Canada offers a highly skilled, bilingual workforce with employment rules set mostly at the provincial level. All-in employer cost runs around 1.12x the gross salary. Here is what to know before your first Canadian hire.
Employment standards, minimum wage, leave, and termination are governed province by province, with a separate federal regime for some industries. Written contracts are standard, and common-law 'reasonable notice' can exceed statutory minimums unless a valid contract limits it.
Set by each province, generally in the C$15-17 per hour range as of 2024*. The applicable rate is where the employee works.
Bi-weekly or semi-monthly is common. There is no statutory 13th salary, and bonuses are discretionary or contractual.
Around 9 to 10 statutory holidays depending on the province, with premium pay rules if worked.
Written offers are standard, and probation is commonly three months. Registration for CPP, EI, and provincial payroll is required.
Employer costs are moderate, around 12%, mainly Canada Pension Plan and Employment Insurance contributions plus provincial levies such as workers' compensation and health taxes.
CPP and EI apply up to annual maximums, so higher salaries carry a smaller effective percentage. Rates and ceilings are set federally each year; Quebec runs its own QPP and QPIP.
Employees pay federal and provincial income tax plus their CPP/EI share, withheld at source. Remittance is the employer's responsibility, which under EOR means ours.
A minimum of two weeks of vacation, often rising to three after several years, paid as a percentage of earnings (4%+), with the exact rule set by province.
Job-protected leave can run up to about 18 months combined; income is replaced by federal Employment Insurance within limits (Quebec via QPIP).
Varies by province. Federally regulated employees get 10 paid sick days, and several provinces mandate a few paid or unpaid sick days.
Bereavement, family-responsibility, and domestic-violence leave are set by provincial standards.
Statutory notice or pay in lieu scales with tenure, but common-law 'reasonable notice' can be much longer unless a valid contract limits it. Mass terminations trigger extra notice.
Some jurisdictions (federal, and Ontario above a threshold) require statutory severance on top of notice; elsewhere common-law damages apply.
Commonly three months, during which statutory notice often does not yet apply.
Misclassifying an employee as an independent contractor exposes the company to back CPP/EI, taxes, vacation pay, and termination liability. The CRA and courts weigh control and dependence.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Canadian employment contract, payroll, CPP/EI, and benefits, handled. One invoice, flat $399 per month.