How to Hire an Employee in Ontario: A Step-by-Step Guide

Many people want to know how to hire an employee in Ontario without missing any important steps.

Yes, hiring your first employee is an exciting milestone, but it also brings legal and administrative responsibilities that you need to handle correctly from the start.

That’s why it comes with a learning curve of employment standards, setting up payroll, and creating a good onboarding process.

But knowing how to hire an employee in Ontario helps you avoid costly mistakes.

So let’s start.

How to Hire Employees in Ontario (Step-by-Step)

At TROIS Collective, we help small and medium-sized businesses with HR solutions that make your work easier, so you can focus on running your business.

We have created a guide that walks you through the entire hiring process in Ontario, with practical steps to follow. 

1. Study the employment laws in Ontario

Let’s pause posting a job or starting interviews, and go back to basics by making sure you understand the laws that apply to employment in Ontario.

The Employment Standards Act (ESA) sets the basic rules for things like:

  • Minimum wage
  • Hours of work and overtime
  • Vacation pay and public holidays
  • ​Leaves of absence (sick leave, parental leave, etc.)
  • ​Termination and severance rules

Now that you're an employer, you also need to follow these laws: 

  • Human Rights Code (non-discrimination in hiring)
  • ​Occupational Health and Safety Act (OHSA)
  • Workplace Safety and Insurance Act (WSIB)

Learning these rules early helps you keep your hiring process fair and within the law.

2. Register your business as an employer

To legally hire an employee in Ontario, you must be registered with the Canada Revenue Agency (CRA).

So, you’ll need to:

  • Obtain a Business Number (BN)
  • Open a Payroll Account
  • Set up remittances for:
  • Income tax
  • Canada Pension Plan (CPP)
  • Employment Insurance (EI)

When you fail to register properly, it can cause penalties, interest charges, and compliance audits.

If you don't feel comfortable doing this by yourself, you can always ask HR for support from experts. 

3. Define the role and employment type

A common hiring mistake is not clearly defining the role.

Before you start recruiting or reach out to an agency, make sure you decide on the following:

  • ​Job title and main responsibilities
  • ​Skills and experience needed for the job
  • ​Whether the position is full-time, part-time, or contract
  • ​If the job is permanent or for a fixed term
  • Whether the role is exempt or non-exempt, which affects overtime eligibility

From our experience, clear job descriptions help attract better candidates and lower the chance of performance problems later.

They are also important for remaining compliant and managing employee performance.

4. Post the job and recruit fairly

If you are advertising a job in Ontario, make sure your posting follows the Ontario Human Rights Code.

Do not include:

  • ​Age, gender, or nationality requirements
  • Language that excludes protected groups
  • ​Questions related to marital status, religion, or disability

Instead, highlight the skills, experience, and qualifications needed for the job. 

In Ontario, many employers find candidates through job boards, LinkedIn, employee referrals, or HR partners.

5. Interview and select the right candidate

Interviews should be structured, consistent, and legally compliant:

  • Ask the same core questions to all candidates
  • Document all interview notes objectively
  • Avoid prohibited questions
  • Assess both skills and cultural fit

Reference checks are strongly recommended, especially for roles involving trust, finances, or leadership.

6. Prepare a compliant Employment Agreement

Written contracts are not required by law in Ontario, but from our POV, it’s a good idea to have them. A good employment agreement usually covers the following points:

  • Job title and duties
  • Compensation and pay schedule
  • Hours of work
  • Overtime and vacation entitlements
  • Termination clauses (ESA-compliant)
  • Confidentiality and non-solicitation terms (if applicable)

If a contract is poorly written, employers could face serious problems if they need to end someone’s employment, especially under the new rules

It is wise to have an expert review your contracts.

7. Set up payroll and mandatory deductions

After your new employee accepts the job offer, make sure to set up payroll correctly right from the start.

  • ​Employers are responsible for:
  • ​Paying at least minimum wage
  • ​Issuing regular pay statements
  • ​Withholding and remitting CPP, EI, and income tax
  • ​Submitting payroll remittances on time

Most Ontario businesses use payroll software or hire outside help for payroll to reduce mistakes and stay compliant.

8. Register for WSIB Coverage

​Most Ontario employers need to register with the Workplace Safety and Insurance Board (WSIB) within 10 days after hiring their first employee.

WSIB provides:

  • Workplace injury insurance
  • Wage replacement benefits
  • Employer liability protection

If you don’t register, you could face penalties and have to pay premiums for past coverage.

​9. Complete new hire documentation

When you hire someone in Ontario, you need to collect and keep certain records, such as:

  • TD1 (Federal and Ontario tax forms)
  • Social Insurance Number (SIN)
  • Emergency contact information
  • Direct deposit details
  • Proof of eligibility to work in Canada

​10. Onboard the employee effectively

Hiring isn’t finished on the first day. 

Good onboarding helps employees stay longer, work better, and feel more involved. This includes: 

  • Workplace policies and safety training
  • Role-specific training
  • Clear performance expectations
  • Introductions to team members
  • Frequent follow-ups during the first 90 days

In Ontario, you also need to give employees specific ESA posters and get them to acknowledge your policies.

Common Hiring Mistakes to Avoid in Ontario

Many employers unintentionally create risks during the hiring process. Here are some common mistakes:

  • Classifying employees as contractors when they should be employees
  • Including termination clauses that do not meet legal requirements
  • Not registering with WSIB when required
  • Asking questions in interviews that are not allowed by law
  • Not providing written contracts to employees

​These mistakes can lead to fines, legal issues, or damage to your business’s reputation.

At TROIS Collective, we help Ontario employers at every stage of the employee lifecycle, from hiring to retention. Schedule a meeting with us!

FAQS

1. How to hire an employee in Ontario? 

You need to follow these steps to meet all legal requirements:

  • Register for payroll by opening a CRA account.
  • Most Ontario employers must register with the WSIB within 10 days after hiring an employee.
  • Make sure your job offer complies with the minimum standards set by the ESA, such as minimum wage and vacation pay.
  • Collect the employee’s SIN and have them fill out both federal and provincial TD1 tax forms.

2. What payroll deductions are required in Ontario?

 As an employer, you must withhold and send in three main deductions from each employee’s paycheck:

  • Canada Pension Plan (CPP) contributions
  • Employment Insurance (EI) premiums
  • Income tax (both federal and provincial)

3. Do you need to give a written employment contract in Ontario? 

It’s strongly recommended to use a written contract to protect yourself. 

If the contract does not clearly state the rules for termination notice or severance, the employee could be entitled to "Common Law" notice, which is often much more costly than the minimums set by the ESA.

4. What training must new hires complete in Ontario? 

The Occupational Health and Safety Act (OHSA) and the Accessibility for Ontarians with Disabilities Act (AODA) require employers to make sure all new employees complete the following training:

  • Health and Safety Awareness training
  • Workplace Hazardous Materials Information System (WHMIS) training, if it applies
  • Integrated Accessibility Standards Regulation (IASR) and Human Rights Code training

(AODA training is mandatory only for public-facing roles and WHMIS if hazards apply)

In Summary

Hiring an employee in Ontario involves more than just filling a position. 

If you are about to hire your first employee or grow your team, starting with the right process is key.

Do you need help hiring in Ontario? 

Working with our experienced HR professionals can save you time, reduce risk, and help your business grow.

Contact us.