How to hire remote employees in

Canada

Most of Canada is great big mountains, rivers beneath them, and forests that stretch on for thousands of miles. The rest? It’s home to some of the best remote talent in the world. On this page, we’ll teach you what you need to know if you’re hiring in Canada: Legal obligations, risks, and the easiest path to hiring people.

Country snapshot

CURRENCY
Canadian Dollar (CAD)
EMPLOYER TAXES
12.6%
PAYROLL FREQUENCY
Bi-Monthly/Monthly
OFFICIAL LANGUAGE
French, English

What to know before you hire in 

Canada

Canada has relatively strict labor laws. Odds are, they’re stricter than the laws in your home country—and even if they aren’t stricter, they’re certainly different. Here’s what you’ll want to know before hiring remotely in Canada:

If you want to successfully hire in 

Canada

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Canada

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Canada

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Canada

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Canada

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Canada

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Canada

?

If you’re hiring contractors in 

Canada

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Canada

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Canada

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Canada than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Canada.

Taxes in 

Canada

Employer tax

Employer Contributions

  • 12.6%

Individual tax

Leave

Paid Time Off (PTO)

Employees that have been employed for less than 5 years are entitled to a minimum of 2 weeks’ paid leave, while employees who have worked over 5 years are entitled to 3 weeks.

Public Holidays

There are 9 public holidays in Ontario. More information can be found here.

Sick Days

Employees are entitled to 3 unpaid sick days a year if they have been employed for more than 2 weeks.   

Maternity Leave

If the woman has been employed for at least 13 weeks, she is entitled to up to 17 weeks of unpaid maternity leave. Maternity leave can start any time starting 17 weeks before the due date. 

Paternity Leave

Paternal leave falls under parental leave. 

Parental Leave

At the end of the maternity leave, the mother is able to extend the leave with parental leave for up to 61 weeks of unpaid parental leave. Parental leave rights also extend to the father. 

Termination

Termination Process

If an employee has been employed for at least 3 months, the employer is obligated to provide the employee with written notice of termination or termination pay.

Notice Period

The employee is obligated to give at least 2 weeks’ notice.

The length of the notice period that the employer is obliged to depends on how long the employee has been employed:

Length of employment           Notice Period
Less than 1 year                      1 week
1-3 years                                  2 weeks
3-4 years                                 3 weeks
4-5 years                                 4 weeks
5-6 years                                 5 weeks
6-7 years                                 6 weeks
7-8 years                                 7 weeks
8+ years                                  8 weeks

Severance Pay

In order for the employee to qualify for severance pay:

The employee must have completed at least 5 years of employment
The company has a payroll of over 2.5 million CAD per year or have terminated over 50 employees in the past 6 months due to all or part of the company closing
The severance pay amount is calculated by multiplying the weekly salary amount by the number of years the employee has been employed.

Probation Period

3 months

Employee requirements in 

Canada

Working Hours

A full-time workweek is 40 hours.

Overtime

Overtime pay is paid for every hour after 44 hours weekly at a rate of at least 150% the regular pay. The maximum number of hours an employee can work is 48 hours a week unless agreed upon in writing by the employee and employer.

Want to hire contractors, anywhere? Start with Panther today for $0.

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