An Employer of Record (EOR) in Canada is a service that enables businesses to hire employees without the need to set up a local entity. The EOR handles all compliance tasks, including payroll, tax withholdings, benefits, and employment contracts, ensuring adherence to Canadian labor laws. This solution allows companies to expand their workforce in Canada quickly and efficiently while remaining compliant with both federal and provincial regulations.
Employer of Record (EOR) Canada
Expand your team in Canada without the hassle of setting up a local entity—hire, onboard, and pay employees with complete compliance through Globaine.
- Transparent & Compliant
- World-Class Expertise
- Cost-Efficient
Start Hiring in Canada
Simple & Compliant Hiring with Globaine's Employer of Record (EOR) Canada
Hire in the Canada with Confidence
Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Canada is handled efficiently and in full compliance with local regulations.
Fast Time-To-Hire
Onboard employees in as little as 12 hours.
Cost-Efficient
The most affordable solution on the market, saving you time and money.
Compliant Contracts
Contracts compliant with Canada’s labor laws, in both English & French.
Global Reach, Local Expertise
Hire not just in Canada, but in over 180 countries through our global platform, allowing you to grow internationally without entity setup. Globaine’s team provides the local expertise you need to ensure every hire is compliant, efficient, and hassle-free.
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HIRING
in CANADA
Choosing an Employer of Record (EOR) in Canada simplifies compliance with complex labor laws, reduces administrative burdens, and helps businesses scale quickly without setting up a local entity. EOR services in Canada handle payroll, benefits, tax filings, and employment contracts, ensuring full legal compliance. This enables businesses to focus on growth while managing employees efficiently across Canada.
Employment contracts in Canada must comply with both federal and provincial labor laws. Written contracts are not mandatory but highly recommended, particularly for clarity on terms and conditions.
Written contracts are essential for ensuring both parties understand their rights and obligations. In provinces like Quebec, for example, contracts for specific projects or terms must be in writing.
Salary must be stated in Canadian dollars, clearly outlining the payment structure, whether it is hourly, weekly, or monthly. Employers should also specify any benefits, bonuses, or commission structures.
Non-compete, confidentiality, and intellectual property clauses are common in Canadian contracts, but these must comply with local legal limits and cannot unreasonably restrict an employee’s future opportunities.
in Canada
1. What are the key steps in employee onboarding in Canada?
Employees must provide a Social Insurance Number (SIN), complete tax forms like the TD1, and register for provincial health coverage if applicable. These documents ensure compliance with payroll and tax regulations.
2. When should employees complete pre-hire medical checks in Canada?
Pre-hire medical checks are typically only required for certain job roles, such as those in healthcare, transportation, or jobs involving heavy physical activity.
3. What documents are required for onboarding in Canada?
Employees should provide proof of their Social Insurance Number, completed tax forms (e.g., TD1), and valid identification. These documents are essential for setting up payroll and benefits.
4. Why businesses in Canada need EOR services?
5. How does EOR in Canada different from other countries?
in CANADA
Payroll is typically processed bi-weekly or monthly, depending on the employer’s policies. Salaries can be negotiated as annual, hourly, or piecework rates, depending on the job and industry.
Employers must ensure that all payroll and benefit contributions are consistent with the employee’s province of residence, as provincial employment standards and tax rates may vary.
Minimum wage varies by province and territory. As of 2024, it ranges from CAD 15.00 to CAD 16.75 per hour, depending on the region.
Payroll compliance ensures adherence to Canadian tax laws and labor regulations. Employers must accurately calculate and remit income taxes, Employment Insurance (EI), and Canada Pension Plan (CPP) contributions.
in Canada
1. What are the income tax rates in Canada?
Canada has a progressive income tax system, with federal tax rates ranging from 15% to 33%, plus additional provincial or territorial tax rates depending on where the employee lives.
2. How does the tax system apply to non-residents in Canada?
Non-residents are generally taxed only on income earned in Canada at a flat rate of 25%. They may also be subject to withholding taxes, depending on their visa status and income type.
3. When should tax returns be submitted in Canada?
Annual tax returns must be filed by April 30 of the following year. Employers are responsible for withholding income taxes and remitting them to the Canada Revenue Agency (CRA) throughout the year.
4. What social security contributions are required?
Employers must contribute to both Employment Insurance (EI) and the Canada Pension Plan (CPP). Employees contribute 1.58% to EI and 5.95% to CPP (or Quebec Pension Plan in Quebec), while employers contribute a matching or slightly higher rate.
in Canada
Full-time employees are typically entitled to a minimum of two weeks of paid vacation per year, increasing to three weeks after five years of service. Provincial laws may provide more generous leave entitlements.
Employees generally accrue vacation from their start date and can begin using their leave after completing their probationary period, which is usually three to six months.
Maternity leave in Canada is up to 17 weeks, while parental leave can be taken for up to 63 weeks, shared between both parents. Leave entitlements are job-protected, and employees may be eligible for EI benefits.
Canada has 9 federal statutory holidays, with additional holidays varying by province. Employers must provide paid leave for these holidays unless otherwise stipulated by the employment agreement.
BENEFITS
in Canada
1. What benefits are mandatory in Canada?
Employers are required to provide contributions to the Canada Pension Plan (CPP), Employment Insurance (EI), and sometimes health insurance if required by provincial laws.
2. How is the health insurance system structured in Canada?
In most provinces, basic health insurance is publicly funded, but many employers offer additional private health insurance, covering services such as dental, vision, and prescription drugs.
3. When should employers offer retirement savings plans in Canada?
While not mandatory, many Canadian employers offer Registered Retirement Savings Plans (RRSPs) or pension plans to attract and retain talent. These plans often include employer matching contributions.
4. What additional benefits are common in Canada?
Common benefits include life insurance, long-term disability insurance, and wellness programs. Many employers also provide flexible work arrangements and mental health support as part of their benefit packages.
TERMINATIONS
in canada
The notice period depends on the length of service and provincial regulations. Typically, it ranges from one week’s notice for short-term employees to eight weeks for long-term employees with more than eight years of service.
Employers can terminate employees without notice during the probationary period or for just cause, which includes misconduct or violation of company policies.
Severance payments are generally based on the length of service, with most provinces requiring a minimum of one week’s pay per year of service, subject to specific provincial labor standards.
Mutual termination allows both parties to agree on ending the employment relationship without legal disputes. This approach typically involves a negotiated severance package and avoids litigation.
FAQs
2. What specific cost savings can our company expect by using Globaine's EOR solution compared to setting up a local entity in Canada?
Using Globaine’s EOR solution can save significant operational and administrative costs, including payroll processing, tax filings, and legal compliance.
3. How does Globaine guarantee fast onboarding within 12 hours in Canada, and what processes are in place to maintain this speed?
Globaine’s streamlined processes, local partnerships, and dedicated teams allow for seamless onboarding within 12 hours, ensuring quick hiring and compliance.
4. Can Globaine handle complex employment scenarios in Canada, such as drafting bilingual contracts and managing terminations?
Yes, Globaine manages complex scenarios including bilingual contracts and terminations, ensuring compliance with both federal and provincial regulations.
6. How does Employer of Record work in Canada?
An Employer of Record (EOR) in Canada handles all employment-related tasks, including payroll, benefits, and legal compliance, while ensuring adherence to Canadian labor laws. By acting as the legal employer, the EOR allows businesses to hire employees in Canada without needing a local entity, streamlining HR processes and facilitating quick expansion into the Canadian market.
