Canada, a vast, nature-rich country stretching from the Atlantic to the Pacific, is renowned for its stunning landscapes, multiculturalism, and high quality of life.
Beyond its tourist attractions, Canada also has a robust education system and significant cultural diversity, as roughly 20% of the population consists of immigrants.
The variety of backgrounds fosters creativity and a multitude of perspectives, making Canada the perfect choice for companies looking to hire skilled remote workers from a diverse talent pool.
Key takeaways:
- Canada boasts a highly educated workforce, many of whom are fluent in both English and French.
- Tech talent is in demand, and Canada is home to a growing number of workers skilled in the STEM industries.
- Employment laws vary by province, which can be tricky for companies hiring remote employees without the help of an EOR.
Advantages of Hiring in Canada
Canada is home to a highly educated population. It ranks second globally among the most educated countries, with over 66% of adults completing tertiary degrees, and there is a strong focus on STEM education initiatives.
Canada’s digital infrastructure offers a solid foundation for remote work, as nearly 36.74 million Canadians have access to high-speed internet.
Canada at a glance:
- Languages: English, French
- Currency: Canadian Dollar (CAD)
- Capital City: Ottawa
- Population: 38.4 million
- Cost of Living Rank: 17th
Why Canada’s Remote Talent Stands Out
Canada is a hotbed for innovation, particularly in tech, with cities such as Toronto, Vancouver, and Montreal home to many skilled workers — perfect for companies hiring remote workers.
Ranked as North America’s third fastest-growing tech market, Canada’s IT services sector is projected to hit $30.23 billion in 2024.
Canadians prioritize a better work-life balance, leading to increased job satisfaction and productivity and better mental health. Canada ranks among the top 10, scoring 67.91 out of 100 in the Global Work-Life Balance Index.
This potent combination of talent, innovation, and well-being makes Canada an unbeatable choice for remote hiring.
Common job sectors for remote talent in Canada include:
- Software development
- Cybersecurity
- Digital marketing
- Financial analysis
- Healthcare consulting
- Customer support
Employment Laws: Hiring Compliantly in Canada
Employment Contracts
While not legally required, employment contracts are highly recommended in Canada.
The most commonly used contracts are:
- Indefinite-term contracts: These are open-ended contracts with no specific end date. Most full-time employees are hired with indefinite-term contracts.
- Fixed-term contracts: Containing a specific end date or tied to a particular project, fixed-term contracts are used for temporary or project-based roles.
Working Hours & Pay
The standard work week in Canada ranges between 37.5 to 40 hours, with an eight-hour workday.
However, hours and work schedules may vary depending on employment contracts, the region, and the industry. For example, most employees work 40 hours per week, but in Ontario, the maximum workweek can be as high as 48 hours.
The minimum wage in Canada varies by province. As of 2024, it ranges from CAD 15 per hour in New Brunswick to CAD 17.40 per hour in British Columbia. Overtime is 1.5 times the employee’s regular wage rate.
Probation Periods
Probationary periods usually last three months, but can range from one to six months, depending on the province.
Employer Taxes
Employer taxes in Canada differ by province and include mandatory contributions to:
- Canada Pension Plan (CPP): 5.95% of an employee’s earnings, except for Quebec, which is 6.40%
- Employment Insurance (EI): 2.21%
- EHT (Employer Health Tax): Varies by province, from 0.98% to 4.3%
- WSIB (Worker’s Compensation): Varies by industry, from 0.3% to 3%, and is typically 1.4% for office workers
Termination Process & Severance Pay
Employers in Canada can terminate employment for serious misconduct without notice.
However, if the termination is without cause, the required notice period ranges from one to eight weeks, depending on the province and the employee’s length of service.
Severance pay is typically provided if there’s a mutual separation agreement or an employee has worked for the company for at least one year.
Generally, employees receive two days of wages per year of service or at least five days’ wages, whichever is greater. However, this can also depend on the province.
Paid Leave Laws in Canada
Vacation and Holiday
Canadian employees earn paid leave time based on tenure, typically starting with two weeks after one year of employment. This increases to three weeks after five years and four weeks after 10 years. Vacation pay is generally 4-8% of gross income.
Canada’s paid public holidays are based on province, and employers must comply with provincial regulations for each employee’s location.
Common holidays include:
- New Year’s Day
- Family Day
- Good Friday
- Easter Monday
- Canada Day
Sick Leave
Full-time Canadian employees earn up to 75 hours of paid sick leave annually. Part-time employees receive a portion of this based on their work hours. Federal employees in specific industries receive at least 10 days of annual paid sick leave.
Maternity Leave
Canada offers flexible leave for new mothers, including:
- 15 weeks of standard maternity leave: This period is eligible for Employment Insurance (EI) benefits, providing 55% of the mother’s income up to CAD 668 per week.
- 37 weeks of unpaid maternity leave: The mother’s job is protected during this period, but she doesn’t receive pay.
Paternity & Parental Leave
Fathers or partners in Canada are eligible for up to five weeks of paternity leave. Canada also offers parental leave that can be shared between parents, lasting 52 weeks (standard) or 78 weeks (extended).
Employee benefits are available for up to 55% of the parent’s income during standard leave and up to 33% during extended leave, with maximum weekly amounts.
Why Digital Nomads Love Canada
Canada’s introduction of a digital nomad visa in 2024 allows remote workers, such as independent contractors, to work remotely in Canada for up to six months.
One of the primary goals behind the visa is to attract qualified top talent, including U.S. tech workers, to help fill vacant Canadian roles.
If a visa holder finds employment with a Canadian employer during their stay, they would be eligible to apply for a work permit.
The stable internet infrastructure, high quality of life, and welcoming attitude towards immigrants make Canada a top choice for digital nomads seeking to balance travel and remote work options.
How to Pay Remote Workers in Canada
If you manage payroll for all of your global employees, there are a few options you can utilize to pay your Canadian workers, such as Wise, PayPal, Payoneer, or a bank wire transfer. However, there are challenges to consider when paying international staff, such as:
- Ensuring compliance with Canada’s payroll regulations
- Fluctuating currency rates can result in under or over paying employees
- Payroll errors
- Employee misclassification
One way to avoid these potential pitfalls is to partner with an Employer of Record, which can handle all of the HR duties for your Canadian employees, including payroll.
Hire in Canada with Remofirst
As an Employer of Record (EOR), Remofirst helps companies hire remote employees in over 180 countries, including Canada.
An EOR enables you to navigate the complexities of hiring in Canada, from compliance with local labor laws to human resources tasks like onboarding and managing payroll and benefits.
Whether you’re looking to expand your remote team or explore new markets, Remofirst simplifies the process.
Book a demo with us today to learn how we can support your hiring needs in Canada and elsewhere.
