Insights
How to Hire Employees in Canada
Insights · By Chen ChunJie · Updated 8 November 2026
To hire an employee in Canada, choose who will be the legal employer, confirm the applicable province and work authorization, and agree the contract and payroll arrangements before work starts. A foreign business may employ directly after meeting Canadian obligations, or use an employer of record. Independent contractors are a separate option for genuinely independent services, not a way to hire employees without employment obligations.
Reviewed in November 2026 against CRA payroll guidance, Ontario employment standards and IRCC guidance. The Ontario examples below are not national rules.
Compare employment and contractor arrangements
| Route | Who employs the person | Best for |
|---|---|---|
| Direct employment | Your foreign business or Canadian subsidiary, with applicable registrations | Businesses prepared to assume Canadian employer, payroll and tax obligations |
| Employer of record | NNRoad’s Local Team employs local staff; you manage their day-to-day work | Local employee hires when you do not want to become the legal employer |
| Independent contractor | A commercial engagement, if the actual relationship is independent | Defined services from a professional genuinely operating their own business |
Which law applies
Employment standards generally follow the province or territory where the employee works. Federal labour standards apply to federally regulated businesses and activities, such as banking, telecommunications and interprovincial transport. Confirm coverage for remote or cross-border work. Quebec also has civil-law and French-language requirements. Use the Canada employment law guide and Quebec hiring guide for the relevant checks.
Choose the service that fits: Canada EOR covers local employees. For a foreign national, start with an Expat Employment and work authorization assessment. For independent professionals, see On-Demand Talent. If your business already employs the person and needs calculations and reports, use Payroll Outsourcing.
Contracts and termination clauses
Agree a locally reviewed written contract before the employee accepts the final terms and starts work. Cover duties, location, pay, hours, leave, confidentiality, intellectual property and termination. A clause that merely mentions statutory minimums is not automatically enforceable; common-law or Quebec civil-law rights may exceed those minimums.
Written-information duties also apply: for example, Ontario employers with at least 25 employees in Ontario must give new hires specified job details, generally before their first day. In Quebec, comply with French-language rules for written employment contracts; an express choice of another language does not always remove the need to provide French first.
Payroll registration and deductions
The legal employer sets up the required payroll accounts and calculates deductions and employer contributions for each pay period. Outside Quebec, these generally include income tax, CPP and EI, subject to employee-specific rules. Quebec payroll also involves QPP, QPIP and provincial deductions or contributions. Remittance dates depend on the employer’s remitter category; the 15th of the following month is not universal. See the Canada payroll guide for rates, deadlines and reporting.
Vacation, holidays and leave
| Rule | Ontario example — eligibility and exceptions apply |
|---|---|
| Vacation | At least two weeks per completed vacation entitlement year below five years’ service, or three weeks from five years; vacation pay is at least 4% or 6% respectively. |
| Public holidays | Nine public holidays under the ESA; entitlement to holiday pay or an alternative arrangement depends on eligibility and work performed. |
| Sick leave | Up to three unpaid, job-protected days per calendar year after two consecutive weeks of employment. Other protected leaves and accommodation duties may also apply. |
| Pregnancy and parental leave | Eligible employees may take up to 17 weeks of pregnancy leave and 61 weeks of parental leave, or 63 weeks of parental leave without pregnancy leave. These ESA leaves are unpaid; EI benefits have separate eligibility, payment and timing rules. |
Ending employment
Review the reason for dismissal, protected leave or human-rights issues, contract, service history and applicable law before giving notice. Ontario’s usual individual ESA notice scale is one to eight weeks after at least three months’ continuous employment, subject to exceptions; mass terminations follow separate rules. Statutory severance is a separate entitlement for qualifying employees and can reach 26 weeks. Contractual or common-law entitlements may be greater; Quebec and federal rules differ.
Calculate final pay, unused vacation and benefit continuation where required. Issue the ROE by the deadline for the reporting method and pay cycle: electronic weekly, biweekly and semi-monthly ROEs are generally due within five calendar days after the relevant pay period ends. Monthly, four-weekly and paper ROEs have different timing rules.
FAQ: hiring employees in Canada
Can a foreign company hire in Canada without a local entity?
Yes. A foreign business may employ directly after satisfying the applicable registrations, payroll, employment and tax obligations; Canadian incorporation is not always required. Alternatively, NNRoad’s Canada EOR employs local staff while you manage their daily work. EOR does not automatically remove your company’s other Canadian tax or registration obligations.
Is a written employment contract required in Canada?
There is no single Canada-wide answer. A written contract is strongly advisable, and specific written-information or agreement requirements apply by jurisdiction and arrangement. Ontario has job-information requirements for employers with at least 25 Ontario employees. Quebec has French-language requirements. Have employment and termination terms reviewed for the applicable law before work begins.
Which province’s rules apply?
Usually those of the province or territory where the employee works, subject to the law’s coverage rules. Federally regulated employment follows federal labour standards. Remote work, work across provinces and payroll’s province-of-employment rules require separate checks; the client’s head-office location does not settle every question.
Is there a probation period in Canada?
Do not assume a nationwide probation period or a right to dismiss without obligations. Agree any probation terms in a valid contract. Ontario ESA termination notice generally starts after three months’ continuous employment, but contractual, common-law, human-rights and other protections may apply earlier. Other jurisdictions have different rules.
Hiring your first employee in Canada?
For local employee hires, our Local Team is the legal employer and handles employment administration and applicable payroll obligations, while you manage daily work. NNRoad HQ coordinates the engagement and reporting. We help control employment risk within the agreed scope, provided you supply accurate information and follow our advisers’ recommendations. Share the role, province and intended start date so we can assess your hiring plan.
Related
Local employees hired by our Local Team and managed day to day by you.
Provincial rules, leave, termination and more.