1% Training: A Must-Know for Quebec Employers

In today’s fast-paced business world, compliance with labour laws is just as important as workforce development. In Quebec, the 1% Training Law ensures that businesses invest in employee training while adhering to strict government regulations. But navigating these requirements can be complex—that’s where we come in.

What is 1% Training?

For businesses operating in Quebec, compliance with the 1% Training Law—formally known as the Contribution to the Workforce Skills Development and Recognition Fund—is essential. Under this law, employers with a payroll of $2 million or more must invest at least 1% of their total payroll in employee training initiatives. If they fail to do so, the unspent amount must be remitted to Revenu Québec.

Many businesses struggle with ensuring that their training investments meet compliance standards, and failing to maintain the required documentation can lead to unnecessary financial remittances. Properly structuring your 1% training file is crucial for compliance and financial efficiency.

Why is Proper Documentation Important?

Failing to maintain an accurate 1% training file can result in penalties or lost opportunities to reinvest in workforce development. To remain compliant, businesses must:

• Ensure Training Eligibility: Not all training expenses qualify under the law. Understanding what counts is essential.
• Maintain Proper Records: Detailed documentation is required to justify training expenses.
• Track and Report Accurately: Employers must submit reports demonstrating compliance with Revenu Québec's requirements.

What Qualifies as Eligible Training?

To maximize compliance and avoid unnecessary remittances, businesses must ensure their training initiatives meet the legal criteria. Eligible expenses may include:

• Formal Training Programs: Workshops, courses, and certifications provided by recognized institutions.
• In-House Training: Structured learning initiatives conducted by qualified trainers within the company.
• Online Learning: E-learning modules and virtual training sessions that develop workforce skills.
• Coaching and Mentorship Programs: Guided skill development under the supervision of experienced employees.
• Apprenticeships and Internships: Hands-on training for employees in various industries.

How HR Vibe Helps Businesses Stay Compliant

At HR Vibe, we help businesses compile and structure their 1% training file to ensure compliance with the Workforce Skills Development and Recognition Act. Our team of experts assists in:

1. Compiling Training Expenses – We gather and review all training investments made by your business to confirm compliance with the 1% Training Law.
2. Compiling the Compliance Report – Based on the training expenses provided by you, we prepare a structured and compliant report for submission.
3. Ensuring Full Compliance – We make sure that all eligible training expenses are properly recorded, ensuring that at least 1% of your total payroll has been invested.
4. Structuring and Organizing Supporting Documents – We compile all necessary supporting documentation for your report submission to Revenu Québec.

Steps We Perform for Your 1% Training File

To ensure seamless compliance, HR Vibe follows these key steps:

1. Identification of Eligible Training and Expenses for 2024 – We assess your training initiatives and categorize eligible expenses.
2. Recording of the Eligible Training Expenses – We document the investments made to confirm that your business meets the 1% payroll investment requirement.
3. Compilation of Supporting Documents – We gather invoices, attendance sheets, training records, and all necessary documentation for accurate reporting.

The Impact of Small, Consistent Training

By adhering to the 1% Training Law, businesses not only meet legal obligations but also cultivate a skilled and engaged workforce. Investing in continuous learning leads to higher efficiency, greater job satisfaction, and a stronger competitive edge in the market.

By complying with the 1% Training Law, your business can create a culture of growth without the burden of large-scale training initiatives. The result? A more skilled, motivated, and engaged workforce that drives long-term success.

Don’t Risk Non-Compliance – Let Us Help

Many businesses unintentionally remit funds simply because they haven’t structured their training documentation properly. Let HR Vibe assist you in ensuring your training investments are accurately tracked and compliant with Quebec’s 1% Training Law.

Let’s simplify compliance together. Reach out to our HR consultants today to ensure your 1% file is structured correctly!

Need Help Implementing 1% Training?

At HR Vibe, we specialize in helping small and medium-sized businesses build effective, scalable training programs that fit their unique needs. Our HR consultants can guide you in implementing a learning culture that delivers real results—while ensuring compliance with Quebec’s regulations.

Let’s make training simple, effective, and engaging for your team. Reach out to our HR experts today!