Schedule Demo
Contact Us

Global Expansion Guide

Canada

Manage and pay your employees easily with BIPO in Canada and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

Canadian Dollar (CAD)

employment guide_language

Language

English, French

employment guide_capital

Capital

Ottawa

Employer of Record Canada

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Canada

Download Now

Employer of Record Canada

Embark on your business expansion in Canada with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Canadian market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

Employers in Canada must provide a written statement of employment, which shall include the following information:

  • The names of both parties to the employment relationship;
  • The employee’s job title, together with a brief description of their duties and responsibilities;
  • The address of the location where the employee will normally perform their work;
  • The date on which the employment commences;
  • The term of employment;
  • The duration of the probationary period (if applicable);
  • A description of the qualifications required for the position;
  • A description of any training required for the position;
  • The employee’s working hours, including the method of calculating working hours and the provisions regarding overtime hours;
  • The rate of wages or salary, as well as the rate of overtime pay;
  • The frequency of paydays and the frequency of payment of other remuneration;
  • Any statutory deductions that must be made from the wages; and
  • Instructions on how the employee may apply for reimbursement of reasonable work-related expenses.

Statutory Contributions

Scope of Application: Employees in private enterprises.

Type of Social Insurance Upper Limit Lower Limit Employee Contribution Employer Contribution
CPP (Canada Pension Plan) $71,300/year $3,500/year 5.95% 5.95%
QPP (Quebec Pension Plan) (Quebec only) $71,300/year $3,500/year 5.40% 5.40%
Federal EI (Employment Insurance) $65,700/year – 2.30% 1.64%
Quebec EI (Employment Insurance) $65,700/year – 1.83% 1.31%

Minimum Wage

Effective Date: 1 April 2025

Federal Minimum Wage: $17.75 per hour

Public Holidays

Applicable Scope: Employees in private sectors.

Holiday Name Date
New Year’s Day 1 January 2025
Good Friday 18 April 2025
Easter Monday 21 April 2025
Victoria Day 19 May 2025
Saint-Jean-Baptiste Day (Quebec only) 24 June 2025
Canada Day 1 July 2025
Civic Holiday (excluding Quebec) 4 August 2025
Labour Day 1 September 2025
National Day for Truth and Reconciliation 30 September 2025
Thanksgiving Day 13 October 2025
Remembrance Day 11 November 2025
Christmas Day 25 December 2025
Boxing Day 26 December 2025

Note: If any of the following holidays falls on a Saturday or Sunday (a non-working day), the employee is entitled to a substitute day off on the working day immediately before or after the holiday: New Year’s Day, Canada Day, National Day for Truth and Reconciliation, Remembrance Day, Christmas Day, and Boxing Day.

For other holidays that fall on a non-working day, the holiday entitlement may either be included in the employee’s annual leave or the employer may arrange a substitute day off on a date mutually agreed by both parties.

Overtime Compensation for Work on Holidays

  • For employees on a fixed salary: Holiday pay = Total wages (excluding overtime) for the most recent 4 weeks ÷ 20
  • For commission-based employees:
    • If employed continuously for 12 weeks or more: Holiday pay = Total wages (excluding overtime) ÷ 60
    • If employed continuously for less than 12 weeks: Holiday pay = Total wages for the most recent 4 weeks ÷ 20
  • For part-time employees: Holiday pay calculated on a pro-rata hourly basis.
  • For continuous operations: Holiday pay = Basic wage × Total working hours in the previous 4 weeks × 1/20

Working Hours

Standard Working Hours

Per Day Per Week
8 hours 40 hours

Weekly Rest Days

Employees are entitled to at least one full day of rest each week, which is typically Sunday.

Overtime Compensation

Overtime pay shall be at least 1.5 times the employee’s regular hourly wage. Alternatively, paid time off in lieu may be granted at the rate of 1 hour of overtime for 1.5 hours of time off.

Exemptions to Overtime Compensation

  • Truck drivers in the trucking industry;
  • Commission-based salespersons in the broadcasting industry;
  • Commission-based salespersons in the banking industry;
  • Crew members in the west coast shipping industry.

Leave

Annual Leave

  • Employer Type: Single employer
  • Eligibility: Employees who have worked continuously for 12 months
  • Duration of Annual Leave: At least 2 weeks of leave after 1 year of continuous employment; at least 3 weeks of leave after 5 years of continuous employment; at least 4 weeks of leave after 10 years of continuous employment.
  • Annual Leave Allowance: For 2 weeks of leave, 4% of the total annual wages; for 3 weeks of leave, 6% of the total annual wages; for 4 weeks of leave, 8% of the total annual wages. Wages include all work-related remuneration, excluding tips or gratuities.
  • Compensation for Unused Annual Leave: Upon termination of employment, the employer must pay the employee the annual leave wages for the completed year and the pro-rata annual leave wages for the partially completed year within 30 days.

Sick Leave

  • Eligibility: Paid sick leave applies only when the employer has scheduled work for the employee or expects the employee to be available for work. After completing 30 consecutive days of employment, an employee becomes entitled to 3 days of paid sick leave. For each additional month of continuous employment, the employee accrues 1 extra day, up to a maximum of 10 days per year.
  • Duration: 10 days per year (paid); 27 weeks (unpaid).
  • Allowance: Paid at the employee’s regular wage for their normal working hours, and shall be included in the total wages.

Maternity Leave

  • Eligibility: Pregnant employees who provide a medical certificate from a recognised medical institution. The employee must submit written notice to the employer at least four weeks in advance.

  • Duration: Up to 17 weeks. Maternity leave may begin 13 weeks before the expected date of delivery and end 17 weeks after the actual date of delivery.

    • If the child is not born within the initial 17 weeks, the leave may be extended until the actual date of delivery.
    • If the child requires hospitalisation after birth, maternity leave may be extended by the corresponding number of weeks of hospitalisation, subject to a maximum total of 52 weeks.
  • Allowance: Up to 15 weeks of federal Employment Insurance (EI) benefits, administered by Service Canada. The benefit rate is 55% of the employee’s average weekly wage, capped at $695 per week in 2025.

Other Leave Types

  • Parental Leave: Applicable to biological or adoptive parents. The maximum duration is 63 weeks. If both parents are employed under federal jurisdiction, they may share the leave and receive an additional 8 weeks (total 71 weeks). This leave is unpaid.
  • Compassionate Care Leave: Applicable for caring for a family member with a serious illness and significant risk of death. The maximum duration is 28 weeks within a 52-week period. Two or more employees may share the leave consecutively for the same person, but not simultaneously. This leave is unpaid.
  • Critical Illness Care Leave: Applicable for caring for a critically ill family member. The maximum duration is 37 weeks (within a 52-week period) for caring for a child under 18 years of age, and 17 weeks (within a 52-week period) for caring for an adult. If there are two or more critically ill children, each child is entitled to a separate 37-week leave. This leave is unpaid.
  • Leave for Death or Disappearance of a Child: Applicable when an employee’s child under 25 years of age dies or disappears as a result of a criminal offense. The maximum duration is 156 weeks (calculated from the date of death or disappearance). This leave is unpaid.
  • Personal Leave: A maximum of 5 days per calendar year. If the employee has worked continuously for the same employer for more than 3 months, the first 3 days of this leave are paid.
  • Leave for Victims of Domestic Violence: Applicable when the employee themselves or their child is a victim of domestic violence. The maximum duration is 10 days per calendar year. If the employee has worked continuously for the same employer for more than 3 months, the first 5 days of this leave are paid.
  • Aboriginal Traditional Practices Leave: Applicable to employees who are Aboriginal (including First Nations, Inuit, and Métis) and have worked continuously for the same employer for at least 3 months. The maximum duration is 5 days per calendar year. This leave is unpaid.
  • Court or Jury Leave: Applicable when an employee is required to participate in judicial proceedings (as a witness, juror, or jury candidate). This leave is unpaid.
  • Bereavement Leave: Applicable when an immediate family member of the employee passes away. The maximum duration is 10 days, which may be taken in one or two installments. If the employee has worked continuously for the same employer for more than 3 months, the first 3 days of this leave are paid.
  • Reserve Force Leave: Applicable to employees who have worked continuously for the same employer for at least 3 months and are members of the Reserve Force participating in relevant activities. The maximum duration is 24 months (within a 60-month period), except in cases of national emergencies. This leave is unpaid.

Notice Period for Termination and Severance Pay

Notice Period

  • Individual Termination

    • An employer must provide at least 2 weeks’ written notice when terminating an employee’s employment. For employees who have completed 3 or more years of continuous service, the notice period shall be calculated as 1 week per completed year of service, with a maximum of 8 weeks.
    • An employee is not required to provide advance notice to the employer when terminating their employment, unless otherwise stipulated in the signed contract.

  • Mass Termination

    • Mass termination refers to the termination of 50 or more employees in a single industrial establishment, occurring on the same date or within a consecutive 4-week period;
    • At least 16 weeks’ written notice must be provided to the head of labor program compliance and enforcement.

Severance Pay

  • Employer’s Obligation: An employee who has worked continuously for more than 12 months is entitled to severance pay if their employment is terminated due to layoff or dismissal (e.g., insufficient work or completion of work tasks).

  • Amount of Severance Pay: The amount of severance pay shall be the higher of the following two amounts:

    • 2 days’ wages at the employee’s regular wage rate for each year of completed employment;
    • 5 days’ wages at the employee’s regular wage rate.

  • In addition, the employer must provide either a termination notice or pay in lieu of notice.

    • The employee is laid off temporarily and such layoff does not result in the termination of the employment relationship;
    • The employee’s employment contract has a specified termination date and the contract expires;
    • The employee is dismissed for just cause;
    • The employee resigns voluntarily.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Canadian regulations.
  • Contributions and Taxes: Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
  • Compliance with Minimum Wage and Working Hours: We guarantee that your employment practices adhere to Canada’s minimum wage and working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with Canada’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.
Services may vary across countries.

Benefits of BIPO Employer of Record Service in Canada

Unlock your growth potential with BIPO’s Employer of Record service in Canada. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

Subscribe to newsletter*
*
This field is for validation purposes and should be left unchanged.

Share this guide

Share on facebook
Share on linkedin
Share on email

Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

Subscribe to BIPO's Newsletter

This field is for validation purposes and should be left unchanged.

Follow us

Download the BIPO Mobile App

© Copyright 2025. All Rights Reserved.
© BIPO Service North Asia Limited 2021 | EA License No. 65471
©上海必博人力资源服务有限公司2021|沪ICP备09094361号-1
沪公网安备 31010602000326号

Find out more?

Explore our award-winning platform

One-all-one HR global platform with integrated features to manage your business.

Privacy Consent*
*
This field is for validation purposes and should be left unchanged.