Canada, the second-largest country in the world in area occupies roughly the northern two-fifths of the continent of North America. Despite Canada’s great size, it is one of the world’s most sparsely populated countries.
Companies expanding globally increasingly use EOR solutions in Canada to enter the market quickly without establishing a legal entity.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Canada.
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Canada, the second-largest country in the world in area occupies roughly the northern two-fifths of the continent of North America. Despite Canada’s great size, it is one of the world’s most sparsely populated countries.
Companies expanding globally increasingly use EOR solutions in Canada to enter the market quickly without establishing a legal entity.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Canada.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Canada planning:
The national holidays mentioned below are valid for the year 2026. Employers must comply with Statutory holidays in Canada when scheduling employees and processing payroll.
| January 1 | New Year’s Day | |
| April 3 | Good Friday | Movable - The Friday before Easter |
| April 6 | Easter Monday | Movable - Depending on the ecclesiastical approximation of the March equinox |
| May 18 | Victoria Day | Nationwide except for New Brunswick and Nova Scotia - Movable - The last Monday preceding May 25 |
| July 1 | Canada Day | |
| August 3 | Civic Day | |
| September 7 | Labour Day | Movable - The first Monday in September |
| September 30 | National Day for Truth and Reconciliation | Movable |
| October 12 | Thanksgiving Day | |
| November 11 | Remembrance Day | |
| December 25 | Christmas Day | |
| December 26 | Boxing Day |
The approximate time for sharing the contract with an employee in Canada is 5 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
Companies using an Employer of Record Canada partner can often streamline documentation when they hire employees in Canada or hire a remote worker in Canada.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee. This process is part of compliant onboarding delivered through Canadian Employer of Record services.
Before companies hire contractors in Canada, they must evaluate provincial labor regulations and employment classification rules.
The Canadian social security system incorporates federal law on welfare issues such as unemployment insurance and old age security, as well as, provincial policies and programs on welfare issues, such as education, social services, and social assistance. The country has two key components of its social security: Pension and Employment Insurance (EI).
Organizations expanding internationally often rely on EOR service in Canada to remain compliant while they pay employees in Canada without establishing a local entity.
| Category | Employer Contribution | Employee Contribution | Maximum Annual Insurable Earnings |
Maximum Annual Employer Premium |
|---|---|---|---|---|
| Employment Insurance (EI) |
|
|
CA$65,700 |
|
Canada Pension Plan (CPP)
|
|
|
|
|
|
|
|
|
CA$188 |
Hours of Work of Part III of the Canada Labour Code sets out the requirements an employer must meet with respect to hours of work and overtime. Managers, superintendents, and employees who carry out management functions are exempted. Architects, dentists, engineers, lawyers, and medical doctors are also excluded. Employers must understand working hours in Canada before onboarding staff across different provinces.
Hours worked in excess of standard hours must be paid for at the overtime rate. Overtime means any hours worked in excess of the standard hours specified in the Code of Regulations, in most cases eight in a day or 40 in a week. A minimum of one and one-half times the regular rate of wages is prescribed as the overtime rate.
Employees are not provided with a statutory limit for probation. However, every province has provided the maximum possible timelines that range from a month to 6 months.
An employer must provide an employee with at least two weeks’ written notice of their intention to terminate the employment of an employee. For an employee who has completed at least three years of service, the minimum notice requirement is equivalent to one week per completed year of employment, up to a maximum of eight weeks of notice. The employer can also pay the employee their regular wages in lieu of notice. A combination of notice and wages in lieu of notice is permitted.
An employee must have completed a minimum period of service in order to be entitled to notice (typically three months, except in Manitoba – 30 days – and in New Brunswick, Prince Edward Island, and Yukon – six months). The leave policy in Canada includes vacation entitlement, protected leaves, and provincial employment standards obligations.
Hours of Work of Part III of the Canada Labour Code sets out the requirements an employer must meet with respect to hours of work and overtime. Managers, superintendents, and employees who carry out management functions are exempted. Architects, dentists, engineers, lawyers, and medical doctors are also excluded. Employers must understand working hours in Canada before onboarding staff across different provinces.
Hours worked in excess of standard hours must be paid for at the overtime rate. Overtime means any hours worked in excess of the standard hours specified in the Code of Regulations, in most cases eight in a day or 40 in a week. A minimum of one and one-half times the regular rate of wages is prescribed as the overtime rate.
Employees are not provided with a statutory limit for probation. However, every province has provided the maximum possible timelines that range from a month to 6 months.
An employer must provide an employee with at least two weeks’ written notice of their intention to terminate the employment of an employee. For an employee who has completed at least three years of service, the minimum notice requirement is equivalent to one week per completed year of employment, up to a maximum of eight weeks of notice. The employer can also pay the employee their regular wages in lieu of notice. A combination of notice and wages in lieu of notice is permitted.
An employee must have completed a minimum period of service in order to be entitled to notice (typically three months, except in Manitoba – 30 days – and in New Brunswick, Prince Edward Island, and Yukon – six months). The leave policy in Canada includes vacation entitlement, protected leaves, and provincial employment standards obligations.
The Canadian social security system incorporates federal law on welfare issues such as unemployment insurance and old age security, as well as, provincial policies and programs on welfare issues, such as education, social services, and social assistance. The country has two key components of its social security: Pension and Employment Insurance (EI).
Organizations expanding internationally often rely on EOR service in Canada to remain compliant while they pay employees in Canada without establishing a local entity.
| Category | Employer Contribution | Employee Contribution | Maximum Annual Insurable Earnings |
Maximum Annual Employer Premium |
|---|---|---|---|---|
| Employment Insurance (EI) |
|
|
CA$65,700 |
|
Canada Pension Plan (CPP)
|
|
|
|
|
|
|
|
|
CA$188 |
WorkMotion operates in Canada through its partner network, handling every step of the employment lifecycle so your team can focus on the work — not the paperwork.
WorkMotion generates a locally compliant employment contract aligned with the applicable provincial Employment Standards Act – or the federal Canada Labour Code for federally regulated industries.
Because standards vary by province, contracts must be tailored to each employee’s work location.
That means a hire in Ontario gets a contract built to Ontario’s ESA, while a hire in British Columbia gets one built to BC’s Employment Standards Act.
Employment contracts must comply with provincial employment standards and often require bilingual (English/French) documentation in regions such as Quebec.
WorkMotion handles this automatically. Therefore, there’s no manual drafting and no legal review required on your end.
Before the first paycheck, WorkMotion registers with the Canada Revenue Agency (CRA) for payroll deductions and sets up all required remittance accounts.
Employers are responsible for source deductions including:
EORs manage remittances to the CRA, ensuring timely and accurate filings.
For employees in Quebec, this includes the Quebec Pension Plan (QPP) and Quebec Parental Insurance Plan (QPIP) in place of the federal equivalents. WorkMotion’s partner network handles both systems.
WorkMotion manages provincial Workers’ Compensation registrations and premiums on behalf of your business.
Each province administers its own workers’ compensation board, including, for example:
In addition, registration requirements differ. WorkMotion ensures the correct provincial registration is in place before the employee’s first day.
WorkMotion enrolls each employee in the statutory benefits required by their province:
Standard benefits include:
EORs ensure compliance with both statutory and supplementary benefit requirements. Supplementary benefits – such as extended health, dental, and vision coverage – can be layered on top to support competitive offers in Canada’s talent market.
WorkMotion runs payroll in Canadian Dollars (CAD), usually on a biweekly cycle, the standard frequency across most Canadian provinces.
Each pay run includes accurate calculation and remittance of federal and provincial income tax, CPP or QPP contributions, EI Premiums, and any applicable provincial payroll taxes.
Employment Insurance employer contributions run from 1.6% to 2.2%, and provincial health taxes range from 0.98% to 4.3%, depending on the province.
In addition, at the year’s end, WorkMotion issues T4s (or Relevés 1 for Quebec employees) and handles all required government filings.
Canadian employment law changes frequently.
Minimum wages are reviewed annually in most provinces, new leave entitlements are added, and reporting requirements evolve.
These rules differ across provinces and territories – and they’re updated regularly to reflect inflation and new policies.
WorkMotion monitors these changes through its partner network and automatically updates employment terms, payroll calculations, and benefit entitlements. You don’t need to track provincial legislative updates yourself.
For most companies hiring one to a handful of employees in Canada, entity setup is the slower, costlier path. Here’s how the two options compare:
| WorkMotion EOR | Setting Up a Canada Entity | |
|---|---|---|
| Setup cost | Per-employee monthly fee — no upfront capital outlay | Government filing fees plus legal and accounting costs — estimates range from CAD $1,500 to $5,000+ for incorporation, with ongoing annual compliance costs on top |
| Time to first hire | Days from signed contract to payroll enrollment | Can be weeks to months — incorporation, CRA registration, provincial payroll accounts, and bank account setup each add time |
| Ongoing legal exposure | WorkMotion’s partner network carries employment compliance obligations | Your entity is directly liable for all provincial and federal employment law compliance across every jurisdiction where employees work |
| Ongoing admin burden | WorkMotion handles payroll, tax remittances, T4s, benefits, and compliance updates | Internal or outsourced payroll, annual corporate returns, provincial registrations, and ongoing HR compliance management |
| Exit flexibility | Wind down individual employment relationships without dissolving a legal structure | Dissolving a Canadian entity involves regulatory filings, tax clearances, and legal costs |
A WorkMotion EOR is a good fit for companies that need to hire in Canada quickly, want predictable per-employee costs, and don’t yet have the volume or long-term commitment to justify setting up an entity.
If you’re planning to build a large Canadian team over several years and want direct employer branding and full operational control, entity setup may be worth evaluating. WorkMotion’s Direct Hiring solution can also support that path in markets where it’s available.
Use our Employment Cost Calculator to estimate the full cost of hiring in Canada before you commit.
Canada’s employment framework looks straightforward from the outside.
In practice, it’s a multi-layered system where the rules vary by province, industry, and sometimes specific role.
These are the compliance gaps that most often catch foreign employers.
Employment law in Canada is mostly provincial and strongly employee-protective.
From the first hire, you need a compliant employment agreement and must follow the employment standards rules in the province where the employee works, covering:
A company that applies Ontario rules to an employee working in British Columbia is non-compliant – even if the contract looks reasonable on its face. WorkMotion’s partner network generates province-specific contracts and payroll configurations for every hire.
Dismissals without cause require notice or pay in lieu, and courts often award more than the statutory minimums under “reasonable notice,” depending on factors like tenure, role, and age.
Severance pay requirements differ by province and length of service — some jurisdictions mandate additional compensation beyond notice periods.
Foreign employers accustomed to at-will employment models in the US are frequently surprised by Canada’s common law notice obligations. WorkMotion structures termination clauses correctly from day one, limiting exposure where the law allows.
Although a written employment contract is not mandatory under Canadian labor laws, it is good practice to include details of terms and conditions such as duties, hours, salary, wages, overtime, benefits, probation, and termination.
Without a written contract, employees may be entitled to common law reasonable notice that far exceeds statutory minimums – and any ambiguous terms will typically be interpreted in the employee’s favor.
WorkMotion generates written contracts for every hire, structured to meet provincial standards and limit unnecessary liability.
In Canada, both statutory and common law (in nine provinces) regulate employment.
Quebec is the exception, as it has no common law system.
Instead, its Civil Code of Québec – based on the French Napoleonic Code – and related jurisprudence govern labor laws there.
Quebec also requires employment documentation in French. Companies that apply a standard English-language contract template to a Quebec hire are exposed from the start. WorkMotion’s partner network handles Quebec’s distinct requirements, including French-language documentation.
In addition to having a different legal framework, Quebec also has its own pension and parental insurance plans.
The rest of Canada follows the federal system; however, contribution rates and rules still vary across the country.
Employers hiring across multiple provinces face different payroll tax obligations in each jurisdiction. Getting these calculations wrong triggers CRA penalties and employee underpayment. WorkMotion runs province-specific payroll calculations for every employee, ensuring accurate remittances each cycle.
From July 2025, Ontario employers with 25 or more employees must provide specific employment information in writing before or soon after an employee’s first day of work.
The required information includes:
This is a recent change that some foreign employers may not have built into their onboarding process. WorkMotion’s partner network incorporates these disclosure requirements into the standard onboarding workflow for Ontario hires.
B2B SaaS and AI companies headquartered in Germany, the Netherlands, or the UK frequently want to hire senior engineers, product managers, or sales leads in Canada — particularly in Toronto or Vancouver — without opening a North American subsidiary.
WorkMotion’s EOR services in Canada provide these teams with a compliant path to their first Canadian hire within days.
Companies with distributed teams – typically 50 to 300 employees – often find that the best candidate for a senior technical or commercial role is based in Canada.
Rather than restricting the search to their home market or defaulting to a contractor arrangement, these teams use WorkMotion’s employer-of-record Canada service to hire the right person with a proper employment relationship.
Canada’s workforce is among the world’s most educated, with over 60% holding post-secondary qualifications, and major business hubs include Toronto, Vancouver, Montreal, and Calgary.
WorkMotion’s partner network covers all major Canadian provinces, so the hire can be based wherever the talent is.
Companies in e-commerce, fintech, and green tech that want to establish a Canadian commercial presence often start by hiring a local sales or business development lead.
Setting up a Canadian entity for a single market-entry hire is rarely justified – the cost and timeline don’t match the risk profile of an early-stage market test.
WorkMotion’s EOR Canada service lets these companies hire quickly, compliantly, and without the overhead of a permanent legal structure hire a local representative until the market opportunity is proven.
Canada’s employment framework is provincial by design – which means every hire comes with its own compliance requirements depending on where the employee works.
Getting contracts, payroll contributions, and termination terms right across Ontario, British Columbia, Quebec, and beyond requires local expertise that most international HR teams don’t have in-house.
WorkMotion’s partner network covers all major Canadian provinces, handling contracts, CAD payroll, statutory benefits, and CRA remittances so your team doesn’t have to.
So, whether you’re making your first Canadian hire or building out a distributed team across multiple provinces, WorkMotion gives you a compliant, fast path to employment — without setting up a legal entity.
Book a demo today.
WorkMotion provides EOR services in Canada through its partner network rather than a directly owned entity. This means WorkMotion’s established local partners handle CRA registration, provincial payroll accounts, workers’ compensation registrations, and employment contracts on your behalf – covering all major provinces including Ontario, British Columbia, Quebec, and Alberta. Compliance obligations and the employment relationship are managed locally, so your company doesn’t need a Canadian legal entity to hire compliantly.
Canada has no single national employment standard for most workers — the rules governing minimum wage, overtime, vacation entitlements, termination notice, and statutory leaves are set at the provincial level and differ meaningfully across jurisdictions. A hire in Ontario is governed by Ontario’s Employment Standards Act, while a hire in British Columbia falls under BC’s Employment Standards Act, and Quebec operates under its own Civil Code framework with mandatory French-language employment documentation. This means every Canadian hire requires a province-specific employment contract — WorkMotion’s partner network generates these automatically based on the employee’s work location.
Employer costs in Canada include Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums at approximately 1.4 times the employee’s rate, and provincial payroll taxes, which vary by province and range from roughly 0.98% to 4.3%. Quebec operates its own Quebec Pension Plan (QPP) and Quebec Parental Insurance Plan (QPIP) instead of the federal equivalents, which changes the contribution structure for hires in that province. WorkMotion’s partner network calculates and remits all applicable federal and provincial contributions accurately each pay cycle, with payroll run in Canadian Dollars (CAD) on a biweekly basis.
Canadian employment law requires employers to provide notice or pay in lieu when terminating without cause, with statutory minimums set by each province, but courts can award significantly more under common-law “reasonable notice” principles, taking into account factors such as the employee’s tenure, age, and seniority. This is a common source of unexpected liability for foreign employers, particularly those accustomed to at-will employment in the US. WorkMotion’s partner network structures termination clauses from the outset to limit common-law exposure where permitted, reducing the risk of costly disputes down the line.
Once the employment details are confirmed and the contract is signed, WorkMotion can typically complete onboarding in Canada within a few business days, covering contract generation, CRA payroll account setup, provincial workers’ compensation registration, and benefits enrollment. This compares to several weeks or months if you were to incorporate a Canadian entity, register for a CRA business number, open provincial payroll accounts, and establish a local bank account before making your first hire. For companies testing the Canadian market or hiring a single key role, EOR is the faster and lower-risk path.
Ontario introduced new employment information disclosure requirements effective July 2025, requiring employers with 25 or more employees to provide specific written information to new hires before or shortly after their first day, including the employer’s legal name, work location, wage rate, pay period, and initial hours of work. This is a compliance step that many foreign employers haven’t yet built into their onboarding workflows. WorkMotion’s partner network incorporates Ontario-specific disclosure requirements into the standard EOR onboarding checklist in Canada, so your hires in Ontario are covered from day one.
The most important factors when comparing EOR solutions in Canada are provincial coverage depth, payroll accuracy across the federal and Quebec systems, and the provider’s ability to generate province-specific employment contracts that meet local standards. Beyond the technical requirements, look for transparent pricing, clear SLAs for payroll and compliance queries, and a track record of managing terminations correctly under Canadian common law, not just statutory minimums. WorkMotion is the first and only EOR provider to achieve IEC Gold Compliance Certification, independently audited across 1,000+ checkpoints covering licensing, employment law, payroll, data protection, and more.
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