38,781,291
The currency in Canada is the Canadian dollar (CAD). The currency symbol is $.
The Labour Code of Canada specifies four main categories under the permanent employment designation. Those categories are: full-time, part-time, casual, and managerial/professional. Although all of these are covered in the Labour Code, there is no statutory distinction made between them. Full-time employees are generally considered to be permanent employees who work 30 or more hours a week.
In Canada, an employment contract can be either written or verbal - both are equally binding and enforceable. Employers are prohibited from entering into solely non-compete agreements or contracts containing non-compete agreement clauses. Non-solicitation clauses are not included in the mandate. Since June 2022, Quebec has strengthened its Charter of the French Language, reinforcing French as the province's official language. Employers must offer employment contracts in French by default, as well as posting job advertisements in French.
Canada's Labour Code does not differentiate between permanent and temporary employees. All employees are protected under the law. A temporary job has a set termination date or ends upon the completion of a project or the attainment of a goal. Temporary employment is categorized into 3: seasonal (lasting for limited periods at the same time every year), contractual (fixed end-date) and casual (with varying work hours every week and no fixed schedules). Temporary help agencies and recruiters are prohibited from operating without a license for that purpose. A prohibition against knowingly engaging or using the services of an unlicensed temporary help agency or recruiter is included.
Canada's Labour Code allows termination without notice or severance within three months of the beginning of an employee's contract. A probationary period is set at the provincial level. Statutory probationary periods are set by each province, ranging from 29 days to 12 months.
The statutory hours for employees are eight per day or 40 per week. The maximum number of hours of work permitted per week is 48. Where the nature of work in an industrial establishment necessitates irregular distribution of employees' working hours, daily and weekly hours may be calculated as an average for a period of two or more weeks. Regulations allow for different standard working hours for certain industries and types of work. During a week when one or more holidays occur, the standard hours of work are reduced by eight for each holiday. Employers must create a policy with general rules on respecting employee’s time outside of working hours. If there are any exceptions to the rules, they must be outlined and justified in the policy. The policy should state the date that the policy comes into effect.
2026
2027
Duration and pay for annual leave differ provincially. In most provinces, employees are entitled to a minimum of 2 weeks of annual leave after completing 1 year of employment with the same employer. After 5 consecutive years of employment with the same employer, the entitlement increases to three weeks of annual vacation, and after 10 years - to 4 weeks. The annual leave and pay vary from province to province. Annual leave is to be taken only in one period or, if the employee makes a request in writing and the employer approves it in writing, in more than one period. Employers are required to pay employees who take vacation accumulated annual vacation pay. Any outstanding annual leave compensation must be paid to employees upon termination of employment.
Canada's national government does not mandate that all private employers provide paid sick leave to their employees. However, employers in federally regulated industries (such as the transportation, banking, port services, telecommunications, radio, and television broadcasting sectors) are required to provide their employees with paid sick leave. Effective December 1, 2022, federally regulated employers with 100 or more employees must provide employees with at least 10 days of paid sick leave. The range of sick leave entitlement on the provincial level is broad: from 3 days in Manitoba to up to 26 weeks in Quebec. Most provinces provide unpaid sick leave. Lawmakers in British Columbia have amended the province's Employment Standards Act to grant employees up to 3 hours of paid leave to receive a vaccination against COVID-19.
The Labour Code of Canada provides a paid maternity leave of up to 17 weeks, which may begin no earlier than 13 weeks prior to the estimated date of delivery. The leave and benefits vary within provinces ranging from 16 to 19 weeks. Employees whose pregnancy ends after the 19th week of pregnancy is entitled to the same leave entitlements as an employee who has given birth because the experience "generally amounts to the same process." If the pregnancy ends anytime before the 19th week, the employee may still be entitled to leave under the "Medical Leave" provisions of the Code. This leave entitlement is available to the parents in the case of surrogacy as well. An employer cannot dismiss, suspend, lay off, demote or discipline an employee because she is pregnant, or has applied for or intends to apply for maternity or parental leave, maternity-related reassignment or leave, or modification of her job functions. Employees on maternity leave who have completed at least 600 insured hours of work in the 52 weeks before the start of their claim are eligible to receive a benefit for up to 15 weeks at the rate of 55% of their regular wages, up to a maximum of CAD 695 per week.
There are no provisions in Canada's Labour Code for paternity leave. Employees are entitled to a parental leave that can be shared by both parents up to 35 weeks to care for a newborn child. Québec is the only province in Canada that offers paternity benefits as part of the Quebec Parental Insurance Plan (QPIP). Paternity leave may be taken by those insured by QPIP for three weeks at 75% of average weekly earnings or for five weeks at 70% up to an earnings ceiling of CAD 98,000 (Canadian dollars) per year. For uninsured employees, paternity leave is unpaid.
Federally regulated employees are not required to give their employer notice if they choose to quit. However, when employers decide to terminate a position, they must either give the employee written notice or pay 2 weeks’ regular wages in lieu of notice. When employees resign or are dismissed for just causes, they are not entitled to a notice. The notice period depends on the time of service. For employees with at least 3 months of continuous service, the notice period is 2 weeks. For 3 to 8 years of service, the notice period is 1 week of notice per year of continuous service. In the case of collective dismissals of over 50 employees, an additional notice of 16 weeks is required.
Employees in Canada are entitled to severance pay if they have completed at least 12 consecutive months of continuous employment before the layoff or dismissal resulting in termination. The severance pay is calculated as two days' regular wages for each full year worked before termination of employment. The minimum benefit is five days of wages. Severance pay eligibility and benefits may differ by province. And in Ontario, there is a distinction between severance pay and termination pay. In that province, employees are eligible for severance pay if they have at least 5 years of service and the employer has a global payroll of at least $2.5 million or severed the employment of 50 or more employees in a 6-month period because all or part of the business permanently closed. Employees dismissed for just cause are not entitled to severance pay. Termination Pay Termination pay in Ontario is given in lieu of the required notice of termination, and it has eligibility requirements and a payment calculation that differ from severance pay. The notice required to terminate an employee in Ontario (and therefore the amount of termination pay) depends on the duration of employment.
Canada’s retirement income system is supported by 3 main pillars: government-sponsored retirement benefit plans, contribution-based retirement plans, and individual retirement savings. The contribution-based plans have 2 key components: the contribution-based Canada Pension Plan (CPP) and the nearly identical Québec Pension Plan (QPP) for residents of Québec. There is also a tax-funded Old Age Security pension (OAS), which is determined based on how long the employee has lived in Canada. This type of pension also includes the Guaranteed Income Supplement (GIS) for low-income retirees.
There are 3 types of CPP Survivor Benefits: The death benefit is a one-time payment to, or on behalf of, the estate of a deceased CPP contributor. The survivor's pension is a monthly benefit paid to a deceased contributor's surviving spouse or common-law partner if the survivor meets the eligibility requirements. The children's benefit is monthly for the dependent children of a deceased contributor.
Canada Pension Plan (CPP) provides disability benefits to people who have made enough contributions to the CPP and who are disabled and cannot work at any job on a regular basis. Benefits may also be available to their dependent children. In order to qualify, the disability must be severe and prolonged. Severe means that the person has a mental or physical disability that regularly stops them from doing any type of substantially gainful work. Prolonged means that the disability is long-term and of indefinite duration or is likely to result in death. The Canada Disability Benefit Act of 2023 and its regulations provide financial support to working-age persons with disabilities. The maximum benefit amount of CAD 2,400 is available per year for low-income persons with disabilities between the ages of 18 and 65. Payments are adjusted annually for inflation.
Canada's law defines income tax as a tax on income earned by all Canadian residents and some non-residents annually. Residents are taxed on their income from sources inside or outside Canada. Private employers are responsible for calculating and submitting taxes due to income paid to all employees. There are two types of income tax in Canada: federal and provincial. The federal tax rates within Canada are split into 5 levels, from 14% to 33%. The provincial rates are separate from federal rates and are defined using specific rate structures.
There are two main categories of visas in Canada:
Foreign nationals are required to obtain a work permit for most jobs in Canada. The types of documents required depend on the type of work permit noted in the application. There are two types of work permits: Employer-specific work permit - allows a person to work for a specific employer in Canada. This permit must include the type of work to be performed, the employer, the place of work, and its duration. Open work permit - allows any to work for any employer in Canada with a few exceptions Regulated professions are required to ensure they comply with any regulations respecting English or French language proficiency testing requirements. Additional qualifications are required.
Starting a business in Canada brings many opportunities, with its stable economic environment and highly qualified workforce. Yet, employing workers in Canada can be challenging when dealing with Canadian employment law, taxation, and cultural differences. An Employer of Record (EOR) solution in Canada offers a streamlined method through which businesses can employ Canadian workers without having to create a local entity.
At Engage Anywhere, we simplify this process with our EOR Canada services, allowing your business to hire Canadian employees without setting up a legal entity. With our expertise, you can confidently enter the Canadian market while we handle compliance, payroll services in Canada, and administrative responsibilities.
Canada is an ideal location for business growth with its vibrant economy and favorable business atmosphere. Nevertheless, recruiting employees in Canada involves respecting legal, administrative, and cultural considerations. This guide is designed to make the process as easy as possible and map a path for businesses seeking to expand to Canada.
Canadian labor laws require compliance with labor regulations, correct taxation, and stringent compliance requirements. These can be daunting, but Engage Anywhere, one of the leading EOR service providers in Canada, ensures that your hiring process is smooth and fully compliant with Canadian employment laws.
With our EOR Canada services, businesses can efficiently hire and manage employees in Canada without the complexities of entity formation. Here’s how we add value:
Recruitment of employees in Canada involves adherence to legal and administrative conditions. Engage Anywhere ensures compliance in key areas, including:
Onboarding and Agreements in Canada
Employment contracts need to be Canadian labor law-compliant and should contain:
Onboarding entails establishing required workplace systems, training, and company culture assimilation.
Employers in Canada must register for taxation and deductions with the Canada Revenue Agency (CRA). Key tax components include:
Payroll outsourcing in Canada simplifies these procedures by ensuring all statutory deductions and remittances are completed accurately and on time.
Employment compliance includes adhering to labor laws, anti-discrimination policies, and workplace safety regulations. Regular audits and updates ensure compliance with federal and provincial laws.
Companies hiring foreign employees must understand Canada’s work permit requirements, including:
Employers hiring foreign workers must:
Processing payroll in Canada entails:
Our payroll services in Canada and EOR service providers in Canada help companies stay compliant with local payroll laws. With Engage Anywhere, businesses can easily manage wages through reliable payroll outsourcing in Canada, ensuring accuracy and timeliness.
Canadian employees have rights, including:
Salaries in Canada vary by industry, experience, and location. Employers should:
Workers in Canada are eligible for different leave benefits, such as:
Employers often conduct background checks, including:
Termination procedures must align with Canadian labor laws. Key considerations:
Effective workforce management in Canada demands cultural sensitivity, including:
Providing competitive benefits is essential to hiring the best and brightest. Typical benefits are:
Recruiting workers in Canada is a pivotal move towards opening up a robust and competitive economy. Dealing with Canadian labor laws, compliance, and payroll services in Canada may be overwhelming, but Engage Anywhere, your trusted Employer of Record, can help you handle all employment-related tasks, from payroll processing and tax payments to HR management and compliance.
A Canadian Employer of Record becomes your trusted partner, undertaking all the labor-related tasks ranging from contract making and payroll handling to tax payments and HR operations. This makes it possible for companies to pursue growth without struggling with administrative overheads.
Engage Anywhere provides end-to-end EOR service providers in Canada with solutions designed specifically for your business requirements. Our knowledge of Canadian employment regulations makes hiring stress-free, helping you hire your best talent compliantly and cost-effectively.
Begin hiring in Canada today and discover new business potential with Engage Anywhere.
An EOR is an off-the-shelf service that handles employment tasks like payroll, compliance, and benefit administration on behalf of companies.
No, an EOR enables companies to employ staff in Canada without having a legal entity.
Employers are subject to federal and provincial tax statutes, such as payroll deductions of income tax, CPP, and EI.
An EOR enables the recruitment of foreign workers through the handling of work permits and immigration compliance.
With the help of Engage Anywhere, your business can confidently and easily navigate the intricacies of hiring in Canada.
