Canada Labour & Tax Guide: Payroll, Tax & Compliance Guide
Key Law Terms Overview in Canada
Labor Law of Canada
Key Labor Laws in Canada for Remote Hiring: A Practical Guide for Employers
Hiring remotely in Canada means more than agreeing on salary and start dates. Employers must comply with Canadian labor and human rights rules that cover minimum wage, overtime, leaves, workplace safety, privacy, and termination standards. The key challenge is that Canadian employment rules depend on where the employee works and whether the employer is federally or provincially regulated.
This guide summarizes the most important legal areas employers should understand when hiring employees or contractors in Canada.
1) Federal vs. Provincial Rules: Why It Matters
Canada does not have one single labor law for everyone.
Federally regulated workplaces
Some industries fall under federal jurisdiction—commonly including banking, postal services, air travel, telecommunications, and certain interprovincial transportation and shipping roles. These employers generally follow federal frameworks, such as:
Canada Labour Code
Canadian Human Rights Act
Federal occupational health and safety regulations
Provincially regulated workplaces
Most employers and employees in Canada fall under province- or territory-specific employment standards (for example, Ontario, British Columbia, Alberta, Québec, etc.). Each province has its own rules for wages, overtime, vacation, leaves, termination, and workplace safety.
Ontario is often referenced because it has the largest population and a large body of workplace law, including legislation and agencies governing:
Employment standards (wages, hours, leaves, termination)
Human rights protections
Labour relations (union rules)
Occupational health and safety
Workplace safety insurance and claims administration
Practical takeaway: Always confirm which rules apply based on the employee’s work location and your industry classification.
2) Recruitment and Hiring: What You Can and Can’t Ask
Job interviews: lawful vs. unlawful questions
Canadian law emphasizes fair and non-discriminatory hiring. Employers generally may ask questions directly tied to job requirements, such as:
Whether the candidate is of legal working age
Whether the candidate has the skills, qualifications, and experience needed for the role
Employers should generally avoid questions that relate to protected personal characteristics, including:
Health status or disabilities
Exact date of birth
Gender identity/expression
Marital status, family plans, childcare arrangements
Religion or faith
“Canadian work experience” questions
In some contexts, asking for “Canadian work experience” can be viewed as discriminatory. A safer approach is to ask about skills, outcomes, industry knowledge, and role-relevant experience—without tying it to geography.
Handling illegal questions
Candidates have the right to refuse to answer unlawful or inappropriate questions.
Reference checks
Reference checks are allowed and common. Keep them job-related and avoid questions about personal life, political beliefs, hobbies, or unrelated activities.
3) Job Offers and Immigration Considerations
Employers typically make permanent (open-ended) or temporary (fixed-duration) job offers.
Permanent employment usually has no predetermined end date.
Temporary employment has a defined duration (e.g., 6 or 12 months).
For foreign candidates, employers must ensure the worker has the correct authorization to work in Canada (e.g., a valid work permit where required). Employees generally cannot start work until they have appropriate legal permission.
4) Background Checks and Criminal History
Background checks should be relevant to the job. In many cases, asking about criminal history is restricted unless it clearly relates to role requirements (for example, certain regulated roles, security-sensitive positions, or work involving vulnerable persons).
Separate from employment law, criminal history can also affect a person’s ability to enter Canada, depending on the circumstances.
5) Employees vs. Independent Contractors: Avoid Misclassification
A major compliance risk in Canada is misclassifying a worker. Employment standards typically apply to employees, while independent contractors are generally treated as self-employed.
To assess whether someone is truly an independent contractor, common factors include:
How much control the employer has over how/when the work is done
Whether the worker operates a separate business with their own clients
Whether the worker can profit or face loss (business risk)
Whether the work is integral to the employer’s business
Whether the relationship is continuous and long-term
Misclassification can trigger liabilities (tax, payroll, benefits, and workplace safety insurance exposure), and may lead to penalties and retroactive obligations.
Contract workers: dependent vs. independent contractors
Canada may recognize “dependent contractors” who are not employees but are economically dependent on one client. They may still be entitled to protections such as reasonable notice on termination.
6) Employment Contracts, Fixed-Term Work, and Probation
Fixed-term contracts
Fixed-term agreements exist but can create risk if not structured carefully, because termination obligations can arise depending on the wording and how the relationship operates in practice. Open-ended or indefinite arrangements are common.
Probation
Most provinces allow probationary periods. During probation, termination rules can be more flexible, but employers still must comply with human rights and avoid discriminatory termination.
A common probation length is three months, though limits can vary by province.
Flexible work arrangements
In some jurisdictions, employees may request changes to schedule, location, or hours after a period of continuous service (rules vary).
7) Unionization, Strikes, and Collective Bargaining
Employees in Canada have a recognized right to organize and join unions. Union certification and bargaining rules depend on the applicable jurisdiction. Where unions exist, they typically act as the exclusive bargaining agent for the represented employee group. Strikes and lockouts must follow legal processes and notice requirements.
8) Compensation and Benefits: Minimum Wage, Overtime, and Vacation
Minimum wage
Minimum wage is generally set by province/territory, and rates are often updated periodically.
Overtime
Overtime rules also vary by jurisdiction. Commonly, overtime is paid at 1.5x the regular rate after a threshold (often based on daily and/or weekly hours). Some roles are exempt or treated differently, especially certain managerial or highly specialized professions.
Vacation
Employees typically earn at least two weeks of paid vacation per year, and vacation pay begins accruing from the start of employment. Many provinces require payout of accrued, unused vacation under specific conditions.
Leaves
Canada has a wide range of job-protected leaves, which vary by jurisdiction and may include:
Maternity and parental leave
Compassionate care leave
Sick/medical leave
Bereavement leave
Family responsibility/personal leave
Jury duty/court leave
Domestic violence leave
Leave related to critical illness of a family member
Other statutory leaves depending on region
9) Payroll, Tax Withholding, and Pay Frequency
Employees are commonly paid on a regular cycle (often biweekly). Employers generally have obligations to withhold and remit required deductions and contributions (such as income tax and social program contributions), with details varying by jurisdiction and employee situation.
10) Working Hours and Breaks
Standard work hour rules and break entitlements can differ by province and by industry. Many jurisdictions provide rules on:
Daily/weekly hour thresholds
Mandatory rest periods or days off
Meal break requirements after a set number of consecutive hours
Some roles (e.g., certain professionals and managers) may be exempt from standard hour limits depending on local rules.
11) Drug and Alcohol Testing and Marijuana
Drug testing is generally restricted and must be justified—especially because it can intersect with privacy and human rights protections. Testing is more likely to be permitted in safety-sensitive roles under limited conditions (e.g., post-incident, reasonable cause, or return-to-work situations), with safeguards.
Marijuana is legal federally for recreational use in Canada, but employers may restrict impairment at work, prohibit use during working hours, and enforce safety rules—similar to alcohol policies.
12) Employee Records and Privacy
Canadian workplaces are increasingly affected by privacy requirements. Employers should collect and use personal information only as necessary, protect it, and be transparent about how it is used. Employee monitoring (productivity tools, network monitoring, attendance tracking) should be proportionate, targeted, and clearly communicated.
13) Human Rights and Non-Discrimination
Canada has strong workplace protections against discrimination and harassment. Protected grounds commonly include race, gender, age, religion, disability, and other personal characteristics (exact lists vary by jurisdiction). Employers are expected to maintain workplaces free from harassment and to respond appropriately to complaints.
Disability accommodation
Employers often have a duty to provide reasonable accommodation for disabilities, up to the point of undue hardship. This can include modified duties, assistive tools, ergonomic equipment, or flexible scheduling.
14) Discipline and Termination: No “At-Will” Employment
Canada does not operate like U.S.-style at-will employment. Termination requirements vary by jurisdiction, but common principles include:
Termination must comply with statutory minimums (notice or pay in lieu).
In many cases, employees may also have common-law or contractual rights that exceed minimum statutory notice.
Termination “for cause” has a high legal threshold and typically removes notice obligations, but it must be supported by evidence and proper process.
Some jurisdictions include additional protections for certain employees (including “unjust dismissal” protections in specific contexts).
Severance and termination pay rules can also apply depending on jurisdiction, tenure, payroll size, and termination circumstances.
15) Occupational Health and Safety and Workers’ Compensation
Employers must provide safe workplaces and comply with local health and safety legislation. Typical obligations include:
Maintaining safety policies and training
Providing protective equipment where needed
Reporting serious incidents
Supporting joint safety committees or representatives where required
Workers’ compensation systems are generally public and no-fault. Employers often pay premiums, and coverage is managed through provincial or territorial systems. Misclassification and non-compliance can create significant liability.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
The Social Insurance Law
Marginal note:Programs
19 The Minister of Labour may, in exercising the powers and performing the duties and functions assigned by subsection 18(2), establish and implement programs designed to support projects or other activities that promote safe, healthy, fair, stable, cooperative and productive workplaces, and the Minister may make grants and contributions in support of the programs.
Marginal note:Business numbers — Minister of Labour
19.01 The Minister of Labour may collect any business number, as defined in subsection 248(1) of the Income Tax Act, and use it as an identifier for the purposes of the administration or enforcement of any Act, program or activity in respect of which the administration or enforcement is the responsibility of that Minister.
- 2018, c. 12, s. 273
Marginal note:Social Insurance Numbers — Minister of Labour
19.02 The Minister of Labour may collect and use a person’s Social Insurance Number to verify their identity for the purposes of the administration or enforcement of any Act, program or activity in respect of which the administration or enforcement is the responsibility of that Minister.
Marginal note:Crediting to Labour Cooperation Treaties Account
19.1 (1) All moneys received by Her Majesty as a result of a monetary assessment by a panel determination under a treaty, or chapter of a treaty, respecting labour cooperation referred to in the schedule shall be paid into the Consolidated Revenue Fund and, if required under the treaty, credited to a special account in the accounts of Canada to be known as the Labour Cooperation Treaties Account.
Marginal note:Additional credits to Account
(2) If an amount is assessed against Canada by a panel determination under a treaty, or chapter of a treaty, respecting labour cooperation referred to in the schedule, an amount equal to that amount shall be credited to the Account if the Account has been designated for the purposes of the treaty in accordance with its provisions.
Marginal note:Interest
(3) On April 1 of every year there shall be credited to the Account an amount representing interest, at the rate fixed for the purposes of subsection 21(2) of the Financial Administration Act, on the balance to the credit of the Account.
Marginal note:Payment of moneys
(4) One or more amounts not exceeding in total the amount standing in the Account in relation to a treaty, including interest, may, on the requisition of the Minister of Labour, be paid out of the Consolidated Revenue Fund in accordance with the provisions of the treaty. The amount of all such payments is to be charged to the Account.
- 2009, c. 16, s. 50
- 2014, c. 14, ss. 49, 51, c. 28, s. 57
PART 3Canada Employment Insurance Commission
Continuation of the Commission
Marginal note:Commission
20 (1) The Canada Employment Insurance Commission is continued. It consists of four commissioners.
Marginal note:Commissioners
(2) The four commissioners shall be
(a) the Deputy Minister of Employment and Social Development, who shall be the Chairperson of the Commission;
(b) an Associate Deputy Minister of Employment and Social Development, who shall be the Vice-Chairperson of the Commission;
(c) a person appointed by the Governor in Council after consultation with organizations representative of workers; and
(d) a person appointed by the Governor in Council after consultation with organizations representative of employers.
Marginal note:Employment Insurance Canada
(3) The expressions “Employment Insurance Canada” and “Assurance-emploi Canada” in any document issued or executed in relation to the matters set out in section 24 are deemed to be references to the “Canada Employment Insurance Commission” and the “Commission de l’assurance-emploi du Canada”, respectively.
- 2005, c. 34, s. 20
- 2010, c. 12, s. 1723
- 2013, c. 40, s. 210
Marginal note:Tenure, remuneration and conditions of office
21 (1) Commissioners, other than the Chairperson and Vice-Chairperson,
(a) shall be appointed by the Governor in Council to hold office during good behaviour for a term not exceeding five years but may be removed by the Governor in Council at any time for cause;
(b) are eligible for reappointment on the expiration of each term of office;
(c) shall receive the remuneration that is fixed by the Governor in Council;
(d) are deemed to be employed in the public service for the purposes of the Public Service Superannuation Act and to be employed in the federal public administration for the purposes of the Government Employees Compensation Act and any regulations made pursuant to section 9 of the Aeronautics Act; and
(e) shall devote the whole of their time to the performance of the duties and functions of the office of commissioner and shall not accept or hold any office or employment or carry on any activity inconsistent with their duties and functions.
Marginal note:Tenure, remuneration and conditions of office — acting
(2) In the event of the absence or incapacity of a commissioner other than the Chairperson or Vice-Chairperson or if the office is vacant, the Governor in Council may designate a person to act as a commissioner for the period of the absence, incapacity or vacancy and the person so designated has and may exercise all the powers and perform all the duties and functions of a commissioner, unless the Governor in Council specifies otherwise.
- 2005, c. 34, ss. 21, 82(E)
Marginal note:Chairperson
22 (1) The Chairperson of the Commission is the chief executive officer of the Commission. The Chairperson supervises the work of the Commission and presides at its meetings.
Marginal note:Vice-Chairperson
(2) The Vice-Chairperson of the Commission exercises the powers and performs the duties and functions under the Chairperson that the Chairperson may specify.
Marginal note:Acting Chairperson
(3) In the event of the absence or incapacity of the Chairperson or if the office of Chairperson is vacant, the Vice-Chairperson has and may exercise all the powers and perform all the duties and functions of the Chairperson.
Marginal note:Acting Vice-Chairperson
(4) In the event of the absence or incapacity of the Vice-Chairperson, if the office of Vice-Chairperson is vacant or if the Vice-Chairperson is acting as Chairperson pursuant to subsection (3), the Governor in Council may designate a person to act as Vice-Chairperson for the period of the absence, incapacity or vacancy or the period during which the Vice-Chairperson is acting as Chairperson, and the person so designated has and may exercise all the powers and perform all the duties and functions of the Vice-Chairperson, unless the Governor in Council specifies otherwise.
Marginal note:Voting
23 The Vice-Chairperson may not vote at any meeting of the Commission unless the Vice-Chairperson is acting for or on behalf of the Chairperson.
Powers, Duties and Functions of the Commission
Marginal note:Powers, duties and functions of the Commission
24 (1) The Commission shall exercise the powers and perform the duties and functions
(a) that are required by the Minister or by or pursuant to an Act of Parliament in relation to employment insurance, employment services and the development and utilization of labour market resources; and
(b) that are required by order of the Governor in Council or by or pursuant to an Act of Parliament in relation to other matters.
Marginal note:Agreements with other countries
(2) With the approval by order of the Governor in Council, the Commission may, notwithstanding any other Act of Parliament, enter into agreements with the governments of other countries to establish reciprocal arrangements relating to any matter set out in subsection (1).
Marginal note:Directions to Commission
(3) The Commission shall comply with any directions given to it from time to time by the Minister respecting the exercise of its powers or the performance of its duties and functions.
Marginal note:Business numbers — Commission
24.1 The Commission may collect any business number, as defined in subsection 248(1) of the Income Tax Act, and use it as an identifier for the purposes of the administration or enforcement of the Employment Insurance Act.
- 2018, c. 12, s. 274
Marginal note:Rules
25 (1) The Commission may make rules respecting the calling of meetings of the Commission and generally respecting the conduct of its business.
Marginal note:Minutes of meetings
(2) Minutes shall be recorded of all formal meetings of the Commission.
Marginal note:Agent of Her Majesty
26 (1) The Commission is a body corporate and is for all purposes an agent of Her Majesty in right of Canada and it may exercise its powers only as an agent of Her Majesty in that right.
Marginal note:Contracts
(2) The Commission may, on behalf of Her Majesty in right of Canada, enter into contracts in the name of Her Majesty or in the name of the Commission.
Organization and Operation of the Commission
Marginal note:Head office
27 (1) The head office of the Commission shall be in the National Capital Region as described in the schedule to the National Capital Act or at any other place in Canada that may be designated by order of the Governor in Council.
Marginal note:Residence
(2) The Chairperson and Vice-Chairperson shall reside in the National Capital Region or at the place designated by the Governor in Council under subsection (1), or within reasonable commuting distance of that region or place.
- 2005, c. 34, s. 27
- 2011, c. 24, s. 189
Marginal note:Staff
28 (1) The officers and employees necessary for the proper conduct of the business of the Commission shall be employees of the Department.
(1.1) [Repealed, 2008, c. 28, s. 132]
Marginal note:Agents
(2) The Commission may enter into contracts with agents in or for locations where the Commission considers it desirable to do so.
Marginal note:Delegation
(3) The Commission may authorize any person or body, or member of a class of persons or bodies, to exercise powers or perform duties and functions of or delegated to the Commission, and any such authorized person or body or class of persons or bodies may exercise specified powers or perform specified duties and functions.
Marginal note:Actuary — Employment Insurance Act
(4) The Commission shall engage the services of a Fellow of the Canadian Institute of Actuaries who is an employee of the Office of the Superintendent of Financial Institutions to perform the duties under section 66.3 of the Employment Insurance Act.
- 2005, c. 30, s. 129, c. 34, s. 28
- 2008, c. 28, s. 132
- 2012, c. 31, s. 441
Social Insurance Number
Marginal note:Registration
28.1 (1) Any person who is employed in insurable employment as defined in the Employment Insurance Act or who is a self-employed person in respect of whom Part VII.1 of that Act applies must be registered with the Commission.
Marginal note:Register
(2) The Commission shall maintain a register containing the names of the persons referred to in subsection (1) and any other information that it determines is necessary to accurately identify them.
Marginal note:Social Insurance Number
(3) The Commission shall assign to each person registered with it a number that is suitable for use as a file number or account number or for data processing purposes, and that number is the person’s Social Insurance Number for any purpose for which a Social Insurance Number is required.
Marginal note:Social Insurance Number card
(4) The Commission may issue to each person registered with it a card containing the person’s name and Social Insurance Number.
- 2005, c. 30, s. 129
- 2008, c. 28, s. 133
- 2012, c. 19, s. 304
Marginal note:Social Insurance Register
28.2 (1) The Commission may maintain a Social Insurance Register containing
(a) the names of persons registered in the registry referred to in section 28.1;
(b) the names of persons to whom a Social Insurance Number has been assigned under the Canada Pension Plan; and
(c) the names of persons for whom an application has been made to the Commission for a Social Insurance Number.
Marginal note:Additional information
(2) The Social Insurance Register may, subject to any regulations that the Governor in Council may make in that regard, contain any other information in addition to the names and Social Insurance Numbers of persons that is necessary to accurately identify all persons who are registered.
Marginal note:Issuing number and card
(3) When a Social Insurance Number is assigned to a person by the Commission in the course of maintaining the registers mentioned in this section and section 28.1, the Commission may issue a Social Insurance Number card to that person and that number is the person’s Social Insurance Number for all purposes for which a Social Insurance Number is required.
Marginal note:Regulations
(4) The Commission may, with the approval of the Governor in Council, make regulations respecting
(a) the registration of persons under this section and section 28.1, including applications for that registration;
(b) the assignment and use of Social Insurance Numbers;
(c) the issuance, custody, production and use of Social Insurance Number cards;
(d) periods of validity, and the extension of those periods, of Social Insurance Numbers and Social Insurance Number cards; and
(e) the replacement of Social Insurance Number cards that have been lost, destroyed or defaced.
Marginal note:Availability of information — social insurance registers
(5) The Commission may make available any information contained in the registers maintained under this section and section 28.1 that the Commission considers necessary for the accurate identification of persons and for the effective use by those persons of Social Insurance Numbers to any persons that the Commission thinks appropriate to accomplish that purpose.
Marginal note:Secondary release of information
(6) Information obtained under subsection (5) shall not be made available to a person or body unless the Commission considers it advisable, the information is made available for the same purpose and it is subject to conditions agreed on by the Commission and the person who obtained the information.
Marginal note:Agreements still in force
(7) Subsection (6) does not apply to information made available in accordance with an agreement entered into by the Commission before the coming into force of this section.
Marginal note:New Social Insurance Number
(8) A person who has been assigned a Social Insurance Number may subsequently be assigned a new Social Insurance Number, in accordance with and subject to any regulations that the Commission may make, if
(a) the number first assigned has been assigned to another person;
(b) wrongful use by another person of the number first assigned has created a situation in which the person to whom the number was first assigned is or may be caused embarrassment or hardship; or
(c) there are other special or unusual circumstances that would make the issuance of a new number desirable.
Marginal note:Voiding
(9) When a new Social Insurance Number is assigned to a person, any number previously assigned to that person becomes void.
Marginal note:More than one number assigned
(10) If a person has inadvertently been assigned more than one Social Insurance Number, the Commission shall determine which number is the official number and shall void the others.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
Income Tax Law of Canada
Canada’s income tax system is primarily governed by the Income Tax Act, a federal law that sets the rules for how individuals and businesses calculate income, claim deductions/credits, and pay tax. The Act is administered by the Canada Revenue Agency (CRA), which manages tax filing, assessments, collections, and many compliance programs.
Federal + provincial/territorial taxes
In Canada, income tax is charged at both the federal level and the provincial/territorial level. In most cases, individuals file a single annual personal return, and the CRA administers the combined system for most provinces/territories (Québec has its own separate provincial return in addition to the federal return).
Residency matters: residents vs. non-residents
A key concept in Canadian income tax law is tax residency. Generally:
Residents of Canada are taxed on worldwide income (income earned inside and outside Canada).
Non-residents may still owe Canadian tax on certain Canadian-source income (for example, employment income earned in Canada, business income carried on in Canada, or certain Canadian investment income), and specific withholding rules can apply.
Common filing and payment deadlines (individuals)
Canada has clear annual deadlines for most individuals:
Most individuals must file their personal tax return by April 30.
If you (or your spouse/common-law partner) are self-employed, the filing deadline is usually June 15.
Even if you have the June 15 filing deadline, any balance owing is generally due April 30 to avoid interest.
Employer payroll obligations (withholding and reporting)
For employment income, Canada generally uses a withholding-at-source system. Employers are typically responsible for calculating and withholding required amounts from employee pay and issuing year-end reporting (commonly through T4 slips and summaries) according to CRA requirements.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
Interested In Learning More?
Talk to our local compliance specialists to disucess your specific situation:
Including employment, payroll, tax, and ongoing regulatory obligations.
Regulation Updates in Canada
Discover the latest employment and compliance updates in Canada — helping you stay ahead in a changing regulatory landscape.
Work permit: Applying from outside Canada
What it is: A federal policy update clarifies the eligibility for priority processing of work permit applications and the required steps applicants must follow, including entering employer-provided NOC/LMIA information.
What it changes: The guidance now specifies how priority processing is determined and the steps applicants must take, including the use of employer-entered NOC/LMIA information, creating new operational considerations for employers and EORs handling work permits.
Who is affected:
- Workers or employers explicitly mentioned or clearly implied by the policy summary.
What employers should do:
- Ensure relevant NOC/LMIA information is entered by the employer when handling work permit applications.
- Coordinate with EORs to align with the updated priority processing guidance.
Notes: Effective month: 2026-05. Manual verification recommended.
Pension Benefits Standards Act
What it is: The Pension Benefits Standards Act amendments (Bill 33) require employers offering workplace pension plans to implement automatic escalation of pension contributions and related plan-document and process changes.
What it changes: This change creates new payroll and plan-administration obligations for employers to apply automatic escalation and adjust plan documents and processes accordingly.
Who is affected:
- Employers offering workplace pension plans
What employers should do:
- Prepare for automatic escalation of pension contributions
- Update plan documents and related processes to reflect the escalation and any associated administrative changes
Notes: Effective month: 2026-10. Manual verification recommended.
Canada Summer Jobs 2026
What it is: Canada Summer Jobs 2026 opens the hiring period and defines employer eligibility and program rules for wage subsidies to eligible employers.
What it changes: The policy sets that wage subsidies are available to eligible employers (private-sector employers with 50 or fewer full-time employees) and defines CSJ-funded jobs as full-time, establishing operational requirements related to working time and payroll for subsidized hires.
Who is affected:
- Private-sector employers with 50 or fewer full-time employees
- Organizations applying for Canada Summer Jobs subsidies through the program
What employers should do:
- Prepare to assess eligibility under the 50 or fewer full-time employees criterion
- Plan and document that CSJ-funded positions are full-time and align payroll and working-time practices with the program rules
Notes: Effective month: 2026-04. Manual verification recommended.
Labour Market Impact Assessment valid for a maximum of 6 months
What it is: The Labour Market Impact Assessment is valid for a maximum of 6 months.
What it changes: Positive LMIA approvals are valid for up to six months, requiring temporary foreign workers to apply for work permits within the LMIA validity period or the employer must reapply for a new LMIA.
Who is affected:
- Employers who use LMIA-backed hiring
- Temporary foreign workers under an LMIA
What employers should do:
- Ensure work permit applications by temporary foreign workers are submitted within the LMIA validity period
- If not within the validity period, reapply for a new LMIA
Notes: Effective month: 2026-04. Manual verification recommended.
Canada extends certain work permit measures for Ukrainians
What it is: The policy update extends certain work permit measures so Ukrainians who arrived under the Canada-Ukraine Authorization for Emergency Travel (CUAET) may apply to extend their work permits for up to three years, effective April 2026.
What it changes: Anyone who arrived under CUAET can now apply to extend their work permits for up to three years. Employers have obligations to verify and process these extended work permits.
Who is affected:
- Workers who arrived under the CUAET program
- Employers who hire or employ Ukrainians under CUAET
- Any party responsible for verifying work permit status and processing extensions
What employers should do:
- Verify eligibility and process requests for extended work permits from Ukrainians who arrived under CUAET
- Prepare to support extensions for eligible employees by providing required documentation and processing steps
Notes: Effective month: 2026-04. Manual verification recommended.
Canadian Apprenticeship Strategy - Investments in Training Equipment
What it is: Expansion of flexibilities under the Canadian Apprenticeship Strategy – Investments in Training Equipment to broaden eligible costs.
What it changes: The policy now allows broader eligible costs, including shipping and installation, and enables federal contributions of up to 70% in remote or infrastructure-limited areas to support union-led and other apprenticeship training.
Who is affected:
- Employers involved in apprenticeship training
- Organizations delivering apprenticeship training in remote or infrastructure-limited areas
What employers should do:
- Review whether shipping and installation costs can be treated as eligible under the Investments in Training Equipment program
- Consider the possibility of federal contributions up to 70% when operating in remote or infrastructure-limited areas
Notes: Effective month: 2026-02. Manual verification recommended.