Remote work
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Remote work in Canada – Overview

Improvements in the technologies that facilitate remote working and the impact of the Covid19 crisis have both led to remote working becoming widely accepted in Canada. As such, Flexible Work Agreements are increasingly popular in Canada and the country is among the top destinations for ‘digital nomads’.

Canadian cities are consistently recognized for their liveability. No less than 3 Canadian cities ranked in the top 10 of the EIU’s 2022 Global Liveability Index. As well as the liveability of its cities, Canada’s commitment to liberal ideals and its stunning natural landscapes are also cited as important ‘pull factors’ for digital nomads.

With the increase in the popularity of remote working in Canada, it’s crucial that employers understand their accountabilities.

Remote work in Canada – Laws & Regulations

For the purposes of this guide, it’s important to form a distinction between the type of worker:

‘remote worker’ refers to employees of Canadian entities, employed via Flexible Working Agreements.
‘digital nomad’ refers to foreign citizens who want to work from Canada but for companies based in other countries.

Remote Worker

As with other areas of Canadian employment law, it is the laws and regulations of the province or territory where the employer is based that apply.

With that in mind, the Canadian government has produced guidance for employing remote workers:

Employers should create a Flexible Working Agreement or policy that explicitly addresses the main points of the remote working arrangement. The agreement should include:

The expected hours of work;
the technology and insurance requirements that employees must meet;
physical workspace requirements that ensure compliance with the applicable health and safety legislation;
cyber security arrangements, such as restrictions on access to the employee’s workspace and/or locations that the employee is allowed to work from.

Digital Nomads

Although Canada does not offer a digital nomad visa, there are a number of schemes that serve a similar purpose. These schemes include; the Self-Employed Scheme, the Startup Visa Program; and the Provincial Nominee Program.

Each scheme sets out specific requirements that applicants must meet, mainly based around experience, level of investment and time horizon.

The Self-Employed Scheme is primarily aimed at digital nomads looking to work and travel in Canada on a temporary basis;
the Startup Visa Program is aimed at entrepreneurs looking to employ Canadian citizens;
and the Provincial Nominee Programs are most suitable for those looking to gain residency and work in a specific province or territory.

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FAQs

Is Canada a good country for remote work?

Canada is a popular destination for digital nomads and strong employee protections as part of Flexible Working Agreements

What are my options if I want to hire a remote employee in Canada?

Online freelancing platforms are an option, but present certain risks to employers. To ensure compliance with Canada’s labor laws, especially provincial and territorial employment laws, foreign employers looking to hire remote workers in Canada are advised to utilize the services of a Canada PEO.