Build your workforce in Canada through the model that fits your goals, not the model a single provider wants to sell. Gracemark helps you compare recruitment, EOR, AOR, contractor, payroll and market-entry options through one accountable workforce partner.
A real workforce specialist replies within one business day. Initial model and cost path within 48 hours. No obligation.
Before you hire in Canada
Canada carries its own employment rules, statutory costs and termination exposure. Get the wrong setup and it means back-pay, penalties and misclassification claims. Here is the complete snapshot, free, so you can plan before you ever talk to us.
A skilled, bilingual talent pool with strong technology, finance and engineering capacity in Toronto, Vancouver and Montreal.
Gracemark recommendation: EOR for first hires; provincial payroll or entity assessment as headcount grows
The figures above are statutory baselines drawn from the sources listed below. Typical market practice in Canada often sits above the statutory floor, and the right model depends on the role, salary band and engagement type.
Educational workforce-planning information, not legal or tax advice. Requirements and service availability depend on the worker, role, location, compensation and engagement model; Gracemark confirms the current position before engagement.
What to look for
Each of these shifts your cost, timeline and legal exposure. We walk you through all of them, and handle them for you, so nothing turns into a surprise later.
Gracemark supports employment, payroll, benefits and compliance in Canada, and 100+ countries, through one accountable partner, delivered directly or through vetted in-country partners depending on the market. Model-agnostic guidance, one point of accountability.
A real workforce specialist replies within one business day. Initial model and cost path within 48 hours. No obligation.
FAQs
To hire in Canada, most U.S. companies either open a local entity or use an Employer of Record (EOR). EOR for first hires; provincial payroll or entity assessment as headcount grows Gracemark handles Canada employment, payroll, benefits and compliance through one accountable partner.
Employer cost in Canada is Employers match CPP contributions, including CPP2 above the first ceiling, and pay EI premiums at 1.4 times the employee rate; Quebec operates its own QPP and QPIP regimes. That is on top of gross salary, plus statutory items such as vacation and social contributions. Gracemark provides an exact quote for your role and salary band.
The current minimum wage in Canada is Minimum wage is set by each province and territory, and federally regulated employers must pay at least the rate of the province where the employee works. Statutory floors change through the year, so Gracemark confirms the exact figure for your hire.
Notice period in Canada is The Canada Labour Code requires written notice or pay in lieu based on service and statutory severance after 12 months of continuous employment; provincially regulated employees follow provincial employment standards. Termination complexity is rated high. Getting termination and severance wrong is one of the most expensive mistakes in Canada, plan it before the first hire.
Statutory annual leave in Canada is Federally regulated employees receive at least 2 weeks paid vacation after 1 year, 3 weeks after 5 years and 4 weeks after 10 years; provincial standards differ. Parental leave is Up to 18 months (EI shared). Sick leave is Province-dependent. Public holidays: 5–9 (province).
Time to hire in Canada is typically 1–2 weeks (EOR) through an EOR, versus 3–6+ months to open an entity. That is why most first hires in Canada go through an EOR.
Misclassification risk in Canada is rated high. Full-time, exclusive, day-to-day contractor arrangements are the most exposed, penalties include back-pay, statutory benefits and fines. Gracemark advises on when a contractor, EOR employee or entity hire is defensible.
Last reviewed: August 13, 2026 · Gracemark Global
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