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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

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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

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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.

This guide was last updated on 11 October 2025. The content in this guide is current as of this date and based on common business practices.

Employment Contract

Key Contents of a Labour Contract

In Canada, employers are required to provide a written statement of employment, which must include the following information:

  • The names of both the employer and the employee;
  • The employee’s job title, 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 or duration of employment;
  • The duration of any probationary period, if applicable;
  • The qualifications required for the position;
  • Any training required for the position;
  • The employee’s working hours, including the method of calculating hours and provisions for overtime;
  • The rate of wages or salary, including the rate of overtime pay;
  • The frequency of paydays and payment of other remuneration;
  • Any statutory deductions required from the wages; and
  • Instructions for the employee to 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

The public holidays in Canada for 2025 are listed below. Please refer to official announcements from the Canadian government for the latest updates.

Holiday NameDate
New Year’s Day1 January 2025
Good Friday18 April 2025
Easter Monday21 April 2025
Victoria Day19 May 2025
Saint-Jean-Baptiste Day (Quebec only)24 June 2025
Canada Day1 July 2025
Civic Holiday (excluding Quebec)4 August 2025
Labour Day1 September 2025
National Day for Truth and Reconciliation30 September 2025
Thanksgiving Day13 October 2025
Remembrance Day11 November 2025
Christmas Day25 December 2025
Boxing Day26 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 completed 12 months of continuous service

  • Duration:

    • 2 weeks after 1 year of continuous employment
    • 3 weeks after 5 years
    • 4 weeks after 10 years

  • Allowance:

    • 2 weeks: 4% of total annual wages
    • 3 weeks: 6% of total annual wages
    • 4 weeks: 8% of total annual wages

      • Wages include all work-related remuneration, excluding tips or gratuities.

  • Compensation for Unused Annual Leave: Upon termination, the employer must pay the employee for any completed annual leave and pro-rata leave for partially completed years within 30 days.

Sick Leave

  • Eligibility: Paid sick leave applies only when the employee has scheduled work or is expected to be available for work. After 30 consecutive days of employment, an employee is entitled to 3 days of paid sick leave. Thereafter, 1 additional day is accrued per month, up to a maximum of 10 days per year.
  • Duration: 10 days paid; up to 27 weeks unpaid.
  • Allowance: Paid at the employee’s regular wage for normal working hours, included in total wages.

Maternity Leave

  • Eligibility: Pregnant employees with a medical certificate from a recognised institution. Written notice must be provided at least 4 weeks in advance.
  • Duration:

    Up to 17 weeks. Leave may start 13 weeks before the expected delivery date and continue up to 17 weeks after actual delivery.

    • If the child is not born within the initial 17 weeks, leave may be extended until actual delivery.
    • If the child requires hospitalisation, leave may be extended up to a maximum of 52 weeks.
  • Allowance: Up to 15 weeks of federal Employment Insurance (EI) benefits at 55% of the employee’s average weekly wage, capped at $695 per week (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
    • Employers must provide at least 2 weeks’ written notice when terminating an employee. For employees with 3 or more years of continuous service, the notice period increases to 1 week per completed year of service, up to a maximum of 8 weeks.
    • Employees are not required to provide advance notice when resigning unless otherwise specified in their employment 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.
    • Employers must provide at least 16 weeks’ written notice to the head of labour compliance and enforcement.

Severance Pay

  • Employer’s Obligation: Employees who have worked continuously for more than 12 months are entitled to severance pay if terminated due to layoff or dismissal (e.g., insufficient work or completion of assigned 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 service;
    • 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.

  • Severance pay is not applicable if:

    • The layoff is temporary and does not terminate the employment relationship;
    • The employment contract has a specified end date and expires naturally;
    • 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.

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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!

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