The Most Trusted Employer of Record in Canada

Hiring and managing employees in Canada involves various legal, tax, and HR obligations that vary by province. You’ll need professional guidance and support to handle every aspect of the recruitment process, from employment contracts and payroll deductions to provincial labour standards and benefits administration. That’s where HR Options comes in to help your business with dedicated Employer of Record services.

As your EOR in Canada, we handle the back-end HR responsibilities so you can focus on core operations. Our team ensures compliance with federal and provincial laws, including CPP, EI, and Workers’ Compensation requirements. We also provide access to a secure HR platform where you can monitor employee data, track payroll status, and get real-time updates.

Whether you’re a foreign company entering the Canadian market or a domestic business expanding nationally, we eliminate the need for multiple local entities while ensuring full compliance. Contact us today to build a winning team and grow your business with confidence!

Simplify Workforce Management with Canada’s Trusted HR Experts

At HR Options, we take pride in helping Canadian businesses succeed through seamless hiring and payroll management. Our employer-of-record experts take the complexity out of workforce management so you can focus on growth without administrative headaches. Whether you want to hire short-term employees or build a long-term team, we ensure compliance and efficiency at every step. Our EOR and HR solutions include:

On-boarding
Off-boarding
Payroll Processing
Provincial Tax Compliance
Wage reporting
Benefits administration
Timesheet tracking
Workforce scheduling
Canada Pension Plan (CPP)
Employee relations and HR support
Employment Insurance (EI) management
Full-cycle employment management

Valuable Benefits for Employees in Canada

Your employees are the backbone of your business, so it’s important to offer them the value they deserve. At HR Options, we help Canadian employers create competitive, well-rounded benefits packages to attract and retain top talent. Our team works with you to design a benefit plan that aligns with your company’s values and helps you build a supportive and rewarding workforce. Our employee benefits may include:

Life Insurance
Medical Insurance
Vision Insurance
Dental Insurance
Paid Time Off (PTO)
Long-Term Disability (LTD) Insurance
Health Spending Account (HSA)
Employee Assistance Program (EAP)
Registered Retirement Savings Plan (RRSP)
Province-Specific Add-ons

Essential Employment Information for Canada

Looking for a reliable Canada Employer of Record? Here’s some essential employment information we think you should know:

What Is the Minimum Wage in Canada?

As of 2025, the federal minimum wage is $17.75 per hour for workers in federally regulated sectors like banking, telecommunications, and interprovincial transport. The higher wage applies if a province or territory has a higher rate. For example, Nunavut’s minimum wage is $19.00, currently the highest in Canada. Some other provincial rates include British Columbia at $17.40, Ontario at $17.20, and Manitoba at $15.80. These rates typically increase according to the decided schedule of each province.

What Is Considered Full-Time Employment in Canada?

In Canada, full-time employment usually means working between 35 and 40 hours per week, though no legal definition applies nationwide. Each province and territory has its own rules about hours of work, overtime, vacation, and holiday pay. Employers often define full-time work in their policies, which can also affect who qualifies for benefits like health coverage or paid time off.

What Is Considered Part-Time Employment in Canada?

In Canada, part-time employment generally refers to working fewer than 30 hours per week, but the exact number can vary by employer or industry. There’s no nationwide legal definition of part-time work, so it’s usually defined in a company’s internal policies. While part-time roles may not always include the same benefits as full-time positions, many employers offer flexible schedules and some level of benefits.

What Are the Overtime Pay Rules in Canada?

Overtime pay rules in Canada vary by province and territory, but the general principle is that overtime begins after 8 hours in a day or 40 hours in a week, and must be paid at 1.5 times the employee’s regular wage. However, the threshold and calculation may differ depending on the province and the type of job.

How Long Does the Onboarding Process Take in Canada?

In Canada, the onboarding process usually takes a few days to a few weeks, depending on the employer, role, and industry. It involves tasks like completing employment documents, setting up payroll, reviewing company policies, and training. For international hires, onboarding may take longer due to work permit verification, SIN registration, and other immigration-related steps.

What is the Payroll Cycle in Canada?

In Canada, payroll cycles vary by province, but most follow similar standards to ensure employees are paid regularly and on time. Common payroll cycles across Canada include biweekly (every two weeks) or semi-monthly (twice a month, such as on the 15th and last day of the month). At HR Options, we help Canadian businesses manage payroll smoothly and stay compliant with local regulations.

Are Employers Required to Offer Retirement Savings Plans in Canada?

In Canada, employers are not required to offer private retirement savings plans like RRSPs or pension plans. However, many include them as part of competitive benefits packages. All employees and employers must contribute to the Canada Pension Plan (CPP), which provides a basic retirement income. HR Options helps businesses offer smart, optional retirement solutions across Canada.

New Hire Paperwork
Requirements for Canadian Employers

When hiring new employees in Canada, employers must collect several key documents to ensure legal compliance and establish a clear employment relationship. While some documents are legally required, others also help support smooth onboarding and reduce the risk of legal disputes. Here are the essential documents:

Employment Agreement

This legally binding contract outlines the job role, pay, benefits, vacation, work hours, termination terms, and other key employment conditions. It may also include clauses for probation, non-compete, resignations, and layoffs.

Federal Tax Form (TD1)

Employees must complete the federal TD1 form, which determines the amount of income tax to withhold based on personal exemptions and deductions.

Social Insurance Number (SIN)

Employers must collect the employee’s SIN to set up payroll and meet CRA reporting obligations.

Work Permit (for Foreign Workers):

Employers must verify that international hires have valid work permits and are legally allowed to work in Canada.

Direct Deposit Form

Employees provide banking details for payroll processing if the company allows direct deposit.

Emergency Contact Form

This form collects emergency contact information for employees, ensuring that employers can reach someone in case of an accident or emergency at the workplace.

Additional
Recommended Documents

Employee Information Form

This form includes personal details such as contact information and emergency contacts. It helps to verify identity or conduct background checks.

Employee Handbook

A helpful document that explains company policies, code of conduct, disciplinary procedures, and workplace expectations. It also introduces employees to the company’s mission, values, and culture.

Occupational Health & Safety Policy

Required under Canadian law, this outlines your business’s commitment to a safe workplace. It includes procedures, responsibilities, and safety goals.

Extended Benefits Enrollment Forms

If your company offers additional benefits like health, dental, or life insurance, employees should complete the necessary forms to enroll.

Probationary Period Agreement

If applicable, this outlines the terms of the employee’s initial probation period, including performance expectations and assessment timelines.

Confidentiality and Non-Compete Agreements

Often used in roles that involve access to sensitive company information, intellectual property, or client relationships.

Employment Taxes in Canada

Employment taxes and statutory fees affect Canadian employees’ overall payroll. Here’s a clear breakdown of known taxes in this province:

Employer Taxes

Employment Tax	Tax Percentage
Canada Pension Plan (CPP) Contribution	5.95% (up to the yearly maximum)
Employment Insurance (EI) Premium	2.296% (up to the yearly maximum)
Workers’ Compensation (WCB) Premium	Varies by industry (average ~1.50%)

Employee Taxes

Payroll Tax	Tax Percentage
Canada Pension Plan (CPP) Contribution	5.95% (up to the yearly maximum)
Employment Insurance (EI) Premium	1.64% (up to the yearly maximum)
Federal Income Tax	15% to 33% (based on income)

Important Leave Laws in Manitoba

Leaves Title	Law
Sick Leave	Employees can get up to 10 days of paid sick leave per calendar year. This leave becomes available after 30 days of continuous employment in federally regulated workplaces.
Bereavement Leave	Employees can take up to 10 days of leave following the death of an immediate family member. The first 3 days are paid if the employee has been employed for at least 3 months.
Maternity Leave	Pregnant employees are entitled to up to 17 weeks of unpaid maternity leave. Eligible employees may receive Employment Insurance (EI) maternity benefits.
Parental Leave	Biological and adoptive parents can take up to 63 weeks of unpaid parental leave. Parents who share parental leave are eligible for a combined total of 71 weeks of leave.
Compassionate Care Leave	Employees may take up to 28 weeks of unpaid leave to care for a seriously ill family member with a significant risk of death.
Critical Illness Leave	Employees can take up to 37 weeks of unpaid leave to care for a critically ill child under 18, and 17 weeks for a critically ill adult family member.
Family Violence Leave	Employees who experience domestic or sexual violence can get up to 10 days of leave per year, with the first 5 days paid.
Personal Leave	Employees can take up to 5 days of leave per calendar year for personal illness, family responsibilities, or urgent matters.
Jury Duty Leave	Employers must allow employees to take unpaid leave to serve as jurors or witnesses in legal proceedings.
Leave for the Death or Disappearance of a Child	Employees may take up to 104 weeks of unpaid leave if a child dies due to a crime, or 52 weeks if the child disappears.
Medical Leave	In Canada, employees can get up to 27 weeks of unpaid leave due to personal illness, injury, organ donation, or medical appointments.
Reservist Leave	Employees who serve in the Canadian Forces can take unpaid leave for military duties, including operations, training, or emergencies.
Election Leave	Provides up to 3 consecutive hours off with pay to vote during federal elections, if work hours conflict with voting times.
Crime Victim Leave	Available in certain provinces for employees who are victims of serious crimes or whose dependents are victims. Duration and pay status vary.
Family Responsibility Leave	Family responsibility leave allows employees to take unpaid time off work to deal with urgent or unexpected situations involving the health or care of close family members.
Volunteer Emergency Responder Leave	This leave allows employees who serve their communities, such as volunteer firefighters, search and rescue workers, or medical first responders, to take unpaid, job-protected time off when they are called to respond to emergencies.

Comprehensive Employment Termination Details in Canada

Probation Period

In Canada, probationary periods typically last for three months (90 days), although they vary depending on the employer's policy or employment contract. During this period, employees can be terminated without notice or severance pay. However, employees still retain protections under the Employment Standards Act and Canadian Human Rights Act.

Termination Process

Employers in Canada can terminate employees without cause, provided they meet the required notice or severance pay obligations. However, terminations must comply with relevant labour laws, such as the Canadian Human Rights Act, and should not breach the employment contract. As a trusted Employer of Record Canada, HR Options handles terminations according to the law to protect you from legal disputes.

Notice Period

In Canada, resignation notice periods depend on service length. Employees with less than three months' service need no notice, while those with three months to one year must give one week's notice. For one to three years, two weeks’ notice is required. For service over ten years, eight weeks' notice is expected. It’s common for employees to provide at least two weeks’ notice.

Severance and Final Pay

If an employer fails to provide the required notice, they must offer termination pay equal to the wages the employee would have earned during the notice period. Final pay includes any unpaid wages, vacation pay, and overtime. Employers must issue final payments within 30 days of termination.

New Hire Reporting

Employers must report all new hires and rehires to the New York Department of Taxation & Finance within 20 days of the employee's start date. This report should include the employee’s full legal name, date of birth, address, start date, and social security number.

Local Requirements

Follow additional paperwork requirements for new hires in Flagstaff.

Which Laws Apply to Your Organization?

Which Laws Apply to Your Organization?

Law	Applies To	Description
Canada Labour Code (CLC)	Federally regulated employers	This law sets out minimum standards for employment, such as hours of work, wages, holidays, vacation, termination, and leaves for industries under federal jurisdiction.
Employment Standards Acts (Provincial/Territorial)	Most provincial and territorial employers	Each province and territory has its own employment standards legislation that governs work hours, minimum wage, overtime, and termination. Employers must follow applicable local regulations.
Canadian Human Rights Act	All federally regulated employers	Prohibits discrimination and ensures equal opportunity based on race, sex, disability, religion, age, and other protected grounds. Each province has a corresponding Human Rights Code.
Minimum Wage Law	All employers	Each province and territory sets its minimum wage. However, the federal minimum wage for federally regulated workers is $17.75.
Employment Insurance (EI) Act	All employers	This act provides temporary financial assistance to eligible workers who are unemployed, sick, pregnant, or caring for newborns or critically ill family members.
Termination and Severance Pay Laws	Varies by jurisdiction and business size	Employers must provide notice or pay instead of notice upon termination. Severance pay applies in specific cases, typically based on years of service and company size.
Vacation Leave Law	All employers	Federally and provincially regulated workers can get at least 2 weeks of paid vacation after one year of service. Depending on the jurisdiction, this increases to 3 or more weeks after longer service periods.
Sick Leave Law	All employers	Many provinces offer job-protected unpaid sick leave. Under recent amendments, federally regulated employees can take up to 10 paid sick days annually.
Family Responsibility Leave	All employers	Employees may take unpaid leave to care for family members or address urgent family matters. Length of leave varies by province (e.g., 3-5 days).
Maternity Leave Law	All employers	Employees are generally entitled to up to 17 weeks of unpaid maternity leave. Eligibility and benefits may differ by province.
Parental Leave Law	All employers	New parents can access up to 63 weeks of unpaid parental leave, which may follow maternity leave.
Compassionate Care Leave	All employers	Provides up to 28 weeks of unpaid job-protected leave to care for an ill family member. EI benefits may be available.
Domestic or Sexual Violence Leave	All employers	Most jurisdictions offer up to 10 days of leave (some paid, some unpaid) for employees experiencing or escaping domestic or sexual violence.
Bereavement Leave Law	All employers	Employees may take 2–5 days of unpaid or partially paid leave following the death of a close family member. Duration and pay vary by province.
Child Labour Laws	All employers	Provincial laws restrict the types of jobs and hours minors under 16 can work to ensure their education and safety are not compromised.
Occupational Health and Safety Laws (OHS)	All employers	Employers must ensure a safe and healthy workplace and comply with federal or provincial OHS standards, including training and incident reporting.
Workers' Compensation Acts	All employers	Workers injured on the job may receive benefits and services through their province’s Workers’ Compensation Board. Employers must register and contribute.
Workplace Harassment & Violence Laws	All employers	Under provincial and federal law, employers are required to develop policies, conduct training, and address incidents of workplace harassment or violence.
Voting Leave Laws	All employers	Employees must be given up to three consecutive hours off with pay to vote in federal or provincial elections.
Whistleblower Protection	All employers	Federal and provincial laws protect employees who report legal violations or unsafe practices in good faith from retaliation.
Privacy Laws (PIPEDA & Provincial Acts)	All employers	Employers must protect personal employee data and only collect or use it lawfully, by PIPEDA or provincial privacy laws.
Employee Misclassification Law	All employers	Employers must correctly classify workers as employees or independent contractors to avoid penalties and ensure proper tax and benefits compliance.
Labour Relations Acts	Unionized workplaces	These acts govern union certification, collective bargaining, and dispute resolution. Each province has its version of the law for union-management relations.

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