Hiring, Payroll & Employment
in Canada

Hire Employees and Contractors in Canada

Project Global helps international businesses hire, onboard and manage employees and contractors in Canada without needing to establish their own local entity. Through our established presence in Canada and local expertise, we provide Employer of Record (EOR), contractor management, payroll, compliance, recruitment and workforce administration services.

Services available in Canada:

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About Canada

Canada is one of the world's leading economies, offering a stable business environment, highly skilled workforce and strong international trade connections. Home to thriving technology, financial services, manufacturing, healthcare and natural resource sectors, Canada continues to attract investment from organisations seeking access to the North American market. With major commercial centres including Toronto, Vancouver and Montreal, a culture of innovation and close economic ties with the United States, Canada remains a popular destination for businesses looking to build and support global teams.

Canada: Country Resources

العملة:

Canadian Dollar (CAD)

رأس المال:

Ottawa

اللغة:

English and French

سهولة ممارسة الأعمال التجارية

سهولة

حجم السكان

41M

GST

5% general rate

Quebec

Hiring workers in Québec

 

Québec has some employment and workforce requirements that differ from other Canadian provinces.
 
These can include labour-leasing requirements, recruitment considerations and employment administration obligations that may not apply elsewhere in Canada. Businesses hiring workers in Québec should assess local requirements separately rather than assuming the same approach used elsewhere in Canada will apply.
 
If you are planning to hire workers in Québec, we recommend reviewing the proposed structure before onboarding begins.
 

Explore Other North American Employment Guides

Explore our country-specific guides covering employment, payroll, compliance and workforce management across North America.

الولايات المتحدة الأمريكية

الولايات المتحدة الأمريكية

Source, onboard and manage workers in the USA

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View all Country Guides

Explore employment, payroll and compliance
requirements by country

الأسئلة الشائعة

Canada observes a number of statutory public holidays, including New Year’s Day, Good Friday, Canada Day, Labour Day and Christmas Day. Additional public holidays and entitlements may vary by province and territory.

Salary and compensation requirements vary by province and territory, with employment standards legislation establishing minimum wage rates, overtime provisions, pay frequency requirements and statutory holiday entitlements.

Key considerations include:

  • Minimum wage requirements
  • Overtime pay provisions
  • Vacation pay entitlements
  • Statutory holiday pay
  • Equal pay and employment standards obligations

Employers must comply with all applicable federal, provincial and territorial employment laws.

Employees may be entitled to a range of statutory leave entitlements, including:

  • Annual vacation leave
  • Sick leave
  • Maternity and parental leave
  • Bereavement leave
  • Family responsibility leave
  • Jury duty and civic leave
  • Other protected leaves as provided under applicable legislation

Specific entitlements vary depending on the employee’s jurisdiction and workplace.

Employment may be terminated for business, operational, performance or disciplinary reasons, provided employers comply with applicable notice, severance and employment standards requirements.

Termination obligations vary by province and territory and may depend on factors such as length of service, employment contract terms and local employment legislation.

  • Workers’ Compensation Insurance: Employers in most industries must register with their provincial or territorial workers’ compensation board. This mandatory no-fault insurance provides coverage for workplace injuries, occupational illnesses and related medical costs.
  • Employment Insurance (EI): While not an insurance policy provided directly by employers, employers are legally required to contribute to the federal Employment Insurance programme. This statutory benefit provides temporary financial assistance to eligible workers who lose their jobs, take parental leave or are unable to work due to illness.
  • Canada Pension Plan (CPP) / Québec Pension Plan (QPP): Employers must make mandatory contributions to the Canada Pension Plan (or the Québec Pension Plan for employees in Québec). These public programmes provide retirement, disability and survivor benefits to eligible workers.
  • Provincial Health Taxes and Programmes: Depending on the province or territory, employers may also be required to contribute to public healthcare systems through payroll taxes or other statutory employer contributions.

Specific coverage requirements, contribution rates and employer obligations vary by province, territory and industry.

You can employ someone in Canada without establishing your own Canadian company by using an Employer of Record (EOR). The EOR acts as the legal employer while your organisation continues to manage the employee’s day-to-day responsibilities.
 
This allows organisations to hire Canadian talent quickly while managing payroll, employment administration and local compliance through an established employment structure.
 

An EOR can be a practical option when you want to hire employees in Canada without creating and operating your own local employment infrastructure. Establishing a Canadian entity may make sense for larger long-term operations but creates additional tax, payroll and compliance obligations.
 
The most suitable approach depends on your hiring plans, growth strategy, workforce size and operational requirements.
 

The total cost of employment includes more than salary. Depending on the employee’s location and compensation package, employers may need to consider payroll taxes, statutory benefits, leave entitlements, insurance and other employment-related costs.
 
Costs can vary by province and by the employee’s compensation structure, which is why a full employment-cost assessment should be completed before hiring.
 

A genuine independent contractor can be engaged in Canada, but the arrangement should reflect an independent business relationship rather than employment.
 
The legal reality of how the work is performed is generally more important than the title used in the agreement. Contractors should typically retain control over how services are delivered and operate independently from the client’s day-to-day management structure.
 

Misclassification occurs when someone is treated as an independent contractor but operates more like an employee in practice.
 
This can create exposure relating to payroll obligations, statutory benefits, employment rights and tax compliance. Risks often increase where the individual works exclusively for one organisation, uses the client’s systems, is subject to significant supervision or becomes integrated into the organisation.
 
A classification review should always focus on the actual working relationship rather than the contract title alone.
 

The best approach is to assess the engagement before the contractor starts work.
 
The agreement should support an independent commercial relationship and the working arrangements should reflect that position. Project-based work, clearly defined deliverables and genuine operational independence can all help reduce risk.
 
Contractor arrangements should also be reviewed if they become long-term or evolve into staff-like roles.
 

No.
 
Operating through a corporation does not automatically determine employment status. Canadian authorities typically look beyond the business structure and assess how the work is performed in practice.
 
A person working through a corporation may still create employee-style risks if they are highly integrated into the organisation, subject to significant control or operating in a manner similar to an employee.
 

Before onboarding a contractor, organisations should confirm the person’s identity, business status, tax information and payment details.
 
Appropriate onboarding checks help establish that the contractor is operating legitimately and reduce the likelihood of payment delays or compliance issues later in the engagement.
 

Yes.
 
Many Canadian professionals work remotely for organisations based outside Canada. However, the arrangement should still be structured correctly from an employment, payroll, tax and compliance perspective.
 
The appropriate approach depends on the worker’s location, employment status and the nature of the relationship.
 

Canada offers access to a highly skilled workforce across technology, digital, media and professional services sectors.
 
Project Global can help organisations identify suitable talent and determine the most appropriate engagement model, whether through direct employment, EOR support or an independent contractor structure.
 
Combining workforce planning and recruitment strategy can help organisations move faster once the right candidate has been identified.
 

Clear employment terms help reduce disputes and improve workforce management.
 
Employers should clearly document matters such as compensation, duties, working arrangements, confidentiality, intellectual property, notice provisions and leave entitlements before employment begins.
 
Well-structured agreements provide clarity for both the employer and employee from the start of the relationship.

Yes.
 
Project Global can support Canadian employment arrangements, onboarding, payroll administration and workforce management services.
 
The most suitable structure will depend on the role, province, working arrangements and broader workforce strategy.
 

المشروع العالمي
نظرة عامة على الخصوصية

يستخدم هذا الموقع الإلكتروني ملفات تعريف الارتباط حتى نتمكن من تزويدك بأفضل تجربة مستخدم ممكنة. تُخزَّن معلومات ملفات تعريف الارتباط في متصفحك وتؤدي وظائف مثل التعرف عليك عند عودتك إلى موقعنا الإلكتروني ومساعدة فريقنا على فهم أقسام الموقع التي تجدها أكثر إثارة للاهتمام وفائدة.