Updated on: October 1, 2025
Currency
Canadian Dollar (CAD)
Employer Taxes
There are no specific employer tax requirements.
Payroll Frequency
Bi-weekly or semi-monthly
Employee Taxes
N/A
Language
English, French
Date Format
YYYY/MM/DD
Ontario by the Numbers
Population
14.6 million
GDP
$850 billion
Weekly Working Hours
44 hours, overtime > 44 hours/week
National Holidays
12
Hiring Difficulty Score
N/A
Weekly Working Hours
National Holidays
Leave
Paid general holidays include 9 days – such as New Year’s Day and Canada Day – while vacation benefits consist of 2 weeks after 1 year of employment (equivalent to 4% of wages) and 3 weeks after 5 years (equivalent to 6% of wages).
Employment Contracts
No federal or provincial law mandates written employment contracts but they are highly recommended to address locally mandated issues.
Types of Employment
There are two types of employment: Employees and Independent Contractors.
Employment Costs
Employers in Ontario are responsible for several mandatory costs in addition to an employee’s gross salary. These include:
Additionally, employers should account for other costs such as vacation pay, statutory holiday pay, and any additional benefits provided to employees. These mandatory costs typically range between 10-20% of an employee’s gross salary.
IC Class Factors
Independent Contractor (IC) classification factors include the following: Degree of control of worker; Provision of own tools; Financial risk in own business; Responsibility for hired workers; Chance for profit; Degree of integration into the client’s work flow; Intent of the parties; Written contract
Labor Leasing
The Temporary Help Agencies and Assignment Employees Act (2020) establishes specific rules for agencies and clients, including regulations regarding the payment of wages and the treatment of temporary workers.
Minimum Wage Requirements
The minimum wage is $16.55.
Medical Benefits
Medical benefit plans are managed by each province. There is no requirement for medical benefits, but employers must adhere to employment contract terms if provided.
Probationary Periods
The probationary period lasts for 3 months, during which no termination notice is required.
Termination Notice
The termination notice requirements vary based on the length of service as follows: For employees with 3 months to 1 year of service, a notice period of 1 week is required. For those with 1 to 3 years of service, a 2-week notice is required. Employees with 3 to 4 years of service require a 3-week notice. For employees with more than 4 years of service, the notice period is 4 weeks, with an additional week added for each subsequent year of service, up to a maximum of 8 weeks.
Severance
To calculate the amount of severance pay an employee is entitled to receive, multiply the employee’s regular wages for a regular work week by the sum of:
The maximum amount of severance pay required to be paid under the ESA is 26 weeks.
Pre-hire Checks
Pre-hire checks are permitted with consent and must be relevant to the job.
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