Canada offers one of the world’s most robust employment frameworks, providing strong protections for both domestic and international workers. This guide will help you to navigate employment rights and regulations that govern employment relationships across the country.
Hiring in Canada: What Expats and Employers Need to Know
Why Canada is a Top Destination for Remote Talent
Canada has established itself as a premier destination for hiring remote employees, attracting international talent through its robust economy, competitive labour costs, and highly skilled workforce. The country’s modern infrastructure and stable political environment create an ideal ecosystem for remote work arrangements, making it particularly attractive for global companies seeking to expand their operations.
The Canadian labour market benefits from a well-educated population with strong technical skills, supported by excellent healthcare and social systems. These factors contribute to higher productivity and lower turnover rates, providing significant value for employers whilst offering attractive working conditions for international professionals. The country’s commitment to diversity and inclusion further enhances its appeal as a destination for global talent from various backgrounds and cultures.
Legal Compliance When Hiring Remote Employees
Compliance with Canadian employment laws is crucial for companies hiring remote employees, as failure to meet legal obligations can result in significant financial and legal consequences. Employers must navigate both federal and provincial regulations, ensuring they understand which jurisdiction governs their specific employment relationships.
Companies hiring remote employees in Canada must comply with all applicable employment standards, including minimum wage requirements, working time regulations, and statutory benefits contributions. This includes understanding provincial variations in employment standards, as each province maintains its own specific requirements for matters such as overtime calculations, holiday entitlements, and termination procedures.
The classification of workers is particularly important, as misclassifying employees as independent contractors can lead to substantial penalties, including fines, back wages, and liabilities for taxes, pensions, and insurance. Recent strengthening of the Canada Labour Code in 2025 has shifted the burden of proof for worker classification onto businesses, making proper classification even more critical.
Setting Up a Legal Entity or Using an Employer of Record (EOR)
Companies seeking to hire remote employees in Canada must establish a legal presence in the country or partner with a global employment service provider. Setting up a legal entity involves registering a business, obtaining necessary licences, and establishing payroll and benefits systems that comply with Canadian regulations.
Alternatively, partnering with an Employer of Record provides immediate access to the Canadian market without the complexity and cost of establishing a local entity. EOR services handle legal compliance, payroll administration, benefits management, and tax obligations, allowing companies to focus on their core business activities whilst ensuring full regulatory compliance.
EOR providers offer expertise in navigating the complex landscape of Canadian labour laws across different provinces, providing ongoing support for recruitment, onboarding, and administration of remote employees. They also assist with risk mitigation by staying current with changing regulations and ensuring that employment practices remain compliant with evolving legal requirements.
Employment Standards for Expats in Canada
Minimum Wage by Province and Federally Regulated Sectors
Minimum wage rates in Canada vary significantly by province and territory, with regular adjustments made to account for inflation and cost of living changes. As of 2025, the federal minimum wage stands at CAD 17.75 per hour for federally regulated sectors, though provincial rates may be higher and would take precedence in such cases.
Each province sets its own minimum wage rate, creating a patchwork of different rates across the country. These rates are typically reviewed annually and adjusted based on economic conditions, cost of living indices, and provincial policy objectives. Employees working in federally regulated sectors are entitled to the higher of the federal or provincial minimum wage rate applicable in their location.
Working Hours, Breaks, and Overtime Regulations
Standard working hours in Canada are generally established at eight hours per day and 40 hours per week, with employees entitled to at least one full day off each week, typically Sunday. These standards form the foundation for calculating overtime entitlements and determining when additional compensation is required.
Overtime regulations require employers to pay at least 1.5 times the regular wage rate for hours worked beyond the standard work week, or provide paid time off equivalent to 1.5 times the extra hours worked. However, overtime thresholds vary by province, with some jurisdictions setting the threshold at 44 hours per week, whilst others use 48 hours per week as the trigger point.
Rest periods and meal breaks are mandated under provincial employment standards, ensuring employees have adequate time for rest and refreshment during their working day. These requirements vary by province but generally include provisions for short breaks and longer meal periods based on the length of the work shift.
Probation Periods and Regional Variations
Probation periods in Canada typically last three months but can vary significantly by province, ranging from 90 days to six months depending on local employment standards legislation. During the probationary period, employers have greater flexibility in terminating employment relationships, though employees still retain certain basic rights and protections.
The length and conditions of probationary periods reflect provincial policy approaches to balancing employer flexibility with employee protection. Some provinces allow longer probationary periods for certain types of positions or industries, whilst others maintain stricter limitations on probationary terms.
Employees serving probationary periods are generally entitled to the same wages, benefits, and working conditions as other employees, with the primary difference being reduced notice requirements for termination. However, employers must still comply with human rights legislation and cannot use probationary periods to discriminate against protected groups.
Employee Rights and Protections in the Canadian Workplace
Anti-Discrimination and Employment Equity Laws
Canadian employment law provides robust protection against workplace discrimination through both federal and provincial human rights legislation. The Canadian Human Rights Act prohibits discrimination in federally regulated sectors and services based on race, gender, age, religion, sexual orientation, disability, ethnicity, and other protected characteristics.
Provincial human rights codes extend these protections to provincially regulated workplaces, creating a network of anti-discrimination laws that cover virtually all Canadian workers. These laws apply to all aspects of employment, including recruitment, hiring, promotion, training, compensation, and termination decisions.
Employment equity legislation goes beyond basic anti-discrimination protection by requiring certain employers to take proactive steps to achieve workplace equality. The Employment Equity Act and Federal Contractors Program require federally regulated organisations and businesses with federal contracts exceeding CAD 1 million to provide equal employment opportunities to women, Indigenous peoples, people with disabilities, and visible minorities.
The Duty to Accommodate in Canadian Workplaces
Employers in Canada have a legal duty to accommodate employees who experience discrimination based on protected characteristics, unless doing so would cause undue hardship to the organisation. This duty requires employers to adjust work environments, duties, or conditions to prevent or reduce discrimination.
The accommodation process involves a collaborative effort between employers and employees to identify reasonable solutions that address discriminatory barriers whilst maintaining essential job functions. Employers must consider all possible accommodations short of undue hardship, which is assessed based on factors such as cost, health and safety requirements, and operational feasibility.
Common accommodations include flexible working arrangements, modified duties, assistive technologies, and physical workspace modifications. The duty to accommodate is ongoing throughout the employment relationship and may require adjustments as circumstances change.
Unionisation and Collective Bargaining Rights
Most Canadian workers have the legal right to join trade unions and participate in collective bargaining processes. These rights are protected under federal and provincial labour relations legislation, which establishes procedures for union certification, collective bargaining, and dispute resolution.
Workers’ Compensation for Job-Related Injuries
Canada operates a public, no-fault workers’ compensation system overseen by government bodies in each province and territory. This system provides benefits for employees who suffer job-related injuries or develop occupational diseases, whilst protecting employers from lawsuit liability.
Employees who experience workplace injuries receive medical treatment, rehabilitation services, and wage replacement benefits through the workers’ compensation system. In exchange for these guaranteed benefits, injured workers cannot sue their employers for damages related to workplace injuries covered by the system.
Employers pay premiums into the workers’ compensation system based on their payroll, industry classification, and claims history. These premiums fund the benefits paid to injured workers and encourage workplace safety through experience-based rating systems that reward employers with good safety records.
Occupational Health and Psychological Safety Standards
Employers must identify and address workplace dangers, provide safety training and equipment, and establish procedures for reporting and investigating safety concerns. Employees have the right to be informed about potential risks and to participate in health and safety activities through workplace representatives or committees.
The inclusion of psychological safety in health and safety standards recognises the importance of mental health in workplace wellbeing. Employers must now consider factors such as workplace stress, harassment, and mental health impacts when developing health and safety policies and procedures.
Employee Data Privacy Under PIPEDA
The Personal Information Protection and Electronic Documents Act (PIPEDA) regulates the collection and use of personal information by private sector organisations in Canada. This federal legislation establishes rules for how employers can collect, use, and disclose employee personal information.
Under PIPEDA, employers must obtain employee consent for the collection and use of personal information, except in specific circumstances where consent is not required. Organisations can only collect information that is necessary for legitimate business purposes and must implement appropriate safeguards to protect personal information from unauthorised access or disclosure.
Provincial privacy legislation in Alberta, British Columbia, and Quebec provides additional protections for employee personal information. These laws establish similar principles for personal information protection whilst addressing specific provincial circumstances and requirements.
Pay Transparency and Equal Pay Laws
Pay transparency initiatives in Canada aim to address wage gaps and promote equal pay for equal work. The Employment Equity Act requires federally regulated employers to report salary data to government authorities as part of efforts to identify and address systemic pay inequities.
Prince Edward Island has implemented mandatory salary range disclosure requirements for public job postings, setting a precedent that other provinces may follow. These transparency measures help job seekers make informed decisions about employment opportunities whilst encouraging employers to examine their compensation practices.
Equal pay legislation prohibits wage discrimination based on gender and other protected characteristics, requiring employers to provide equal compensation for work of equal value. These laws establish complaint procedures and remedies for employees who experience wage discrimination.
Use of NDAs in Employment Agreements
Non-disclosure agreements in employment contexts are permitted in Canada when they serve legitimate business purposes such as protecting proprietary information, trade secrets, or confidential business information. However, NDAs must be reasonable in scope and duration and cannot contravene public interest.
Since May 2022, restrictions have been placed on the use of NDAs in settlement agreements related to sexual misconduct or harassment claims. These restrictions aim to prevent the silencing of victims and encourage the reporting of workplace misconduct.
Employers must ensure that NDA provisions are specific, reasonable, and necessary to protect legitimate business interests. Overly broad or unreasonable NDAs may be unenforceable and could expose employers to legal challenges.
Foreign Worker Rights and Protections
All workers in Canada, including temporary foreign workers and other international employees, are protected by Canadian employment and human rights laws. These protections include the right to fair wages, safe working conditions, and freedom from discrimination and harassment.
Foreign workers have the right to keep their passports and work permits and cannot be required to surrender these documents to employers. They also have the right to contact labour and employment authorities without fear of employer retaliation if they experience workplace violations.
Labour standards enforcement agencies provide services and support in multiple languages to ensure foreign workers can access information about their rights and obtain assistance when needed. This multilingual support helps overcome language barriers that might otherwise prevent foreign workers from asserting their rights.
Termination of Employment: Know Your Rights
No At-Will Employment: Termination with or without Cause
Canada does not recognise at-will employment, meaning employers cannot terminate employees without providing proper notice or justification. Employment relationships can only be terminated for cause, where serious misconduct has occurred, or without cause, where proper notice and severance payments are provided.
Termination with cause requires employers to demonstrate serious misconduct such as incompetence, insubordination, theft, or dishonesty. The burden of proof for just cause termination is high, and employers must show that the misconduct is serious enough to warrant immediate dismissal without notice or compensation.
Termination without cause is permitted for legitimate business reasons such as downsizing, restructuring, or economic changes, but requires employers to provide statutory minimum notice periods or payment in lieu of notice. The amount of notice depends on the length of employment and applicable employment standards legislation.
Statutory Notice and Severance Pay in Canada
Statutory notice requirements vary between federal and provincial jurisdictions, with different minimum periods based on length of service. Federally regulated workers are entitled to two weeks’ notice for dismissal without cause, with graduated notice periods ranging from two weeks for employees with less than three years of service to eight weeks for those with eight or more years of service.
Provincial notice requirements differ across jurisdictions, with most provinces providing graduated notice periods that increase with length of service. These statutory minimums represent the baseline entitlements that cannot be reduced through employment contracts, though employers may provide greater notice or compensation.
Severance pay is additional compensation that may be required in certain circumstances beyond basic notice entitlements. In the federal sector and Ontario, severance payments are calculated based on length of service and may be required when employees are dismissed without cause after completing one year of continuous service.
Common Law vs. Statutory Severance Explained
Common law severance entitlements can significantly exceed statutory minimum requirements, potentially providing up to two years of compensation based on factors such as length of service, age, position level, and difficulty in finding alternative employment. These enhanced entitlements apply when employment contracts do not properly limit severance to statutory minimums.
Employment contracts that fail to comply with Employment Standards Act requirements may be unenforceable, allowing dismissed employees to claim common law severance instead of statutory minimums. This risk highlights the importance of properly drafted employment agreements that clearly limit severance entitlements whilst maintaining compliance with minimum standards.
Courts consider various factors when determining reasonable notice periods under common law, including the employee’s age, length of service, character of employment, and availability of similar employment. These factors can result in substantially higher severance awards than statutory minimums would provide.
Layoffs and Legal Offboarding Procedures
Layoffs represent temporary suspensions of employment where employers cease providing work and wages but retain the option to recall employees when business conditions improve. Provincial employment standards legislation governs layoff procedures, including maximum layoff periods and recall rights.
During layoffs, employees may be entitled to continue receiving certain benefits and maintain their employment relationship for potential recall. However, extended layoffs may be treated as constructive dismissal, entitling employees to notice and severance payments as if they had been permanently terminated.
Proper offboarding procedures ensure that employment terminations comply with legal requirements and minimise potential disputes. This includes providing required documentation, calculating final pay and benefits, returning company property, and addressing ongoing obligations such as restrictive covenants or confidentiality agreements.
FAQs: Jobs & Employment Rights for Expats in Canada
What Rights Do Foreign Workers Have in Canada?
Foreign workers in Canada enjoy the same employment rights and protections as Canadian citizens and permanent residents. This includes the right to fair wages at or above minimum wage levels, safe working conditions that comply with occupational health and safety standards, and protection from discrimination and harassment based on protected characteristics.
All workers, regardless of their citizenship or immigration status, are covered by provincial employment standards legislation and federal human rights protections where applicable. Foreign workers cannot be treated differently in terms of wages, working conditions, or other employment terms solely because of their immigration status.
Foreign workers also have the right to join unions and participate in collective bargaining where these rights exist. They can access workers’ compensation benefits for job-related injuries and are entitled to the same notice and severance protections as other employees when their employment is terminated.
What Are My Options If I’m Wrongfully Dismissed?
If termination violates employment standards legislation, complaints can be filed with provincial employment standards authorities, which can investigate and order remedies including reinstatement and compensation.
For dismissals that may violate human rights legislation, complaints can be filed with human rights commissions or tribunals. These bodies can investigate discrimination claims and order remedies including compensation for lost wages and dignitary damages.
Civil litigation may be appropriate for claims involving common law wrongful dismissal, where employees seek notice and severance payments beyond statutory minimums. Legal advice should be sought promptly after dismissal, as limitation periods for various types of claims differ and can expire quickly.
Do Canadian Laws Protect Me if I Work Remotely from Abroad?
Generally, Canadian employment standards apply when the employment relationship is governed by Canadian law and the work is performed for a Canadian employer. Remote workers may be subject to the employment laws of their country of residence in addition to Canadian requirements, creating potential conflicts that must be carefully managed. Tax obligations, social insurance contributions, and other regulatory requirements may also be affected by the employee’s location.