CANADA PEO & EOR
Hire in Canada without a local entity today
As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
Get started and hire in Canada today with Gibson Watts Global.
DID YOU KNOW
- The province of Quebec holds around 25% of Canada’s population and is unique in North America. Quebec is primarily French speaking and has a civil law legal system based on the Napoleonic Code from France.
- Around 24% of Canada’s population has a mother tongue that is neither English nor French
- Canada has the longest coastline in the world, and there are millions of lakes all around the country
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Canada PEO Services
One of the world’s most desirable countries to live in
With leading education, medical, and immigration systems, it’s no surprise that Canada is one of the world’s most desirable countries to live. Canada’s business environment is heavily European-influenced, and its highly developed mixed economy represents this.
Canada is considered one of the world’s friendliest countries, and it boasts a beautiful countryside combined with impressive modern cities. As the second largest country in the world, Canada’s landscape is extremely diverse and there is something for everyone across its vast location.
Canada has the 9th largest GDP by nominal, and the 15th largest by PPP in the world. Canada is also fortunate to have the third highest total of natural resources, and natural resources make up one of the country’s largest industries.
Working in Canada
Employment Information
Canada has a standard of a 40-hour working week and overtime rates are usually applicable for more than 8 hours worked in a day (or 40 hours worked in a week).
Employee Leave
There is a minimum standard of two weeks paid vacation per year, however employees will sometimes provide more vacation for newer employees. In most cases, the allocation of annual leave is increased throughout a period of employment, especially after five years.
Sick pay varies dependent on the province, however 3 days per year is common. Maternity/parental leave of 55% of previous earnings up to 55 weeks and with an extra 29 weeks of extended leave available up to 84 weeks. If one parent takes this leave, then the benefit period is reduced slightly (to 50 weeks and 76 weeks respectively).
Taxation
Taking into account child-related benefits and tax provisions, the net average tax rate for an average married worker with two children in Canada was 0.7% in 2020, which is the 35th lowest in the OECD, and compares with 12.9% for the OECD average. This means that an average married worker with two children in Canada had a take-home pay, after tax and family benefits, of 99.3% of their gross wage, compared do 87.1% for the OECD average.
Visas
Would-be applicants are advised to consult with immigration experts before choosing to relocate to Canada. There are a number of visa programs available for expats, including:
- Temporary Work Visa (up to 12 months)
- In order to stay in the country, one of the other options is required
- Student visas, marriage and family sponsorship programs are some alternate options
- LMIA Visa (standard method, but difficult)
- Canadian businesses can apply for a work visa for a prospective employee, however a Labour Market Impact Assessment (LMIA) is required
- This assessment involves advertising for 2 months to prove that they cannot find another worker at a reasonable pay rate; this can be used to help the work permit application.
- TN Visa (new North American free trade provisions)
- This is often preferable to the LMIA Visa, as it’s an easier process
- Under new NAFTA, a TN Visa can be applied for in 65 occupations
- Inter-company Transfer Visa (ICT)
- You must apply for permission to transfer employees between USA and Canadian divisions (this is fairly easy to action)
- Canadian Experience Class Visa (CEC)
- It’s generally recommended that a worker achieves a Temporary Work Visa first
- A worker must work over 30 hours per week for a 12 month period
- Language fluency and education attainment (post-secondary degree) must be demonstrated
- Expats can often stay, but it is a points-based system
- Commonwealth Exemption
- People from other Commonwealth countries (including the UK, Australia, and New Zealand), can often be exempt from Visa requirements
- Some people choose to apply for Permanent Residency, followed by a Canadian Citizenship
Cultural Information
Canada’s Government is a parliamentary democracy with a highly developed economic system. As a part of the Commonwealth, it is also a constitutional monarchy, with Queen Elizabeth acting as the head of state.
Canada has two official languages in English and French, and has a highly multicultural society made up of three founding peoples (Indigenous, followed later by French and British). Canada also has numerous other ethnic groups.
Expanding into the Canadian market
Setting up or expanding a business in Canada is a relatively simple process, with minimal costs and red tape, and competitive corporation tax rates (especially for smaller businesses).
The process of expanding into Canada can be simplified further with the use of a Canada PEO like Gibson Watts Global. Our PEO service can also be used to sample the Canadian market without the need of setting up a permanent establishment in country.
Impacts of COVID-19
Covid restrictions and policies are established at the provincial level and can vary significantly depending depending on new Covid case counts and hospitalizations. However, workers are generally returning to the workplace slowly.
Over 83% of the eligible Canadian population (12 and older) is now fully vaccinated.
According to Statistics Canada in new calculations based on survey data, up to one quarter of hours worked could be remote after the health crisis ends. That’s up from about 5 per cent pre-pandemic, the agency said. The figure for university-educated workers is 44 per cent, versus 9 per cent for those with no post-secondary education.
To come up with its estimates, the study used survey data from February that showed 80 per cent of Canadians who began working remote during the pandemic would like to work at least half their hours from home in a post-COVID world. In addition to education, there are also divides when it comes to gender. Women could see as much as 28 per cent of hours worked from home, compared with 22 per cent for men.
