Join us for our 2026 Labour & Employment Webinar on February 4, where we’ll unpack the most significant developments shaping workplace law in Canada. This year brings critical updates that every employer needs to understand, from evolving termination clauses and new protections for gig workers to navigating new employment standards laws and creative immigration strategies
As we wrap up 2025 and look forward to 2026, here are 10 key developments Canadian employers should track:
In Ontario, there continues to be judicial scrutiny of employment contract termination clauses, particularly the use of the phrase “at any time”.
The Dufault case maintains precedential value. Please see our post here for more discussion on the case here and for more discussion on the issues with the use of the phrase “at any time”.
However, the recently decided Ontario Superior Court decision, Li v. Wayfair Canada Inc., upheld a termination clause that limited the employee’s entitlements to Employment Standards Act, 2000 minimums. The termination provision in question included “at any time” language which the court determined does not automatically render a termination provision non-compliant with the ESA as long as the provision is compliant when read as a whole.
In Bertsch v. Datastealth Inc. the Court of Appeal provided support for employers when it upheld a trial level decision which indicates that termination provisions can be enforced if they are clear and unambiguous, compliant with employment standards law and exclude common law entitlements.
With the introduction of the Digital Platform Workers’ Rights Act, Ontario joined British Columbia by introducing legislation regulating the gig economy. The Act provides several entitlements to employees in the gig economy including a right to minimum wage, amounts earned, and a recurring pay period and pay day. Beyond those entitlements, the Act also provides a right to information.
For more information about the requirements, please see our post here.Continue Reading Top 10 Canadian Labour & Employment Law Developments of 2025
Special thanks to our articling student Viesakan Sivaraj for contributing to this update.
Once a union is certified, the employer must immediately turn their attention to negotiating a first collective agreement. The Ontario Labour Relations Act, 1995, (the “Act”) prescribes the timelines and rules for negotiating a collective agreement. Understanding these rules can assist employers with navigating negotiations and ensuring compliance with the Act during bargaining.
Once a union is certified or voluntarily recognized, it must give written notice to the employer to begin bargaining for a collective agreement (Section 16). The employer and union must meet within 15 days of receiving notice, unless they agree otherwise, and bargain in good faith, making every reasonable effort to reach an agreement (Section 17). Either party may request that the Minister of Labour appoint a conciliation officer to help resolve differences and assist both sides in reaching an agreement (Section 18). Any agreement reached must be ratified by a vote of the bargaining unit employees, with limited exceptions, such as in the construction industry.
The agreement must be filed with the Ontario Ministry of Labour, Immigration, Training and Skills Development and all collective agreements that are filed with the Ministry are published on the Ontario government’s Collective Agreements e-Library Portal website. If the union fails to give notice to bargain within 60 days of certification or fails to start bargaining, the Ontario Labour Relations Board (the “Board”) may terminate its bargaining rights (Section 65), though this is extremely rare. Generally, once a union is certified, they are here to stay.
There is no fixed deadline for finalizing the first agreement, but the Act provides mechanisms to address delays, impasse, or bad faith bargaining. Under section 43(1) of the Act, where the parties are unable to reach a first collective agreement and either a conciliation board will not be appointed or the conciliation board report has been released, either party may apply to the Board to direct the settlement of a first collective agreement by arbitration.
The Board must issue a decision on whether to arbitrate within 30 days of receiving the application. Where the parties give notice to the Board of their agreement that the Board arbitrate the settlement of the first collective agreement, the Board must appoint a date for and commence a hearing within 21 days of receiving notice and must determine all matters in dispute and release a decision within 45 days of the commencement of the hearing.
A first collective agreement settled under Section 43 of the Act is effective for 2 years from the date of settlement. If no agreement is reached within one year of certification, employees may apply to decertify the union (Section 63), though again, this is rare.Continue Reading From Bargaining Table to Arbitration: Navigating First Agreements, Renewals, and Back-to-Work Orders
As part of our newly launched Doing Business in Canada Guide 2025, Chapter 13 on Labour and Employment offers a comprehensive overview of the legal landscape that governs the Canadian workplace. Whether your organization operates under federal jurisdiction or within one of Canada’s provinces or territories, understanding the dual framework of employment regulation is
In a recent conversation with our colleagues across the Americas—in Argentina, Brazil, Canada, Colombia, Mexico and the United States—we examined the latest developments affecting multinational employers in the region. Please click here to tune in to the recording at your convenience. Read on for a preview of some of the key
