Expert Spotlight: Hiring in Canada Through an EOR

Welcome to Employsome Expert Spotlight, a series where we put specific legal questions to employment lawyers who advise foreign companies in key Employer of Record (EOR) markets. No marketing language, no provider spin. Just independent legal perspective from practitioners who deal with these structures every day.

For this edition, we spoke with Olivia Girouard, Of Counsel at Littler Mendelson P.C. in Montréal. Olivia advises employers in both English and French on workplace policies, employment contracts, terminations, discrimination, health and safety, and workplace investigations. Before joining Littler, she served as Employment Counsel at Globalization Partners (G-P), one of the world’s largest EOR providers, giving her first-hand experience of how EOR compliance works from the provider side. She also spent over six years in private practice at a Montréal-based employment law firm and served as a lecturer at École de technologie supérieure from 2021 to 2024.

Littler Mendelson is the world’s largest employment and labour law practice representing management, with more than 95 offices globally and a growing Canadian presence across Toronto, Montréal, and Vancouver. Olivia’s move from G-P to Littler in August 2025 makes her one of the few Canadian employment lawyers who has worked both inside an EOR provider and at a major law firm advising companies that use EOR services.

Her answers below are direct and lightly edited for clarity. If you are evaluating whether to use an EOR in Canada, this is the perspective your legal counsel would give you.

This interview was conducted in April 2026 and reflects the legal landscape at that time.

Olivia Girouard is Of Counsel at Littler Mendelson P.C. in Montréal. LL.L. from the University of Ottawa, J.D. from the Université de Sherbrooke. Member of the Barreau du Québec. Former Employment Counsel at Globalization Partners (G-P), where she advised on EOR compliance across Canadian jurisdictions. Previously spent over six years in private practice at Loranger Marcoux in Montréal, representing employers across Québec on labour law, occupational health and safety, and employment disputes. Lecturer at École de technologie supérieure (2021–2024) on health, safety, and personnel management. Contributor to Littler’s Global Guide Quarterly. Bilingual (English/French) practitioner with deep expertise in Québec’s distinct civil law employment framework.

• The single biggest gap between what EOR providers promise and what they deliver in Canada is provincial compliance. Many providers apply a one-size-fits-all approach when in reality most employment law is provincially regulated, with each province having its own legal framework.
• Termination law in Canada is notoriously complex, with statutory minimums, common law (or civil law) reasonable notice, and the interplay between the two. An EOR without genuine provincial experience is more likely to create unnecessary exposure.
• Canadian courts and legislation have provided limited direct guidance on EOR arrangements, leaving the model in a legal grey area. In Québec, the risk that the client will be found to be the true employer is relatively high because the client typically exercises day-to-day direction over the employee’s work.
• Provincial expertise is the single most important due diligence criterion. Companies should ask their EOR to explain a province-specific employment law nuance to test whether the provider truly understands local legal particularities.
• EORs remain a practical solution for companies not yet ready to incorporate in Canada, but they are not the only option. Independent contractor arrangements may work for highly autonomous, project-based roles in some provinces, though misclassification risk varies significantly by jurisdiction.

Having worked both inside an EOR provider (G-P) and now advising companies that use EOR services at Littler, Olivia has seen the model from both sides. We asked her what the single biggest gap is between what EOR providers promise and what they actually deliver in Canada.

“A common mistake is taking a one-size-fits-all approach to Canadian employment law. Many assume the same contracts, rules, and employment laws apply nationwide, when in reality most employment law is provincially regulated. As a result, each province has its own legal framework and requirements, requiring tailored, jurisdiction-specific approaches.”

Olivia Girouard, Of Counsel, Littler Mendelson P.C.

Canada’s employment law is provincial, not federal, for most private-sector workers. We asked Olivia how this fragmented regulatory landscape affects the risk profile for foreign companies using an EOR, and what they should be asking their provider.

“Companies should ensure the EOR they select has demonstrated, on-the-ground experience in the specific province where they intend to hire. This includes confirming that the EOR has previously operated in that jurisdiction, that its employment contracts and HR policies have been reviewed and updated to reflect local provincial requirements, and that those documents have been legally validated for that province.

As a practical safeguard, companies should also ask the EOR to explain a province-specific employment law nuance to assess whether they truly understand and actively manage local legal particularities.”

Olivia Girouard, Of Counsel, Littler Mendelson P.C.

Termination law in Canada is notoriously complex, with statutory minimums, common or civil law reasonable notice, and the interplay between the two. We asked Olivia how well EOR providers typically handle Canadian terminations.

“Once again, this turns on whether the EOR has genuine experience in the specific province involved. This includes having employment agreements with carefully drafted and enforceable termination language, a clear understanding of the jurisdiction-specific risks associated with terminations, and the ability to consistently apply recommended local practices.

Where an EOR lacks this depth, companies are more likely to face unnecessary exposure and increased termination risk. Given how quickly Canadian employment law evolves, it is critical to work with an EOR that actively stays current and adapts its contracts and processes accordingly.”

Olivia Girouard, Of Counsel, Littler Mendelson P.C.

For foreign companies considering an EOR for their first Canadian hires, we asked Olivia what they should understand about how Canadian employment law treats the arrangement.

“This ultimately depends on the province, as each jurisdiction can present different legal risks. Depending on where the employee is located, there may be co-employment concerns or issues related to staffing or personnel placement agency regulations.

More broadly, Canadian courts and legislation have provided limited direct guidance on EOR arrangements, leaving the model in something of a gray area. That said, provincial nuances still matter, and it is important to ensure that appropriate safeguards and structures are in place in each jurisdiction to address province-specific risks and reduce potential exposure.”

Olivia Girouard, Of Counsel, Littler Mendelson P.C.

The EOR model assumes a triangular relationship: employee, EOR, and client. Canadian courts have shown willingness to look through corporate structures. We asked Olivia how real the risk is that a court would recognise the client as the true employer.

“This will vary by province, but in Québec, where I practice, the risk that the client will be found to be the true employer is relatively high. This is largely because the client typically exercises day-to-day direction over the employee’s work, provides the tools and equipment, and is closely involved in ongoing management.

That said, most EOR models anticipate this risk and address it contractually in the agreement between the EOR and the client. From the employee’s perspective, claims are often brought against both entities, with liability issues then being addressed between the EOR and the client afterward through indemnities and contractual allocation of responsibility.”

Olivia Girouard, Of Counsel, Littler Mendelson P.C.

If a company is not ready to incorporate in Canada but still wants to hire local talent, we asked Olivia what legally viable alternatives exist.

“EORs are often a practical solution for companies that are not yet ready to incorporate in Canada, particularly for those looking for a more hands-off way to manage complex and constantly evolving provincial employment requirements. That said, they are not the only legally viable option.

Depending on the circumstances, companies may also consider engaging individuals as independent contractors (with careful, province-specific misclassification analysis). Some provinces and role types, such as highly autonomous, project-based positions, may lend themselves more easily to contractor models, whereas operational or integrated roles often do not.

Each alternative carries its own legal and practical risks, which vary significantly by province and by the nature of the work. In that context, EORs are often attractive because they allow companies to enter the Canadian market quickly, test hiring needs, and manage compliance centrally while they determine whether longer-term incorporation makes sense.”

Olivia Girouard, Of Counsel, Littler Mendelson P.C.

We asked Olivia for the single most important thing a founder or HR director should know before signing an EOR contract for Canada.

“Do thorough due diligence before signing. In particular, ensure the EOR has real, demonstrated experience in the specific province where you plan to hire, not just a general Canadian presence. Provincial expertise will significantly affect contract quality, compliance, and day-to-day execution, which in turn reduces legal risk and unexpected exposure.

Employees are well protected under Canadian law and are generally aware of their rights, so selecting the right EOR from the outset puts you in the strongest possible position and makes the overall process far smoother.”

Olivia Girouard, Of Counsel, Littler Mendelson P.C.

—

About Employsome Expert Spotlight: This series features independent legal commentary from employment lawyers who advise foreign companies in key EOR markets. Experts are not compensated and editorial control remains with Employsome. The views expressed are those of the individual lawyer and do not constitute legal advice. For country-specific legal guidance, consult qualified local counsel.