Remote & Hybrid Work in Canada: Must-Have Policies for 2025

By Ashley Thiel

Having a remote work policy is one of the top hybrid workplace trends for 2025. Even though the number of remote workers is on the decline, employers still require a remote work policy in Canada. Managing remote teams remains an important task for employers. To do this, employers require clear remote and hybrid work policies.

In this blog, we discuss:

What is the current state of remote and hybrid work in Canada?
What is a typical remote work policy? What does it include?
What employment laws apply to remote employees in Canada?
What is the CRA policy for remote workers?

What is the current state of remote and hybrid work in Canada?

The pandemic almost quadrupled the number of remote workers in Canada. According to Statistics Canada, the number of people working at home went from 7.1% in May 2016 to 24.3% in May 2021. However, since that time, the percentage of people working from home has been declining.

As of May 2024, 18.7% of employed people worked mostly from home in a remote or hybrid capacity. That’s still almost 1 in 5 workers and employers in some industries have a significantly higher percentage of people working from home.

To no one's surprise, Ontario has the most remote workers. Saskatchewan has the least. In terms of cities, “Slightly over one-third of employed people in the census metropolitan area (CMA) of Ottawa–Gatineau (34.2%) were mostly working from home in May 2024, the highest rate nationally and well above the rates in Toronto (24.7%), Vancouver (22.4%) and Montréal (20.6%), says Statistics Canada.

Even with the current hybrid workplace trends having employers requesting people come back to the office, it's still essential to have a detailed remote work policy in place.

What is a typical remote work policy? What does it include?

A typical remote work policy has several sections outlining work expectations. It's similar to other workplace policy documents and can include these sections, depending on the employer and provincial employment laws:

Purpose and Scope:

Explains why the policy exists (e.g., flexibility, productivity, employee well-being) and defines who is eligible for remote work (all staff, certain roles, or case-by-case).

Eligibility and Approval Process:

Criteria for determining if a role or employee is suitable for remote work. It will also outline how employees request remote work arrangements and if manager approval and HR involvement are required.

Work Location Requirements:

Guidelines on where employees can work (home, co-working spaces, within Canada, etc.). It can also list restrictions on cross-border remote work due to tax, payroll, or legal implications.

Work Hours and Availability:

Expected core hours, break times, and scheduling flexibility and communications expectations for responsiveness (email, chat, calls). This can also outline manager-employee check-in and team engagement expectations.

Technology and Equipment:

Define if the company will provide equipment
(laptops, monitors, headsets, etc.) and the employee's responsibility for maintaining internet access and a suitable workspace.

IT Security and Confidentiality:

Rules for accessing company systems and data remotely, use of VPNs, password protection, and secure Wi-Fi. The policy will also outline confidentiality and data privacy expectations.

Compensation and Expenses:

Clarification that pay and benefits remain unchanged. It will also outline what expenses are reimbursed, if any (internet, phone, office supplies, etc.), and the tax implications of home office deductions (if applicable).

Training and Support:

A list of available resources for setting up a remote workspace, training on tools, software, and cybersecurity.

Policy Compliance and Review:

Employee acknowledgment that they’ve read and understood the policy and the consequences for violations.

What employment laws apply to remote employees in Canada?

In Canada, remote employees are covered by the same employment laws as standard employees. The specific employment rules can vary depending on the province or territory where the employee performs their work.

Remote workers have the same employment standards as other workers, as outlined in their province. For example, the Employment Standards Act (ESA) in Ontario. Remote and hybrid employees also have protection under:

Occupational Health and Safety (OHS) Laws
Human Rights Legislation
Privacy and Data Protection Laws (PIPEDA)
Workers’ Compensation Laws (e.g., WSIB in Ontario).

Remote work does not exempt employers from employment laws. The location where the employee physically performs their work usually determines which provincial or federal laws apply. Employers must ensure their remote work arrangements meet the same standards as in-office roles.

What is the CRA policy for remote workers?

The Canada Revenue Agency (CRA) does not have a single remote work policy, but it provides tax guidance for employees working from home. This mainly covers home office expense claims and employer payroll obligations.

Under CRA’s updated rules, employees with a full-time remote work agreement are considered “attached” to one of their employer’s establishments. As a result, payroll deductions are based on the province where that establishment is located.

A full-time remote work agreement exists when an employer and employee agree that the employee will perform their duties entirely outside of the employer’s establishment (e.g., from a home office).

A final word on must-have remote work policies in 2025

Remote and hybrid arrangements remain a significant part of the employment landscape in Canada. Even with more employees returning to the office, nearly one in five continue to work from home, making it essential for employers to have clear policies in place. A well-structured remote work policy not only ensures compliance with employment laws and CRA rules but also supports productivity, security, and employee well-being—helping organizations adapt effectively to the future of work.

Check out our HR services if you require assistance writing a remote work policy or other HR documents.