"Single market (but food treated specially)" wouldn't be unprecedented; Switzerland was basically like this for a long time.
Working Time Directive may be more of a sticking point, though Canada doesn't seem _that_ far away from aligned with it anyway (big difference would be on paid time off, where Canada's way under the minimum).
AFAICT many EU nations let stat holidays count towards the paid time off allowance. Ontario has 9 stat holidays. 10 paid days off guaranteed + 9 stat holidays is pretty close to the 20 required by Europe's paid time off guarantees.