Introduction
Canada is one of the most attractive markets for global hiring due to its highly skilled workforce, English/French bilingual capabilities, and stable labor environment. If your company is hiring remote employees in Canada but doesn’t have a local legal entity, an Employer of Record (EOR) is your best solution. One of the most critical steps in this process is sending a legally compliant job offer letter.
This comprehensive guide walks you through the process of drafting, reviewing, and sending job offer letters via an EOR in Canada—ensuring compliance with provincial employment laws, clarity for your employees, and a smooth onboarding process.
Key Takeaways
- A job offer letter is a formal, pre-contractual document that summarizes employment terms.
- In Canada, labor laws vary by province, so offer letters must be customized accordingly.
- Your EOR partner issues the offer letter, manages compliance, and initiates onboarding on your behalf.
Job Offer Letter & Onboarding Flow for a Remote EOR Employee
Here’s how the EOR-managed hiring process typically works:
- Client defines role parameters: title, responsibilities, compensation, province, and benefits.
- The EOR drafts a localized job offer letter, aligned with provincial employment standards (e.g., Ontario, British Columbia, Alberta).
- The candidate reviews and signs the offer letter electronically.
- The EOR proceeds with onboarding: tax documentation (SIN), benefits enrollment, employment contract issuance.
- Candidate starts work; EOR manages ongoing payroll, deductions, and compliance.
Offer Letter vs Employment Agreement in Canada
| Offer Letter | Employment Agreement |
|---|---|
| Summary of employment terms | Binding legal document |
| Non-binding until accepted | Fully enforceable once signed |
| Issued first, before formal contract | Signed prior to or on the first day of employment |
In Canada, it’s common to send an offer letter followed by a formal employment agreement, both of which are provided by your EOR to ensure compliance with provincial laws.
When Must a Job Offer Letter Be Given?
- Offer letters are typically issued within 2–5 business days post final interview.
- Always include a response deadline (e.g., “Please respond by May 1, 2025”) to keep the hiring process structured.
- Mention the start date and expected onboarding timeline to set clear expectations.
What Salary Needs to Be Mentioned in an Offer Letter?
Canadian offer letters should include:
- Annual or hourly wage (based on full-time/part-time status)
- Whether the salary is gross or net
- Any additional compensation (e.g., bonuses, stock options, allowances)
- Deductions for CPP (Canada Pension Plan), EI (Employment Insurance), and income tax
Example: “You will receive CAD 70,000 annually, paid semi-monthly, subject to statutory deductions.”
Job Offer Letter Checklist for Canada
Here’s what must be included:
✅ Candidate’s full legal name
✅ Job title and reporting manager
✅ Salary and frequency of payment
✅ Work location and remote/hybrid status
✅ Start date
✅ Work hours (e.g., 9am–5pm, Monday–Friday)
✅ Probation period (typically 3 months)
✅ Benefits summary (health, dental, paid leave)
✅ Employment type (permanent, temporary, part-time)
✅ Confidentiality and IP clauses
✅ Compliance with provincial labor laws
✅ Signature fields for both EOR and employee
Download Your Job Offer Letter Template for Canada
Need a fast start? We offer a fully customizable job offer letter template designed for Canadian EOR hires, with:
- Region-specific compliance for provinces like Ontario, Quebec, Alberta, and BC
- Format aligned with Canadian Human Rights Act and Employment Standards Acts
- Editable structure for role, compensation, probation, and benefits
👉 Let us know to generate this for you.
FAQs
- Can I resend my offer letter?
Yes, especially if terms change or the candidate requests modifications. - What is the usual notice period in Canada?
Two weeks is standard, but varies by province and length of service. - When do I mention company policies?
You can reference your employee handbook and mention it applies upon onboarding. - Can I revoke an offer letter?
Yes, before acceptance. Post-acceptance revocation may trigger legal consequences. - How do I revoke an offer letter?
Send a formal written withdrawal. Ensure no contract was signed yet. - Who qualifies as an independent contractor?
Someone who controls their own work, tools, and schedules. Must meet CRA tests. - Why is a contractor agreement important in Canada?
To avoid employee misclassification and CRA penalties. - What is a PEO in Canada?
A Professional Employer Organization; in contrast, an EOR becomes the legal employer. - What should be in an onboarding checklist?
SIN, direct deposit form, signed contract, work equipment needs, benefits enrollment. - What is an EOR?
A service provider that hires, pays, and manages legal compliance on your behalf. - What is the EOR onboarding process?
Includes offer letter signing, tax form collection, and registration for payroll and benefits. - Difference between contractors and employees?
Employees receive benefits and protections; contractors are self-managed. - What are employment costs in Canada?
Salary + CPP, EI, statutory holiday pay, and optional benefits (e.g., health insurance). - How to calculate CTC (Cost to Company)?
Add base salary, employer-paid contributions (CPP, EI), and benefits. - What is a take-home salary calculator?
Tool that estimates net pay after taxes and deductions. - Are remote employees covered under provincial laws?
Yes, based on where the employee is physically located. - How do I create offer letters for remote employees?
Work with your EOR to draft based on the employee’s location and role. - What should the job title section include?
Accurate title and department or team name. - Is health insurance included in offer letters?
Yes, if it’s part of your EOR or company-provided benefits plan. - Why are job duties included in the offer?
To clarify responsibilities and align with employment expectations. - What should the compensation section include?
Base pay, bonuses, allowances, and any equity plans. - Is an offer letter legally binding in Canada?
Only once accepted. Still, it should be consistent with the final employment agreement. - How important is the start date?
It determines when pay, benefits, and legal protections begin. - What role does the hiring manager play?
Helps define the job scope and expectations for onboarding. - Should the letter specify if it’s full-time?
Yes, clearly state if it’s full-time, part-time, or contract-based. - What key elements must be outlined?
Role, salary, benefits, work location, termination terms, and schedule. - Does Canada recognize “at-will employment”?
No. Termination without cause requires notice or severance. - How do I state office location for remote roles?
Example: “This is a remote position based in Ontario, Canada.” - Can an offer letter reflect company culture?
Yes, include a short paragraph about mission, values, and team vision. - What is “at-will” employment?
A U.S. concept. Canadian law requires cause or notice for termination. - What should be in a formal offer letter?
Details like pay, vacation, job title, start date, and who to report to. - Why must compensation details be clear?
For legal compliance, employee trust, and payroll accuracy.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.