How does the Canadian hiring model work?

Under the employer of record model, InfraDev becomes the legal employer of the person you choose in Canada and handles payroll, tax, and compliance, while you keep control of the work itself: hiring decisions, day-to-day management, projects, and termination.

How the model works

  1. You find the talent

    You interview, evaluate, and choose the Canadian professional you want to hire.

  2. We become the legal employer

    InfraDev signs the employment contract as employer of record and takes on the employer obligations.

  3. You manage the work

    The employee works for you and reports to you; we handle the employment administration.

  4. We run payroll and compliance

    Payroll, CPP, EI and income tax remittances, T4 slips, benefits, and employment standards.

  5. You receive one invoice

    Salary, employer contributions, and our service fee on one monthly invoice.

See the full process and timeline

Who does what

You keep operational control. We carry the employment.

What you control

  • Hiring decisions: who to hire, after your own interviews. We don’t recruit; we employ the people you select.
  • Day-to-day management: work, priorities, performance, and feedback.
  • Projects: what they work on, the technologies they use, and how they fit your team.
  • Termination decisions: when the employment ends; we handle the paperwork, ROE, and final pay under Canadian law.

What InfraDev handles

  • Employment contracts that meet provincial employment standards
  • Payroll, including tax deductions and employer contributions (CPP, EI, QPP, QPIP)
  • Tax compliance: remittances to the CRA, and T4 and T4A slips
  • Benefits administration, if you choose to offer benefits
  • HR compliance: provincial employment law and workplace safety (CNESST, WSIB)
  • Records: employment records, time tracking, and ROEs

Benefits of the EOR model

  • No entity formation

    No Canadian corporation, CRA registration, payroll accounts, or provincial setup on your side.

  • Fast onboarding

    Hires start in 24–48 hours instead of after the 3–6 months it takes to form an entity.

  • Compliance handled

    As the legal employer, we carry Canadian employment and tax compliance obligations.

  • Lower upfront cost

    No entity formation costs ($5,000–$15,000+) or in-house compliance function.

  • Scalable

    Add or remove employees without managing a Canadian entity.

  • Transparent billing

    One monthly invoice: salary, employer contributions, and service fee.

Frequently asked questions

Common questions about how the employer-of-record model works.

Who owns the intellectual property created by the employee?

You own all intellectual property created by the employee. The employment contract includes IP assignment clauses that ensure all work product, code, designs, and innovations belong to you, not to InfraDev or the employee.

Can I terminate the employee if needed?

Yes, termination decisions are yours. When you decide to end the employment relationship, we handle the termination paperwork, notice requirements, severance calculations (if applicable), ROE generation, and final payments according to Canadian employment law.

What happens if there's a compliance issue?

As the employer of record, InfraDev carries the Canadian employer obligations: CRA matters, employment standards, and other regulatory requirements fall to us as the legal employer, and we handle them.

How is this different from using a contractor?

The EOR model creates a genuine employment relationship, with benefits eligibility and employment protections. Contractors are self-employed, which limits how much you can direct their work and creates misclassification risk if they work like employees. See employee vs contractor.

Can the employee work for other companies?

The employment contract can include exclusivity clauses if you want the employee to work exclusively for you. Alternatively, if you're comfortable with them working for other clients, we can structure the contract accordingly. You decide the terms.

What if I want to convert to a Canadian entity later?

You can transition from EOR to your own Canadian entity at any time. We'll help facilitate the transition and transfer employment relationships. Many companies start with EOR to test the market, then form their own entity once they've established a larger presence. See EOR vs Canadian entity.

Can our Canadian staff work from an office?

Yes. InfraDev has office space in Beaconsfield, Québec, available up to five days a week, and access to systems or data can be limited to our office where your security requirements call for it. See Host your hire.

Ready to start hiring in Canada?

Tell us about the role. We'll explain the model, costs, and timing for your situation on a short call.