hire in Canada

Canada PEO &
Employer of Record

SALARY PAYMENT IN Canadian Dollar (CAD, $)

CONTRACT LANGUAGES English

PAYROLL TAX 7.91%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
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Horizons-owned entity with local country experts in Toronto & Vancouver. Hire in any province.

We offer fair, scalable, and transparent pricing on Canada PEO service. Contact us for a cost breakdown

End service in Canada with no additional penalties or fees.

Including vision, dental, death & disability, travel, retirement, and more.

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Canada

In this guide

Hiring in Canada

Employment Laws

Compensation & benefits

Robert McCall & team

FAQs

Simple, compliant hiring with Horizons PEO

Hiring in Canada

Horizons provides compliance solutions to ensure your business in Canada operates in line with Canadian labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Canada in a range of industries, from customer service, to accounting services, to software development.

We also process monthly payroll, and, as a Canada Employer of Record, absorb all local employer liabilities. Partnering with our Canada PEO is the quickest and most cost-effective way to enter the Canadian market.

Facts & Stats

PEO Platform Hire in Canada, and pay employees through our platform or app.	PEO Cost Our Canada PEO solution is the most affordable on the market.	Time-to-hire Fast onboarding in Canada, hire in as little as 12 hours.
Contracts We draft labor contracts compliant with Canadian labor law.	Local Benefits We administer all mandatory benefits and contributions in Canada.	180+ Countries It doesn’t stop with Canada — we are an international PEO

STAY COMPLIANT WITH CANADA LABOR LAWS

Employment Laws

Our Regional Presence in Canada

Our Canada PEO solution enables your business expansion from within Canada.

From our offices in downtown Toronto and Vancouver (stop by for a coffee in case you’re around!), we manage staff recruitment and hiring across Canada, ensuring compliance with all federal and provincial laws.

111 Peter Street, Suite 700
M5V 2H1, Toronto – Canada

Questions about hiring in Canada? Call our Toronto Office: +1 (437) 747-7746

Canada employment contracts

Employment law in Canada is governed by both federal and provincial employment laws in Canada, so you will need to be familiar with everything that is relevant to your location. A written contract is not a statutory employment requirement in Canada, but using a written contract is strongly recommended: Using a written labor contract ensures that there is explicit agreement on key terms of employment, such as benefits, salary/wages, paid vacation, and so on, reducing the likelihood of dispute at a later point. Furthermore, if there is no written contract in place, the court will read certain ‘implied terms’ into the contract, which may not favor the employer. Canada is bilingual, with both English and French being used widely. In every province except Quebec (where French is the official language), English is the most common language for employment contracts and would generally be expected. By partnering with our Canada PEO & Employer of Record, Horizons can provide draft employment contracts compliant with the applicable federal and provincial regulations.

Fixed-term

Probationary period

3 months (standard)

6 months (max.)

Termination notice period

2 weeks (standard average practice in most provinces)

Ontario: 1 week – 8 weeks, depending on. years of service

Severance

Only in Ontario: 1 week’s salary per year of service (starting from 5th year of service)

Indefinite

Probationary period

3 months (standard)

6 months (max.)

Termination notice period

2 weeks (standard average practice in most provinces)

Ontario: 1 week – 8 weeks, depending on years of service

Severance

Only in Ontario: 1 week’s salary per year of service (starting from 5th year of service)

Working hours in Canada

In general, most employees work a standard five-day week from Monday to Friday. Provincial legislation determines the rules around working hours in each location. For example, in Ontario, the most populous province, the maximum working hours are 48 per week, and 8 hours per day (or the standard workday). Note, however, that this can be extended by agreement between the employer and employee. The other provinces operate similarly (e.g., 40 hours is expected in British Columbia, with any more requiring overtime pay), but it is essential to understand the law in the industry and geographical area you are employing. For overtime, the rules (which are set provincially), generally require around 1.5-2.0x normal pay.

Hire compliantly in Canada without a local entity.

Quick, compliant hiring in 12 hours—no subsidiary required.

Public holidays in Canada

Holiday Schedule in Canada [2023]

Canada has a number of public holidays for employees. The following holidays are celebrated in Canada, although some only provincially:

Date	Holiday name
1 Jan Sunday	New Year’s Day
2 Jan Monday	Day off for New Year’s Day
7 Apr Friday	Good Friday
10 Apr Monday	Easter Monday
22 May Monday	Victoria Day
1 Jul Saturday	Canada Day
7 Aug Monday	Heritage Day
4 Sep Monday	Labour Day
30 Sep Saturday	National Day for Truth and Reconciliation
9 Oct Monday	Thanksgiving Day
11 Nov Saturday	Remembrance Day
25 Dec Monday	Christmas Day
26 Dec Tuesday	Boxing Day

Employment benefits in Canada

It’s important to understand what benefits your employees in Canada are legally entitled to or will expect to receive. We set out some of the most important benefits below.

Vacation in Canada

Almost every employee in Canada has the legal right to paid vacation under the federal law known as the Canada Labour Code. Most provinces apply the federal minimum of two weeks minimum paid leave, while a few (e.g., Saskatchewan) offer three weeks. After six consecutive years with the same employer, the minimum increases to three weeks of annual paid leave. Most employers across the entire country will offer between two and four weeks in addition to any public holidays, with the amount of available paid leave increasing with time spent in the job. Employees can also carry unused vacation days into the following years upon negotiation with employers.

Sick leave in Canada

Under the Canada Labour Code, employees have a minimum of five days of sick leave, including three days paid leave after three months of employment. Additional days may may be provided under provincial laws.

Maternity and paternity leave in Canada

Women who have worked for at least six months continuously can access paid maternity leave of up to 17 weeks upon submission of a medical note for proof. This period of leave can start up to 12 weeks before the birth date. Additionally, both parents can access unpaid parental leave of 37 weeks, or unpaid standard leave of 61 to 63 weeks (depending on province).

Employee severance and terminations in Canada

When terminating employees in Canada, employers are required to adhere to a ‘reasonable’ notice period, or a payment in place of notice. The minimum notice period varies by location, and may be stipulated in an employment contract. Several factors may be considered when determining a ‘reasonable’ notice period, such as the age of the employee, the nature of their role, and so on.

Additionally, employees who are terminated without proper cause can be entitled to severance pay. At a federal level, employees who have worked for more than one year continuously are entitled to either two days of wages per year of employment, or five days wages (whichever is greater).

Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Canada PEO can mitigate risk for foreign companies and provide guidance through this process.

Taxation in Canada

Taxation in Canada is complex and it is another area where both federal and provincial laws apply

Canada operates a progressive tax model, with higher earners paying a significantly higher proportion of their income in income tax. There is a federal rate, which varies from 0% to 33% as of 2022, which includes a portion for pension plans and employment insurance, and an additional provincial rate, which can vary significantly depending on income level and location.

In addition to the federal pension and employment insurance, other tax-funded social programs are run on a provincial basis, with funding taken from income tax and varying by location.

Health insurance in Canada

Canada has a social healthcare system which covers residents and workers with most of their necessary healthcare. While the system is primarily funded by federal taxes, a different approach to funding and delivery is taken in each province/territory. For example, Ontario requires specific contributions from both employers and employees: Employees pay an annual healthcare premium ranging from $0 to $900. Employees pay a special payroll tax called the ‘Employer Health Tax (EHT)’ ranging from 0.98 percent to 1.95 percent of employer payroll. The level of coverage varies by province, and some offer more comprehensive cover (such as drug cost and dental), but core medical expenses are covered nationwide by taxes. It is relatively common, but not necessary, for employers in Canada to provide extra health-related benefits, such as dental, life insurance, and so on.

hassle-free Canada compensation & benefits

Compensation & benefits

Compensation laws in Canada

The minimum wage in Canada varies by province and territory, and is subject to regular change. The latest rates are:

Minimum Wage Country Comparison Chart	(Per month in USD)
Alberta	$15
British Columbia	$15.20
Manitoba	$11.95
New Brunswick	$11.75
Newfoundland & Labrador	$12.75
Nova Scotia	$12.95
Nunavut	$16.00
Ontario	$14.35
Prince Edward Island	$13.00
Quebec	$13.50
Saskatchewan	$11.81
Yukon	$15.20

Benefits management in Canada

Setting up your Canadian benefits and social contribution system, as a foreign employer, is a complicated process. The laws are complex, federal and provincial differences need to be taken into account, and it may be expected that you have representatives on the ground. All of this can make it a lengthy and expensive process. Outsourcing your Canada benefits management is a fast, simple, and effective way to get everything up and running in full compliance with federal and provincial laws. Read more about benefits management and administration at Doing Business in Canada. Horizons Canada Employer of Record & PEO can provide expert guidance to help simplify the process of expanding into Canada.

Supplemental benefits package

Horizons Canada recognizes how important peace of mind is. We value the health and well-being of our employees. That’s why we’re providing our locally hired staff with access to a quality employee benefits program to support their long-term health and wellness.

Our plan coverage includes:

Health care
Prescription drug coverage
Vision & dental care
Basic group life
Accidental death & dismemberment
Long-term disability

Need help, faster? We're here, 24/7.

🇺🇸 USA - Austin, TX

Robert McCall & team

+1 (737) 265-6065

Available from 6am-10pm PDT / PST

Hire in Canada in 12h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

What is the difference between a Canada PEO and a Canada EOR?

A Canada PEO and a Canada EOR are two types of companies which specialize in providing human resources services to businesses in Canada.

The main difference between a Canada PEO and a Canada EOR is in the scope of their services.

Canada PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Canada PEO is essentially outsourcing your HR duties in Canada.

Canada EORs actually take over as the legal employer of your employees based abroad. Canada EORs become responsible for labor compliance for your employees in Canada.

At Horizons, we offer both PEO and EOR services in Canada. Get in touch now and let us know what service you are seeking.

Does Horizons own an entity in Canada?

Yes! We operate with our 100% owned local subsidiary. In addition, Horizons is registered in all ten provinces and three territories.

Our Canada operations are managed directly by our local team who’s based out of our offices in Toronto and Vancouver.

Can a PEO in Canada hire both local and foreign nationals to work in Canada?

A PEO in Canada can feasibly hire both local and foreign nationals to work in Canada.

However, the ability of Horizons to sponsor your foreign national employee in Canada may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' Canada PEO service take to hire an employee?

In most cases, Horizons’ Canada PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Canada.

Is it possible to get a work visa in Canada?

It is possible to get a work visa in Canada. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Canada are limited, however—get started today to secure your employees’ visa spot.

hire in Canada

Canada PEO & Employer of Record

Simple, compliant hiring with Horizons PEO

Hiring in Canada​

Facts & Stats

STAY COMPLIANT WITH CANADA LABOR LAWS

Employment Laws

Our Regional Presence in Canada

Canada employment contracts

Fixed-term

Indefinite

Working hours in Canada

Hire compliantly in Canada without a local entity.

Public holidays in Canada

Employment benefits in Canada

Vacation in Canada

Sick leave in Canada

Maternity and paternity leave in Canada

Employee severance and terminations in Canada

Taxation in Canada

Health insurance in Canada

hassle-free Canada compensation & benefits

Compensation & benefits

Compensation laws in Canada

Benefits management in Canada

Supplemental benefits package

Need help, faster? We're here, 24/7.

🇺🇸 USA - Austin, TX

Robert McCall & team

Hire in Canada in 12h without your own local entity.

FAQs

Hire Anywhere. Today.

Canada PEO &
Employer of Record

Hiring in Canada

Hire in Canada in 12h
without your own local entity.