their wages.

Benefits Policy are also some of the employment forms required during onboarding. They help the employee understand the additional benefits they are entitled to as your employee. These include health and life insurance forms, gym and club memberships, employee discounts and more.

Getting these forms right is also crucial to your tax reporting, as the premiums you pay on them are tax-deductible expenses.

Employee Handbook

Many small business owners overlook the many benefits of having a comprehensive employee handbook. There are many reasons why having a handbook is vital for every business, regardless of its size. It's essential as it acts as a manual or guide for new and existing employees to learn and refer to whenever they need information about the business.

Employee handbooks typically contain information about the company's mission, vision, and values, as well as any policies and procedures your business operates on, such as a code of conduct, disciplinary actions, and how employees are expected to behave in the workplace. They may also contain information on your employees' rights under relevant employment standards for your jurisdiction.

Including your employee handbook in your new hire paperwork helps them settle in and become familiar with your company culture faster, giving them the tools they need to get their work done more efficiently.

Occupational health and safety policies

As a Canadian business owner or employer, you are legally obligated to ensure the health and safety of your employees and everyone who enters your business environment.

This usually involves creating and implementing a comprehensive health and safety program, as set out by the Canadian Center for Occupational Health and Safety (CCOHS). Providing new and existing employees with health & safety policies helps define your business health and safety program and sets out your commitment to promoting a safe workplace.

Your policy should be a plan of action chosen to govern operations in your business in line with relevant health & safety regulations for your jurisdiction. In addition to policies, provide mandatory training (where applicable), so your employees have the skills they need to maintain safety in the workplace.

Many workplace accidents occur with new hires as they're usually not aware of the hazards in the workplace. So, it's essential to get them the documentation they need to understand your business's health and safety practices as soon as they join your workforce to prevent any injuries and illnesses before they occur.

A health and safety policy should generally cover the following:

• Your commitment to keeping the workplace safe for everyone, as well as your general safety goals

• Outline who is in charge of specific health and safety duties and commitments, so everyone knows their role in keeping the workplace safe.

• Your strategies and plan for mitigating and eliminating safety hazards, including practices and habits to help you achieve your safety goals.

Is onboarding documentation a legal requirement for businesses in Canada?

The short answer is no—having onboarding documentation, such as employment agreements or employee handbooks, is not a strict legal requirement for businesses in Canada. You can hire and work with employees without providing these documents. However, while this approach may seem convenient, it is not considered best practice.

If you have any further questions on this, you can reach out to our employment relation experts.

Why are employment agreements and handbooks important?

Having written agreements and handbooks signed by your employees offers significant protection for you as an employer. These documents clearly outline the terms and conditions of employment, including job duties, compensation, workplace policies, and procedures. This clarity can prevent misunderstandings and disputes down the road.

Without these legally binding documents, your employee's rights and entitlements are subject to common law. This can lead to unexpected obligations for employers, especially termination notice periods. Under common law, employees may be entitled to longer notice periods—sometimes up to 24 months—if they are terminated without cause.

How to leverage HR software for onboarding tasks for better efficiency

The onboarding process can be lengthy and challenging, especially as hiring is a never-ending process for most employers. It can become repetitive and time-consuming, especially when handled manually, leading to mistakes and errors that can cost your business thousands of dollars down the line.

Thanks to modern technology, business owners and employers can rely on software designed to streamline this process and automate onboarding tasks such as document allocation, e-signature collection, sending out reminders, and storing documents.

Some of the key features to look out for in HR software that can help ease the burden of onboarding tasks include:

• Electronic document signing capabilities (e-signatures)

• Personalized and customizable onboarding checklists

• Automated compliance updates

• Training modules and e-learning functionalities

• Progress monitoring and tracking

• Reporting and analytics

How BrightHR helps you manage employee onboarding documents

Finding the right candidate isn't easy, and when you hire the perfect person, it's crucial to ensure their onboarding experience is as seamless as possible. Ensuring this first chapter of your new hires' relationship with your business is exceptional sets the stage for a great start so they hit the ground running and have everything they need to succeed in their role.

Though it can seem challenging, especially if you're a small business with little to no HR support, the employee onboarding process can be a breeze with the right HR software.

With our onboarding tools, you can easily manage open jobs in your business, screen the best candidates, and store resumes in a central hub.

Plus, if you need guidance or have any questions about recruitment best practices, you can rely on 24/7 advice from our HR and employment relations experts. Thus, you can rest easy knowing that you are onboarding your new hires in accordance with the law.

If you need ready-made templates created by experts with over 30 years of experience in employment relations and health and safety, our library of documents, checklists, and templates, BrightBase, is just a click away.

Interested in learning more about how BrightHR can help you streamline onboarding tasks? Book a FREE demo to see it for yourself.