Working under the table in Canada usually means being paid wages that are not properly recorded or reported by the employer.

Being paid in cash is not illegal by itself. The problem is when an employer pays you “off the books” without properly reporting your wages, making required payroll deductions or keeping employment records.

If you were paid under the table, you do not automatically lose your employee rights. You can still be entitled to minimum wage, overtime, vacation pay, public holiday pay and severance if the law considers you an employee.

⚠️ If you have been paid off the books, start keeping proof of your hours and wages. Text messages, schedules, bank deposits, emails and other records can become important if your employer later denies how much you worked or earned.

On This Page:

What Does Working Under the Table Mean?

Working under the table means being paid for work without the wages being properly recorded or reported.

It is also sometimes called:

  • Being paid off the books
  • A cash job
  • Unreported employment
  • Getting paid cash under the table

The important distinction is between cash pay and unreported pay. An employer can legally pay an employee in cash. What it can’t do is use cash to avoid its payroll, tax and employment obligations.

💡 Getting paid in cash does not automatically mean you are working illegally. The problem is when the employer does not properly report the employment or wages.

What are signs you are being paid under the table?

Warning signs can include:

  • Your employer pays you cash but gives you no pay statement
  • No income tax, CPP or EI deductions appear on your pay
  • Your employer does not give you a T4 when required
  • Your hours or wages are deliberately recorded incorrectly
  • Your employer refuses to issue a Record of Employment when required
  • You are called an independent contractor even though you work like an employee

If your employer calls you a contractor to avoid payroll obligations, see Employee vs. Independent Contractor in Canada.

Is It Illegal to Work Under the Table in Canada?

Paying an employee in cash is legal, but deliberately hiding employment income or avoiding required payroll reporting and deductions is not.

Employers generally have responsibilities that include:

  • Reporting employee wages
  • Deducting and remitting required income tax, CPP and EI amounts
  • Paying the employer share of required CPP and EI contributions
  • Keeping payroll and employment records
  • Providing required wage statements
  • Providing a T4 where required

Employees also remain responsible for properly reporting taxable income. If you knowingly failed to report income, tax issues can arise even if your employer started the arrangement.

Can your employer say you agreed to be paid under the table?

An agreement to receive cash does not automatically let an employer avoid minimum employment standards.

An employer cannot simply say, “You agreed to cash, so you have no vacation pay, overtime or termination rights.” If you are legally an employee, the minimum protections that apply to your employment still matter.

Do You Still Have Employee Rights If You Were Paid Under the Table?

Yes. Being paid off the books does not automatically take away your employment rights.

If you are legally an employee, you can still have rights to:

  • Minimum wage
  • Overtime pay where applicable
  • Vacation pay
  • Public holiday pay
  • Job-protected leaves
  • Human rights protections
  • Termination and severance rights

Your employer’s failure to keep proper records can make proving your hours and wages more difficult, which is why your own records are important.

What if you were paid below minimum wage?

Cash workers are still entitled to the applicable minimum wage if they are employees covered by employment standards law.

An employer cannot avoid minimum wage simply by paying you cash or leaving you off its payroll.

See our guide to minimum wage in Canada.

What if your employer says you were an independent contractor?

Being paid without deductions does not automatically make you an independent contractor.

If the business controlled how you worked and you operated more like an employee than someone running their own business, you may have been misclassified.

That can affect vacation pay, overtime, employment standards protections and what you are owed when the relationship ends.

Can You Get Severance If You Were Paid Under the Table?

Yes. If you were legally an employee, being paid under the table does not automatically eliminate your severance rights.

Your employer can’t necessarily avoid severance simply because some or all of your wages were paid in cash or were not properly reported.

Proof of your real earnings can become particularly important. Useful records can include:

  • Cash-payment records
  • Bank deposits
  • Text messages about your pay
  • Work schedules
  • Emails
  • Timesheets or calendars
  • Witnesses who knew your hours or rate of pay

If you have been fired from a cash job, see our guide to severance pay in Canada before accepting that nothing is owed. You could receive up to 24 months’ pay.

⚠️ Don’t sign a release based on an artificially low wage figure if part of your regular compensation was paid in cash. Gather proof of what you were actually earning first.

Can You Get EI If You Were Paid Under the Table?

You may still be able to qualify for EI, but unreported wages and hours can make the claim more complicated.

EI eligibility depends in part on insurable employment and insurable hours. If your employer failed to properly record your employment, Service Canada may not initially have the information it needs.

Keep evidence showing:

  • When you worked
  • How many hours you worked
  • How much you were paid
  • When the employment ended

Don’t assume you cannot apply simply because your employer failed to issue proper paperwork.

If you were dismissed, see Can You Get EI If You’re Fired?. You can also review our guide to ROE Codes in Canada.

What Should You Do If You Were Paid Under the Table?

Start by gathering proof of your employment, hours and real rate of pay.

  • Keep payment records. Save deposit records, messages and notes showing when and how much you were paid.
  • Track your hours. Keep schedules, calendars, timesheets and other proof of when you worked.
  • Save employment messages. Texts and emails can help show that you were working for the business and what you were promised.
  • Keep tax and payroll documents. Save any T4, ROE, pay statement or other document the employer provides.
  • Don’t create false records. If your employer asks you to sign inaccurate hours, wages or contractor documents, get advice first.
  • Get advice if you are fired. Unreported wages do not automatically mean you lose your severance rights.

Can your employer fire you for asking to be paid properly?

An employer can face legal problems if it punishes you because you tried to exercise a workplace right protected from reprisal.

The exact protection depends on which employment law applies and what right you asserted. If you are disciplined, lose hours or are fired after raising a protected wage or employment standards issue, see our guide to workplace retaliation in Canada.

Working Under the Table: Frequently Asked Questions

Is it illegal to be paid cash in Canada?

No. Paying wages in cash is not automatically illegal. The problem is failing to properly record and report employment income or make required payroll deductions.

Do cash workers still get vacation pay?

Yes, if you are an employee entitled to vacation pay under the employment standards law that applies to you. Paying cash does not erase that entitlement.

Can I get severance from a cash job?

Yes, if you were legally an employee and your employment was terminated. The fact that wages were paid in cash does not automatically eliminate severance rights.

What if I never received a pay stub?

Employers are generally required to keep wage records and provincial employment standards laws impose pay-statement requirements. Keep your own evidence of hours and payments if your employer failed to provide proper records.

Can I get in trouble for working under the table?

Tax consequences can arise if you knowingly failed to report taxable income. Don’t assume, however, that your employer’s failure to follow payroll rules takes away your employment rights. Tax issues and employment rights should be dealt with separately.

⚠️ Unionized? Wage, payroll and termination disputes generally must be addressed through your union and the grievance process. Samfiru Tumarkin LLP’s employment law team can’t assist with unionized workplace disputes.

Paid Under the Table? Find Out What You’re Owed

Cash pay does not automatically erase minimum wage, vacation, overtime or severance rights. The key questions are whether you were legally an employee and what you can prove about your real hours and compensation.

Samfiru Tumarkin LLP helps non-unionized employees in Ontario, Alberta and British Columbia deal with unpaid wages, misclassification, termination and severance issues.

If you were paid off the books and your employer is denying your wages, refusing proper employment paperwork or has fired you, preserve your records and get advice before signing anything.

Were You Paid Under the Table?

Cash or unreported wages do not automatically erase your employee rights. Keep proof of your hours and pay before confronting your employer or signing anything.

Book Your Consultation