Canadian immigration lawyers based in the US often help companies leverage the Canadian immigration system to bring top talent into and thus expand in Canada. Often, the US company is also advised to establish a legal entity in Canada, especially if they want to take advantage of the Global Talent Stream program to easily hire tech workers. Establishing a legal entity in Canada requires compliance with Canadian employment law, which includes adhering to regulations on employee rights and benefits such as maternity leave, annual leave, illness benefits, and healthcare through the public healthcare system.
However, this approach can present challenges for companies that lack the resources or desire to establish a physical Canadian office. Even with a Canadian entity, an employer may struggle to leverage Canadian immigration options due to the absence of a physical office, e.g., with a signed lease. Indeed, Immigration, Refugees, and Citizenship Canada (IRCC) usually want to see a physical office or plans to open some form of office.
This leaves Canadian immigration attorneys facing a dilemma: how can they help their US clients expand into Canada and employ Canadian talent when a traditional physical office setup isn’t viable for that US company?
The Role of a Canadian Employer of Record (EOR)
That’s where working with a Canadian Employer of Record (EOR) comes in. An EOR allows businesses to legally employ workers in Canada without the need to establish a local entity, handling compliance with local labor laws, payroll, taxes, and employee benefits.
Advantages of Partnering with an EOR for US Companies
Partnering with an EOR offers several advantages for US companies looking to hire Canadian employees:
- Compliance with Canadian Employment Law: EORs ensure adherence to Canadian labor laws, including employment contracts, minimum wage, overtime, and termination procedures. This compliance is critical to avoiding legal pitfalls and ensuring fair treatment of employees.
- Efficient Payroll Management: EORs handle payroll processing, ensuring accurate and timely payment to employees. This includes managing payroll taxes, deductions, and contributions to employment insurance and other statutory benefits.
- Streamlined Employee Benefits Administration: EORs manage employee benefits, including health insurance, retirement plans, and leave entitlements, ensuring compliance with Canadian regulations and offering competitive packages to attract top talent.
- Mitigation of Administrative Burdens: EORs take on the administrative tasks related to hiring, HR management, and compliance, allowing US companies to focus on their core business operations.
Three Scenarios When US Employers Want to Hire Foreign Talent in Canada but Can’t Open a Physical Canadian Office
There are several reasons why it may not be feasible for a US company to open a physical Canadian office, even if that company wants to take advantage of Canada’s immigration programs to hire high-skilled foreign tech workers or hire Canadian employees. Using Canadian Employer of Record (EOR) services to hire Canadian employees can help navigate Canadian labor laws, ensure compliance, manage payroll, and address other related challenges. Here are some common grounds for not opening a physical office in Canada:
- The US Employer May Be Too Small to Open a Canadian Office
- If the US employer that wants to hire tech talent in Canada is a smaller company, e.g., a VC-backed startup or scale-up, having a Canadian office and therefore hiring staff to manage that office, oversee tax, HR, legal, payroll, etc., may be overkill. Staying on top of Canadian labor laws and the technicalities of business in Canada can also be complicated, and using US-based staff to oversee Canadian tax, HR, legal, etc., isn’t recommended. So, in this situation, establishing a Canadian office may not make sense.
- The US Employer May Have a Legal Entity in Canada, but Not a Physical Office
- Many US companies actually already have a legal entity in Canada, often because they remotely hire Canadians through that entity. However, if they want to bring foreign nationals into Canada and thus use the Canadian immigration system, just having a Canadian legal entity isn’t sufficient for most immigration applications—including the Global Talent Stream, which facilitates work permits within weeks—as they often need to show a physical office and comply with Canadian laws. Setting up a physical office doesn’t make sense from a cost perspective for the US employer, especially if existing Canadian employees work remotely.
- The US Company Doesn’t Have Plans to Open a Canadian Office
- Then there’s the matter of strategic priorities; they may simply not want to open an office in Canada. Whether it’s not in their strategy right now, they deem it distracting, or simply not necessary for their immediate goals, a company may simply not want to go through the trouble of opening up a Canadian legal entity and office. Canadian laws encourage employers to work with underperforming workers and follow specific termination procedures, which might be seen as an additional complexity.
None of these reasons have to stop a company from taking advantage of Canada’s immigration system and hiring the global talent it needs.
Navigating Canadian Employment Law with an EOR
One of the simplest solutions Canadian immigration attorneys can recommend to US companies hiring in Canada is to leverage an EOR. An EOR shoulders the legal, HR, tax, payroll, and other burdens and seamlessly ensures compliance with Canadian business and immigration regulations.
An EOR acts as an employee’s legal employer and provides all the HR, legal, tax, payroll, and, along with Canadian immigration counsel, immigration services needed to enable US employers to hire high-skilled tech workers remotely in Canada. So, US employers who want to hire a remote tech worker in Canada don’t need expertise in Canadian immigration or employment law, nor do they need to hire attorneys, accountants, and other professionals. Instead, by leveraging an EOR, compliance, tax, hiring (or firing), and immigration, along with counsel, are handled in a smooth, compliant, and stress-free way.
Comprehensive Employee Management
An EOR also manages employee benefits, employment contracts, employment insurance, and payroll taxes, ensuring compliance with local labor laws, minimum wage, and statutory benefits. They assist in hiring Canadian employees and handle severance pay and tax regulations, providing a comprehensive solution for US companies.
By working with a Canadian EOR, US companies can get value both in the short term, given the quick timeline of Canada’s immigration process compared to, say, the H-1B visa in the US, and in the long term, with Canada’s quick route to permanent residency and eventual citizenship.
Ultimately, if they want the employee in the US, they can strategically try again for H-1B while they are carrying out their work in Canada or even eventually bring them in on a TN visa once they get their Canadian citizenship. Plus, as US companies continue to expand into Canada, that means more tech talent in Canada, which can benefit future hiring.
The Future of Remote Hiring and Global Employment Services
As the world becomes increasingly interconnected, the demand for global employment services continues to rise. Companies are no longer limited by geographical boundaries when it comes to hiring top talent. This trend is particularly evident in the tech industry, where skilled professionals are in high demand. By leveraging the services of an EOR, US companies can tap into the rich talent pool in Canada without the complexities of establishing a local entity.
An EOR not only facilitates compliance with Canadian employment law but also provides a seamless experience for both the employer and the employee. This partnership ensures that all aspects of employment, from contracts to benefits, are handled with the utmost care and expertise. As a result, US companies can confidently expand their global team, knowing that they are in full compliance with local regulations and that their employees are well taken care of.
Syndesus: The Canadian Employer of Record for Canadian Immigration Lawyers in the US Helping US Employers
Syndesus is highly specialized in Canadian employment and immigration, and unlike large, global PEOs and EORs, we only operate in Canada. This means we understand Canadian employment laws and can work with Canadian immigration attorneys to expertly handle their clients’ Canadian immigration needs.
Whether that’s making sure a tech worker can get a work permit and come to Canada or setting up entire remote teams, with extensive expertise in managing operations for US clients, we can provide a streamlined, comprehensive solution whatever the situation. Administrative processes are taken care of while your clients can focus on expanding their workforce and moving their company forward.
Conclusion
The partnership between Canadian immigration lawyers and Canadian Employers of Record presents a powerful solution for US companies looking to expand their workforce into Canada. By leveraging the expertise and services of an EOR, companies can navigate the complexities of Canadian employment law, manage payroll and benefits, and ensure compliance with all local regulations. This approach not only simplifies the process of hiring Canadian employees but also allows companies to focus on their core business operations and strategic goals.
Reach out to Syndesus to learn more about how we can help your US employer clients take advantage of the Canadian immigration system and seamlessly integrate Canadian talent into their global team!
Syndesus is the Canadian employer of record for Canadian immigration lawyers in the US helping US employers
Syndesus is highly specialized in Canadian employment and immigration, and unlike large, global PEOs and EORs, we only operate in Canada. This means we understand Canadian employment law and can work with Canadian immigration attorneys to expertly handle their clients’ Canadian immigration needs.
Whether that’s making sure a tech worker is able to get a work permit and come to Canada or setting up entire remote teams, with extensive expertise in managing operations for US clients, we can provide a streamlined, comprehensive solution whatever the situation. Administrative processes are taken care of while your clients can focus on expanding their workforce and moving their company forward.
Reach out to us to learn more about how we can help your US employer clients take advantage of the Canadian immigration system!
About Marc Pavlopoulos
Marc Pavlopoulos is the CEO and Founder of Syndesus, a Professional Employer Organization that provides PEO services for US companies seeking to employ workers remotely in Canada, builds engineering teams in Canada for VC-backed startups in the US, and set-up remote offices in Canada for US companies. Additionally, Syndesus can assist foreign-born tech workers (and their US employers) with options for working remotely in Canada if they cannot stay in the US due to immigration/work visa issues.
As an American who has moved to Canada twice (for grad school and for work), Marc understands the challenges involved in starting a new life in a new country. Marc is a son of an immigrant and has great respect for people who leave their home country and seek a better life in the US or Canada.
Marc’s goal is to do everything he can to help those individuals achieve their dreams. Marc also has a second venture (Path to Canada) which helps foreign-born technical workers who cannot stay in the US (for immigration reasons) get a job and work authorization to work in Canada.
