Every month, Kate Teves, HR consultant, recruiter and founder of The HR Pro, answers Realtors’ questions about anything and everything related to human resources. Have a question for Kate? Send her an email.
Q: When an employee works remotely from a different province, what does the brokerage need to do to comply?
Kate: In a world where remote work has become the norm rather than the exception, the real estate and mortgage brokerage industries are undergoing a noticeable shift. As an HR professional working closely within these sectors, I’ve observed a growing trend: employees are leaving high-cost provinces such as Ontario and British Columbia in favour of more affordable regions across the country.
The reasoning is straightforward. When a kitchen table can function just as easily as a downtown office desk, geography suddenly matters less than it once did. For employees, the opportunity to reduce living costs while maintaining their careers is compelling. For employers, however, this new flexibility introduces a layer of complexity that is often overlooked. When a workforce spreads across provincial borders, employment law does not travel with the company — it follows the employee.
The elephant in the Zoom room
This is where many organizations encounter what might be called the “elephant in the Zoom room.” Hiring a licensed real estate administrative assistant or a skilled mortgage underwriter who lives in a different province than the brokerage may appear seamless operationally, but legally it requires careful attention. Employers must understand and comply with the employment standards legislation of the province where the employee actually performs their work.
Employment standards legislation acts as the rulebook for minimum workplace requirements, covering areas such as wages, hours of work, vacation entitlements, statutory holidays, and termination obligations. The word minimum is important here. Employers are always free to offer more generous terms through their employment contracts, but they cannot provide less than what the applicable legislation requires.
Which province’s rules apply?
Where things become particularly interesting is when the employer and employee are located in different provinces. If a brokerage is headquartered in Ontario but employs someone working remotely from Alberta, the governing legislation is Alberta’s Employment Standards Code — not Ontario’s. As a general rule, employment standards are determined by the province where the employee performs their work.
Understanding this principle is only the starting point. Cross-provincial employment also requires a greater degree of due diligence from employers. While each province sets minimum standards, those standards are not identical. Some jurisdictions provide more generous provisions for vacation time, overtime eligibility, leaves of absence, or termination requirements.
When employers strictly apply the least generous interpretation of employment standards, disputes can arise quickly. A more practical approach is to lean toward fairness and clarity wherever possible. Organizations that treat employment standards as a baseline rather than a ceiling tend to avoid many of the conflicts that can emerge in cross-jurisdictional arrangements.
When termination crosses borders
Termination is another area where these differences can become particularly significant. Few aspects of employment create more anxiety for both employers and employees, and cross-provincial relationships can heighten the stakes.
If an employer based in Ontario terminates an employee who works remotely from Alberta, the employer must comply with Alberta’s legislation when determining notice requirements, termination pay, and timelines for final compensation. Legal compliance, however, is only one part of the process. Organizations that approach termination with professionalism, transparency, and empathy protect not only the employee’s dignity but also the company’s reputation.
The contractor classification trap
Some employers attempt to simplify matters by classifying remote workers as independent contractors. At first glance, this may seem like a convenient solution, but it is rarely that simple. Labelling someone a contractor does not automatically make them one. If the working relationship functions in practice like that of an employee, the classification may be challenged.
In such cases, the Canada Revenue Agency may determine that the individual should have been treated as an employee all along. The consequences can include liability for unpaid payroll deductions, Canada Pension Plan and Employment Insurance contributions, along with penalties and interest.
A manageable challenge with the right approach
Managing employees who live in different provinces may initially feel like unfamiliar territory. Yet with the right knowledge and a proactive HR strategy, it is entirely manageable. Employers who take the time to understand the employment standards of the province where their employees work — and who pair that knowledge with thoughtful policies and fair practices — will be well-positioned to navigate the evolving landscape of remote work.
As remote employment continues to expand, organizations that approach cross-provincial hiring with both legal awareness and human-centred leadership will ultimately find that flexibility can be a competitive advantage rather than a compliance challenge.
Happy hiring!
Kate Teves is the founder and COO of the HR Pro, a recruiter and a Human Resources Professional who focuses on the real estate industry by finding incredible people to support solopreneurs, teams and brokerages. She also helps leaders and managers build HR processes and design a culture and mindset that facilitate business growth and employee development.
