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With so many different Employer of Record (EOR) services out there, figuring out which one is the best for hiring Canadian-based employees is challenging. You know you want to tap into the Canadian talent marketplace, but you also want to get the hassles of Canadian legal compliance, payroll, benefits, and other challenges off of your desk. But which Canadian EOR service is best? In this article, I'll help you make this choice easy by sharing my insights on the best Employer of Record services to hire Canadian employees, based on my personal experience as a Canadian HR professional.

What is a Canadian Employer of Record?

An Employer of Record (EOR) for Canada is a third-party service provider that acts as the legal employer for future employees you wish to hire within Canada, while your parent company maintains day-to-day control of your employee's tasks and workload. As the legal employer, the EOR assumes full legal responsibility for any new hires, including payroll, tax deductions, compliance management, benefits administration, and any other Canadian-specific employee perks.

Using an EOR service is beneficial for companies wanting to hire Canadian staff or expand their operations into Canada since it simplifies this process considerably. Rather than burdening your HR professionals with the task of becoming experts in Canadian labor laws and regulations, you can outsource these requirements to an EOR in Canada and gain peace of mind that your future operations will be compliant.

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How to Choose an Employer of Record in Canada

An EOR service can solve many different challenges and simplify the process of hiring and managing Canadian staff. To help you figure out which EOR service best fits your needs, you need to document your specific challenges first.

As you work through your own unique selection process, keep the following points in mind:

  • What problem are you trying to solve - Start by identifying the challenges you're trying to overcome, whether that's sourcing Canadian staff in specific geographic locations, managing compliance against CRA requirements, paying employees in Canadian dollars, or offering health benefits to your Canadian staff.
  • Who will benefit from the service - Consider who will manage the EOR relationship (i.e., who will your main contact people be in-house?) and how having an employer of record will improve their day-to-day work tasks.
  • What is your budget - To evaluate cost, estimate how many Canadian employees you anticipate hiring. Since EOR providers typically charge a monthly fee for each new hire, this will help you anticipate your monthly costs.
  • What outcomes are important - Review the capabilities you want to gain or improve, and how you will measure success. For example, you may want to hire employees within a specific province or city, making it easier for them to work together in person as needed. You could compare service providers until you’re blue in the face but if you aren’t thinking about the outcomes you want to achieve, you'll waste a lot of valuable time.
  • How it would work within your organization - Consider how the service provider's software ecosystem would work alongside your existing workflows and systems. Would their software framework integrate with your existing HR software, or would you face data management roadblocks?

Remember every business is different — don’t assume that a Canadian employer of record service will work for your organization just because it's popular.

Reviews of the Best Employer of Record for Canada

To help you find the best Canadian EOR service for you, I’ve described my top 10 selections in detail, including the specific services each provider offers, and how HR teams can use them. I’ve also included 10 more EOR service providers for Canada below if you’d like even more options to choose from.

Best for rapidly onboarding Canadian EOR employees

  • Free demo available
  • Flat rate user pricing, with free HR tool for businesses
Visit Website
Rating: 4.8/5

Deel is a well-established employer of record platform that enables companies to rapidly employ people in 150+ countries, including within Canada. 

Deel owns a local entity in Canada that is staffed with legal experts to keep track of regulatory changes, and ensure all legal obligations are met on your behalf. To hire a Canadian employee with Deel, the average onboarding time frame is 1 day.

Why I picked Deel: Deel offers a free employee cost calculator to help you estimate the cost of hiring a Canadian employee. You can compare different employer costs depending on the Canadian province you’re looking to hire in, including a breakdown of all required provincial and national benefits and withholdings. 

The well-established business has launched several new offerings over the past year, including global payroll, global mobility support, integrated Slack tools, and advanced integrations.

Deel Key Services:

Deel offers end-to-end management for your Canadian employees covering everything from hiring and onboarding to termination and severance. Their web app is user-friendly and provides a range of features to help businesses manage their Canadian workers effectively, including contract management and expense tracking. 

Their integrated contract management function supports advanced customizations such as stipends, signing bonuses, and stock options. You can also use Deel to offer Canadian benefit plans, such as pension plans or RRSP (registered retirement savings plan) programs.

In addition, Deel is known for its fast support. They offer 24/7 customer support and live chat.

Best for assessing provincial compliance requirements

  • Free trial available
  • EOR from $650/employee/month or $2/contractor/month; Global payroll from $3 to $12/employee/month
Visit Website
Rating: 4.5/5

Papaya Global is an automated, SaaS platform that helps organizations remove barriers to global hiring. You can use their EOR service to hire full-time employees or contractors within any Canadian province. 

Why I picked Papaya Global: I included Papaya Global in this list because of their detailed knowledge of local employment regulations for individual Canadian provinces, including British Columbia, Alberta, Ontario, Quebec, and Nova Scotia.

Papaya Global can help your company simplify the process of managing Canadian employees. Enterprises can access Papaya’s state-of-the-art automation, security, and BI without replacing their existing payroll system. Their self-guided tour also walks you through how payroll professionals can use their technology to automate and manage their global payroll quickly and compliantly.

Papaya Global Key Services:

Papaya Global's services include advanced compliance, liability coverage, employee contract lifecycle management, immigration and visa assistance, data security monitoring, and enterprise-grade global payroll processing using an AI-based payroll engine.

Their platform integrates with all management tools, and uses smart technology to eliminate errors and ensure compliance. It also creates a highly visible system for tracking payroll spending and real-time business intelligence (BI).

Best for cost-conscious companies wanting a dedicated account manager

  • Free demo available
  • From $199/employee/month for EOR and $25/mo for contractors
Visit Website
Rating: 4.3/5

Remofirst is a global EOR service provider on a mission to free employers from geographical boundaries so they can build a global team with ease. You can use their EOR platform to hire and manage full-time employees or contractors in Canada, eliminating the need to set up a local entity.

Why I picked Remofirst: If you plan to hire many EOR employees in different countries, Remofirst is a good option to consider because of their aggregated invoice function. To simplify your payroll process, Remofirst summarizes and aggregates your EOR invoices for review, showing each EOR employee’s salary in their local currency, including Canadian dollars. 

They'll automatically calculate your team’s hours, time off, holidays, bonuses, and commissions so you don’t have to worry about it. Instead, you only need to review a single monthly invoice and approve it for payment, rather than approving multiple individual invoices and payments.

Remofirst Key Services:

Their team of legal experts and HR professionals will ensure your business operations are always compliant with changing Canadian regulations, with compliance documentation accessible at all times through your secure dashboard. Their customer support team is also available 24/7 in case you need additional help. All clients also receive a dedicated account manager as their main point of contact too.

On top of their EOR services, Remofirst also provides international payroll and invoice management, global benefits management (including insurance and equity plans, plus time-off management), and employee support with obtaining visas and other immigration documentation. They can even help you with provisioning equipment to your distributed employees around the world.

Best for compliant global hiring

  • Free demo + free plan available
  • From $499/employee/month or $29/contractor/month

Oyster HR is a global HR software designed to assist companies in hiring and managing international talent while ensuring compliance with local labor laws. Its emphasis on automated hiring processes and deep local intelligence across over 180 countries positions it as a leading tool for compliant global hiring.

Why I picked Oyster HR: I chose Oyster HR as the employer of record Canada due to its robust global HR solutions that cater to global compliance and automated hiring processes. What makes Oyster HR distinct is its deep local intelligence, the capability to manage payroll in more than 120 currencies, and a strong commitment to transparency and privacy. I believe Oyster HR is the best tool for compliant global hiring because of its wide country coverage and expertise in global compliance.

Oyster Key Services:

Oyster's services include access to an automated global hiring platform, compliant global employment contracts, onboarding international new hires, contractor misclassification, and compliance monitoring.

Best for quick employee onboarding

  • Free demo available
  • EOR from $400/employee/month or $40/contractor/month; Global payroll from $20/employee/month
Visit Website
Rating: 4.7/5

Multiplier is an employer of record company that provides HR and global payroll services to businesses, allowing them to outsource these responsibilities to a single provider. You can use their services to hire employees based in Canada and comply with changing labor laws and tax policies.

Why I picked Multiplier: Multiplier helps businesses quickly and easily onboard new employees, manage their payroll and benefits, and ensure compliance with local laws and regulations. Their EOR services are very fast, with the ability to employ new talent in less than 24 hours once you've decided which candidate you'd like to extend an offer to. Their 4-step onboarding process is also user-friendly, providing a good experience for your new employees. 

Multiplier Key Services:

Their EOR services include payroll processing, tax compliance, benefits administration, and worker's compensation. Their team of local experts, based in their local headquarters in Victoria, BC,  provides ongoing support and guidance, ensuring compliance with Canadian laws and regulations. By outsourcing your core HR responsibilities to Multiplier, you can reduce your exposure to the legal and financial risks associated with employing workers in Canada.

Best for avoiding employee vs contractor misclassification errors

  • Free demo available
  • Pricing upon request
Visit Website
Rating: 4.4/5

Worksuite offers employer of record (EOR) and agent of record (AOR) services in the US and Canada, allowing organizations to hire employees or contractors easily, while remaining compliant. 

Why I picked Worksuite: Worksuite stands out thanks to their risk management tools aimed at avoiding misclassification errors. This includes their IC Risk Analysis and IC Classification tools that vet every new hire to determine whether they should be classified as an employee or a contractor. For a new hire deemed to be an employee, you can hire them using Worksuite’s EOR service. For those deemed to be independent contractors, you can hire them using Worksuite’s AOR service. 

Worksuite Key Services:

Worksuite's services include IC classification to mitigate the risks of employment misclassification, talent onboarding through tailored workflows according to residency, and invoicing through Worksuite Pay. Worksuite also handles talent sourcing, onboarding, management, and payment processes (including taxes and benefits), ensuring ongoing compliance with Canadian labor laws.

The platform also boasts a user-friendly interface, app integrations, and 24-hour live support.

Best for estimating employment costs

  • Free demo available
  • Pricing upon request

Omnipresent offers a range of global employment services that cover the full talent management lifecycle from onboarding and offer management to termination and offboarding. In addition to their employer of record (EOR) service, they also offer professional employer organization (PEO) and virtual employer organization (VEO) services as well.

Why I picked Omnipresent: Their OmniCalculator tool helps you estimate the different employment costs associated with hiring employees in Canada, including contributions to the Canada Pension Plan (CPP), employment insurance (EI), workers compensation (WC), and and other required provincial taxes.

Omnipresent Key Services:

Their employer of record service works in tandem alongside their legal & compliance and global benefits offerings, giving you all the tools you need to successfully manage new employees based in Canada. Omnipresent also covers onboarding, payroll processing, and benefits administration, helping you offer benefits packages for Canadian employees that comply with local employment labor laws.

Omnipresent handles all the complexity of local taxes and cross-border payments, giving you a single monthly invoice for all services rendered. Payslips, expense forms, employee contracts, and other documents are held securely on the platform.

Best for creating employment agreements in French

  • Free demo + free trial
  • From $199/month

Skuad’s digital HR platform helps international organizations hire, pay, and manage employees in over 160 countries, including Canada. When you hire them as your EOR for Canada, they’ll manage the whole hiring process on your behalf, including creating employment agreements in French, as needed.

Why I picked Skuad: As part of their EOR service, Skuad offers coverage for your intellectual property (IP) and invention rights which relate to all the work your EOR employees conduct on your behalf. This includes coverage for your copyrights, trademarks, and any other sensitive IP projects that relate to your business activities. 

Skuad Key Services:

Skaud's EOR services include remote employee onboarding, employee benefits, time-off tracking, and managing tax compliance. As part of their global hiring service, they will even stickhandle all the required documentation on your behalf, including work permits and visas for your new hires as well as their dependents. Beyond that, they can also help with tracking company assets like phones and computer equipment.

Best for a flexible EOR contract with no termination fee

  • Free demo available
  • Pricing upon request

Horizons offers streamlined global HR solutions including EOR and PEO services, international payroll and recruitment, and global mobility & immigration support.

Why I picked Horizons: I included Horizons in this list because their EOR service is cost-effective compared to others, and they offer flexible contract terms. You can end your EOR relationship with them at any time without worrying about costly termination fees or other penalties.

Their Canadian EOR services are administered by their local experts based out of their offices in both Toronto and Vancouver. They are also well-versed in Canadian employment laws, including variations in the required notice period per province and the rules surrounding maternity leave and parental leave.  

Horizons Key Services:

In addition to their standard EOR services, they offer additional niche service offerings such as tips for doing business in Canada, guides to help with global expansion, resources for strategic mergers & acquisitions, and advice on how to access new and emerging markets.

Best for offering EOR employees flexible work spaces

  • Free demo available
  • Pricing upon request

Velocity Global is a well-known employer of record (EOR) and professional employer organization (PEO) provider that simplifies global hiring thanks to their network of on-the-ground experts in 185+ countries, including Canada. 

Why I picked Velocity Global: I included Velocity Global in this list because, in addition to helping you source Canadian employees, they can also help you offer them a physical workspace as well. They achieve this through partnerships with flexible work spaces such as WeWork, Industrious, and The Office Group, creating a positive employee experience for your EOR hires. 

Velocity Global Key Services:

Velocity Global’s services include payroll, compliance, benefits management, employee training, and risk management for your Canadian employee operations. Their team of experts takes care of all required paperwork and can get your new employees up and running in Canada in as quickly as 2 working days. 

In addition to their EOR services, Velocity Global can also help you simplify your plans for global expansion through its global immigration services in case you’re wanting to move international employees to Canada.

Best Employer of Record Canada: Comparison Chart

This comparison chart summarizes pricing details about for my top Employer of Record selections for hiring Canadian staff to help you find the best EOR service for your budget and business needs.

Tools Price
Deel Flat rate user pricing, with free HR tool for businesses
Papaya Global EOR from $650/employee/month or $2/contractor/month; Global payroll from $3 to $12/employee/month
Remofirst From $199/employee/month for EOR and $25/mo for contractors
Oyster HR From $499/employee/month or $29/contractor/month
Multiplier EOR from $400/employee/month or $40/contractor/month; Global payroll from $20/employee/month
Worksuite Pricing upon request
Omnipresent Pricing upon request
Skuad From $199/month
Horizons Pricing upon request
Velocity Global Pricing upon request
Preview Image - <h2 class="c-block__title b-summary-table__title c-listicle__title h3" > Compare Software Specs Side by Side</h2>

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Other Canadian Employer of Record Services

Here are some other Canadian EOR service providers that didn’t make the top list, in case you’d like a few more suggestions:

  1. Rippling

    Best for managing IT assets and required compliance training

  2. Remote

    Best for competitive and cost-effective benefits packages

  3. Atlas HXM

    Best Canadian EOR for small businesses

  4. Foxhire

    Best for hiring Canadian healthcare and higher education workers

  5. Safeguard Global

    Best EOR services for NGOs and non-profit organizations

  6. Globalization Partners

    Best for a library of Canada-specific HR resources

  7. Plane

    Best for US-based companies looking to hire Canadian staff

  8. Mercans

    Best EOR for supporting payments in cryptocurrency

  9. Pivotal

    Best EOR for temporary staffing and short-term contracts

  10. Airswift

    Best Canadian EOR for the energy, infrastructure, mining, and technology industries

Hiring in Canada: Important Details

Here are some key details to note if this is your first time hiring Canadian staff. Your EOR provider will manage these compliance details on your behalf. However, proactively informing yourself of these details is always recommended before you invest your resources into sourcing Canadian staff.

In Canada:

  • Employment laws are determined federally and by province.
    • For employees and employers involved in federally regulated industries (e.g., interprovincial services such as transportation, telecommunications, shipping, banking, etc.) the Canada Labour Code applies. 
    • For all other industries (i.e., those that aren’t federally regulated), provincial or territorial labour standards apply. 
  • You can hire three types of workers: employees, dependent contractors, and independent contractors
  • Employment taxes and payroll deductions include federal and provincial taxes, and contributions to the Canada Pension Plan (CPP), Employment Insurance (EI), and Workers’ Compensation Insurance. Employers must also deduct an Employment Health Tax, which varies by province.
  • English and French are the two official languages in Canada.
  • Standard working hours are eight hours per day and 40 hours per week, with some provincial exceptions for certain industries (e.g., oil and gas, shipping, trucking, etc.).
  • Paid vacation is determined according to provincial regulations (except for federally regulated industries) and often begins with two weeks of paid holidays per year. 
  • There are five paid public holidays in Canada: New Year’s Day, Good Friday, Canada Day, Labour Day, Christmas Day.
    • Statutory holidays are determined provincially and may include: Family Day, Easter Monday, Victoria Day, Civic Holiday, National Day for Truth and Reconciliation, Thanksgiving, Remembrance Day, and Boxing Day.
  • Maternity & paternity leave is governed by federal laws with some provincial variations. During maternity/paternity leave, employees are eligible for compensation from the federal government. Some employers also offer additional compensation to employees on maternity/parental leave, though there is no legal requirement to do so.
    • Maternity leave: Employees can take up to 15 weeks of maternity leave from their place of employment. 
    • Paternity leave: Employees can choose between 35 weeks (standard paternity leave) or 61 weeks (extended paternity leave).
  • Paid sick leave is determined by provincial laws. Up to 17 weeks of unpaid medical leave is available according to Canadian Labour Laws. 
  • Probation in Canada ranges from 3 to 6 months, depending on the province and industry. 
  • Termination of employment is governed by Canadian Labour Laws and the Canada Severance Pay Law. Employees must be given a notice period ranging between 1 to 8 weeks, or pay in lieu of notice. If terminated, employees who have completed 1 year of service are eligible for severance pay equal to 2 paid days for every year of service prior to termination.

Selection Criteria for Employer of Record Canada 

If you’re curious how I created this list of the best Employer of Record for Canada, I'm happy to explain my process. I started by reviewing recent Employer of Record market data to create a long list of EOR service providers to assess. Next, I drilled into each EOR’s website to judge their experience in the Canadian talent marketplace. 

For the final portion of my assessment, I carefully compared the service offerings from each provider using the selection criteria below. This helped me determine which partnerships would add the most value for organizations wanting to add Canadian employees to their global workforce.

Below is a summary of the fine details I was looking for, to satisfy your curiosity.

Core Capabilities

Here are the core capabilities I vetted for each Canadian employer of record service that made it into my shortlist. Each service provided needed to demonstrate the strength and depth of these capabilities in order to be included.

Industry Expertise

The EOR service providers in this list clearly demonstrated a strong track record in this complex and highly specialized field. To assess this, I reviewed the depth of their services offered and the credentials of their team members, if available.

Compliance & Legal Expertise

To give your human resources team peace of mind, all of the EOR service providers in this list have Canadian experts who are fluent in local labor laws and income tax requirements. This local expertise is crucial as their Canadian HR professionals will be your front line of defense to avoid any non-compliance issues, such as employee misclassification, which can lead to big problems (i.e., fines, penalties, and legal actions).

Customer Service

I selected service providers that offer strong customer support, with proactive service for both employees and the client company. Since the EOR provider will act as your remote workers' legal employer, it's important to ensure you'll receive timely communications and top-level support.

Value for Cost

EOR services are complicated, which is why the price tag can sometimes be high. Most providers offer a flat rate per employee or contractor hired through their service. However, some only offer pricing details upon request. Either way, the prices for their services still offer a good ROI considering the complexity of the premium-grade services you're gaining.

If the price is your biggest concern, read my post explaining different EOR pricing models next.

Other Key Services

In addition to the core capabilities above, I also assessed the depth of the other key services each Canadian EOR provider offered. While each one does have its own unique blend of options, this list covers the core functions every EOR provider should cover:

  • Processing and funding payroll: ensuring that your employees are paid correctly and on time
  • Depositing and filing taxes: covering all legal obligations regarding deducting and managing local and payroll taxes
  • Dealing with timesheets: collecting and processing time records as necessary, including tracking time off requests
  • Top talent acquisition: working with the client company to source additional talent from the global market as needed
  • Background checks: checking the background of new hires to confirm their credentials and ensure their suitability for their role
  • Employee onboarding: helping new hires assimilate into their new company and role
  • Managing employment relationships: creating and maintaining appropriate employment contracts for staff members and dealing with any grievances
  • Handling workers’ compensation: ensuring legal compliance with all workers’ compensation matters
  • Maintaining certificates of insurance: providing an adequate level of cover for all business activities
  • Administering benefits: managing and paying out employee benefits as appropriate, including local health insurance for remote workers
  • Handling offboarding: dealing with the termination of employment and related matters as per the labor laws of each jurisdiction

FAQs about EOR Services in Canada

If you’ve got specific questions about the requirements to hire Canadian employees or how EOR services work, these answers to frequently asked questions are a good place to start:

What does an Employer of Record do?

An Employer of Record (EOR) service provider is a third-party entity that can help an organization hire a new employee in a country where it has no physical presence. It’s a useful service for businesses that are expanding internationally but don’t have physical offices established yet, or don’t ever plan to establish them. In these situations, the EOR provider becomes the legal employer of your remote staff on your behalf.

In this type of partnership, the EOR service provider deals with local employee-related matters such as managing payroll, deducting taxes, and administering the onboarding process for new employees. This allows organizations to access global talent while reducing their legal liabilities and compliance risks. This is because the EOR company assumes the legal responsibility for your international new hires on your behalf.

What are the benefits of using an Employer of Record in Canada?

A Canadian-specific EOR service offers many benefits for companies that want to hire top talent in Canada, including:

  • They’ve already established a legal entity in Canada
  • They’re up-to-speed on the local employment laws and tax regulations in Canada
  • They can help you source and hire new talent quickly
  • They can negotiate better insurance rates and benefit packages on your behalf

Using a Canadian EOR service is also cost-effective for businesses trying to enter a new market, compared to the significant costs of establishing a new Canadian entity. The latter option involves significant upfront legal fees, plus other costs related to office infrastructure, staffing, and local benefits and insurance coverage.

What are the minimum wage requirements in Canada?

In Canada, the minimum wage requirements vary depending on which province your employee or EOR hire is located in. As of April 1st, 2024, the current federal minimum wage in Canada increased from $16.65 to $17.30 CAD per hour. Staying on top of changes to minimum wages is just one of the benefits of working with an EOR.

What are the standard working hours and overtime regulations in Canada?

In Canada, the standard working hours are 40 hours per week, or 8 hours per day spread over 5 days. If an employee works more than 40 standard hours per week, they are entitled to overtime pay.

The rules surrounding overtime arrangements can vary depending on your industry and the province you’re operating in. Tracking overtime for your staff can quickly become a time-consuming process. By working with a Canadian EOR, you can get this hassle off of your desk and give yourself peace of mind.

What are the public holidays in Canada?

There are five nationwide public holidays in Canada, including:

  • New Year (January 1)
  • Good Friday (date varies)
  • Canada Day (July 1)
  • Labour Day (1st Monday in September)
  • Christmas Day (December 25)

Many Canadian provinces also celebrate additional statutory holidays where employees are also given time off of work, including:

  • Family Day (3rd Monday in February
  • Easter Monday (date varies)
  • Victoria Day (May – date varies)
  • Civic Holiday (August – date varies)
  • National Day for Truth and Reconciliation
  • Thanksgiving (2nd Monday in October)
  • Remembrance Day (November 11th)
  • Boxing Day (December 26th)

Your EOR provider can work with you to determine the appropriate holiday dates depending on the province your Canadian staff live and work in.

Do EOR providers offer other types of global HR services?

Yes, most of the time they do. Many service providers in this space also offer professional employer organization services (also known as PEO services), as well as global payroll services.

PEO services are a way of outsourcing your HR function to support your international teams. They can help you with international compliance issues, benefits administration, workers’ compensation, and other HR administrative tasks.

Global payroll services allow you to easily pay remote employees or independent contractors within a unified payroll run. They manage in-country compliance requirements and juggle payments in multiple local currencies on your behalf.

To dive even deeper into this topic, read our article covering other types of global HR services to figure out the best fit for you.

What are some of the consequences of non-compliance?

As an organization, you never want to be deemed as non-compliant in the eyes of any government body. The exact rules and regulations will vary according to the jurisdiction you’re operating in, which is one of the main benefits of using an EOR service provider.

If you don’t use an EOR and you do hire international workers, you may quickly find yourself in non-compliance. The consequences of doing so will depend on the severity of the violation, but they could include all of the following:

  • Fines and penalties
  • Legal actions such as lawsuits or other litigation proceedings
  • Corrective measures and compliance orders
  • Revocation of business licenses or operating permits
  • Reputational damage if the news becomes public (loss of public trust and loss of internal employee respect)
  • Increased monitoring and additional government scrutiny

Companies who fail to follow international labor laws cannot simply say they were unaware of the legalities, and hence, didn’t follow them. That’s where an EOR service can really remove a lot of potential risk and liability from the international hiring process.

To brush up on your compliance best practices, have a quick read through our 2024 HR Compliance Guide.

Are there any risks to using an Employer of Record service?

In the world of business, nothing is ever 100% risk free, and that is true for Employer of Record services as well. While EOR services do offer substantial advantages, here are some of the risks you should also be mindful of as you choose the right partner for you:

Financial risks:

  • Hidden costs and service fees: Some EOR providers may charge additional service fees for specific tasks, such as processing documents, onboarding or offboarding employees, or providing additional HR advice.
  • Mandatory benefits: Some countries require mandatory benefits for employees. In that case, the EOR will charge you for those benefits in addition to the employee salary and their service percentage, which can add up.
  • Currency fluctuations: Exchange fluctuations can impact the cost of payroll and other financial transactions as the strength of a currency you’re using goes up or down.

Operational risks:

  • Data security: Since you’re entrusting sensitive employee data to your EOR, you’ll want to consider the strength of their data protection practices and policies, including their incident response plans, IT penetration testing, and data management certifications, such as ISO 27001.

Strategic risks:

  • Loss of control: You will need to relinquish some degree of control over the workforce management processes of your EOR employees, which may impact your organization’s strategic decision-making capabilities.
  • Brand reputation: Any negative actions, incidents, or practices of your chosen EOR can directly impact your organization’s brand reputation and create a negative employee experience if not handled properly.

For a deeper dive on this topic, read our comprehensive guide of EOR risks, including ways you can mitigate each potential issue upfront.

Other EOR Resources & HR Services

With HR services already on your mind, I think you’ll find value in these articles too:

Gain Access to the Best Canadian Talent with an EOR for Canada

If you made it this far, I hope you have a better sense of how EOR services can simplify the process of hiring Canadian employees. They're truly a valuable resource, whether you're an enterprise organization looking to snap up the top talent in Canada, or a small business or startup trying to break into the Canadian talent marketplace.

If you found this article helpful, I recommend signing up for our weekly People Managing People newsletter too. You'll get access to the latest insights from thought leaders, as well as our latest podcasts, and more software and service recommendations.

By Kim Behnke

Kim Behnke is an HR Tool Expert & Writer for People Managing People. She draws on her 9 years of human resources experience and her keen eye for systematic processes to support her analyses of the top HR tools on the market. She is passionate about maximizing efficiencies and streamlining workflows to ensure internal systems run smoothly. Kim's HR experience includes recruitment, onboarding, performance management, training and development, policy development and enforcement, and HR analytics. She also has degrees in psychology, writing, publishing, and technical communication, and recently completed a Certified Digital HR Specialist program through the Academy to Innovate HR. When away from her desk, she can usually be found outside tending to her ever-expanding garden.