Canada Employer of Record
If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Canada, an employer of record may be the best option for achieving your global growth objectives.
An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Canada―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.
Learn about the hiring, employment, payroll and benefits requirements for workers in Canada and how our employer of record service, Global Employment Outsourcing (GEO), and local HR experts can help you manage your international employment needs.
Hiring in Canada
Under the Canadian Constitution, each province and territory in Canada has its own labor laws that protect most of the workforce. Except for unemployment insurance and public pension benefits, which are federal programs, the federal government cannot regulate employers under provincial jurisdiction. Some industries, such as international shipping, telecommunications and airlines, fall under federal jurisdiction.
Navigating provincial and federal employment laws in Canada can make HR compliance a challenge for many global employers. As your employer of record and PEO in Canada, we can ensure that every contract, for every worker, meets all requirements. We can also provide you with guidance about cultural norms and hiring best practices and keep you up-to-date with employment regulations as they change.
Employment contracts in Canada
- Minimum wage requirements vary across Canada and are regulated by provincial employment law.
- The minimum wage for federally regulated employees is $15 per hour as of December 29, 2021.
- For employees required to work more than a 40-hour workweek, overtime pay is typically time and a half, with a maximum of eight overtime hours per week.
Employee benefits and paid leave in Canada
When negotiating terms of an employment contract with a candidate in Canada, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.
Pregnant employees in Canada are entitled to up to 17 weeks of maternity leave. Unpaid parental leave is also available for employees, up to 63 weeks in some provinces.
Employers are not required to make payments to employees or pay for benefits during maternity leave. However, employees may be eligible for pay and benefits under the federal Employment Insurance Act.
In most provinces, employees are entitled to at least two weeks of paid vacation after one year of service.
Employees in federally regulated industries are entitled to two weeks of paid vacation after five years of service, three weeks of vacation after six years, and four weeks of vacation after 10 years of service. Vacation pay is equal to 4% of employee earnings for the year when the vacation is due, with an increase depending on the total years of service.
Nine holidays are observed nationwide in Canada and are generally treated as paid leave for employees:
- New Year’s Day
- Good Friday
- Victoria Day
- Canada Day
- Labour Day
- Thanksgiving Day
- Remembrance Day
- Christmas Day
- Boxing Day
There are also several provincial holidays observed in Canada.
Generally, employees required to work on a holiday are entitled to to either a paid replacement holiday or their regular rate of pay plus holiday pay equal to at least one sixtieth of what they earned in the 12-week period prior to the week when the holiday occurs.
Each province has its own laws governing sick leave, but all offer at least three days per year. These laws offer employment protection, but sick leave is generally unpaid in Canada. In certain cases of long-term illness, employees may qualify for compensation under the Canada Pension Plan or Employment Insurance.
The Canadian social security system provides basic universal health care, which covers most medical situations. However, employers often offer additional plans to cover medical needs like prescriptions, dental care and ambulance services.
As your employer of record in Canada, we may be able to provide optional supplementary medical insurance coverage for professionals and their dependents at a more cost-effective rate.
In addition to medical care, Canada offers benefits such as workers’ compensation and retirement. The availability and cost of these benefits varies between provinces.
We can consult with you about supplemental benefits coverage options for your employees in Canada, such as disability or life insurance, if needed.
Employee onboarding with an employer of record in Canada
We write and validate all local employment contracts, streamlining the onboarding process for you and your Canadian employees—all you have to do is provide relevant information and review and approve the employment agreement.
As your employer of record in Canada, we will:
- Schedule a welcome call to discuss HR and employment information for Canada, as well as answer any questions
- Prepare a customized employment contract in English and in French (or other local language)
- Share the employment contract and benefits information with the new employee for signature and review
- Gather tax and banking information from the employee to set up payroll
- Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll
The entire onboarding process for the employee can often be completed in as little as two weeks.
Partner with Safeguard Global as your Canada employer of record and PEO
The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.
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