Hire in Canada
Canada — 40 million population, $52,720 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in Canada.
Capital
Ottawa
Currency
Canadian Dollar (CAD)
Languages
English, French
Time zones
UTC-3.5 (NT), UTC-4 (AT), UTC-5 (ET), UTC-6 (CT), UTC-7 (MT), UTC-8 (PT)
Hiring overview
- Typical time to hire
- 2-4 weeks for contractor, 3-6 weeks for full-time
- Entity requirement
- Federal or provincial incorporation. Must register for payroll deductions (CPP, EI, income tax) with CRA.
- EOR available
- Yes — from $399/employee/month through a Corpshore entity
- Contractor of record
- Yes — from $39/worker/month
Employment law
- Standard workweek
- 40 hours (federal); varies by province (37.5-44 hours)
- Maximum weekly hours
- 48 hours
- Minimum annual leave
- 2 weeks (federal); 3 weeks after 5 years. Saskatchewan starts at 3 weeks.
- Public holidays
- 9 per year
- Maternity leave
- 15 weeks (maternity) + 35 weeks (parental) through EI
- Paternity leave
- 35 weeks shared parental, or 5 weeks exclusive paternity in Quebec
- Notice period
- 1-8 weeks depending on tenure (federal); provinces vary. Common law reasonable notice can exceed statutory.
- Severance
- Federal: 5 days per year of service after 12 months. Ontario: 1 week per year after 5 years (up to 26 weeks).
- Probation
- Typically 3 months (no statutory limit federally); some provinces set 3-6 months.
- Overtime rules
- 1.5x after standard hours. Some provinces have daily overtime thresholds (e.g., BC: 8 hours/day).
Tax overview
- Income tax range
- 15% to 33% federal, plus provincial (4-25.75%)
- Corporate tax
- 15% federal + provincial (generally 8-16%); combined ~26.5% average
- Social contributions
- CPP: 5.95% employee + 5.95% employer (2024). EI: 1.63% employee + 2.28% employer.
- VAT / GST
- 5% federal GST + provincial sales tax (0-10%); HST combines both in some provinces (13-15%)
- Tax year
- Calendar year (Jan-Dec)
- Treaty network
- Over 90 tax treaties, one of the widest networks globally
Compliance landscape
- Worker classification
- CRA uses a multi-factor test examining control, ownership of tools, chance of profit/risk of loss, and integration. Provincial employment standards may apply a separate test.
- Data protection
- PIPEDA (federal) and provincial equivalents in Alberta, BC, and Quebec. Quebec's Law 25 (effective 2023-2024) adds GDPR-like requirements including privacy impact assessments.
- Right to work
- Work permit required for non-citizens/PRs. Labour Market Impact Assessment (LMIA) needed for most employer-sponsored permits.
- Non-compete
- Ontario banned non-competes for most employees effective October 2021. Other provinces assess enforceability case-by-case; courts favour narrow scope.
- Collective bargaining
- Protected under federal and provincial labour codes. Union density ~30%, higher than the US. Strong in public sector, resources, and manufacturing.
Payment rails
EFT (Electronic Funds Transfer) through the Canadian Payments Association is the standard payroll method. Interac e-Transfer widely used for smaller amounts. Stripe Connect supports CAD payouts.
Key considerations for hiring
- Bilingual requirements in Quebec (French is the official business language under Bill 96)
- Common law reasonable notice often exceeds statutory minimums, sometimes by months
- Provincial employment standards vary meaningfully: Ontario, BC, Alberta, and Quebec each have distinct regimes
- Remote work has created nexus questions for employers with workers in multiple provinces
Business and cultural context: Canada
Business culture
Collaborative, consensus-seeking, polite communication style. Less hierarchical than many European counterparts. Strong emphasis on diversity and inclusion in hiring.
Key industries
Talent pool strengths
Historical context
Canada's Employment Insurance (EI) system, introduced in 1940 as Unemployment Insurance, was one of the first national social safety nets in North America. It now funds maternity/parental leave, making Canada's parental leave among the most generous in the Americas.
Ready to hire in Canada?
Use our EOR service from $399/month and we handle employment law, payroll, tax and compliance in Canada for you.