Running a nonprofit means wearing a lot of hats, and let’s be honest, HR probably isn’t the one you’re most excited about. But solid HR documentation? It is your nonprofit’s best friend. Whether you’re hiring your first staff member or managing a team, here’s your go-to guide for essential HR documentation in Canada, with free resources to make your life easier!
Here’s a list of HR resources you’ll find in the article:
- 59-Clause Employment Contract Checklist
- Comprehensive New Hire Checklist
- HR Compliance Checklist 2025
- Vacation and Absenteeism Tracker
- Performance and Discipline Management Bundle
- Offboarding Checklist
- Termination Policy Template
These resources are tailored for Canadian nonprofits outside of Quebec due to unique provincial regulations.
1. Employment contracts: Key clauses
Having an employment contract goes a long way. It’s not just a formality; it’s a legally binding document that sets the tone for the employment relationship. Here are the key clauses to include:
- General terms: Offer of employment, background checks, and conditions of employment.
- Job details: Start date, probation period, reporting structure, location, and work hours.
- Compensation: Salary, deductions, bonuses, commissions, and benefits.
- Termination/resignation: Notice periods, severance, and post-employment obligations.
- Employee responsibilities: Duties, conduct expectations, and role-specific duties.
- Confidentiality: Protection of sensitive information and organizational data.
- Non-compete/non-solicit (if applicable): Restricts competition or poaching after employment ends.
- Intellectual property: Ownership of work created during employment.
- Governing law: Specifies which provincial laws apply.
Tip: For nonprofits, where budgets are tight, it’s also smart to include a clause allowing for policy updates to stay compliant with changing laws.
We’ve prepared an employment agreement checklist that will guide you in reviewing your current employment contracts or creating new ones from scratch. Grab it for free!
2. HR policy manual: Your nonprofit’s compliance backbone (includes 5 free policy templates)
A well-crafted HR policy manual is essential for nonprofits, even those with just a few employees or volunteers. It serves as your organization’s rulebook; defining expectations, protecting against liability, and helping you meet legislative requirements.
Not sure which policies to include in your manual? Download our latest HR Compliance Checklist below to get started.
Compliance is only part of the story. A good HR policy manual reflects your nonprofit’s values, creates transparency, and fosters a respectful, safe, and inclusive workplace.
Tip: Make sure to regularly review and update your manual, especially when employment legislation changes.
3. Attendance, vacations & leave management (free tracker)
In a nonprofit, every team member matters—so when someone is away, it has a bigger impact. That’s why having clear and compliant policies for managing attendance, vacations, and all types of leaves is critical.
Your attendance policy: Your policy should outline how to request leaves, report absences, and handle excessive absenteeism. It should have an up-to-date process for how your organization will handle prolonged absences and job abandonment, especially. Please note that the job abandonment process has changed, so make sure you know the correct process to mitigate risk.
Your vacation policy: Your policy should clearly outline how vacation time is accrued, how much notice is required to schedule time off, and whether unused vacation can be carried forward or paid out. Be especially careful with carryovers. Failure to ensure employees take their minimum vacation can result in legal risks and burnout. Employers in Ontario, for example, are required to ensure employees take at least two weeks of vacation each year.
Tip: Customize your leave categories to reflect your nonprofit’s unique needs, such as additional mental health days or volunteer leave, while still complying with ESA requirements.
4. New hire documentation (free new hire checklist)
Onboarding sets the tone for new hires, and good documentation makes the process smooth and professional. Onboarding paperwork ensures legal compliance and helps employees understand their role. Key documents include:
- Employment contract (see above).
- Employee handbook acknowledgment form.
- Tax forms (e.g., TD1 for federal/provincial tax credits).
- Emergency contact information form.
- Benefits enrollment forms (if applicable).
Tip: Set aside time during onboarding to walk new hires through key documents instead of just handing them over—this builds clarity, engagement, and trust from day one.
5. Volunteer documentation
Volunteers are the heart of many nonprofits, but they’re not employees, so their documentation differs. Under the ESA, volunteers aren’t entitled to wages or benefits, but misclassifying an employee as a volunteer can lead to legal trouble. Clear agreements and policies protect both parties.
Key documents for volunteers:
- Volunteer agreement: Outlines roles, expectations, and confirms no employment relationship.
- Volunteer handbook: Covers policies like harassment, safety, and confidentiality.
- Waiver & liability form (for events/activities)
- Training records: Document any training, especially AODA or safety-related.
Ensure volunteers sign agreements to clarify their status. Include them in policy training to maintain a safe, inclusive environment.
Tip: Even if volunteers aren’t paid, they should be trained on the same safety and conduct policies as employees. This reduces risk and keeps your workplace safe and inclusive.
Ontario’s new requirement: Written employment statements (By July 1, 2025)
Starting July 1, 2025, Ontario employers must provide new hires with a written statement of employment particulars on or before their first day, per updates to the Employment Standards Act. This is separate from the employment contract and must include:
- Employee’s name and start date.
- Job title and brief description of duties.
- Pay rate and pay period.
- Regular work hours and location.
- Notice period for termination (per ESA).
- Contact information for HR or a supervisor.
6. Performance & discipline documentation
Managing performance and discipline is tricky but essential. Proper documentation protects your nonprofit from legal risks, like wrongful dismissal claims, and ensures fairness. In Canada, progressive discipline is a best practice, especially when accommodating disabilities or other human rights grounds.
Key documents:
- Performance Improvement Plan (PIP): Outlines goals, timelines, and consequences for improvement.
- Warning letter: Documents specific issues and corrective actions.
- Performance review form: Tracks progress and sets goals during regular appraisals.
Tip: Always document performance discussions and disciplinary actions in real time—memories fade, but good records protect both your nonprofit and your employees.
7. Termination & offboarding
Ending an employment relationship—whether through termination or resignation—requires careful documentation to stay compliant and maintain goodwill. In Canada, terminations without cause require notice or pay in lieu, per the ESA, unless the employee was terminated for just cause (a high bar to meet). Resignations should be formalized in writing.
Whether an employee leaves voluntarily or is terminated, a smooth offboarding process is key. Your checklist should include:
- Exit interview form
- Final pay and benefits information
- Company property return
- Confirmation of the termination letter
Tip: Keep a neutral tone in offboarding documents to reduce legal exposure and preserve goodwill—especially helpful if the employee returns in a future role or as a volunteer.
HR documentation might not be the most exciting part of running a nonprofit, but it’s a game-changer for staying compliant and building a strong team. We understand that navigating the complexities of employment documents can still raise questions. That’s why we’re here to offer further assistance. We invite you to book a free appointment with one of our HR experts, who will gladly address any doubts or inquiries you may have.
About HR Covered: At HR Covered, we understand the unique challenges nonprofits face. With deep sector expertise, responsive service, and tailored HR solutions, we’ve supported over 200 Canadian nonprofits in building strong, compliant, people-focused workplaces.
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