Hiring is a challenge for any business, but it is especially challenging and important in a startupcontext. While it is well-known that an estimated 75-90% of startups fail, among the top three reasons for failure is a lack of qualified personnel. Research shows that up to 20% of the differences in organizational performance can be attributed to a company’s human resource practices, generating the most “critical environment” for organizational success, yet startup founders frequently rate human resources as low on their list of priorities.
It may feel tempting to hire your friends, skip the paperwork, or treat human resources as “optional” or “unnecessary” while your business is still small. But these early decisions still hold legal (and cultural)weight. The following blog answers some of the top legal and practical questions for Quebec startup founders in a hiring context.
Can I legally hire my friends?
There is no law in Quebec or Canada that prohibits hiring someone you know – in fact, many startupsand small businesses begin with a tight-knit founding team or early employees from within their personal networks. There is no legal requirement in Quebec to publicly advertise a position, meaning that you can approach and hire people directly.
While hiring friends is legally permissible, employers must ensure that their decisions are fair, transparent, and compliant with relevant legislation.
Under both the Quebec Charter of Human Rights and Freedoms (Quebec Charter) and the CanadianCharter of Human Rights and Freedoms (Canadian Charter), hiring decisions must not be influenced by any of the following prohibited grounds:
- Race or colou
- Sex, gender identity, or gender expression
- Pregnancy Sexual orientation
- Age
- Religion
- Political conviction
- Language*
- Ethnic or national origin
- Social condition
- Disability
*See question below about language application questions and requirements in Quebec.
Hiring friends can raise concerns about nepotism, perceived favoritism, or bias in decision-making, especially in areas like hiring, promotions, discipline, or performance evaluations. To mitigate these risks, it’s wise to document hiring decisions and management processes clearly, including the rationale for selection based on experience, qualifications, or alignment with operational needs. This doesn’t require you to adopt a full corporate human resources hiring framework, but documenting your recruitment andmanagement decisions can help protect against legal challenges and maintain workplace integrity.
Under Quebec’s Charter of the French Language (CFL), French is the official language of the workplace, and employers have a duty to ensure that French is used at all levels of their operations. Employers cannot require a person to have knowledge of a language other than French to keep or obtain a position unless they can demonstrate that the nature of the duties requires such knowledge and that they took all reasonable means to avoid imposing this requirement. They must also indicate the reasons justifyingthis requirement in the job posting (see sections 46 and 46.1 of the CFL).
What information can I request from candidates? Can I use psychometric tests?
In Quebec, the collection of personal information from candidates is governed by various provisions of the Act respecting the protection of personal information in the private sector and the Quebec Charter of human rights and freedoms. Quebec has also posted information and privacy guidelines for recruitmentpractices. Every single piece of information requested must be necessary and connected to the job requirements.
Even if the information is objectively necessary to perform the job, an employer cannot refuse to hire a candidate because of a prohibited ground, unless the condition would prevent the candidate from doing thejob and an accommodation would create undue hardship. To learn more, visit the recruter sans disciminerguide from the Commission des droits de la personne et des droits de la jeunesse.
The use of psychological and psychometric tests should be approached with caution due to important privacy and human rights implications.
From a privacy perspective, only abilities directly related to the job may be evaluated. Employers must ensure the scientific validity of the testing process, define objective criteria, inform candidates in advance that such tests will be conducted, and interpret results with caution and restraint. Even when tests are administered by external providers, employers remain responsible for protecting candidates’ personal information. These tests must not replace objective, job-related questions during interviews. For moreinformation, see Quebec's Commission d’accès à l’information (CAI).
The skills assessed must be directly related to the job requirements.
- Tests must be developed and validated according to professional standards and be free from discriminatory bias.
- A qualified professional, such as a psychologist or career counsellor, should administer the tests.
- Free and informed consent must be obtained, and candidates must be guaranteed confidentiality and access to their data.
- Test results must not be the sole factor in candidate selection.
Employers must also ensure that tests do not contain unconscious biases that could advantage or disadvantage candidates based on race, religion, gender, age, ancestry, disability, social condition, or any other prohibited ground. For more information, see “Recruter sans discriminer.”
Can I hire students? Can I offer unpaid internships? Can I hire international students?
Yes, you can certainly hire students in Quebec. “Student status” qualifies as a “social condition”under the Quebec Charter, which is a prohibited ground of discrimination. It is illegal to pay students less than other employees if they are doing equivalent work unless the difference in pay is based ongrounds such as experience, seniority, years of service, merit, or productivity.
Internships may be unpaid if:
a) They are required to get a license from a professional order (e.g., becoming a lawyer, doctor, or accountant); or
b) They are part of a recognized study or training program at the secondary, vocational, collegeor university level, are offered by an educational institution, and lead to a diploma, a certificate or an attestation of studies.
In other words, unpaid internships are only legal if they are recognized by a professional order or anacademic institution at either a secondary, professional, college or university level (see s. 1 of the Act to ensure the protection of trainees in the workplace, as well as the CNESST guide in trainees).
c) When hiring international students, it is important to ensure compliance with the conditions of their study and/or work permits. For more information, visit the Government of Canada's website.
Hiring in a startup environment may feel informal, but it comes with formal responsibilities. Whether you’rerecruiting friends, students, or international talent, it is crucial to treat hiring as a strategic and legal priority. Clear, fair, and compliant hiring practices not only help you avoid legal pitfalls but also set the foundation for startup success. If you're unsure about your obligations or navigating a complex hiring situation, it is always best to consult a qualified lawyer to ensure your practices align with current laws and protect your business from unnecessary risk.
This blog post is authored by students of McGill University’s Faculty of Law. The content of this blog post is provided for general informational purposes only and does not constitute legal advice. The authors are students and are not acting as lawyers or legal professionals. Reading this blog post, or contacting its authors, does not create a solicitor-client relationship. Laws and regulations vary by jurisdiction and may change over time, and the information provided in this blog post may not be current or applicable to your particular circumstances. You should not act or refrain from acting based on this content without seeking advice from a qualified legal professional regarding your specific situation.