Canada's technology industry covers artificial intelligence, life sciences, clean energy, information technology, and other fields. In addition, many large cities such as Toronto, Vancouver, and Montreal have become hubs for innovation and entrepreneurship, attracting a large number of talent in related fields, which provides favorable conditions for global hiring. Chinese companies going overseas to Canada can take advantage of Canada's advantages in science and technology and innovation, cooperate with local talents and enterprises, gain inspiration for innovative thinking and business models, meet the needs of the international market, and enhance global competitiveness.
The benefits of going overseas to Canada
Canada is the second largest country in the world by land area, with the country's capital Ottawa and the largest metropolitan areas being Toronto, Montreal, and Vancouver, with English and French being the official languages of Canada. Canada is known for ranking high in terms of civil liberties,** transparency, and quality of life. At the same time, Canada has one of the highest per capita immigration rates in the world. With an innovative business environment and abundant natural resources, Canada has been ranked by the World Bank as one of the best countries in the world to do business. In addition, Canada offers preferential access to more than 50 global markets, which is unique among G7 countries.
With a competitive corporate tax rate of 15% and the lowest cost of doing business in various sectors such as digital, R&D, manufacturing, and corporate services, Canada offers plenty of opportunities to expand your business in the global economy and freedom**.
In addition, Canada is politically stable, and safe banks are among the best in North America and even globally, so it is considered a low-risk investment option.
Hiring challenges for companies going overseas to Canada
Canada's 10 provinces and 3 territories have their own separate laws and systems, so businesses expanding their business must consider the differences in regulations between provinces. In addition, Canada's labor market is regulated by a range of laws and regulations, including labor laws, employment standards, and immigration regulations. You'll need to comply with these regulations and ensure that the principles of fairness and equality are followed in the hiring process. This may require you to spend time and effort understanding and adapting to the relevant laws and regulations.
Despite Canada's attractive tax rates, according to the World Bank, paying taxes and preparing taxes in Canada is a cumbersome process that takes 131 hours per year.
In Canada, you can choose to work with a compliant EOR service provider. An Employer of Record is legally the employee's employer and is responsible for the employee's Canadian employment compliance, including payroll, taxes, statutory benefits, employment contracts, and more.
GF]2705[ GF] Hire local employees based on your needs.
GF]2705[ GF] Ensure that the employment of employees is in accordance with local laws.
GF]2705[ GF] offers competitive benefit options for teams.
GF]2705[ GF] handles local payroll.
GF]2705 [gf] Filing employment-related taxes and statements.
GF]2705[ GF] Pay stubs to employees.
GF]2705[ GF] Payroll is paid in the local currency.
Mandatory social insurance in Canada
Non-mandatory employee benefits in Canada
Employment contracts in Canada
In Canada, a written employment agreement is not legally mandatory. However, most employers will have a written employment agreement in place to detail the terms and conditions of the employee's employment, such as the employee's salary, benefits, allowances, and termination rights. Note: Salary and any other additional remuneration should be expressed in Canadian dollars. Additionally, all employment contracts must meet the minimum standards for each applicable province or territory.
Canada is a bilingual country with a population of ** languages and English, with the exception of the province of Quebec, there are no rules regarding the language of employment contracts, and employment contracts are mostly drafted in English. For employees in Quebec, if the employment contract contains a non-French language clause, the employer must provide the employee with a French translation of the contract to ensure that the employee fully understands the content and benefits of the contract.
Probationary period in Canada
The probationary period in Canada varies from province to province and ranges from 3 to 6 months. The length of the probationary period can be determined by the agreement between the employer and the employee, and is usually clearly stated in the employment contract, including the start and end dates of the probationary period, wages, benefits, and termination conditions, among others.
During the probationary period, the employer has the right to terminate the employee within a reasonable range without prior notice or payment of compensation. Probationary termination is usually based on the employer's assessment of the employee's job performance and can terminate the employment relationship if the employer believes that the employee does not meet the job requirements or company expectations.
Payroll payment forms and cycles in Canada
According to Canadian labor law, employers are required to pay employees according to the agreed rate of wage payment, which is commonly weekly, biweekly, semi-monthly, or monthly.
Wages can be paid by direct deposit to the employee's bank account, cheque or cash payment, with direct deposit being the most common payment method, and employers will require employees to provide valid bank account information in order to make a payroll deposit.
Payslips are an important basis for employees to reconcile paychecks and tax purposes, and employers are usually responsible for providing employees with payslips that list the details of wages, including salary amounts, deductions (such as taxes, insurance premiums, etc.), actual payments, etc.
Canada's Hours and Overtime Laws
Typically, the standard workweek in Canada is Monday through Friday. 75 or 8 hours with a total working week of 375-40 hours. In most cases, employees can work up to 48 hours per week. Employers must pay employees overtime after reaching the standard working hours of 8 hours per day or 40 hours per week. The exact amount depends on the employee's normal working hours, role, and what is agreed in the contract. Employers may not force employees to work more than their scheduled hours. New Brunswick has no restrictions on employees' working hours.
In British Columbia, Manitoba, Newfoundland and Labrador, Quebec, Saskatchewan, Northwest Territories, Nunavut, and Yukon, overtime is payable for any work that exceeds the standard 40-hour workweek workweek. In Ontario, Alberta, and New Brunswick, the threshold is set at 44 hours, while in Nova Scotia and Prince Edward Island, it is 48 hours. Overtime pay is the employee's normal wage15x flat rate.
For employees subject to federal regulations, employees who work more than 40 hours per week are also subject to overtime, unless there is a special provision or adjustment to the work schedule. Overtime pay is usually 15x calculation. The Federal Employment Standards stipulate that employees can choose to work 1. per overtime5 hours in lieu of overtime pay.
Considerations for Terminating a Canadian Employee
One of the generally applicable principles of Canadian labor law is the principle of fair dismissal. According to this principle, an employer must have reasonable cause and reasonable procedures to dismiss an employee, and no arbitrary or discriminatory dismissal can be made. The employer and the employee can stipulate the procedure for dismissal, the notice period, the compensation and other contents in the contract, and these clauses are the legal basis for the agreement between the parties in the contract. In most cases, employers are required to give advance notice or pay compensation before terminating an employee.
According to Canada's federal labor law, the usual notice period requirements are as follows:
Employee with less than 3 months of service: The employer or employee can terminate the contract at any time without prior notice.
Employees who have completed 3 months of service but less than 1 year: The notice period is 2 weeks.
Employees who have completed 1 year of service but less than 3 years: The notice period is 3 weeks.
Employees who have served for 3 years or more: The notice period is 4 weeks.
Only Ontario in Canada stipulates that employers must pay severance pay to employees, unlike payments for termination notice periods. In Ontario, a qualified employee is an employee who has worked with the same employer for 5 years or more and will receive 1 week's pay as severance pay for every 1 year of service, up to a maximum of 26 weeks in some years. Whereas, in federal jurisdictions, eligible employees receive two or five days of pay per year as severance pay.
Employee leave in Canada
Official holidays in Canada
Canada has 5 federal statutory holidays in a calendar year, which are not included in the minimum paid leave entitlement and are holidays in addition to annual leave. The following are the nationally recognized statutory holidays in Canada:
New Year's Day (January 1).
Good Friday (March or April; The exact date varies from year to year).
Canada Day (July 1).
Labor Day (1st Monday of September)
Christmas Day (December 25).
In addition to federal statutory holidays, there are also specific regional holidays in Canadian provinces and territories in 2024, which are as follows:
Work visas and immigration in Canada
Most people who wish to live and work in Canada will need a work permit and an employment visa. There are two main types of work permits in Canada, including open work permits and employer-specific work permits.
Immigration Canada issues an open work permit to any immigrant who wishes to work for an employer for a fixed period of time, and a specific employer work permit only allows people to work for a specific employer in a certain location.
The types of workers eligible for a Canadian work permit include temporary workers, permanent workers, and business professionals. However, the eligibility criteria vary depending on the category of worker and the exact nature of the work permit required.
Foreign workers can also apply for permanent resident status through programs such as Express Entry, Provincial Nominee Program, or Canadian Experience Class. Permanent residents can live, work, or study anywhere in Canada and enjoy most of the benefits of citizenship, and they can eventually apply for citizenship.
Register company in Canada
You'll need to set up a subsidiary under the federal laws of your country, and you'll need to register in each province where you plan to do business. Depending on the province you choose, you will need to file an annual report with the competent authority or make a registration update.
Canada subsidiary laws vary depending on the province where you work. In order for a subsidiary to operate under specific conditions, you should choose a region that is conducive to a business environment conducive to your business. For example, Ontario, Alberta, Manitoba, Saskatchewan, Newfoundland, and Labrador require at least 25% of the directors of subsidiaries to be Canadian residents. Therefore, you should carefully consider where to do business in Canada, as each province and territory has different operating and licensing requirements.
In a thriving country full of opportunities, businesses can achieve the goals of globalization and achieve stable growth and sustainable development. At the same time, however, expanding into a market can also be subject to cumbersome payroll tax administration processes and complex local legal requirements.
To optimize your business management processes, you can choose to work with a high-quality global HR and payroll compliance service provider. With its advanced technology and automation tools, it helps you improve the efficiency of your business and reduce the time and cost of human resource management. As a result, we can focus more on business development and market development, and achieve greater success.
For more information, please visit the official website:
Employer of Record