Americas · CAD

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

Bank transfer (EFT/Interac)
Stripe Connect
Wise

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

Technology
Natural resources
Financial services
Manufacturing
Healthcare

Talent pool strengths

Software engineering
AI and machine learning
Mining engineering
Financial services
Bilingual professionals

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.

Hire in Canada — employment law, tax, compliance | Corpshore Work