Pre-Authorized Debit (PAD) Terms and Conditions

These Pre-Authorized Debit (PAD) terms and conditions (Terms) govern your authorization for Humi Payroll Limited, trading as “Employment Hero” or ‘Humi by Employment Hero’ and its affiliates (we, our, or us) to debit your business bank account. By submitting your banking information or authorizing payments on our Platform, you agree to these Terms under Payments Canada Rule H1 (Business PADs).

1. Definitions

• Authorization Step means the online action (such as clicking “Authorize PAD”, “Pay” or any similar ‘call to action’) confirming your acceptance of these Terms and authorizing ongoing PADs.
• Business PAD means pre-authorized debit where the Payor is a business, not an individual, governed by Payments Canada Rule H1.
• Financial Institution means the bank or credit union holding your designated bank account.
• Payee means Humi Payroll Limited. and its affiliates.
• Payor means your business entity or authorized representative providing this authorization.
• Platform means our HR, payroll, mobile applications, related accounts, and website services.

2. Authorization

2.1 Upon submission of your banking information and completion of the Authorization Step  through the Platform, you provide a single, ongoing authorization for us, including our payment processors and Financial Institutions, to debit your designated bank account for  payroll related amounts, including, but not limited to: 

• employee payroll disbursements as processed through our Platform;
• CRA remittances and statutory deductions calculated based on payroll data;
• contractor payments processed through the payroll module; and
• applicable payroll processing fees as agreed under our service agreement.

2.2 You acknowledge that debits under this authorization may occur in variable amounts and at irregular intervals based on the payroll data you input into the Platform, your business activities, or any other information you have communicated to us. Debits may vary based on payroll cycles and processing schedules, statutory deductions, and other applicable fees.

2.3 By completing the Authorization Step, you grant a single, comprehensive authorization for all future PADs related to payroll transactions under these Terms. No further action, confirmation, or approval will be required for subsequent PADs unless our Platform configuration requires separate authorization for each transaction, or as otherwise required by applicable law or regulatory requirements.

2.4 This authorization constitutes a valid agreement under Payments Canada Rule H1.

3. Verification Requirements

3.1 You agree to provide the following documentation upon request:

• proof of business banking information, such as a void cheque or a bank verification letter;
• proof of business establishment, such as a utility bill, phone bill, or lease receipt showing your business name and address;
• a copy of valid photo identification (e.g., passport, driver’s license, health card) for the signing officer;
• documentation demonstrating signing authority, such as incorporation papers, business registration, or a bank letter confirming signing rights.

3.2 We reserve the right to delay activation of your authorization pending verification of submitted documents.

4. Banking Information

4.1 You must provide complete and accurate bank account details, including your Legal Business Name, Financial Institution Name, Branch Transit Number, Institution Number, and Bank Account Number.

4.2 You must notify us in writing at least 5 business days before any changes to your banking information.

4.3 If your banking details change, this authorization will continue to apply to the new account unless otherwise revoked in accordance with these Terms.

5. Payment Amount and Frequency

5.1 Payment amounts will be based on your activity within the Platform and services used, including fees, payroll amounts, statutory deductions, and any applicable adjustments.  

5.2 Debits may occur at variable intervals without a maximum limit. Top ups or adjustments are calculated using information you have inputted on our Platform and only after we have processed the payroll through our Payroll system. As payments are sporadic, you agree to cooperate with us to pre-authorize the processing of each and every PAD against your account by carrying out any approval process facilitated through your account, use of an online password, or such other electronic signature equivalent. 

5.3 You agree that these Terms serve as sufficient notice of each debit and waive the requirement for any further pre-notification for Business PADs, in accordance with Rule H1. Further, for variable PADs, you agree to waive the right to receive 10 days’ pre-notification of each PAD amount as permitted under Payments Canada Rule H1.

6. Recourse Rights

6.1 You may be entitled to reimbursement from your Financial Institution if:

• a PAD was not drawn in accordance with these Terms;
• you revoked this authorization prior to the date of the PAD; or
• you did not receive proper pre-notification where such a requirement was not waived.

6.2 To exercise this right, you must submit a signed declaration to your Financial Institution no later than 10 business days from the date of the disputed debit. After this period, you must resolve any dispute directly with us.

6.3 For further information on your recourse rights, visit www.payments.ca.

7. Cancellation of Authorization

7.1 You may revoke this authorization at any time by providing us with at least thirty 30 days’ written notice at the following address or email:

• Humi by Employment Hero
• Email: support@humi.ca
• Address: 207 Queens Quay W, Suite 400, Toronto, ON, M5J 1A7

7.2 Cancellation of this PAD authorization does not terminate, suspend, or otherwise affect your underlying contractual obligations to us, including any outstanding payment obligations.

7.3 We will use reasonable efforts to cease all future PADs within the next applicable billing or processing cycle, and no later than 30 calendar days following our receipt of your cancellation notice.

7.4 We regularly assess a range of factors as part of our standard business operations. From time to time, these reviews may result in changes to how we deliver our services. We reserve the right to revoke or suspend Pre-Authorized Debit (PAD) authorization at any time, with notice to the customer, in accordance with applicable laws and Payments Canada PAD rules.

8. Recovery of Funds and Stop Payment Requests

8.1 You agree to cooperate with us in recovering any funds transferred or credited in error, including funds disbursed to employees or other recipients as a result of an erroneous PAD.

8.2 You may initiate a stop payment request through us using the form we provide. Additionally, you may also contact your financial institution directly to initiate a stop payment request in accordance with Payments Canada Rule H1. Please note that placement of a stop payment request does not guarantee prevention of the debit.

9. Insufficient Funds and Remedies

9.1 If any payment is dishonored for any reason (including insufficient funds, account closure, or a reversal), we may:

• charge a non-sufficient funds (NSF) fee of up to $300 per occurrence;
• reverse any related credits to you, your employees, or contractors;
• refuse to provide further services;
• offset unrecovered funds against any amounts we hold on your behalf;
• report the incident to credit reporting agencies or financial institutions; and/or
• terminate these Terms immediately.

9.2 You are liable for all costs and expenses we incur in attempting to collect any unpaid amounts, including legal and collection agency fees.

10. Funding Obligations

10.1 You agree to maintain sufficient funds in your account to cover all amounts payable under these Terms.

10.2 If you know or reasonably should know that your account will have insufficient funds, you must notify us immediately.

10.3 We reserve the right to change the method or timing of funding obligations in response to changes in your financial condition.

11. Privacy and Use of Information

11.1 Your banking and personal information will be collected, used, and stored only for the purposes of processing PADs authorized under these Terms.

11.2 We will protect your information in accordance with applicable privacy laws and our Privacy Policy.

12. Record Retention

12.1 We will retain a copy of your authorization for at least 12 months after your final debit transaction or cancellation of this authorization.

13. Changes to These Terms

13.1 We may update these Terms from time to time. Material changes will be communicated by email or through your Platform account, unless you have expressly waived the right to receive such notification.

13.2 Your continued use of our services or maintenance of an active PAD authorization constitutes your acceptance of the updated Terms.

14. Entire Agreement

14.1 These Terms, along with any related service agreements you enter with us, form the entire agreement governing your PAD authorization and supersede any prior agreements or representations.

15. Acceptance

By submitting your banking information, authorizing payments on the Platform, or otherwise agreeing to these Terms, you acknowledge that you have read, understood, and agreed to be bound by these Terms.