Hiring in Canada from Australia

On this page (7 sections)

Overview
Australia and Canada at a glance
The differences that matter most
Common compliance traps
How an EOR works in Canada
FAQs
Sources

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Six time zones, 14 to 18.5 hours behind SydneyTime difference

Overview and why companies expand from Australia to Canada

Canada gives Australian companies access to North American customers with lower costs than many US hubs.
Toronto, Vancouver and Montreal have strong technology, financial services and resources talent.
Shared Commonwealth legal traditions make contracts and corporate structures familiar.
Australians aged 18 to 35 can work in Canada through International Experience Canada.

For Australian employers, the biggest surprise in Canada is notice. Statutory minimums look modest, but without a carefully drafted termination clause Canadian courts can award common law reasonable notice of up to two years for long-serving senior staff. The second surprise is that rules depend on the province.

Australia and Canada at a glance

Summary only. Figures were checked against the official sources listed below on 2026-10-08. Many rules depend on the employee's award, contract, state or province.
Topic	Australia	Canada
Employment contracts	A written contract is not legally required but is standard practice. Employers must give every new employee the Fair Work Information Statement, plus the Casual or Fixed Term Contract Information Statement where relevant. A modern award or enterprise agreement usually sets minimum terms. Fixed-term contracts are generally limited to 2 years or 2 consecutive contracts.	Most employees are covered by provincial employment standards; federally regulated industries such as banking, telecoms and interprovincial transport follow the Canada Labour Code. Written contracts are not required but are important for limiting termination costs.
Probation	No statutory probation. In practice the unfair dismissal "minimum employment period" works as one: 6 months, or 12 months for small businesses with fewer than 15 employees.	No general statutory probation, but many statutes waive termination notice early on. For example, Ontario requires no statutory notice in the first 3 months.
Working hours	Maximum 38 ordinary hours a week plus reasonable additional hours under the National Employment Standards. Awards set overtime rates. Employees have a right to disconnect outside working hours unless refusing is unreasonable.	Varies by jurisdiction. Under the Canada Labour Code standard hours are 8 a day and 40 a week. In Ontario overtime starts after 44 hours a week.
Minimum wage	National Minimum Wage of $26.44 an hour ($1,004.90 a week) from 1 July 2026. Most employees are covered by a modern award with higher minimum rates for their classification.	Federal minimum wage of C$18.15 an hour from 1 April 2026 for federally regulated employers. Each province and territory sets its own rate, and the higher rate applies.
Annual leave	4 weeks paid annual leave a year for full-time employees (5 weeks for some shift workers), accruing progressively. Untaken leave is paid out on termination. Many awards add a 17.5% leave loading.	Usually 2 weeks after 1 year of service, rising with service (federally 3 weeks after 5 years and 4 weeks after 10 years). Provinces vary.
Sick leave	10 days paid personal/carer's leave a year for full-time employees, plus 2 days unpaid carer's leave and 2 days paid compassionate leave per occasion. All employees can also take 10 days paid family and domestic violence leave a year.	Federally regulated employees get up to 10 days paid medical leave a year. Provincial rules vary from unpaid days to a few paid days.
Parental leave	Up to 12 months unpaid parental leave after 12 months of service, with the right to request 12 more. The government funds up to 26 weeks of Parental Leave Pay at the national minimum wage from 1 July 2026, paid through Services Australia rather than the employer.	Job-protected maternity and parental leave, with income support paid through Employment Insurance rather than by the employer.
Public holidays	National public holidays such as New Year's Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Christmas Day and Boxing Day, plus state and territory holidays. Employees who work on a public holiday are usually paid penalty rates under their award.	Federally regulated employees get 10 general holidays. Each province and territory sets its own list.
Retirement and social security	Superannuation Guarantee of 12% of qualifying earnings, paid by the employer on top of wages. Since 1 July 2026 super must be paid each payday and reach the fund within 7 business days (Payday Super). There is no separate employer social security levy.	Canada Pension Plan contributions of 5.95% each from employer and employee on earnings up to C$74,600 in 2026, plus second-tier CPP2 contributions of 4% each up to C$85,000. Quebec runs the QPP instead.
Payroll taxes	Employers withhold PAYG income tax from wages. Each state and territory charges payroll tax once total Australian wages pass a threshold, for example 5.45% above $1.2 million in NSW and 4.85% above $1 million in Victoria. Workers' compensation premiums are also payable.	Employers withhold income tax and pay Employment Insurance premiums at 1.4 times the employee rate. Some provinces add payroll or health taxes.
Notice periods	Employer notice under the National Employment Standards: 1 week (up to 1 year of service) rising to 4 weeks (over 5 years), plus 1 week if the employee is over 45 with at least 2 years of service. Pay in lieu is allowed. Awards set employee notice.	Statutory minimums are short (for example 1 to 8 weeks in Ontario), but without a well-drafted contract the courts award common law reasonable notice, which can reach 24 months for long-serving senior staff.
Dismissal protection	Unfair dismissal protection applies after the minimum employment period to employees covered by an award or agreement, or earning under the high income threshold of $190,100 (from 1 July 2026). General protections against adverse action apply from day one. Small businesses can follow the Small Business Fair Dismissal Code.	Dismissal without cause is allowed with notice or pay in lieu. Federally regulated non-managers have unjust dismissal protection after 12 months, and Quebec protects employees after 2 years.
Severance	Statutory redundancy pay of 4 weeks (1 to 2 years of service) rising to 16 weeks (9 to 10 years), then 12 weeks at 10 years or more, when long service leave usually takes over. Small businesses with fewer than 15 employees are generally exempt.	Some jurisdictions require statutory severance on top of notice. Ontario requires 1 week per year of service (up to 26 weeks) for larger employers.
Mandatory benefits	Superannuation, workers' compensation insurance (state-based and compulsory), paid leave under the National Employment Standards and long service leave under state and territory laws, usually after 7 to 10 years of service.	CPP or QPP, Employment Insurance, workers' compensation and statutory leave. Provincial health systems cover core medical care.
IP and restraint clauses	Post-employment restraints are only enforceable if reasonable to protect a legitimate business interest. Employers generally own IP that employees create in the course of employment. The federal government has proposed banning non-compete clauses for employees under the high income threshold from 2027; this was not law at the last review.	Courts strictly limit non-competes. Ontario has banned them for most employees since October 2021. Non-solicitation and confidentiality clauses are more reliable.
Visas and right to work	Every worker needs Australian work rights, which employers can check through VEVO. Sponsored skilled hires generally use the Skills in Demand (subclass 482) visa, which needs an approved sponsor. Some EORs can sponsor, many cannot.	Most foreign hires need a work permit, often supported by a Labour Market Impact Assessment. Australians aged 18 to 35 can apply through International Experience Canada.

The differences that matter most

Provinces set most rules

Ontario, British Columbia, Alberta and Quebec each have their own employment standards for minimum wage, overtime, leave, holidays and termination. Quebec also has its own civil law tradition, language requirements and pension plan.

Termination clauses decide your exposure

A properly drafted termination clause can limit notice to the statutory minimum. Courts read these clauses strictly, and small drafting errors can make them unenforceable. Have Canadian contracts reviewed locally.

Payroll contributions

Instead of 12% super, employers match CPP contributions (5.95% each up to C$74,600 in 2026, plus CPP2), pay EI premiums and may pay provincial payroll taxes. Health care is publicly funded, though many employers offer extended health and dental plans.

Leave is shorter

Vacation is usually 2 weeks after a year, rising with service. Paid sick leave varies by jurisdiction, with federally regulated employees getting up to 10 days.

Restraints

Ontario's ban on most non-competes reflects a wider judicial scepticism about them. Rely on confidentiality, IP and non-solicitation clauses.

Common compliance traps

No enforceable termination clause, exposing you to common law notice.
Applying one province's rules everywhere.
Missing statutory severance in Ontario and federal jurisdictions.
Non-competes for Ontario employees, which are generally void.
French language obligations for Quebec employees.

How an EOR works in Canada

A Canadian EOR employs your hire under a contract for their province, registers for payroll accounts and withholds income tax, CPP and EI. It also provides benefits where offered. You manage the work. As your Canadian team grows, a subsidiary may become more cost-effective, and the EOR can help transfer staff.

Frequently asked questions

Which employment law applies to my Canadian employee?

Usually the employment standards of the province or territory where the employee works. Federally regulated industries, such as banking, telecommunications and interprovincial transport, follow the Canada Labour Code instead.

What is common law reasonable notice?

Unless a valid contract clause limits it, Canadian courts imply reasonable notice of termination based on factors such as age, length of service and role. It can be many months and is often far more than the statutory minimum.

Can I use non-compete clauses in Canada?

Ontario bans non-competes for most employees, with limited exceptions such as some senior executives. Elsewhere, courts enforce them only in narrow circumstances. Non-solicitation and confidentiality clauses are more reliable.

Who pays parental leave in Canada?

Income support during maternity and parental leave is paid through Employment Insurance, not by the employer. Some employers top it up. The employer must protect the employee's job while they are on leave.

What payroll contributions do Canadian employers make?

Employers match employee Canada Pension Plan contributions, pay Employment Insurance premiums at 1.4 times the employee rate and may pay provincial health or payroll taxes. Quebec has its own pension and parental insurance plans.

Sources

Last reviewed: 2026-10-08

Figures on this page were checked against these official sources on 8 October 2026. Rates and thresholds change, often on 1 January, 1 April or 1 July, so confirm current figures before relying on them.

New to the model? Start with what an Employer of Record is, then compareEOR costs and pricing models.