Both provincial and federal sentences have options for early release.
Provincial Release Options
If you are serving a provincial sentence (less than 2 years), you can earn credits for following the rules of the facility and taking part in programs. These credits can be used to reduce your sentence (called "earned remission") by up to one-third. Your "early release date" is calculated every month and, when you reach it, that's the end of your sentence and you are released.
Before your release date, you can apply for reintegration leave which allows you to live in the community under supervision as a way to reintegrate into your community. Reintegration leave is granted for 60 days and can be renewed.
You can also apply to the Parole Board of Canada for day parole, to leave the facility during the day to work or study. You can generally apply after serving 1/6 of your sentence.
Federal Release Options
If you are serving a federal sentence (2 years or more), you cannot reduce your sentence but in most cases you will be released (called "statutory release") after you have served two-thirds of your sentence. While on statutory release, you are still supervised by corrections staff and can be returned to jail if you present a risk to the public.
Before your release date, you can generally apply to the Parole Board of Canada for full parole after you have served one-third of your sentence or 7 years, whichever comes first. When on parole, you live in the community under the supervision of a parole officer. Your application goes to the Parole Board of Canada and they decide whether or not to grant you parole.
You can also apply for day parole to leave the facility during the day to work or study and return to the facility or a halfway house every night. Federal inmates can apply for day parole 6 months before they can apply for full parole. Your application goes to the Parole Board of Canada and they decide whether or not to grant you parole.