Labor law in Canada 🇨🇦: A guide for expats

Canada has federal labor standards set out in the Canada Labour Code. In addition, each province and territory has its own employment laws that protect worker rights. If you move to Canada for work, it’s important to understand your rights and protections. These can vary depending on where you live and the type of work you do.

This guide explains the basics of labor law in Canada, including employment arrangements, working hours, pay, and what to do if you have a concern or want to make a complaint.

An overview: Labor law in Canada

Canada has a mix of federal and provincial/territorial labor laws. The Canada Labour Code sets out industrial relations, occupational health and safety, and labor standards for wages, hours, paid/unpaid leave, and termination of employment in federally regulated sectors.

In addition to this, key federal laws that have shaped the employment landscape in Canada include:

• 1935 Fair Wages and Hours of Labour Act
• 1977 Canadian Human Rights Act
• 1986 Employment Equity Act
• 2019 Accessible Canada Act (covering workplace accessibility for those with disabilities)

🇨🇦 Each Canadian province and territory has its own employment standards act which typically covers areas such as wages, hours, leave, and termination.

💡 According to the 2025 Global Rights Index, Canada is rated 3 (out of 1–5+), indicating regular violations of worker rights. It scores 80.5 out of 100 on the 2024 Labor Rights Index, indicating approaching access to decent work. Scores are highest (100) for fair wages, safe work, fair treatment, and absence of child/forced labor, but lowest (40) for employment security.

As a foreign worker – your right to work in Canada

You usually need a work permit (and often a visa) to travel from abroad and work in Canada. In general, there are two types of work permit:

• Employer-specific work permit: This typically involves having a job offer and you usually have to remain with this employer for the duration of your stay.
• Open work permit: You don’t need a job offer and can work for most employers, although only certain groups are eligible (e.g., students, family members of Canadian residents/permit holders, vulnerable groups)

Foreign workers with temporary permits generally have the same labor rights and protections as Canadians and permanent residents. It is also possible to apply for permanent residency (and, eventually, citizenship) in Canada while on a work visa, as long as you meet other eligibility requirements.

Employment contracts in Canada

Employers in Canada are generally not required to provide a written employment contract, but a contract (including a verbal one) exists whenever work is performed in exchange for pay.

Employment terms must comply with applicable federal or provincial/territorial legislation.

In practice, many employers provide written contracts outlining key terms such as pay, hours, responsibilities, leave entitlements, and termination conditions.

Common types of employment arrangements include:

• Indefinite: Permanent and ongoing with no end date.
• Fixed-term: For a defined period.
• Casual: Work provided as needed, typically without guaranteed hours.

Wages and salary in Canada

Most workers are entitled to a minimum wage in Canada. The current federal minimum wage is CAD 18.15/hour, although this only applies to work in federally regulated sectors. Provinces and territories each have their own minimum wage, and workers in federally regulated industries are entitled to the higher of the two rates.

Some provinces have limited exceptions or special rates for certain groups (such as students or specific industries), but these vary by jurisdiction.

Workers are generally entitled to overtime pay if they work more than standard hours (typically 40–44 per week but it varies by province). The minimum rate is 1.5x the standard hourly pay rate (or equivalent paid time off).

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Work hours in Canada

Under the Canada Labour Code, standard hours of work are generally 8 hours per day and 40 hours per week, with a maximum of 48 hours per week (or 10 hours per day). Additional hours may be worked under certain conditions, such as employee agreement and regulatory approval.

Employees are entitled to a 30-minute break after every five consecutive hours of work, and at least 8 hours of rest between shifts. Overtime (over 40 hours per week) must be paid at a minimum rate of 1.5 times regular pay.

Workers are entitled to a minimum of one unpaid 30 minute break every five hours worked, and a minimum rest period of eight hours between shifts. Overtime (hours in excess of 40/week) should be paid at the minimum 1.5x rate.

After six months of employment, workers can request flexible work arrangements (such as flexible or reduced hours), which employers must consider but may refuse on reasonable business grounds.

Most workers are covered by provincial or territorial employment standards legislation, which sets its own rules on hours of work.

Paid and unpaid leave in Canada

Employees in Canada are entitled to different forms of paid and unpaid leave. These vary across provinces and territories. For those working in federally-regulated sectors across the country, the minimum entitlements are:

• Paid annual vacation – between 2–4 weeks a year after 12 months of employment (amount depending on number of years in employment)
• Medical leave – up to 10 days paid leave per year, and up to 27 weeks unpaid leave for illness or injury
• Bereavement leave – up to 10 days in the event of a family member death, or up to 8 weeks for the death of your child (including up to 3 days paid)
• Personal leave – up to 5 days a year (including up to 3 days paid) for personal reasons such as those relating to care, health, education, or emergency situations
• Leave for victims of family violence – up to 10 days a year (including up to 5 days paid)

Paid annual vacation must be in addition to public holidays in Canada.

Unpaid leave entitlements in federally regulated workplaces include:

• Compassionate care leave – up to 28 weeks within a 52-week period to care for a family member who has a serious medical condition
• Leave related to death or disappearance of a child – up to 156 weeks (three years)
• Leave for court or jury duty – for as long as the duration of the trial

Individual employment contracts often include provisions above the minimum requirements, for example extended paid annual leave entitlements.

Employees who make Employment Insurance (EI) contributions are entitled to extended paid periods for medical leave and care leave (usually at around 55% of usual earnings).

Parental rights in Canada 🧑‍🧑‍🧒

Provincial and territorial employment acts govern most parental rights for employees in Canada. At the federal level, pregnant employees in federally regulated workplaces are entitled to 17 weeks of unpaid maternity leave that can begin up to 13 weeks before the expected birth date.

Parents are also entitled to up to 63 weeks of unpaid parental leave during the first 78 weeks of the child’s life. If both parents take parental leave, the total combined leave can extend to 71 weeks.

The Canada Labour Code doesn’t provide for paid maternity or parental leave. However, this may be included within individual employment contracts or collective bargaining agreements. Employees who make EI contributions can access maternity benefits (up to 15 weeks at about 55% of earnings) and parental benefits.

Parental benefits are available as either standard benefits (up to 40 weeks total at 55% of earnings) or extended benefits (up to 69 weeks total at about 33% of earnings), with limits on how much one parent can take.

Social security and tax in Canada

Employees in Canada pay income tax and social security contributions which are deducted from salary payments. Income tax rates are progressive, up to a maximum of 33% for the highest earners. Social security contributions consist of:

• Canada Pension Plan (CPP): Retirement benefit contributions that are currently 11.9% of earnings (split 50/50 between employer and employee) up to a maximum threshold, and an additional contribution (CPP2) of 8% on high earnings up to a maximum.
• Employment Insurance (EI): Funds income support if you lose your job, plus certain other benefits. Employees currently pay just over 1.6% of earnings up to a threshold, with employers contributing slightly more.

Quebec has its own separate pension plan and employment insurance arrangements and contribution rates.

Protection from discrimination at work in Canada

Protection from workplace discrimination in Canada is governed by the Canadian Human Rights Act for federally regulated workplaces, as well as provincial and territorial human rights legislation, which applies to most employees.

Laws prohibit discrimination and harassment based on grounds such as race, national or ethnic origin, religion, age, sex, sexual orientation, gender identity or expression, disability, and family or marital status.

They cover both direct discrimination and adverse effect – or indirect – discrimination (where neutral rules disproportionately impact certain groups).

💡 If you experience discrimination or harassment at work, you can:

• Report it internally through your workplace procedures
• Contact your union representative (if applicable)
• File a complaint with the Canadian Human Rights Commission (CHRC) (for federally regulated workplaces) or your provincial/territorial human rights body, within the applicable time limits

Joining a union in Canada

Workers across Canada have the right to join a union, as outlined in the Canada Labour Code or provincial/territorial employment acts. According to Statistics Canada, around 30.4% of the national workforce is unionized (2023).

There are many different unions in Canada, including sector-wide and industry-wide bodies. The largest unions include:

• Canadian Union of Public Employees (CUPE)
• Unifor (the largest private sector union in Canada)
• Public Service Alliance of Canada (PSAC)

Employees have the right to strike during collective bargaining, but only after following legal procedures, and this right can be limited in essential services.

Health and safety at work in Canada

Each province and territory in Canada has its own health and safety legislation outlining general rights and standards. At the federal level, Part II of the Canada Labour Code provides the framework for occupational health and safety in federally regulated workplaces.

Occupational health and safety legislation at both federal and provincial/territorial levels generally recognizes three basic rights. These are the right to:

• Know about health and safety matters
• Participate in decisions that could affect their health and safety (e.g., through a workplace health and safety representative)
• Refuse work that could affect health and safety

While details vary across jurisdictions, health and safety legislation generally includes:

• Responsibilities of governments – e.g., enforcing legislation, inspecting workplaces, and resolving disputes
• Rights and responsibilities of workers – e.g., exercising the three basic rights and working safely
• Responsibilities of employers – e.g., providing training, ensuring safe equipment, supplying protective gear, and supporting health and safety representation

In recent years, Canadian occupational health and safety frameworks have increasingly addressed psychological health and safety, including workplace harassment, violence, and mental health risks.

You can find more information on the Canadian Centre for Occupational Health and Safety (CCOHS) website.

Terminating the employment relationship in Canada

In Canada, terminating an employment relationship is governed by federal or provincial/territorial law. Generally, either party may terminate the relationship by providing appropriate notice or pay in lieu, subject to statutory minimums, contractual terms, and protections against unlawful dismissal.

Dismissals and redundancy

Employers in Canada can generally dismiss employees at any time as long as they provide sufficient notice and severance pay. The minimum notice period under the Canada Labour Code is two weeks written notice, or one week notice per year of employment up to a maximum of eight years (whichever is higher).

Employers can choose to pay wages in lieu of giving sufficient notice.

No notice period or wages in lieu are required if:

• The dismissal is with cause, for example if the employee has seriously breached conduct
• The employee has been in position for less than three months
• It’s a fixed-term contract that has come to an end

Federally regulated employees are entitled to severance pay in Canada if they’ve been in post for at least 12 months. The minimum payment is five days regular wages, but this increases to two days wages per year of employment if you’ve been in post for three years or more.

Provincial rules vary but often provide notice based on length of service. In all cases, statutory minimums may be exceeded by common law entitlements.

Leaving a job voluntarily

Employees in Canada can generally resign at any time, but may be required to provide reasonable notice under common law or follow notice requirements in their employment contract.

If you leave a job voluntarily, you typically won’t qualify for Employment Insurance benefits unless you can demonstrate legally recognized “just cause” for leaving.

Retirement

There is no fixed retirement age in Canada. The Old Age Security (OAS) pension is available from the age of 65. Workers can start claiming their CPP from the age of 60, although the amount is reduced if you claim before 65. You can delay receiving both OAS and CPP in return for higher monthly payments, up until the age of 70.

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Temporary, part-time, agency and informal workers in Canada

Employers in Canada can recruit part-time, temporary, and agency workers. These workers are generally entitled to core labour protections, including minimum wage, workplace health and safety, and protection from discrimination and harassment.

Temporary workers, including those recruited from abroad, are typically employed on fixed-term or casual contracts. While they are usually covered by employment standards legislation, access to benefits such as pensions or extended health coverage depends on the terms of employment. Eligibility for overtime pay varies by province and occupation, but many temporary and part-time workers are still entitled to it.

Making a complaint as a worker in Canada

If you want to make a workplace complaint or raise a concern in Canada, you should take the matter to your employer in the first instance if possible, consulting your employee handbook on the exact steps to take if you have one.

The process for taking the matter further depends on the nature of the complaint. You should contact

• CHRC or your provincial/territorial human rights body for discrimination or harassment issues
• The Federal Labour Program or your provincial/territorial labour board or standards office for other workplace issues

The steps available if you are unhappy with the outcome vary depending on the authority involved. In many cases, you must follow a tribunal or administrative process, with court action often available as a last resort.

Useful resources

Information last checked on 30 April 2026.

• Government of Canada – federal government website with information on labour standards in federally regulated workplaces
• Canada Labour Code – federal government legislation detailing employer standards and responsibilities
• List of provincial/territorial employment acts and codes
• Employment and Social Development Canada (ESDC) – information on wages, benefits, and workplace standards in Canada
• Canadian Human Rights Commission (CHRC) – deals with issues relating to discrimination and harassment at federal level
• Canadian Centre for Occupational Health and Safety (CCOHS) – promotes workplace health and safety