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Canada

How to Hire Workers in Canada | Employer of Record (EOR) in Canada

Navigating the labor laws and regulations of Canada is made easy with our EOR services.

We handle all aspects of local employment, ensuring compliance and smooth operations for your business. From payroll to benefits, our team provides comprehensive support tailored to meet the unique needs of your business in Canada.

Expand into the Canadian market with confidence, knowing that you have a reliable partner managing your international employment needs.

Why You're Here!

For an overview by province, see options below:

Canada, known for its natural beauty, diverse culture, and stable economy, offers great opportunities for businesses looking to expand internationally. TCWGlobal makes hiring in Canada easy and hassle-free.

With a population of over 38 million people, Canada boasts a highly skilled and educated workforce. From the bustling streets of Toronto and Vancouver to the breathtaking landscapes of Banff and Jasper National Parks, Canada offers a unique blend of urban sophistication and natural beauty.

When it comes to expanding your business into Canada, TCWGlobal understands the importance of compliance and local regulations. Our team of experts ensures that your workforce is fully compliant, allowing you to focus on growing your business.

In addition to compliance, TCWGlobal also offers personalized services and benefits for your workforce. Whether you need assistance with payrolling management, benefits administration, or any other aspect of HR, our team is here to help.

By partnering with TCWGlobal, you can rest assured that your expansion into Canada will be seamless and successful. Our comprehensive services, combined with our local expertise, make us the ideal partner for businesses looking to expand into this dynamic market.
Fixed-Term Contracts

Most contracts in Canada are indefinite. However, fixed term contracts are permitted and naturally expire at the end of the term unless there is just cause to end the contract early. Early termination of a fixed term contract may require compensation to the Worker in the amount equal to the remainder of the fixed term.

Holidays

Each province/territory recognizes different statutory/public holidays and has different eligibility criteria. The number of holidays recognized ranges from 7 to 10.

Vacation

Most Canadian Workers are entitled to vacation pay equivalent to 4% of their gross wages, commission earnings, and work-related bonuses. Vacation is included in each paycheck and the Worker is unpaid when they use vacation time. Alternatively, it will be banked as it is accrued for subsequent lump sum payments. Any accrued but unused leave is paid out upon termination. 

Worker Classifications

There are no official subcategories of Workers in Canada.

Probationary Periods

Probationary periods are permitted. There are no restrictions on duration, but probationary periods typically last for up to three months. Termination requirements during a probationary period vary by jurisdiction.

Sick Leave

Provinces and territories provide varying amounts of paid and unpaid leave for the illness of a Worker and/or their family.

Working Hours

A regular workweek is generally Monday through Friday, eight hours per day, 40 hours per week, but it varies by jurisdiction. Some provinces mandate periods of rest.

Overtime

Overtime is paid in accordance with the applicable provincial/territorial law, which is generally a rate of 1.5 of the regular pay.

Mandatory Bonuses

There are no mandatory bonuses in Canada.

Termination

For Workers with indefinite contracts, written notice of termination, or payment in lieu of such notice, is required. Notice of termination of employment, once given, cannot be withdrawn without the consent of the worker. The amount of notice required is based on the province or territory and the worker’s length of service. Generally, the following is required: less than 3 months - no notice; 3 months but less than 1 year - 1 week; 1 year but less than 3 years - 2 weeks; after 3 years - an additional week per year up to a maximum of 8 weeks.

Resignation

Workers must give two weeks’ notice of termination of their employment unless otherwise agreed by the parties.

Other End of Employment Rules

In most provinces, collective dismissal requires varying amounts of notice depending upon the number of Workers affected. 

Unique Country Nuances

Employment law for most industries is regulated at the provincial/territorial level. The average provisions have been included here, but there may be variances depending upon the location of the Worker.

Mandatory Employer Costs

Pension/Employment Insurance: All Canadian Workers and their employers are required to contribute to a government pension as well as employment insurance subject to statutory maximums. Workers in Quebec are also required to contribute to a parental insurance plan. 

Benefits

Supplemental benefits must be offered to ALL Saskatchewan workers PT & FT. Canada has universal health care and providing supplemental benefits is not mandatory in other provinces.

Find the Global Information You’re Looking For!

Download the Hiring Guide as a PDF

Link to download this country’s hiring guide as a PDF.
Download

Bi-Weekly Payroll Calendar – Canada

Access Canada’s 2025 bi-weekly payroll calendar.
View PDF

Holiday Calendar – Canada

See the list of observed Canadian holidays.
View Calendar

Minimum Statutory Notice Periods

Review required notice periods for indefinite ECs in Canada.
View PDF

Prescreening Menu – Canada

Explore prescreening services available in Canada.
View Menu

Independent Contractor Guide – Canada

Understand IC compliance requirements in Canada.
Download Guide

Global Training Requirements

Check training mandates across jurisdictions.
Explore

Global Compliance Training Menu

View the global compliance training options available.
View Menu

Global Artificial Intelligence Laws

Stay updated with AI laws across different regions.
Read More

Client FAQs

Client FAQs provide quick answers to the most common questions about hiring and managing workers in this country. From contract types to benefits and offboarding, these insights help you navigate local employment practices with confidence. 

What is the difference between vacation days and vacation pay?
Vacation days and vacation pay are related but also separate. Vacation Days are the actual days off that workers take from work for rest or personal reasons. Vacation pay is the money a worker gets for taking vacation days. In Canada, vacation pay is typically calculated as a percentage of the wages earned. Depending on the province and/or employment contract, workers are eligible for a minimum number of vacation days, and are either paid vacation in advance in each check, or when reporting days off.
What health benefits are workers eligible for in Canada?
Canada has a Universal Health System, which provides health insurance to all residents. Clients may choose to offer additional private benefits, so long as all eligible workers are offered coverage. For more details about plans and coverage options available, please reach out to hello_canada@tcwglobal.com.
What are the notice period requirements in Canada when ending an engagement?
Notice periods in Canada vary based on location and length of service. Additionally, notice begins when the employer of record notifies the worker of their end of contract. To see notice periods by province, review the Province specific hiring guides above, or review the guide to notice periods provided in the additional resources section.
Are salary workers entitled to overtime in Canada?
Yes, salaried workers are generally entitled to overtime pay in Canada. Overtime laws and exemptions vary by province, but generally, most workers are entitled to overtime pay at 1.5 times their regular rate for hours worked beyond the standard workday or workweek, with some exemptions for certain roles, industries, or professions. For more details by province, see the province-specific hiring guides referenced above.
What considerations should be taken into account when determining to offer a fixed or indefinite contract in Canada?
There are notable requirements to be aware of when deciding to offer a fixed or indefinite employment contract. See TCWGlobal's helpful overview here for more information: Hiring in Canada: Fixed-Term vs. Indefinite Employment Contracts
Can I transfer workers from our current EOR to TCWGlobal's Canada entity?
Under Canadian employment law, transfers of EORs are not available. However, a new employment contract can be established with TCWGlobal's Canada entity.

Worker FAQs

Worker FAQs offer helpful information about your employment, including pay, benefits, holidays, and important documents. These answers are tailored to the local laws and your specific country of work.

Why is my net paycheque different after the start of a new year?
This can be for a number of different reasons. One common reason is due to the Canada Pension Plan (CPP) and Employment Insurance (EI) deductions resetting at the start of each calendar year. If you reached your yearly maximum limit in the previous year, your contributions will start again on January 1st.
As a Canadian worker working for a US company, do I follow Canadian or US holidays?
Please follow the statutory holidays in the province you are working in. If there are additional holidays you are eligible for per your employment contract, those are in addition to the statutory dates. If you are paid hourly, please submit a holiday timecard for holidays you do not work. If you work on a statutory holiday, please enter the hours worked on a regular timecard and leave a note in the timecard comments.
What benefits am I entitled to while employed with TCW Canada?
TCW Canada ensures compliance with all statutory benefits based off each Canadian province. For details about your specific benefit entitlements, please refer to your employment contract.
Can TCW Canada assist me with having a T2200/TP-64.3.V form completed?
Our team can help complete these for you each year! If you wish to claim a deduction for employment expenses incurred at your home office as a remote worker, please email hello_canada@tcwglobal.com each January to request this form and our team will assist.
When will I receive my tax forms?
T4's are sent out by the end of February each year. They will be emailed to the address we have on file. Please let a member of our team know by emailing hello_canada@tcwglobal.com if you have updated your email address!

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.