Employer of Record Services in Canada

As a provider of managed services, CXC champions contingent workers in the gig economy. The increasing competition for top talent in the labor market by global financial centers has elevated the significance of the contingent workforce. In addition, the talent shortage for in-demand jobs for the future has shifted the recruiting and hiring strategies of organizations to attract contingent workers.

Contingent workforce trends in the US

There were 51.5 million contingent workers in the US in 2020, which generated $1.3 trillion in revenue that year. It’s forecasted that 50 percent of the US workforce will be made up of contractors and contingent workers by 2050.

In Canada, non-traditional workers occupy 30% of the workforce. It’s expected to grow by 35% in 2025 due to generational shifts, technological advances and increasing self-employment by professionals from the scientific and technical sectors.

Industries with talent shortages

These are the top U.S. industries with talent shortages:

  • Education
  • Technology, media and telecommunications
  • Trade, transportation & utilities
  • Leisure and hospitality
  • Financial and business services


What can an EOR do for your company?

An employer of record can help your business expand internationally and tap new markets to access top talent, without having to deal with the complexities of recruitment, payroll, compliance and administrative tasks. CXC is one of the leading employer of record services providers with expertise in contingent workforce solutions.

As a global employer of record, CXC manages the following for organizations looking to hire from the contingent workforce:

√   Access to Contingent Workforce Talent
√   Contractor & Supplier Management
√   Supplier & Work Cost Savings Plan
√   Contingent Workforce Technology, Automation & Implementation
√   Contingent Worker Engagement & Performance
√   Contingent Workforce Data Insights & Benchmarks
√   Enterprise Risk Mitigation

Hiring contingent workers in Canada

International businesses looking to hire talents in Canada must be aware of the Canadian labor laws, called the Common Law, which is administered by the local government in provinces and territories. Large enterprises such as airlines, telecom and international shipping are governed by federal jurisdiction.

The Common Law applies to 9 Canadian provinces. CXC will help you navigate these laws to meet regulatory compliance. Here are some of the important rules to keep in mind:


Type of Workers


●      Employees – enjoy statutory benefits under the Common Law

●      Dependent contractors – enjoy some benefits under the Common Law

●      Independent Contractors – no entitlements under the Common Law


Employment Contracts

●      Verbal or written

●      Probationary period is from three to six months



Work Permits

Foreigners need to obtain a work permit.

●      Open Work Permit – can work with any employer

●      Employer-specific Work Permit – can only work for one employer




Working Hours


●      Standard workweek is 40 hours with a maximum of 48



Minimum Wage


●      Salary varies from industry to industry

●      Average salary is CA$54,630 per year

●      For federally regulated employees, the minimum wage is $15 per hour





Full-time employees enjoy benefits like allowances, paid time off, holiday pay, health care, dental care, compensation & retirement benefits



Time Off Work


All employees have paid or unpaid time off


●      Maternity leave (17 weeks)

●      Parental leave

●      Bereavement

●      Sick Leave

●      Holidays



Hiring and Discrimination Protection



Employees can refuse work if they feel unsafe in the workplace. They are protected by strict laws against discrimination.




●      Employees must be notified two weeks before the end of employment

●      They can receive severance pay when they are laid off or dismissed after working in the company for 12 months.



Data Protection



●      Alberta, Quebec and British Columbia have provincial privacy laws that allow employers to collect employee data. They can use and disclose it under permitted situations


●      The Personal Information and Electronic Documents Act applies to the rest of the provinces and territories



Download our free eBook on using an employer of record for local and overseas expansion. In this eBook we look into:

  • What is an EOR
  • Benefits of using an EOR
  • Advantages of an EOR
  • Disadvantages of an EOR
  • EOR Checklist
  • Workforce Management Strategies

CXC is a global HR outsourcing organization with 30 years of experience in workforce management. Our innovative and cost-effective solutions help companies gain a competitive advantage by improving efficiency while reducing risks.

Contact CXC today to start enabling your future workforce.