Hire and Pay Workers in Canada

Whether engaging Canadian Nationals, Foreign Talent or looking to expand overseas, Canada has become a popular place for businesses. Find out what it takes to hire and pay workers in Canada.

Canada has become a popular place to hire full-time employees or contingent workers for businesses around the globe.  With CXC’s services, you can find, engage and pay top talent in Canada. CXC makes hiring easy and fast, alleviating the need for you to setup a legal entity. We know the local laws and tax requirements and ensure all engagements are in compliance. Hire rapidly, anywhere with CXC.

OVERVIEW OF CANADA

The fact that Canada is mostly an English speaking country and is its main language, makes it an attractive option for overseas businesses.

 

HIRE IN CANADA

When hiring in Canada, you have two main options:

  1. Setup a legal entity/business
  2. Use an Employer of Record

EMPLOYMENT CONTRACTS

Whether engaging a worker locally or overseas, it is always recommended to have a written employment contract in place.  CXC always ensures contracts are reviewed and compliant with local laws, although not required legally in Canada.  Employment contracts are considered as indefinite unless stated otherwise and should include:

  • Name of all parties involved
  • Date of commencement (and employment duration for temporary contracts)
  • Location where the work will be carried out
  • Job title, duties and responsibilities
  • Basic salary as well as other compensation and benefits
  • Working hours
  • Total number of holidays
  • Notice periods for employment termination
  • Non-compete clause

WORKING HOURS AND TERMS

Requirements may vary between provinces for basic employment standards in Canada, including weekly working hours, daily working hours, days per week, sick pay, leave entitlements, taxation and notice periods. The below is the federal standard for Canada.

Working Days 5
Daily working hours 8
Weekly working hours 40

PAYMENTS AND SALARY

As with working hours, payment cycles also vary in Canada between weekly, bi-weekly and monthly.

Pro rated salary based on working hours Paid bi-weekly

 

TAXES AND SOCIAL SECURITY

Contributions by employers and employees varies by province and individual circumstances.

Employer BC – 8.052%

Ontario – 9.802%

Quebec – 14.074%

Alberta – 9.662%

Employee Based on individual circumstances

EMPLOYEE BENEFITS

Whether a Canadian National or a Foreign Worker, many of the benefits remain the same.  The general standard for most provinces is that after one year of being employed, workers are entitled to two weeks paid annual leave.

Social Health Care Included as part of standard tax deduction
Public Holidays – estimated •BC – 10 days

•Ontario – 10 days

•Quebec – 8 days

•Alberta – 10 days

Overtime •BC – due after 8 hours per day or 40 hours per week

•Ontario – due after 44 hours per week

•Quebec – due after 40 hours per week

•Alberta – due after 8 hours per day or 44 hours per week

Annual Medical Leave ( in days) No paid sick leave
Maternity Leave Maximum of 15 weeks Maternity Leave is available

EI Maternity (Employment Insurance – deducted from Salary)

Paternity Leave Parental Benefits paid to maximum of 35 weeks. Must be claimed within 52 week period after the child’s birth.  Can be split between the parents. (Employment Insurance – deducted from Salary)
Compassionate Leave Up to 28 weeks compassionate care leave within a 52 week period to care for a family member. 2 or more employees from same family can share the 28 wks.
Critical Illness •Employee family member who is critically ill – 37wk leave to provide care or support to under 18, 17wks for adult (Unpaid)
Death or disappearance of child •Unpaid. 52 weeks in case of missing child. 104 weeks if death of a child.
Personal Leave •Unpaid – up to 5 days per year
Family Violence •Paid – First 5 days if employed for 3 consecutive months

•Unpaid – Up to 10 days

Traditional Aboriginal Practices •Unpaid – 5 days per year to take part in practices if employed for 3 consecutive months
Court / Jury Duty •Unpaid. Must provide written notice and supporting documents
Bereavement •Paid – 3 days

•Unpaid – 5 days

TERMINATION AND SEVERANCE

Unused vacation is paid out as part of salary upon termination.

TERMINATION – 14 days or payment in lieu of notice.

ONTARIO: Amount of notice required if an employee has been continuously employed for at least three months

  • Period of employment – Notice required
  • Less than 1 year – 1 week
  • 1 year but less than 3 years –  2 weeks
  • 3 years but less than 4 years –  3 weeks
  • 4 years but less than 5 years –  4 weeks
  • 5 years but less than 6 years  – 5 weeks
  • 6 years but less than 7 years –  6 weeks
  • 7 years but less than 8 years –  7 weeks
  • 8 years or more –  8 weeks

 

If you are interested to talk more about how to expand you business into Canada without having to setup a legal entity, or you want to engage workers in Canada, get in touch with our team of specialists.

ABOUT CXC GLOBAL

With over 29 years’ experience and expertise in global payroll and workforce management , CXC has the resources, technology and compliance capabilities to facilitate worker engagement worldwide.

As an experienced and trusted domestic (USA & Canada) and global partner for your remote and in-office workers, CXC acts as the Employer of Record (EOR) in each country where your workers need to work.

CXC’s cloud-based worker platform MyCXC, enables onboarding, benefits management, employer and employee taxation and compliant payroll in local currency.

But don’t just take our word for it.  Check out our case studies to learn more about the solutions we have provided for our valued customers.

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