Canada
Keep your business compliant and your employees protected with Lerio in Canada.
Hiring in Canada at a glance
$ / CAD
40 hours / week
6 holidays / year
The most common payment frequency is monthly.
By law different territories can impose different pay frequencies requirements. Therefore it can vary from weekly, bimonthly or monthly.
English and French
38M
$17.30 / hour
1st Jan – 31st Dec
Employment Tax
- Social Security Tax: 7.58% Nationally, 7.67% Quebec
- Canada Pension Plan: 5.95% capped at an annual contribution of $3 754.45 for all territories except Quebec: 6.40% capped at $4 038.49
- Unemployment insurance: 1.63% capped at an annual contribution of $1 002.45 for all territories except Quebec: 1.27% capped at $781.05
- Income tax: Collected on a national and territory level. See national tax rates below and territory rates.
Additional taxes apply for certain territories.
- Social Security Tax: 7.58% Nationally, 7.67% Quebec
- Pension plan: 5.95% capped at an annual contribution of $3 754.45 for all territories except Quebec: $6.40% capped at $4 038.40 annually
- Employment insurance: 1.63% capped at and annual contribution of $1 403.43 for all territories except Quebec: 1.27% capped at $1 093.47 annually
Employer health tax (EHT)
Only applicable in certain territories. Varies between 0.98% and 4.3% of the total salaries earned by their employees who work in a physical office space.
In Quebec additional taxes apply for parental insurance plan, health services fund, labour standard, workforce skills development fund and Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST)
National Income Tax
| Taxable Income | Tax Rate (%) | ||
| $0 - $53 359 | 15% | ||
| $53 359 - $106 717 | 20.5% | ||
| $106 717 - $165 430 | 26% | ||
| $165 430 - $235 675 | 29% | ||
| $235 675 + | 33% |
Employer of Record
in Canada
Acting as the authorised employer, an Employer of Record is responsible for ensuring adherence to all legal requirements related to employment in Australia. This includes tasks such as payroll management, tax compliance, and the provision of employment contracts as stipulated by labour regulations.
Employer of
Record Process
- Company
- Full legal name of prospective employee
- Employee contact details
- Employee nationality and residency status
- Proposed start date
- Right to work status
- Job title
- Working hours
- Job description and deliverables
- Salary information
- Benefit information
- Intellectual property and confidentiality agreement
- Terms of termination (e.g. notice period)
- Probation period
- EMployee bank details
- All other company-specific requirements (e.g. non-compete, intellectual property clauses, etc.)
Finds their perfect hire and provides Lerio with all the information required to prepare an employment agreement. For Australia, that includes:
- Lerio
Prepares the employment agreement and shares with the prospective employee for signing. Requests all additional documents such as identity documents, proof of right to work in Australia, tax information, etc.
- Employee
Signs employment agreement and submits required documents.
Umbrella Process
- Employee
Now no longer a prospective employee but simply an official employee, who ensures to keep Lerio updated on any personal information changes.
- Lerio
Onboards employee to payroll and benefit programs to get started ensuring that salaries are paid every month and benefits are administered. Tax contributions and benefit fees are paid and payslips are provided to the employee.
Lerio provides an invoice and statement to the company for each month.
- Company
Receives monthly invoice, reviews and processes. Provides information on whether anything has changed in their relationship with the employee, the employee’s role or the company that will have an effect on the upcoming payroll run.
Employee Benefits
- Varies based on territories
- Pension
- Unemployment Insurance
- Workers compensation Insurance
- Statutory leave (sickness, compassionate, parental, etc.)
Non-mandatory
Employee Benefits
- Right to disconnect (no contact outside of work hours)
- Protection from violence, discrimination and harassment
- Whistleblower protection
- Equal pay for equal work
- A safe and healthy work environment free from risk
- Equitable access to opportunities
- Protection of personal information
- Right to join a labour union
Leave
Varies in each territory but nationally the least allowance is based on tenure:
- After 1 year: 2 weeks per year
- After 5 years: 3 weeks per year
- After 10 years: 4 weeks per year
Vacation pay:
Varies in each territory but nationally the least allowance is based on tenure:
- After 1 year: 4% of income
- After 5 years: 6% of income
- After 10 years: 8% of income
Varies in each territory but nationally the least allowance is:
15 – 17 weeks of paid leave at 55% of the standard salary, capped at $650 per week. This is paid by social insurance.
In case of miscarriage or stillbirth: 12 weeks
Nationally there is no paid paternity leave and the only territory that does have paid paternity leave is Quebec.
Varies in each territory but nationally the least allowance is:
69 paid weeks off combined for both parents. Freedom to choose how and when to use it but must be used within the first year of the child’s life.
No national allocation, except for work-related injuries or illnesses. However some territories do allow unpaid or paid leave for sickness that varies between 3 – 10 days and may allow employees to use these days to take care of family members when they’re sick too.
3 days per year for taking care of sick or injured family, family responsibilities, weddings or emergency situations.
3 days for the death of an immediate family member after 3 months of employment.
8 weeks in a 52 week cycle to care for a family member who has a serious medical condition
10 – 26 weeks of paid or unpaid leave depending on the territory.
52 weeks of unpaid leave if their child is missing or 104 weeks if their child dies in a crime-related situation.
5 days to observe aboriginal customs and events if you have aboriginal heritage. If they’ve been employed for 3 months.
Unpaid time off to attend court as a witness or to serve jury duty.
Additional allowances are allocated for members of the reserve force for a variety of reasons.
Varies based on the territory and on tenure.
Nationally:
- Less than 3 months: None
- 3 months – 3 years: 2 weeks
- 3 years: 3 weeks
- 4 years: 4 weeks
- 5 years: 5 weeks
- 6 years: 6 weeks
- 7 years: 7 weeks
- 8 years: 8 weeks
Probation
Optional and cannot exceed 3 months
What is a work permit in Canada?
Work permits are official documents from a country’s government that qualifies an individual to legally work and live in the country. However, this is a broad term and many countries require more than one official document and may use different terms to refer to these documents – but Canada is not one of them. Essentially all terms are referencing documents that prove someone has been given the legal right to work and live in the country.
In Canada, the term work permit is used however a work visa and/or permanent residence may be required.
Who needs a work permit in Canada?
Canada requires everyone who is not a citizen or a permanent resident to go through a process of obtaining a work permit. That is the general rule however Canada has many different exceptions due to free trade agreements with countries or groups of countries, various programmes they run and industry-specific exemptions. In addition, Canada offers open work permits to certain vulnerable populations who are affected by war, discrimination, abuse or other adverse conditions.
Due to the variety and amount of exceptions, the easiest way to know if you need a work permit is to use their Government website where you can select your country and see whether you need a permit or not. As a starting point, the following free trade agreements exist and allow either temporary, holiday or permanent movement:
- Canada-United States-Mexico (CUSMA) Agreement. Formerly known as the North American Free Trade Agreement (NAFTA)
- Canada-Chile FTA
- Canada-Peru FTA
- Canada-Colombia FTA
- Canada-Korea FTA
- Comprehensive Economic and Trade Agreement (CETA)
- GATS
- Canada–Panama Free Trade Agreement
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
How long does it take to get a work permit in Canada?
Depending on the visa type and from which country the application is from, the processing time varies considerably.
Temporary: 5 – 18 weeks
Permanent: 12 weeks
The immigration website has functionality that allows you to see the estimated processing time for the specific type of application, from the specific country here.
Types of work visas in Canada
Although Canada doesn’t necessarily have different visas, they have different programmes and streams within categories. The umbrella term that refers to these different options is called the Temporary Foreign Worker Program.
This programme allows employers to hire employees outside of Canada when there is a skill or labour shortage that local citizens cannot fill. It requires employers to bide by a set of strict requirements.
Employer-specific vs. open work permits
Most work permits will be employer-specific. This means that the permit only allows employment with the company who is listed on the permit. There are however open work permits who allow holders to work for any eligible company. This option is available to those who fall into any of the categories listed here.
High vs. low wage
Employees who would earn above the provincial median hourly wage fall into the high wage stream while those who earn below fall into the low wage stream. This classification affects the application process. The following programs and entrance paths will fall into one of these two streams. This is relevant to know as it’s in application forms and affects the processing times.
Express Entry Programmes
Canada has databases where qualifying individuals can upload their details and be invited to apply for citizenship based on a points system. Express entry programmes are essentially ways for employers to hire someone in that database (Job Bank) and expedite their invitation to apply for permanent residency.
These programs are classified as high wage.
Global Talent Stream
The Global Talent Stream is intended to allow employers access to a database of candidates who have unique and specialised skills.
Eligibility:
Category A:
- A designated referral partner needs to very the company meets these requirements:
- Operating in Canada
- Focused on innovation
- Has potential and drive to grow or scale
- Needs to fill a unique and specialised position
- Has found a candidate that meets the position’s requirements
- A unique and specialised position is:
- Salary of $80 000 annually or the average salary for this occupation if this is higher than $80 000 annually.
- Advanced knowledge of the specific industry
- Advanced qualification in the specialisation related to the occupation or company
- Minimum 5 years of experience in a specialised field.
Category B:
- The role being hired for is on the Global Talent Occupations list
- The salary must be at least the minimum wage rate (found on the list linked above)
Federal Skilled Worker Program (FSWP)
Canada has a National Occupational Classification system where different occupations and roles within those are categorised. This visa is intended to fill specific codes indicating skilled workers that there is a skills shortage for in Canada.
Eligibility:
- Role being hired for must be in TEER 0/1/2/3 (Training, Education, Experience and Responsibilities) of the NOC, such as management, professional, scientific, technical or trade occupations
- The role is full-time
- At least a one year employment contract
- Can’t be seasonal work
Federal Skilled Trades Program (FSTP
Canada has a National Occupational Classification system where different occupations and roles within those are categorised. This visa is intended to fill specific codes indicating skilled trades that there is a skills shortage for in Canada. An employment offer under this stream can be made by more than one employer.
Eligibility:
- Role must be for a skilled trade or technical occupation, NOC TEER ⅔
- The role is full-time
Application process in Canada
Visas and permits
Complete a Labour Market Impact Assessment (LMIA)
This is completed by the employer and not all visa types require a LMIA. To find out if it’s required, see the list of exemptions here.
- Open a job bank for employers, if not already done online
- Complete an application through the LMIA Online Portal using the job bank log in details.
- Upload supporting documents about the company
- Pay the process fee
- Outcome of the application will be sent directly to the employer and can be found on the online portal, and must be sent to the employee
Submit employment agreement
- The employer should submit the employment agreement on the employment online portal. This is mandatory for some visas and optional for others but can be done by all and can avoid delays later
Gather documents and complete required tests
Ensure to gather documents early to allow enough time. Some tests such as an English test or medical examination may be needed.
Apply for a visa and work permit
The person looking to work in Canada must apply for the work visa at their local Italian embassy or consulate. This is one application that applies for both your visa and permit.
- Complete the application form online and make an appointment with the consulate/embassy
- Pay application fees
- Attend the visa appointment where:
- Required documents will be submitted
- Biometric data will be recorded
- A brief interview will be conducted (sometimes this doesn’t happen)
- Passport and visa will be returned to you, the work permit will be received upon arrival in Canada
Express entry programmes
Submit information to immigration
- Collect all required documents.
- Submit application online through the immigration website
Apply to jobs in the database
- A confirmation that an applicant is placed in the Express Entry programme will be sent and a job seeker validation code
- Create a Job Match account through the Job Bank. The job seeker validation code will be used for this
- Apply for jobs in the job bank
- To strengthen chances, apply for jobs outside of the job bank as well. Employers can, in certain circumstances, still support your expedited invitation to apply for residence even if it’s not a job through the job bank
Complete a Labour Market Impact Assessment (LMIA)
This is completed by the employer and not all visa types require a LMIA. To find out if it’s required, see the list of exemptions here. The LMIA can be done before an offer is extended or recruitment is completed.
- Open a job bank for employers, if not already done online
- Complete an application through the LMIA Online Portal using the job bank log in details.
- Upload supporting documents about the company
- Pay the process fee
- Outcome of the application will be sent directly to the employer and can be found on the online portal, and must be sent to the employee
Submit employment agreement
- The employer should submit the employment agreement on the employment online portal. This is mandatory for some visas and optional for others but can be done by all and can avoid delays later
Receive an invitation to apply and apply
- If a suitable round of invitations are sent out and the applicant qualifies, a notification with instructions will be sent
- Apply through the immigration website after signing in to your account
- Upload supporting documents
- Pay the application and biometrics fees
- Submit full application
- Find an office and submit biometric information (can wait until asked to do this but doing it before can improve speed)
- Outcome of application will be received through your account on the immigration website and a confirmation of permanent residence and, if applicable, a permanent resident visa will be sent
After receiving permanent residence
- Arrive in Canada with the resident card and visa, passport and proof of funds
- Meet with a Canada Border Services Agency (CBSA) who will confirm everything is still valid for entry (visa expiry dates, etc.)
What documents are required to apply for a work permit in Canada?
Temporary work visa and permit
Apply for a visa/permit
- Apply for a visa online through the immigration website
- Submit relevant application form
- Passport, must be valid for 6 months after intended entry to Canada with a copy of all passport pages
- Two photos as per requirements
- If country of residence if different to country of citizenship, proof of immigration status
- If applicable, marriage certificate
- Police clearance
- Proof of funds
- Resume
- Proof of qualifications
- Offer of employment from a Canadian company
- LMIA confirmation
Express Entry
Initial application to immigration
- Passport
- Results from English test
- Proof of either Canadian education or proof of your qualification’s credibility in Canda
- Offer of employment
- Proof of professional experience
- Proof of funds
Application for permanent residence
- Police clearance
- Proof of funds
- If applicable, marriage certificats
- If applicable, divorce certificate
- If applicable, death certificate (if classified as widowed)
- Photo
- If applicable, proof of other names
- Submit any other documents that may strengthen your application
Applicable to all
LMIA Assessment
- Proof of business legitimacy
- Show that there aren’t enough Canadian citizens who can fill the role
- Description of the role to be filled
- Additional documents may be required depending on the role
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