Hire employees in Canada, hassle-free

With Deel, your business can easily hire employees in Canada.

No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

 

 

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Employee - Canada

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
  • Pension
  • Worker Compensation Insurance
  • Unemployment Insurance
  • Parental Leave

Contents


    Speak to our team about how to compliantly hire in Canada

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    Quick Overview

    Currency: Canadian Dollar (CAD)

    Capital: Ottawa

    Official language: English and French

    Payroll Cycle: Twice a month

    Statutory Holidays

    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.

    Public Holidays

    • New Year's Day
    • Good Friday
    • Easter Monday
    • Victoria day
    • Canada Day
    • Labour Day
    • Thanksgiving
    • Remembrance Day
    • Christmas Day
    • Boxing Day

    Additional regional holidays may also apply.

    General Taxation

    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%.

    Employer Cost

    Depends on the Province, approximately, 10% of employee salary

    Additional information

    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.

    Probation Period

    Depending on the Province, the maximum probation period is 3 months.

    Parental Leave

    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.

    Sick Leave

    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.

    Notice Period

    In Canada, the minimum required notice period is 2 weeks' written notice.

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    Dec 3, 2020
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