Large firms here, especially the banks, tend to put degree or other post secondary education in Computer Science as a requirement. Though, I can't speak to how much they care about that, or pay attention to it. I don't recall seeing that requirement on job posting with smaller firms and start-ups.

Yes, contracting exists in Toronto. Many firms, large and small, often post job openings for contract positions of anywhere from 3 months (uncommon, but happens) to 6 months (very common) or a year (very common).