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Employer of Record Canada

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Employer of Record Canada

Teaming up with an Employer of Record in Canada simplifies the hiring process, minimizes administrative tasks, and fosters business development and achievement.

Currency

Canadian Dollar (CAD)

Population

39 Million

Capital City

Ottawa

Minimum Wage

$11-$16.75 CAD, depending on province

Local Language

English and French

Working Hours

37.5 – 40 hours per week

Employer of record in Canada

  • Manages all employment aspects
  • Acts as a legal employer
  • Simplifies hiring
  • Compliantly employing a worker

How does an Employer of Record Canada work?

Agility

We handle the legal aspects of hiring workers, including managing HR, benefits, payroll, and taxes.

Company

Focuses on core business activities. Manages assigned employee’s tasks and performance.

Employee

Performs the assigned work, just like any other employee.

Cost Calculator

Use our easy calculator to explore the employment costs in Canada. Share a bit more information, and we’ll deliver a detailed salary breakdown straight to your inbox.

Payment Frequency

Incomes are usually paid on a monthly or semi-monthly basis. Many employers pay on a weekly or bi-weekly basis also.

Wages per month are calculated as 4.33 times the standard hours per week if an hourly wage is given.

 

Employee Tax – 5% to 62%%

Pension plan: 5.45% – 5.9%, depending on the province.

Employment insurance: 1.18% – 1.58%, depending on territory.

Income tax: Canadian income taxes are levied on provincial and federal levels.

 

Employer Tax – 7.9% to 8.5%

Pension plan: 5.45% – 5.9%, depending on territory.

Employment insurance: 1.6% – 2.2% depending on the province.

Employer health tax: 0.98% – 4.3% depending on the province.

 

Probation Period

29 days to 6 months depending on province.

 

Employment Law

Employment Agreement: Written employment contract

Compensation Records: Payslips

Work Flexibility: Flexible working arrangements

Workplace Safety: Health and safety measures

Hazard Refusal: Right to refuse unsafe work

Fair Compensation: Equal pay for equal work

Schedule Advance Notice: Notification of work schedules

Harassment Prevention: Protection from harassment and violence

Collective Bargaining: Rights related to work unions

 

Employee Termination

2 to 8 weeks written notice.

Termination laws vary by province, but typically non-unionized employees can be dismissed without cause if given notice. However certain leaves such as maternity leave, protects employees from dismissal.

There is 1 week of pay per year of employment, up to 26 weeks maximum.

Employee Benefits

Statutory Benefits

Canada Pension Plan (CPP): A mandatory government-run pension program that provides retirement income to Canadians. Both employers and employees contribute to the CPP.

Quebec Pension Plan (QPP): A similar program in Quebec, which replaces the CPP for residents of that province.

Employment Insurance (EI): Provides financial support to workers who lose their jobs due to layoffs, illness, pregnancy, or other qualifying reasons.

Workers’ Compensation: Provides financial compensation to workers who suffer injuries or illnesses related to their employment.

Common Additional Benefits

Health Coverage: Extended healthcare

Retirement Savings: Supplementary pension

Time Off: Additional paid days off

Well-being Programs: Wellness programs

Health Support: Health coaching and virtual care

Work Flexibility: Flexible working arrangements

Professional Development: Training opportunities

Commuting Assistance: Transportation allowance

Statutory Leave

On average 2 weeks leave and public holidays.
No paid sick leave, number of unpaid days varies by territory.
Maternity leave 16-19 weeks, no statutory paternity leave.
37-71 weeks parental leave depending on province.

FAQ

Think of it like this: Agility EOR becomes the legal employer of your employees, taking care of all the paperwork and compliance headaches.

Agility EOR
  • We manage the onboarding process and ensure everything’s in order before your employee starts
  • We make sure your employees are treated fairly and compliantly in their relevant territory
  • We take care of all HR matters, and can answer any and all HR queries you may have e.g. maternity/paternity leave, holidays, sick pay, and more
  • We provide compliant contracts, process local payroll, and file taxes
  • We issue payslips and handle payments to the employee and authorities
Your Company
  • You find and manage your employees’ daily tasks
  • You support their development through their work
  • You follow our guidance on employment laws and best practices
  • You ensure payroll bills are paid to Agility EOR on time

 

Benefits of using an Employer of Record (EOR)

  • Faster and easier hiring: No need to set up your own legal entity.
  • Reduced risk and compliance burden: We handle the legal and administrative complexities.
  • More time and resources: Focus on your core business while we manage your employees.

As an employee working under a Canadian Employer of Record you will benefit from legal protections and receive a standard employment contract. This includes statutory benefits like maternity leave, annual leave, and sick pay, along with applicable tax credits. It’s imperative to note that the Canada public healthcare system provides coverage for all residents, not just employees.

Yes, provided the worker controls how they complete their work, can send an alternative contractor if necessary, and is working for other companies.

Failing to classify an employee who is exclusively dedicated to your company, and has tasks imposed by your organisation, constitutes as a breach of the Canadian employment law.

Misclassifying an employee in Canada can lead to significant fines, the obligation to pay outstanding holiday pay and social security contributions, and potentially the need to establish a local presence, as well as even legal action from the employee for breached employment rights.

To start establishing your business in Canada, you must register with the Commercial Register and obtain a trade license from the required authorities.

While the initial registration process appears simple there are some added complexities, such as: launching a physical office for tax purposes, opening a Canadian bank account (which often requires in-person presence), managing payroll software compliant with Canadian regulations, and fulfilling tax filing obligations.

In simple terms, hiring people in Canada with HR compliance ensures your company strictly follows all employment and work practice regulations

But why is it so important? HR compliance in Canada goes beyond mere formalities; it safeguards both your employees and your business.

Following employment regulations guarantees fair treatment for your workforce, encompassing aspects like sick and annual leave, minimum wage, and appropriate working hours. This curates a positive work environment and decreases risk of financial penalties. Also minimizes legal repercussions and lawsuits from non-compliance.

Uniting with Agility EOR as your Employer of Record in Canada simplifies tax and social security requirements. We manage all employee-related filings and contributions, warranting complete compliance, so you can focus on running your business with peace of mind.

While Agility EOR handles the complexities of Canadian employment law and compliance, your company remains responsible for day-to-day management and communication with your team, including addressing performance issues, taking disciplinary actions when necessary, and fostering a positive work environment through open communication.

 

Agility EOR handles the legal side of things in Canada, so you can focus on managing your team and their daily tasks.

In Canada, both employers and employees contribute to various taxes. Employers are responsible for pension plan contributions, employment insurance premiums, and employer health taxes. Employees contribute to the Canada Pension Plan, employment insurance, and income tax.

As an employee working under a Canadian Employer of Record you will benefit from legal protections and receive a standard employment contract. This includes statutory benefits like maternity leave, annual leave, and sick pay, along with applicable tax credits. It’s imperative to note that the Canada public healthcare system provides coverage for all residents, not just employees.

Agility EOR takes care of your HR compliance headache:

Trusted Partners: Agility EOR collaborates with leading Canadian employment lawyers and advisors. This ensures your employment contracts and other vital documents strictly adhere to all local legal requirements.

In-Depth Knowledge: We maintain a grave understanding of intricate aspects of Canadian employment law, including payroll, social security, data privacy, notice periods, and remote work regulations.

Swift Action: If an issue arises, our internal team are immediately on hand to help and assist.

Wondering if expanding in Canada is right for you?

Read on or speak to a member of our team now

Canada Employer of Record Benefits

When you choose Agility EOR to expand in Canada, we guarantee an EOR Service tailored to the needs of your business

Compliance

We are on top of regulatory changes in Canada so you can relax.

Cost reduction

Allow our economies of scale to work in your favour.

High Service Levels

You and your employees have a dedicated account manager.

Fixed Cost Pricing

We will agree our professional fees up front based on your needs – no nasty surprises!

Consolidated Invoicing & Payments

Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.

Fast delivery

You can have 'boots on the ground' within days on our infrastructure.

Reduced Risk

All wage taxes are remitted in full to the Canadian authorities by professionals ensuring liabilities are met, giving you peace of mind.

Supply Chain Transparency

We only pay employees through local full employed solutions meaning Canadian payroll tax is paid on all funds.

Save Time and Money

Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.

Download our full Canada Employment Guide

Find out all about employing in Canada

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