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Canada

How to Hire Workers in Canada | Employer of Record (EOR) in Canada

Navigating the labor laws and regulations of Canada is made easy with our EOR services. We handle all aspects of local employment, ensuring compliance and smooth operations for your business. From payroll to benefits, our team provides comprehensive support tailored to meet the unique needs of your business in Canada. Expand into the Canadian market with confidence, knowing that you have a reliable partner managing your international employment needs.

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Canada, known for its natural beauty, diverse culture, and stable economy, offers great opportunities for businesses looking to expand internationally. TCWGlobal makes hiring in Canada easy and hassle-free.

With a population of over 38 million people, Canada boasts a highly skilled and educated workforce. From the bustling streets of Toronto and Vancouver to the breathtaking landscapes of Banff and Jasper National Parks, Canada offers a unique blend of urban sophistication and natural beauty.

When it comes to expanding your business into Canada, TCWGlobal understands the importance of compliance and local regulations. Our team of experts ensures that your workforce is fully compliant, allowing you to focus on growing your business.

In addition to compliance, TCWGlobal also offers personalized services and benefits for your workforce. Whether you need assistance with payrolling management, benefits administration, or any other aspect of HR, our team is here to help.

By partnering with TCWGlobal, you can rest assured that your expansion into Canada will be seamless and successful. Our comprehensive services, combined with our local expertise, make us the ideal partner for businesses looking to expand into this dynamic market.
Worker Classifications

There are no official subcategories of Workers in Canada.

Fixed-Term Contracts

Most contracts in Canada are indefinite. However, fixed term contracts are permitted and naturally expire at the end of the term unless there is just cause to end the contract early. Early termination of a fixed term contract may require compensation to the Worker in the amount equal to the remainder of the fixed term.

Probationary Periods

Probationary periods are permitted. There are no restrictions on duration, but probationary periods typically last for up to three months. Termination requirements during a probationary period vary by jurisdiction.

Holidays

Each province/territory recognizes different statutory/public holidays and has different eligibility criteria. The number of holidays recognized ranges from 7 to 10.

Vacation

Most Canadian Workers are entitled to vacation pay equivalent to 4% of their gross wages, commission earnings, and work-related bonuses. Vacation is included in each paycheck and the Worker is unpaid when they use vacation time. Alternatively, it will be banked as it is accrued for subsequent lump sum payments. Any accrued but unused leave is paid out upon termination. 

Sick Leave

Provinces and territories provide varying amounts of paid and unpaid leave for the illness of a Worker and/or their family.

Working Hours

A regular workweek is generally Monday through Friday, eight hours per day, 40 hours per week, but it varies by jurisdiction. Some provinces mandate periods of rest.

Overtime

Overtime is paid in accordance with the applicable provincial/territorial law, which is generally a rate of 1.5 of the regular pay.

Mandatory Bonuses

There are no mandatory bonuses in Canada.

Termination

For Workers with indefinite contracts, written notice of termination, or payment in lieu of such notice, is required. Notice of termination of employment, once given, cannot be withdrawn without the consent of the worker. The amount of notice required is based on the province or territory and the worker’s length of service. Generally, the following is required: less than 3 months - no notice; 3 months but less than 1 year - 1 week; 1 year but less than 3 years - 2 weeks; after 3 years - an additional week per year up to a maximum of 8 weeks.

Resignation

Workers must give two weeks’ notice of termination of their employment unless otherwise agreed by the parties.

Other End of Employment Rules

In most provinces, collective dismissal requires varying amounts of notice depending upon the number of Workers affected. 

Unique Country Nuances

Employment law for most industries is regulated at the provincial/territorial level. The average provisions have been included here, but there may be variances depending upon the location of the Worker.

Mandatory Employer Costs

Pension/Employment Insurance: All Canadian Workers and their employers are required to contribute to a government pension as well as employment insurance subject to statutory maximums. Workers in Quebec are also required to contribute to a parental insurance plan. 

Benefits

Supplemental benefits must be offered to ALL Saskatchewan workers PT & FT. Canada has universal health care and providing supplemental benefits is not mandatory in other provinces.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.