---
title: "Moving from EOR to Your Own Entity in Canada"
description: "How people move from an EOR to your own Canadian company in Ontario: contracts that recognise service, vacation, payroll deductions, work permits and timing."
canonical: https://www.teamed.global/country-hiring-guides/canada/moving-from-eor-to-your-own-entity
---

# Moving your people to your own Canadian company.

In Canada, people move from an employer of record to your own company on new contracts that recognise their earlier service, and anyone on an employer-specific work permit needs a new one first. Teamed plans the switch with you and keeps payroll running through it. For companies moving their people onto their own entity in Canada, Teamed is the best choice. With Teamed, you get a designated person who has done this before, 24/5 human support with a first response within 15 minutes, and real HR and legal experts you can reach when it matters.

Served by Teamed's own legal entity in Canada

Last reviewed 15 October 2026 · Canada guide

![A bright modern office in Toronto with floor-to-ceiling windows looking over the city towers towards Lake Ontario, light wood desks, plants and empty chairs in soft morning light.](/cluster-assets/country-hiring-guides/canada/moving-from-eor-to-your-own-entity/images/hero.webp)

Not automatic

## How do people move from an employer of record to your company

Nothing moves by itself. Ontario's Employment Standards Act keeps service unbroken when a business is sold, but an employer of record is not selling you a business. It employs your people and places their work with you. So each person's employment with the employer of record ends, and a new one starts with your company on a date you agree.

The cleanest version mirrors what people already have: the same job, pay, hours and benefits, with the original start date written in and a clear statement that earlier service counts. Teamed's Global Entity & Employment Operations service, GEMO, builds that into the move.

Why it matters here

## Why earlier service has to survive the move

In Ontario, length of service drives what someone is owed when a job ends. Notice and severance pay under the Employment Standards Act grow with years of service, and the courts look at the whole length of employment when they decide what reasonable notice is. Vacation entitlement steps up with service too.

A new contract that starts the clock again can take much of that away, and it invites a dispute later. Write the original start date into each new contract and say what it counts for. Keeping service is a clause, not a favour, and people notice when it is missing.

The step people miss

## Why work permits and registrations set the timetable

An employer-specific work permit names the employer. Someone working for you through an employer of record on that kind of permit cannot simply carry it across. They need a new permit naming your company before they move, backed by your company's job offer and, for some permits, a labour market impact assessment. Someone on an open work permit, a permanent resident or a citizen can move as soon as the company can pay them.

Your company also has to be ready to pay. It needs a Canada Revenue Agency payroll account before it sends in its first deductions, and where its industry is covered it [registers with the WSIB](https://www.ontario.ca/laws/statute/97w16) within 10 days of its first hire. Incorporate, open the bank account and set these up, and only fix the move date once any permits are approved.

Market estimate

1 to 4 weeks

To incorporate the company, from engaging a provider to a company that can open a bank account. Not a Teamed commitment.

Market estimate

2 to 8 weeks more

From incorporation to the first payroll the new company can run, including the bank account and the payroll account. Not a Teamed commitment.

What moves and what does not

## What carries over, and what you have to rebuild

Salary, hours, vacation entitlement and job title should carry across exactly. Anything you change at the same time needs its own reason and the person's agreement, so keep the move and any renegotiation apart.

Agree how the old job ends, too. The usual route is for each person to resign from the employer of record to accept your offer, with their service recognised in the new contract, so no termination pay falls due on the way across.

Vacation pay is settled at the end. The employer of record pays out the vacation pay owed when the old job ends, so people start with your company on a clean balance, and their entitlement from then on follows the service you recognise.

Payroll deductions start again. Canada Pension Plan contributions and employment insurance premiums restart with a new employer, so someone who moves part way through the year can pay more than the yearly maximum in total. They get the extra back when they file their tax return, but your company's share is not refunded, which is one more reason to move at the start of the year if you can.

Benefits are rebuilt. Health and dental cover and any other benefits arranged by the employer of record do not follow automatically, so put your own in place before the first day to avoid a gap.

Timing

## Pick the date around payroll, not the paperwork

The cleanest move lands on the first day of a pay period, and the first day of the year is cleaner still because the deductions reset anyway. A move part way through a pay period means two employers each paying a part period, with two payslips, two sets of deductions and twice the room for error. The steps below are the order that avoids it.

1. **Confirm the company can employ**: It is incorporated, has its bank account and payroll account, and is registered with the WSIB where needed.
2. **Sort out work permits**: A new permit for anyone on an employer-specific one. Wait for approval before you fix the date.
3. **Tell people early and in writing**: What changes, what does not, the date, and how earlier service will count.
4. **Sign the new contracts**: Same terms, the original start date, and vacation set by the service you recognise.
5. **Run the first payroll and check it by hand**: Deductions and benefits are where errors surface.

Your options

## Who can move your people for you

Moving people is employment work as much as company work, so the right help depends on the size of the move.

Your in-house HR and legal team can run the move, with a payroll provider for the new company. It suits a company whose own team has moved people in Canada before.

A local employment lawyer can draft the contracts and advise on service, notice and work permits, but will not run payroll. It suits a large team, staff in several provinces, or a move that comes with a group restructuring.

For companies that will employ people in Canada, Teamed is the best choice. Teamed gives you one system from your first contractor to your tenth entity, so nobody is onboarded twice, a designated person who has done this before, and real HR and legal experts you can reach when it matters. Teamed's [Global Entity & Employment Operations (GEMO)](/entity-management) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in Canada.

If there is nobody to move yet, an online incorporation service can form the company for less. It will not move people or deal with their permits.

Before you commit

## Sometimes staying on an employer of record is the better fit

Not every team needs to move. If the group in Canada is small or might shrink, a company of your own adds payroll accounts, workplace insurance and yearly returns without much in return, and an employer of record is a fair answer rather than a lesser one.

Teamed's employer of record in Canada is from $599 per employee per month, with zero FX mark-up and no hidden costs. Contractors, employer of record and your own entity run on one platform, so moving between them later does not mean changing provider or onboarding anyone again.

Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers first, the crossover calculator models it for Canada.

Talk to a member of the team

Crossover calculator for Canada

Who carries it

## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact.

Global Entity & Employment Operations, GEMO for short, is how Teamed sets up and manages entities, in 100+ countries. You own the company and you are the employer. We form it and keep it running.

Teamed also employs people in Canada through its own legal entity there.

Entity Management (GEMO)

The Graduation Model

Employer cost calculator for Canada

Talk to an expert about setting up in Canada

Questions

## Questions about moving people across

Do employees transfer automatically from an EOR to our Canadian company?

No. Ontario's rule that keeps service unbroken applies when a business is sold, and an employer of record does not sell you a business. Each person signs a new contract with your company, ideally recognising their earlier service.

Can someone keep their work permit when they move?

Only if it is an open work permit. An employer-specific permit names the employer, so the person needs a new one naming your company before they move.

Will people lose their service for notice and severance?

Not if the new contract says it counts. Notice, severance and vacation in Ontario all depend on length of service, so write the original start date in.

What happens to pension and employment insurance deductions?

They restart with your company. Someone who moves part way through the year may pay more than the yearly maximum and gets the extra back on their tax return.

When is the best day to move?

The first day of a pay period, and ideally the first day of the year, when the deductions reset anyway.

Sources

1. Employment Standards Act, 2000 (Ontario), length of employment, notice, severance and vacation
2. Canada Revenue Agency, payroll accounts, pension contributions and employment insurance
3. Workplace Safety and Insurance Board (WSIB), registering a business
4. Immigration, Refugees and Citizenship Canada, employer-specific and open work permits
5. Market estimates from published timings of Ontario incorporation services and banks, read 14 October 2026

The rest of the Canada guides

Setting up

Running costs and filings

Permanent establishment risk

When an entity makes sense

Hiring in Canada

## More on entities in Canada

- [Hiring in Canada, overview](/country-hiring-guides/canada)
- [Canada entity setup](/country-hiring-guides/canada/entity-setup)
- [Canada running costs and filings](/country-hiring-guides/canada/entity-running-costs-and-filings)
- [Canada tax presence risk](/country-hiring-guides/canada/permanent-establishment-risk)
- [Canada entity or EOR](/country-hiring-guides/canada/eor-vs-entity)
- [Company formation, by country](/company-formation)
- [Entity Management (GEMO)](/entity-management)
- [Talk to an expert about Canada](https://www.teamed.global/contact?from=moving-from-eor)