Canada employment law: the 2026 employer guide
Canada has no single employment law. Most employers follow the employment standards of the province or territory where each employee works, and only federally regulated industries such as banks, telecoms and cross-border transport follow the Canada Labour Code. This hub covers the six topics that matter most when you hire in Canada, with a full timeline of what changed and when.
What changed, and what matters most
Each topic explains the change, when it lands, and who handles it if you hire through Teamed.
In forceCanada Labour Code changes for federally regulated employers in 2025 and 2026For federally regulated employers, the federal minimum wage has been $18.15 an hour since 1 April 2026, replacement workers have been banned during strikes and lockouts since 20 June 2025, and new pregnancy loss leave and extended bereavement leave for the death of a child started on 12 December 2025. The right to disconnect policy and placement of a child leave are law but not yet in force.1 April 2026
In forceCPP, EI and payroll deductions in Canada for 2026For 2026, employers and employees each pay CPP at 5.95% on earnings between $3,500 and $74,600 (up to $4,230.45 each), plus CPP2 at 4% on earnings from $74,600 to $85,000 (up to $416 each). EI is 1.63% for employees up to $68,900 of insurable earnings, with employers paying 1.4 times that.1 January 2026
In forceEmployee vs independent contractor in Canada: the tests that decideIn Canada, a worker's status is decided by how the relationship actually works, not by what the contract calls it. The Canada Revenue Agency weighs control, tools, subcontracting, financial risk, investment and the chance of profit, and provincial employment standards apply their own similar tests. Getting it wrong means unpaid CPP, EI and employment standards entitlements.1 July 2025
In forceFederal or provincial: which Canadian employment law applies?Most Canadian employers follow the employment standards law of the province or territory where the employee works. Only federally regulated industries, such as banks, telecoms and cross-border transport, follow the Canada Labour Code instead. Where the employee lives, where your head office is and where wages are paid do not decide it.1 June 2025
In forcePay transparency and job posting rules in CanadaSince 1 January 2026, Ontario employers with 25 or more employees must put expected pay (or a range no wider than $50,000 a year) in public job postings, say whether AI screens applicants, drop Canadian experience requirements, say whether the vacancy exists, and tell interviewees about the hiring decision within 45 days. British Columbia has required pay in postings since November 2023.1 January 2026
In forceTermination notice and severance pay in CanadaStatutory notice in Canada runs to a maximum of 8 weeks in the Canada Labour Code, Ontario, British Columbia and Alberta, with severance pay on top under the Code and in Ontario for longer-serving staff. But these are floors. Without a valid termination clause, a dismissed employee is usually owed common law reasonable notice, which is often many months.27 November 2025
Ontario minimum wage rises to $17.95
What happened
From 1 October 2026, Ontario's general minimum wage is $17.95 an hour. It was $17.60 an hour the year before.
What it means for you
Check that every Ontario employee, and every Ontario platform worker, is paid at least the new rate from their first pay period after 1 October. Pay transparency reports in British Columbia are due next, on 1 November.
Dates to know
- 1 November 2026British Columbia employers with 50 or more employees file their first pay transparency report.
Source: Government of Ontario. We check this page every week. Last checked .
Employment law in Canada is split between two levels of government. The Canada Labour Code covers the federally regulated private sector, a defined list of industries that includes banks, telecommunications, air transport and transport that crosses provincial or national borders. Everyone else, which is most employers, follows the employment standards law of the province or territory where the employee's work is performed, such as Ontario's Employment Standards Act, 2000 or British Columbia's Employment Standards Act. Where the employee lives, where your head office is and where wages are paid do not decide which law applies. On top of the statutes sits the common law, which outside Quebec usually entitles a dismissed employee to reasonable notice well beyond the statutory minimum, and in Quebec the Civil Code and the Charter of the French Language add their own rules. Payroll is national: CPP and EI apply everywhere except that Quebec runs its own pension plan (QPP) and parental insurance plan (QPIP). This hub explains the rules that matter most to employers hiring in Canada, with a timeline of recent changes and a note on who handles each one if you hire through Teamed.
The big picture
Ontario's job posting rules started on 1 January 2026 for employers with 25 or more employees, the federal minimum wage rose to $18.15 an hour on 1 April 2026, and Ontario's minimum wage rose to $17.95 on 1 October 2026. Canada's rules change several times a year, and in different places.
Which employment law applies to my Canadian employee?
The law of the province or territory where the employee's work is performed, unless your business is in a federally regulated industry, in which case the Canada Labour Code applies instead. A remote employee working from Alberta for a Toronto company is covered by Alberta's rules, not Ontario's.
What should employers focus on first?
Get the jurisdiction right, then classify people correctly. Most expensive mistakes in Canada come from treating an employee as a contractor, which leaves unpaid CPP, EI and employment standards entitlements, or from relying on the statutory notice minimum when the common law usually requires much more on dismissal.
What has changed recently?
Ontario's job posting rules started on 1 January 2026, requiring pay ranges, AI disclosure and replies to interviewees. Federally, a ban on replacement workers took effect on 20 June 2025 and new pregnancy loss and child bereavement leave on 12 December 2025. 2026 payroll figures for CPP, CPP2 and EI took effect on 1 January 2026.
What is coming next?
British Columbia employers with 50 or more employees file their first pay transparency report by 1 November 2026. At federal level, a right to disconnect policy and a leave for the placement of a child are law but not yet in force, and Newfoundland and Labrador's pay transparency provisions are passed but not yet in force.
Hiring in Canada?
What Teamed handles for you in Canada
Teamed is the legal employer of your Canadian team, so working out which province's law applies, running CPP, EI or QPP payroll and meeting notice obligations all sit with us.
These sit with us
- Employment standards of each employee's province of work applied
- CPP, CPP2, EI and Quebec QPP and QPIP deductions and remittances
- French-language contracts for staff working in Quebec
- Ontario and British Columbia job posting pay rules followed
- Statutory notice and severance handled by the legal employer
You keep
The role, the budget and the day-to-day management of your people. We carry the employment duties that come with being the legal employer.
Canada's rules change through the year and differ by province. We apply each change for the province each person works in as it takes effect.
Frequently asked questions
Is there one national employment law in Canada?
No. Only federally regulated industries follow the Canada Labour Code. Every other employer follows the employment standards law of the province or territory where the employee works, so a company with staff in three provinces works under three sets of rules.
Where can I see exactly what changed and when?
The timeline page on this hub lists every confirmed milestone in date order, with a primary source for each and a note on who handles it if you hire through Teamed.
Do these pages give legal advice?
No. They summarise the current position with primary sources, reviewed as the law changes. Check your own situation with Employment and Social Development Canada, your provincial employment standards office or a qualified professional.
Canadian employment law is set province by province, with a separate federal code on top. When Teamed is your legal employer, we hold that complexity: compliant contracts, policies and payroll for the province each person works in, updated as each change takes effect.
