Hire employees in Canada No entity needed.
Usually, to hire in Canada, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Canada also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Canada quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Canada built right in
Deel allows you to provide localized benefits for employees in Canada within minutes. All in one manageable online dashboard.
- Health Insurance
- Worker Compensation Insurance
- Unemployment Insurance
- Parental Leave
Currency: Canadian Dollar (CAD)
Official language: English and French
Payroll Cycle: Twice a month
Paid Time Off
In Canada, employees are entitled to paid holidays based on the length of their labor relationship:
- Less than 1 year of employment - No entitlement unless stated otherwise in the employment contract.
- 1-5 years of employment - 2 weeks paid leave
- 5+ years of employment - 3 weeks paid leave
- 10+ years of employment - 4 weeks paid leave
Employees must take their earned vacation within the 12 months in which they accrued it.
Best practice is 21 days of paid time off, and this is Deel's standard.
- New Year's Day
- Good Friday
- Easter Monday
- Victoria day
- Canada Day
- Labour Day
- Remembrance Day
- Christmas Day
- Boxing Day
Additional regional holidays may also apply.
Individual Income Tax Rates
The individual income tax depends on many variables, such as marital status, level of income, etc. The average ranges from 15% to 33%.
Depends on the Province, approximately, 10% of employee salary
Employment Contract Details
Employment contracts must be in writing in English, French is also acceptable in Quebec.
Minimum Wage Requirements
General minimum wage is CAD 15.00 per hour, or CAD 13.00 for students and employees under the age of 18.
Maximum working hours and overtime
Maximum working time is generally 48 hours per week and 8 hours a day. There are specific requirements depending on the Province as well as the industry.
Depending on the Province, the maximum probation period is 3 months.
Employment Insurance parental benefits are offered to parents who are caring for a newborn or newly adopted child or children. There are two options available for receiving parental benefits: standard or extended.
- Standard parental benefits can be paid for a maximum of 35 weeks and must be claimed within a 52-week period (12 months) after the week the child was born or placed for the purpose of adoption. The two parents can share these 35 weeks of standard parental benefits.
- Extended parental benefits can be paid for a maximum of 61 weeks and must be claimed within a 78-week period (18 months) after the week the child was born or placed for the purpose of adoption. Parents can share these 61 weeks of extended parental benefits.
Entitlements to sick leave vary by province but generally employers are not obliged to pay for these absences. Employees in most jurisdictions will have the statutorily protected right to a certain number of days unpaid sick leave. Many employers do however provide paid sick leave.
Termination requirements for employees in
Termination without cause is permissible in most jurisdictions, provided that proper notice of termination or payment in lieu is provided.
Any not taken holidays must be paid out upon termination.
In Canada, the minimum required notice period is 2 weeks' written notice.
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“Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!”
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"This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go."
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