How to Hire Employees in Canada
Hiring employees in Canada in 2026? Learn the federal and provincial labour law requirements, payroll obligations, termination rules, and how an EOR simplifies compliant hiring without a local entity.
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Hiring in Canada requires compliance with both federal and provincial employment standards before your first payroll run clears.
Canada has no at-will employment. Every termination requires statutory notice or just cause, and the rules differ by province. Getting this wrong on the first hire creates liability that compounds with every subsequent one.
- Employer CPP contribution is 5.95% of pensionable earnings, plus a CPP2 tier at 4% on earnings above CAD 71,300 (approximately $214 USD at current rates for reference only).
- Statutory notice runs up to 8 weeks in Ontario; common law awards can far exceed that figure depending on tenure and role.
- Ontario bans non-competes for most employees. Quebec's Law 25 imposes strict data-consent rules that affect how you collect and store candidate information.
- An Employer of Record lets a foreign company employ workers in any province within days, without registering a Canadian entity.
This guide covers hiring models, payroll obligations, contracts, benefits, termination rules, and the compliance risks that catch unprepared employers off guard.
Gloroots operates as an Employer of Record in Canada. This guide is written to be useful regardless of which hiring path you choose, whether that is a local entity, an EOR, or a contractor arrangement.
Job Market and Hiring Trends in Canada
Technology, healthcare, and skilled trades are driving the bulk of permanent hiring intentions in 2026 as immigration moderates and wages continue to rise across most provinces.
Shortages persist in software engineering, nursing, and construction trades. Youth unemployment sits at 12.8%, which signals an available entry-level and graduate talent pipeline for employers willing to invest in onboarding.
- Canada's unemployment rate stood at 6.5% in early 2026, down from a 7.1% peak in late 2025 (Statistics Canada).
- 55% of Canadian employers plan to add permanent headcount in H1 2026 (ManpowerGroup Talent Shortage Survey 2026).
- Average hourly wages reached CAD 37.17 nationally in 2026, up 3.3% year-over-year (Statistics Canada).
- Youth unemployment is 12.8%, indicating an available entry-level and graduate talent pipeline (Statistics Canada).
- Ontario's 2026 salary transparency law, under Bill 149, requires employers to disclose pay ranges in all job postings, affecting recruitment practices province-wide.
- Ontario has also introduced mandatory AI-disclosure rules for hiring processes, requiring employers to inform candidates when artificial intelligence is used to screen or evaluate applications.
These regulatory trends add compliance steps to recruitment. Employers posting roles in Ontario must audit job descriptions and hiring tools before going live.
Your Options for Hiring in Canada: Entity vs. EOR vs. Contractor
Foreign companies hiring in Canada choose between three models: establishing a local entity, partnering with an Employer of Record (EOR), or engaging independent contractors. For US-based companies, overlapping time zones make Canada operationally convenient, but the compliance obligations are distinct. EOR suits teams of 1 to 10 employees; entity formation makes sense at 20 or more.
Entity setup requires full CRA registration, provincial payroll accounts, and direct employer liability for all applicable employment standards across every province where staff are based.
Contractor engagement is appropriate only when the relationship genuinely reflects independence under CRA's multi-factor test. Contract wording alone does not determine classification.
One additional risk applies to foreign companies hiring employees in Canada without a registered entity: CRA may deem the arrangement a taxable permanent establishment (PE), creating corporate tax exposure. Using an EOR mitigates this risk because the EOR is the legal employer on record.
When evaluating EOR providers, ask whether they own their Canadian legal entity or operate through a third-party partner network. Partner networks add cost layers and slow response times. Reviewing the best employer of record options helps identify providers with direct Canadian entity ownership.
| Factor | Local Entity | EOR | Independent Contractor |
|---|---|---|---|
| Legal Employer | Your Canadian corporation | EOR provider | Contractor themselves |
| Setup Time | 2 to 4 months | Days | Immediate |
| Compliance Responsibility | 100% on you | Shifted to EOR | On you (classification risk) |
| CPP and EI Contributions | Mandatory, self-managed | Handled by EOR | Not applicable |
| Direct CRA Registration | CRA Business Number, provincial payroll accounts, Canadian bank account required | EOR holds registration; no incorporation required | Contractor registers independently |
| PE Risk | None (entity established) | Mitigated via EOR legal employer status | High if engagement resembles employment |
| Misclassification Risk | None | None | High if misused |
| Best For | Long-term, large teams (20+) | Fast, compliant expansion (1 to 10 employees) | Genuine short-term project work |
Employees vs. Contractors in Canada
Misclassifying an employee as a contractor in Canada triggers retroactive payroll obligations, penalties, and provincial employment standards claims. Each additional misclassified hire compounds the exposure.
CRA applies a four-factor test to determine worker status: control over how work is performed, ownership of tools and equipment, chance of profit and risk of loss, and integration of the worker into the business. Courts apply a similar multi-factor analysis regardless of what the contract states. A document labelled "independent contractor agreement" does not override the factual nature of the relationship.
CRA actively audits contractor arrangements in technology and professional services sectors. Companies in those industries face heightened scrutiny and should document the basis for contractor classification before any engagement begins.
| Factor | Employee | Contractor |
|---|---|---|
| Control | Employer directs how, when, and where work is done | Worker controls their own methods and schedule |
| Benefits and Social Security | Entitled to CPP, EI, and statutory benefits | Not entitled; self-manages contributions |
| Taxation | Employer withholds and remits income tax | Contractor self-files and remits taxes |
| Contractual Agreement | Employment contract governed by provincial standards | Service agreement; standards do not apply |
| Exclusivity | Typically works exclusively for one employer | Free to work for multiple clients simultaneously |
Cost to Hire an Employee in Canada
Total employment cost in Canada includes base salary, statutory contributions, vacation accrual, statutory holidays, and supplemental benefits. Salary alone understates the true cost.
Employer contributions to CPP and EI are mandatory across all provinces. Ontario employers above the CAD 1 million payroll threshold also pay Employment Health Tax (EHT) at up to 1.95%. All provinces require Workers' Compensation (WSIB/WCB) registration, with premium rates varying by industry.
- CPP (base): Employer rate 5.95% of pensionable earnings, matching the employee rate.
- CPP2 (second additional): Applies to earnings above the first ceiling; employer matches employee rate.
- EI: Employer pays 1.4x the employee premium rate (employee rate approximately 1.66% of insurable earnings).
- QPP (Quebec): Replaces CPP for Quebec-based employees; employer matches employee contribution.
- QPIP (Quebec): Parental insurance plan; employer and employee each contribute at separate prescribed rates.
- EHT (Ontario): Up to 1.95% on payroll above CAD 1 million threshold; employer-only cost.
- Workers' Compensation (provincial): Premium rates set by province and industry classification; employer-only cost.
Extended Health Care (EHC) plans covering dental, vision, and prescription drugs are a market expectation in Canada. Provincial health insurance does not cover these benefits. Budget approximately $214 (CAD 300) per employee per month for a standard EHC plan.
When using an employer of record cost model, the EOR service fee is a flat monthly charge per employee. That fee is separate from statutory pass-through costs such as CPP, EI, Workers' Compensation, and EHT, and separate from benefit premiums. For most foreign companies, an EOR remains cost-effective up to roughly 10 to 15 employees in Canada. Beyond that headcount, establishing a local entity may reduce per-employee overhead.
Compliance Risks While Hiring in Canada
Canada's compliance risks are compounded by provincial variation. A policy that is compliant in Ontario may violate British Columbia or Quebec standards.
Foreign companies face four specific risk areas that catch unprepared employers off guard:
- Permanent establishment (PE) risk: A foreign company with Canadian employees may be deemed a taxable PE by the Canada Revenue Agency (CRA) even without formal entity registration. That determination triggers Canadian corporate tax obligations retroactively.
- Workers' Compensation non-registration: Employers must register with WSIB or WCB within the required window after hiring. In Ontario, that window is 10 calendar days. Missing it exposes the employer to fines and retroactive premium assessments.
- EHT non-compliance: Ontario employers above the CAD 1 million payroll threshold who fail to register for and remit Employment Health Tax face penalties and interest charges from the Ontario Ministry of Finance.
- Ontario pay transparency (2026): Ontario's 2026 requirements mandate disclosure of salary ranges in job postings and disclosure of AI use in hiring decisions. Failing to comply may attract regulatory scrutiny and reputational consequences.
Each of these risks operates independently. A company can be fully compliant on payroll remittances and still face a PE assessment or a Workers' Compensation fine. Compliance in Canada requires tracking obligations across federal, provincial, and municipal levels for every employee location.
Key Labor Laws in Canada
Employment contracts
Written employment contracts are strongly recommended across all provinces. Any clause providing less than the statutory minimum is void, and courts interpret ambiguous termination clauses strictly against employers.
Working hours and overtime
Maximum weekly hours vary by province. Most provinces set the threshold at 48 hours per week. Ontario, Alberta, and New Brunswick cap standard hours at 44 per week. Overtime is required beyond those thresholds.
Minimum wage
Each province sets its own minimum wage. As of 2025 to 2026, Ontario is CAD 17.20 per hour, British Columbia is CAD 17.40 per hour, Alberta is CAD 15.00 per hour, and Quebec is CAD 16.10 per hour. The federal rate is CAD 17.30 per hour. Employers must pay whichever rate is higher between the federal and applicable provincial rate.
Leave entitlements
Statutory leave entitlements including vacation, parental, and sick leave are covered in detail in the Employment Benefits section below.
Salary transparency and AI disclosure (Ontario, 2026)
Ontario introduced requirements effective 2026 that employers disclose salary ranges in job postings. If AI tools are used in the hiring or screening process, employers must disclose that use to candidates. These obligations apply to employers with 25 or more employees in Ontario.
Union rights
Most Canadian workers have the legal right to unionize under the Canadian Charter of Rights and Freedoms. Major unions include the Canadian Labour Congress (CLC), the Public Service Alliance of Canada (PSAC), Unifor, the National Union of Public and General Employees (NUPGE), and the Canadian Union of Public Employees (CUPE). Employers must respect collective bargaining rights and cannot interfere with lawful union organizing activity.
What to Include in an Employment Contract or Offer Letter in Canada
A signed offer letter and a written employment contract are distinct documents in Canada. Both create binding obligations and must comply with provincial minimums.
A signed offer letter can create binding obligations before the formal contract is executed. Include a condition precedent clause in the offer letter if you need to preserve flexibility pending background checks or other pre-employment steps.
Best-practice employment contracts in Canada should address the following:
- Position title and job description
- Start date and place of work, including remote work policy
- Base salary or hourly wage in CAD
- Working hours and overtime policy
- Vacation entitlement (minimum per province)
- Probationary period terms
- Termination clause that meets or exceeds statutory minimums
- Benefits entitlements
- Confidentiality and IP assignment provisions, referencing a Proprietary Information and Inventions Assignment Agreement (PIIA) covering copyrights, patents, and industrial designs
- Governing law specifying the applicable province
Ontario's 2026 rules add one more obligation: if AI is used in the hiring or screening process, employers must disclose that use to candidates at the time of application or screening.
Payroll and Taxes in Canada
Canadian payroll runs in CAD on weekly, biweekly, or semi-monthly cycles. Most provinces require payment at least semi-monthly.
A foreign employer without a Canadian entity can register directly with the Canada Revenue Agency (CRA) for a Business Number and payroll account. Alternatively, an EOR handles all remittances across provinces, removing the need for direct CRA registration. See Gloroots pricing for country-specific cost details.
Employers withhold and remit federal and provincial income tax at source. Quebec employees are subject to both federal (CRA) and provincial (Revenu Québec) remittances, which adds a distinct administrative layer compared to other provinces.
Before running the first payroll, employers must collect a TD1 Federal and a TD1 Provincial personal tax credit return form from each new hire. These forms determine the correct withholding amounts.
Income tax rates by jurisdiction
| Tax type | Rate range | Notes |
|---|---|---|
| Federal income tax | 15%–33% | Applies to all Canadian employees |
| Ontario provincial | 5.05%–13.16% | Stacks on top of federal rate |
| BC provincial | 5.06%–20.50% | Stacks on top of federal rate; progressive brackets |
| Alberta provincial | 10% flat | No graduated brackets |
| Quebec provincial | 14%–25.75% | Remitted to Revenu Québec separately |
Employer and employee contribution rates
| Contribution | Employer rate | Employee rate | Notes |
|---|---|---|---|
| CPP base | 5.95% | 5.95% | On pensionable earnings up to YMPE (CAD 71,300) |
| CPP2 | 4% | 4% | On earnings between YMPE and YAMPE (CAD 73,200); affects higher earners |
| EI | 1.4x employee rate | ~1.66% | Employer pays 1.4 times the employee premium |
| QPP (Quebec) | 4.00% | 4.00% | Replaces CPP for Quebec employees |
| QPIP (Quebec) | 0.692% | 0.494% | Quebec parental insurance; applies instead of standard EI parental benefits |
Employment Benefits in Canada
Canadian benefits split into two categories: mandatory statutory entitlements covering vacation, statutory holidays, parental leave, and sick leave, and supplemental market-standard benefits covering Extended Health Care, dental, vision, and group retirement plans that directly affect talent competitiveness.
Paid time off and public holidays
Minimum vacation is 2 weeks (4% of gross wages) in most provinces, rising to 3 weeks after specified seniority thresholds. Statutory holidays range from 9 to 13 days depending on the province.
Sick leave
Paid sick leave entitlements vary by province. Federally regulated employees receive 10 days of paid sick leave annually under the Canada Labour Code.
Maternity and paternity leave
Employment Insurance (EI) provides maternity benefits at 55% of insurable earnings for up to 15 weeks. Standard parental benefits pay 55% for up to 40 weeks. The extended parental option pays 33% for up to 69 weeks. Employers must hold the position open during the full leave period.
Public health insurance
Provincial health insurance covers physician and hospital services. It does not cover dental, vision, or prescription drugs, which makes Extended Health Care (EHC) plans a standard market expectation for competitive offers.
Leave entitlements summary
| Leave type | Entitlement | Pay rate | Key conditions |
|---|---|---|---|
| Maternity leave | Up to 15 weeks | 55% of insurable earnings via EI | Biological mother only |
| Standard parental leave | Up to 40 weeks | 55% via EI | Shared between parents |
| Extended parental leave | Up to 69 weeks | 33% via EI | Lower rate, longer duration option |
| Vacation (base) | 2 weeks | 4% of gross wages | Most provinces |
| Vacation (seniority) | 3 weeks | 6% of gross wages | After specified seniority threshold |
| Sick leave (federal) | 10 days paid | Full pay | Federally regulated employers only |
| Statutory holidays | 9–13 days | Full pay | Varies by province |
Supplemental benefits
Extended Health Care plans covering dental, vision, and prescriptions cost approximately $214 per employee per month (converted from CAD 300). Employer-sponsored Registered Pension Plans (RPPs) and group RRSPs are common for retirement competitiveness. Employer RRSP contributions receive favorable tax treatment, making them an efficient component of total compensation.
Work Permits and Visas in Canada
Foreign nationals must hold valid work authorization before employment begins. The permit type determines whether a Labour Market Impact Assessment (LMIA) is required.
Sponsoring an LMIA-based permit requires demonstrating that no qualified Canadian candidate was available. Standard LMIA processing takes two to five months. The Global Talent Stream offers two-week processing for qualifying roles in high-demand occupations.
| Visa Type | Purpose | Validity |
|---|---|---|
| Employer-Specific Work Permit | Ties the holder to a named employer and role | Typically 1–2 years, renewable |
| Open Work Permit | Allows work for any employer without LMIA | Varies by eligibility category |
| Intra-Company Transfer (ICT) | Transfers employees within a multinational organization | Up to 3 years (managers/executives), 1 year (specialized knowledge) |
| International Mobility Program (IMP) | LMIA-exempt work authorization under trade agreements or reciprocal arrangements | Varies by stream |
| Global Talent Stream (GTS) | Accelerated permit for highly skilled workers in qualifying tech and research roles | 2-week processing target; permit duration varies |
| TN Visa (CUSMA) | Available to US and Mexican citizens in qualifying professional occupations under CUSMA; US citizens processed at the port of entry | Up to 3 years, renewable |
Onboarding New Hires in Canada
Onboarding in Canada is a compliance sequence. Several steps must be completed before the employee's first day, not after.
Before Day One
- Register a CRA payroll account and any required provincial equivalents.
- Conduct a background check with written consent. PIPEDA, PIPA (Alberta and British Columbia), and Law 25 (Quebec) govern how candidate and employee data is collected and stored.
- Issue and obtain a signed offer letter and employment contract.
- Collect the employee's SIN, government-issued ID, and proof of right to work.
- Collect completed TD1 Federal and Provincial tax forms.
- Enroll the employee in benefits and order required equipment.
Day One
- Provide workspace and system access.
- Conduct a workplace health and safety orientation, mandatory under provincial OHS legislation.
- Introduce the direct manager and confirm direct deposit banking details.
First Week
- Deliver role-specific training and explain performance expectations.
- Walk through vacation accrual, statutory holiday entitlements, and parental leave rights.
- Confirm benefits enrollment is complete.
First 90 Days
- Schedule 30, 60, and 90-day check-ins.
- Provide feedback on probationary performance and identify development opportunities.
- Confirm permanent status or address probationary concerns before the three-month mark.
NDAs, Confidentiality and IP Protection in Canada
NDAs and confidentiality agreements are enforceable in Canada when tied to legitimate business interests and reasonable in both scope and duration.
The Proprietary Information and Inventions Assignment Agreement (PIIA) is the standard Canadian instrument for IP assignment. It covers copyrights, patent rights, and industrial design ownership. Execute it at the time of hire, not after. In Quebec, the PIIA may require French-language compliance under the Charter of the French Language to be fully enforceable.
A PIIA is not the same as a confidentiality clause. A PIIA assigns ownership of inventions and creative works produced during employment. A confidentiality clause only restricts disclosure of information. Canadian IP rights also vary by province, so a single national PIIA may not provide complete protection across all jurisdictions without province-specific review.
Termination and Offboarding in Canada
Canada has no at-will employment. Termination without cause requires statutory notice or pay in lieu, and common law reasonable notice can significantly exceed statutory minimums for senior or long-service employees.
Final pay must include all outstanding wages, accrued vacation pay, and any statutory severance owed. Pay it on or before the next regular pay date.
When terminating larger groups simultaneously, additional notice requirements apply under mass layoff provisions. Thresholds vary by province, so verify the applicable rules before proceeding.
- Revoke system access and collect company equipment on or before the employee's last day.
- Provide a Record of Employment (ROE) to the CRA within 5 calendar days of the employee's last day. This is required for Employment Insurance claims.
- Issue a termination letter specifying the termination date, the notice period or pay in lieu, and severance entitlement if applicable.
- Retain all personnel records, including the employment contract, pay stubs, and performance records, for the required retention period after departure.
Business Culture in Canada
Canadian workplaces value direct but polite communication. Indirect criticism is common in professional settings, and blunt disagreement without diplomatic framing can read as aggressive.
Hierarchies tend to be flat. Employees at all levels are expected to contribute ideas, and managers are generally accessible. Consensus-building shapes decision-making, which can extend timelines compared to US norms.
- Work-life balance: Statutory leave entitlements, including vacation, parental leave, and sick leave, are taken seriously. Employees expect employers to respect time-off rights without implicit pressure to forgo them.
- Regional and linguistic diversity: Quebec's Charter of the French Language affects hiring, contracts, and internal communications for Montreal-based teams. This is a legal requirement, not a preference.
- Punctuality and professionalism: Meetings start on time. Written follow-up after meetings is standard practice in professional environments.
- US-Canada similarity: Shared language (outside Quebec), overlapping time zones, and familiar business norms make Canada accessible for US companies. Canadian employment law is materially different from US at-will employment and must not be treated as equivalent.
Top Sectors to Hire From in Canada
Canada's workforce is concentrated in sectors with strong international demand. These five areas offer the deepest talent pools for foreign employers.
- Technology: Canada's tech sector employs over 1.2 million workers. Toronto and Vancouver rank among North America's fastest-growing tech talent markets (CBRE Tech Talent Report 2024). In-demand roles include software engineers, data scientists, and cloud architects.
- Healthcare and life sciences: Canada's aging population drives sustained demand for healthcare professionals. Nursing shortages are acute in Ontario and British Columbia. In-demand roles include registered nurses, pharmacists, and medical device engineers.
- Financial services: Toronto is Canada's financial capital and a recognized fintech center. In-demand roles include quantitative analysts, compliance officers, and financial software developers.
- Clean energy and natural resources: Federal and provincial clean energy investment is accelerating. Alberta and BC are centers for energy transition talent. In-demand roles include environmental engineers, project managers, and renewable energy technicians.
- Artificial intelligence and research: Montreal and Toronto host world-class AI research institutes, including Mila and the Vector Institute. In-demand roles include ML engineers, AI researchers, and NLP specialists.
Companies expanding across North America often hire in Canada alongside the US. See our guide to hire employees in the USA for a direct comparison of employer obligations in both markets.
Top Cities to Hire From in Canada
Canada's talent is concentrated in a handful of cities, each with a distinct specialization. Knowing where to hire shapes which roles you can fill and at what cost.
Toronto is Canada's largest city and its financial and technology center. The MaRS Discovery District anchors a dense concentration of fintech, AI, and enterprise software talent. Toronto also offers the largest English-speaking talent pool in the country, making it the default starting point for most international employers. Companies also hire employees in the UK for comparable English-speaking markets.
Vancouver hosts major studios from EA and Ubisoft alongside a strong software engineering community. Its Pacific time zone aligns well with US West Coast operations, and the city has a growing clean tech sector.
Montreal is Canada's AI research hub, home to Mila and a large community of Element AI alumni. Salaries are competitive relative to Toronto and Vancouver. The talent pool is bilingual in French and English, with additional strength in gaming, aerospace, and life sciences.
Calgary is an emerging tech hub supported by Alberta's low-tax environment. The city specializes in energy technology, data analytics, and engineering, with a lower cost of living than Toronto or Vancouver.
Ottawa concentrates federal government and defense technology work. Cybersecurity, telecommunications, and public sector IT are well represented. Shopify's headquarters and a growing SaaS ecosystem add private-sector depth. Employers evaluating similar common-law markets can also review how to hire employees in Australia.
Hire Compliantly in Canada with Gloroots
Gloroots acts as the legal employer in Canada, handling CRA registration, provincial payroll accounts, compliant employment contracts, and all statutory remittances. Clients direct the employee's work while Gloroots carries the compliance obligation.
This model suits companies hiring their first Canadian employee or scaling across multiple provinces without building separate HR and legal infrastructure in each jurisdiction.
- No local entity required: employ in any Canadian province within days.
- Compliant employment contracts with enforceable termination clauses, drafted for each province.
- Full payroll processing including CPP, CPP2, EI, EHT, and Workers' Compensation remittances.
- Transparent pricing: flat monthly service fee separate from statutory pass-through costs and benefit premiums.
- Dedicated support for onboarding, leave administration, and offboarding across all provinces.
Gloroots owns its Canadian legal entity rather than subcontracting to a local partner network. That means direct compliance accountability and no additional cost layers between the client and the legal employer.
Frequently Asked Questions About Hiring in Canada
What employment contracts are required when hiring in Canada?
Written employment contracts are strongly recommended across all provinces. Any clause providing less than the statutory minimum is void and unenforceable. Termination clauses require careful drafting: ambiguous language defaults to common law reasonable notice, which can mean months of salary exposure. Fixed-term contracts that are repeatedly renewed risk reclassification as indefinite employment with full termination entitlements.
How does termination work in Canada, and what notice is required?
Canada has no at-will employment. Termination without cause requires statutory notice or pay in lieu. In Ontario, that means one week per year of service up to eight weeks. Common law reasonable notice can significantly exceed statutory minimums for senior employees. A well-drafted contractual termination clause is essential to limit employer exposure.
What work permits are available for foreign nationals hired in Canada?
Foreign nationals require valid work authorization before employment begins. Options include employer-specific work permits (requiring a Labour Market Impact Assessment in most cases), open work permits, intra-company transfers (LMIA-exempt), and the Global Talent Stream for qualifying tech roles, which offers two-week processing. US citizens may qualify for TN status under CUSMA for listed professional occupations.
What are the top cities and industries for hiring talent in Canada?
Toronto leads in fintech, AI, and enterprise software. Vancouver is strong in gaming, clean tech, and software engineering. Montreal is Canada's AI research capital with competitive salaries. Top hiring sectors include technology, healthcare, financial services, clean energy, and AI research, all experiencing sustained demand heading into 2026.
Do employers need to register in each province where employees are based?
Yes. If you employ workers in multiple provinces, you must comply with each province's employment standards legislation separately. Payroll accounts, workers' compensation registration, and statutory filings are province-specific obligations. An Employer of Record handles this across all provinces without requiring you to register a separate entity in each jurisdiction.
What are the main differences between federal and provincial employment law in Canada?
The Canada Labour Code governs federally regulated industries: banking, telecommunications, interprovincial transport, and broadcasting. All other employers fall under provincial employment standards legislation. Most private-sector companies operate under provincial rules, which vary on minimum wage, overtime thresholds, leave entitlements, and termination notice requirements.
Can a foreign company hire in Canada without setting up a local entity?
Yes. A Global Employer of Record (EOR) employs workers in Canada on your behalf, handling contracts, payroll, CPP and EI contributions, and statutory filings across all provinces. You retain full operational control over the employee's work. This model is common for companies testing the Canadian market or scaling quickly without the cost and time of entity formation.
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