EMPLOYER OF RECORD : A flexible, secure solution tailored to the Canadian market
- Audrey Calligaro
- May 12
- 3 min read
Updated: May 30
When it comes to internationalization, there are several options open to companies: direct export, strategic partnerships, distribution, online sales, external growth or local presence. Each of these options has its own advantages and constraints, which need to be assessed according to your objectives, resources and development horizon.
Among these options, using an Employer of Record solution is a fast, responsive and alightweight option for rapidly offering a local contract to your strategic resources in Canada.
What is an Employer of Record ?
Definition and How it works
Employer of Record allows a foreign company with no Canadian legal structure to offer its Canadian-based employee(s) a Canadian employment contract and local remuneration.
Employer of Record is a solution that allows a company not established in Canada to rely on an existing local legal entity to hire its collaborators. In practice, the EOR provider places your local employee on its own payroll and invoices you for all related costs.
Your collaborator receives a salary and enjoys all the benefits of a local employment contract, while you are relieved of accounting and tax obligations and fixed costs (rent, administrative management, subsidiary setup and consolidation).
Benefits of using Employer of Record services
Full social benefits :
The employee benefits from the same rights as a conventional employee, particularly in terms of health, retirement and unemployment insurance.
Administrative simplicity :
The "portage" company handles all administrative and tax formalities, allowing the professional to concentrate on his or her core business. What's more, the parent company doesn't have to worry about the complexities of the Canadian system, which greatly simplifies the management of market presence.
Flexibility :
This model offers great flexibility, ideal for testing the Canadian market without a long-term commitment. It allows the parent company to get up and running quickly, without having to immerse itself in the management of a subsidiary and the associated administrative challenges.
Key Considerations
Compensation limits :
Some forms of remuneration, such as stock options, are not compatible with freelance administration.
Breach of contract :
Relocation to Canada implies a breach of the employment contract in the country of origin with the employer, but tailor-made solutions and agreements can be put in place.
Ineligibility for local financial incentives :
In the absence of a Canadian subsidiary, the company is not eligible for certain local tax credits or subsidies.
Tactical approach :
While Employer of Record is not a solution to be favored for long-term strategies, it is ideal for short- and medium-term strategies, such as testing a market or establishing a local presence.
Our customized Employer of Record service enables you to recruit employees under Canadian contracts, without the need for a local subsidiary. We employ your strategic workers and handle all aspects of their salary and administrative management.
Our Employer of Record offer: a flexible, secure solution tailored to the Canadian market
Adexia offers an Employer of Record solution dedicated to foreign companies wishing to deploy employees in Canada without creating a local legal structure. Thanks to a Canadian employment contract and outsourced administrative management, this formula enables rapid implementation in line with local standards.
Complete management of payroll, social security contributions and expense reports
The option of adding personalized benefits
Legal, HR and regulatory support
Administrative hosting (or physical hosting in Montreal or Toronto if required)
Regular deliverables: payroll, reports, tax forms, etc.
Flexible and turnkey, our offer is an agile alternative to setting up a subsidiary to test or start a business in Canada, enabling you to easily deploy employees in Canada without creating a local legal structure.
Conclusion
At a time when responsiveness and risk control are essential to any international expansion strategy, using Employer of record services is a pragmatic and secure solution. It enables companies to test the Canadian market, mobilize local resources and gain agility, without the constraints associated with setting up a subsidiary. With Adexia, you'll benefit from expert, tailor-made support to help you realize your ambitions in Canada.
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