Hiring international employees in Canada involves strict immigration requirements, complex application processes, and ongoing compliance. Global Employer of Record (EOR) and Professional Employer Organization (PEO) solutions can simplify onboarding and ongoing employment for foreign nationals, but do not replace Canada’s mandatory work permit and immigration procedures. This guide outlines the key steps, pathways, and compliance factors for international employers and recruitment agencies looking to bring skilled talent into Canada.
Understanding PEO, EOR, and Global EOR Solutions in Canada
PEO vs EOR: Legal Status in Canada
PEO (Professional Employer Organisation)
- The classic PEO “co-employment” model, as used in the United States, is not defined in Canadian law. There is no statutory framework for sharing employer responsibilities between a PEO and a client.
- In Canada, a company calling itself a PEO may enter a contract to provide payroll, HR, and benefits administration, but the client company remains the legal employer for most purposes—including liability, hiring, termination, and compliance.
- Crucially: The PEO model in Canada requires the client to have a registered Canadian entity. Without a local entity, a PEO cannot lawfully employ staff on behalf of a foreign business.
EOR (Employer of Record)
- The EOR model is recognised under Canadian law and is the compliant solution for foreign companies with no Canadian entity.
- The EOR becomes the legal employer of record for the worker, assuming full responsibility for payroll, tax withholding, benefits, and employment law compliance.
- The client company directs day-to-day work but does not appear as the legal employer.
How PEOs Operate in Practice
- Some Canadian PEOs, especially those serving domestic businesses, provide HR administration while the client holds all legal employer duties.
- For international expansion, most providers marketing themselves as “Global PEOs” are, in reality, offering EOR services—because only an EOR can legally employ and payroll workers for a foreign entity in Canada.
Practical Takeaway for International Employers
- If you already have a Canadian entity and need HR administration, a PEO may be relevant, but you retain all legal responsibility as employer.
- If you do not have a Canadian entity and want to hire in Canada, only the EOR model is compliant. The EOR is the legal employer, enabling you to onboard staff, manage payroll, and ensure compliance without setting up a local subsidiary.
In Canada, the EOR model is the primary and compliant pathway for international companies to employ workers without a local entity. “Global PEO” is largely a marketing term, actual service delivery is EOR-based. This distinction is critical for avoiding compliance pitfalls and operational risk
What Is a Global EOR?
- A Global EOR is an international provider able to serve as the legal employer in multiple countries, including Canada for organisations without a local presence.
- Global EORs manage compliant onboarding, payroll, tax, and HR administration across various jurisdictions, acting as a single point of contact for cross-border hiring.
How Global EOR Is Used in Canada
- Global EOR providers enable non-Canadian companies to hire foreign nationals or local talent in Canada without setting up their own legal entity.
- The global EOR acts as the Canadian employer of record, handling payroll, social contributions, statutory benefits, and HR compliance.
- The client company retains control over day-to-day management and work direction, but all legal employer obligations are fulfilled by the global EOR.
Key Compliance Considerations
- No immigration shortcuts: Whether using a local or global EOR, all foreign nationals must obtain a valid Canadian work permit before employment begins.
- LMIA requirement: Most foreign hires require a positive Labour Market Impact Assessment (LMIA), unless the role qualifies for a specific exemption (e.g., intra-company transfer, certain free trade agreements).
- Employer costs: Immigration, permit fees, and ongoing employment costs are the responsibility of the client company; the EOR facilitates but does not absorb these expenses.
For international employers and agencies, a Global EOR offers a compliant, efficient route to hiring in Canada without entity set-up. However, it is never a substitute for Canadian immigration compliance — all statutory employment and work permit requirements remain fully in force.
Canada: Immigration Pathways
- Work Permits: A work permit is necessary for most foreign nationals to work in Canada legally. These permits typically fall into two categories:
- Employer-Specific: Tied to a specific job offer from a Canadian employer who has obtained a positive Labor Market Impact Assessment (LMIA). The LMIA confirms that a foreign worker is needed to fill the position.
- Open Work Permits: Allow foreign nationals to work for any employer in Canada, usually under specific programs like the International Mobility Program (IMP) or for spouses/common-law partners of certain work permit holders.
- Intra-Company Transfer (ICT): This pathway allows multinational companies to transfer employees from their foreign branches to Canada without an LMIA.
- Global Talent Stream (GTS): Aimed at highly skilled workers in certain in-demand occupations, the GTS offers expedited work permit processing.
Express Entry: The Fast-Track to Permanent Residency
The Express Entry system is the primary pathway for skilled workers to immigrate to Canada. It is a points-based system that ranks candidates based on factors such as age, education, work experience, and language proficiency.
Key Features of Express Entry
- No job offer or employer sponsorship required
- Candidates with the highest scores receive an Invitation to Apply (ITA) for permanent residency
- Three federal economic immigration programs are managed through Express Entry:
- Federal Skilled Worker Program (FSWP)
- Federal Skilled Trades Program (FSTP)
- Canadian Experience Class (CEC)
Eligibility Criteria for Express Entry
- Meet the minimum requirements for one of the three programs
- Score at least 67 points out of 100 on the Comprehensive Ranking System (CRS)
- Provide supporting documents to prove your credentials
Provincial Nominee Programs (PNPs)
In addition to Express Entry, many Canadian provinces and territories have their own immigration programs called Provincial Nominee Programs (PNPs). These programs allow provinces to nominate skilled workers who meet their specific labour market needs.
Key Features of PNPs
- Provinces have different streams and requirements
- Some PNPs require a job offer, while others do not
- Receiving a provincial nomination can provide additional points in the Express Entry system
Eligibility Criteria for PNPs
- Meet the specific requirements of the provincial program
- Demonstrate intent to reside in the nominating province
- Provide supporting documents as required by the program
Other Economic Immigration Programs in Canada
Canada also offers other economic immigration programs for skilled workers, such as:
- Atlantic Immigration Pilot Program (AIPP)
- Rural and Northern Immigration Pilot (RNIP)
- Start-up Visa Program
These programs may have specific eligibility criteria and requirements, such as job offers, settlement plans, or business ownership.
Preparing Your Application
Regardless of the immigration pathway you choose, preparing a strong application is essential. This includes:
- Gathering all required documents (e.g., educational credentials, work experience letters, language test results)
- Ensuring you meet the eligibility criteria for the program
- Preparing a comprehensive settlement plan (if required)
- Seeking professional assistance from immigration consultants or lawyers (optional)
By understanding the various immigration pathways and their requirements, skilled workers can increase their chances of successfully immigrating to Canada and contributing to the country’s diverse and talented workforce.
Important Considerations for Hiring International Talent in Canada
- LMIA: In most cases, obtaining an LMIA is still required for employer-specific work permits, even when using a PEO.
- Processing Time: Work permit processing times vary depending on the program and the complexity of the application.
- Minimum Wage: Foreign workers must be paid at least the prevailing wage for their occupation and location in Canada.
- Contractor vs. Employee: Canadian law generally favors employment relationships over independent contractor arrangements.
Seeking Professional Advice
Canadian immigration law is complex and constantly evolving. It’s strongly recommended to consult with an immigration lawyer or consultant to determine the best pathway for your specific situation.
Legal Requirements for Hiring Expats in Canada
Compensation for foreign workers in Canada must meet or exceed the prevailing wage for their occupation and location. Minimum wage varies across provinces and territories. Offering a competitive salary that aligns with industry standards can attract more qualified candidates.
To secure a positive LMIA and work permit, it’s crucial to demonstrate the foreign worker’s unique expertise and how it fills a specific need in the Canadian labour market. This can be achieved through:
- Detailed Job Description: Tailor the job description to highlight specific skills, experience, and knowledge that are difficult to find locally.
- Evidence of Expertise: Provide supporting documentation, such as references, performance reviews, or certifications, that showcase the foreign worker’s track record.
While Canada generally prefers employment relationships, commission-based roles can be possible for foreign workers under specific circumstances. Ensure the contract adheres to Canadian employment standards and clearly outlines the compensation structure.
In all cases, foreign workers must have an official employer in Canada, either the hiring company itself or a designated third-party agency.
Addressing these requirements thoroughly and accurately can increase employers’ chances of successfully navigating the Canadian immigration process and securing the needed talent.
Business Immigration Procedures and Timelines in Canada
The process of bringing a foreign worker to Canada typically involves the following steps:
Labor Market Impact Assessment (LMIA)
The employer must obtain a positive LMIA, demonstrating that a foreign worker is needed and that no Canadian citizen or permanent resident is available to fill the position. The average processing time for an LMIA is around 30 days, but it can vary.
Work Permit Application in Canada
Once the LMIA is approved, the foreign worker can apply for a work permit. The processing time for work permits varies depending on the program and the complexity of the application, but it can take 30 days or more.
Employment and Onboarding
While the work permit application is being processed, the employer can start the employment and onboarding process to ensure a smooth transition for the foreign worker upon arrival in Canada.
Overall Immigration Timeline for Hiring Expats in Canada
The total time to bring a foreign worker to Canada can range from a few weeks to several months, depending on various factors:
- LMIA Stream: Some LMIA streams have faster processing times than others.
- Complexity of Application: Applications with unique circumstances or extensive documentation may take longer to process.
- Application Volume: Processing times can fluctuate based on the number of applications received by the government.
Fast-Track Options
Programs like the Global Talent Stream (GTS) offer expedited processing for work permits in certain high-demand occupations, significantly reducing the overall timeline.
It’s crucial to consult with an immigration lawyer or consultant to determine the most suitable immigration pathway and to get accurate, up-to-date information on processing times and requirements.
Tailored Global Mobility and Immigration Solutions in Canada
Acumen Global Employer of Record’s international team of immigration specialists can guide you through the complicated application process for work permits and visas in Canada. Our customized business immigration solutions are tailored to meet your organization’s specific needs, ensuring that all necessary documentation is gathered from your employees and that applications and supporting documents are submitted accurately and on time. With our expert assistance, you can streamline the application process and avoid costly mistakes and delays.
We provide ongoing compliance services to ensure you comply with all legal requirements. With our expertise, you can know that your business immigration needs are in capable hands.
Work Permit Sponsorship for Foreign Employees in Canada
Our Global Employer of Record solution simplifies the process of obtaining work permits for your foreign employees in Canada. We can sponsor visas and work permits for any number of employees, irrespective of their location, and minimize the effort and cost of managing an international workforce.
Comprehensive Immigration Support in Canada
Our extensive business immigration support in Canada saves organizations time and money while keeping them compliant with all legal requirements. We offer tailored social business immigration packages for international talent to ensure they encounter no immigration, labour, or tax compliance issues when they arrive in Canada.
Immigration Consultancy in Canada
We help you identify and manage immigration risks and opportunities in your business in Canada. Our team of experts will collaborate with you to create a customized immigration strategy that meets your business objectives while ensuring compliance with all relevant immigration regulations.
Ongoing Immigration Compliance Services in Canada
Our compliance services ensure that you meet all immigration regulations and requirements in Canada. We can carry out regular audits of your immigration processes, pinpointing potential risks and providing practical solutions to guarantee that your business remains compliant.
Achieving Your Talent Mobility Goals in Canada with Global EOR
Challenges and benefits of using comprehensive business immigration and global mobility services by Acumen International Global Employer of Record in Canada:
| Challenges | Benefits |
|---|---|
| 1. Navigating complex immigration regulations and requirements | 1. Expert guidance and support throughout the entire process |
| 2. Costly application mistakes and rejections | 2. Avoidance of costly mistakes and rejections |
| 3. Keeping up with changing immigration laws and policies | 3. Up-to-date knowledge and compliance with legal requirements |
| 4. Time-consuming and tedious application process | 4. Streamlined and efficient process, saving time and effort |
| 5. Managing an international workforce | 5. Simplified management of foreign talent, leaving you to focus on core business objectives |