Special thanks to our articling student Keyonna Trojcak for contributing to this update.
Baker v. Van Dolder’s Home Team Inc., 2025 ONSC 952, following a novel finding in the recent case of Dufault v. The Corporation of the Township of Ignace[1], held, among other findings, that a “without cause” termination provision
Special thanks to our articling student Andie Hoang for contributing to this update.
As artificial intelligence and its integration into business operations continues to evolve rapidly, many employers are exploring the use of AI systems in a bid to make hiring decisions more efficient and data-driven. “AI” encompasses a wide range of technologies from simple automated resume screening tools and complex machine learning systems to the forward-looking agentic AI – the kind of AI that does tasks independently.
This rise in the use of AI tools in making employment-related decisions has spurred legislators to regulate their use. This has created a minefield of increased legal liability for employers, especially concerning privacy considerations and the potential for these tools to exhibit biased decision-making. This article provides an overview of the current state of legislative developments related to AI in hiring and recruitment in Ontario, federally, and internationally. It also highlights best practices for employers who are considering the adoption of such tools.
On March 21, 2024, Bill 149 – Working for Workers Four Act received Royal Assent as part of a series of legislative initiatives that have been introduced by the Ontario government under the “Working for Workers” banner since 2021. Each piece of legislation in this series seeks to address various contemporary issues within Ontario workplaces through amendments to the Employment Standards Act, 2000 (the “ESA”). Bill 149 brings about a number of additional changes that will be relevant for employers (which are summarized in our blog post), especially relating to the use of AI in the hiring process.
Starting January 1, 2026, employers will be required to disclose in job postings whether they are using artificial intelligence in the hiring process (i.e., if AI is being used to screen, assess or select applicants for the given position). For the Ontario government, the purpose of such disclosure is “to strengthen transparency for job seekers given that there are many unanswered questions about the ethical, legal and privacy implications that these technologies introduce.”Continue Reading Artificial Intelligence, Real Consequences? Legal Considerations for Canadian Employers Using AI Tools in Hiring
Special thanks to our articling student Andie Hoang for contributing to this update.
As we wrap up 2024 and look forward to 2025, here are 10 key developments Canadian employers should track:
In February 2024, amendments to section 230 of the Canada Labour Code came into effect requiring federal employers to provide their employees with a graduated notice of termination based on the length of an employee’s continuous employment. Prior to this, employers had to provide a minimum of two weeks’ notice of termination or pay in lieu of notice to an employee who had completed at least three months of continuous employment with said employer.
The amendments also require employers to provide a written statement of benefits to employees who have been terminated. Prior to these amendments, this was only required for group terminations, but now will also apply to individual terminations. These statements must outline an employee’s right to vacation benefits, wages, severance pay and any other benefits and pay arising. A federal employer’s obligation to pay severance pay under section 235 of the Code, however, remains unchanged.
Please see our full blog on the updated amendments and notice lengths, “Reminder for Federal Employers: Changes to Termination Notice Period in Effect NOW.”
On March 21, 2024, Bill 149 – Working for Workers Four Act received Royal Assent as part of a series of legislative initiatives that have been introduced under the “Working for Workers” banner since 2021. Each piece of legislation in this series seeks to address various contemporary issues within Ontario workplaces. Bill 149 introduces significant changes to Ontario’s employment law, including:
The Act brings about a number of additional changes that will be relevant for employers, which are summarized in our blog post, “* UPDATE * Ontario Passes Bill 149, Working for Workers Four Act, 2024, Imposing Pay Transparency Requirements Among Other Things.”
The Ontario Superior Court of Justice in Dufault v. The Corporation of the Township of Ignace, 2024 ONSC 1029, delivered a decision that will impact the way employment agreements are drafted going forward. The Plaintiff was employed by the Defendant Township on a fixed-term contract. However, with 101 weeks remaining in her contract term, the Township terminated her employment without cause. Following this, the Plaintiff sued the Township for wrongful dismissal, arguing that the termination clause in their contract was unenforceable and that they were therefore entitled to reasonable notice of termination. Ultimately, the Court found the termination provisions unenforceable as the contract did not comply with the Employment Standards Act, 2000, for three reasons.Continue Reading Top 10 Canadian Labour & Employment Law Developments of 2024
We are thrilled to invite you to our upcoming event series, featuring a range of sessions in Canada and across North America.
In our 75-minute Canadian Employer Update webinar, we will bring you up to speed on major developments like Ontario’s ‘Working for Workers’ legislation, managing pay transparency obligations across Canada, significant case law
In the recent case of Bertsch v. Datastealth Inc., 2024 ONSC 5593 (Bertsch), an Ontario court upheld a termination provision that did not specify every detail. While recent decisions suggest that such provisions may have to be flawless to be enforceable, Bertsch is a welcome decision showing that employers do not necessarily have to meet that high bar to protect themselves.
Bertsch reminds employers of the importance of including clear and compliant termination provisions in employment agreements. Ontario employers should review their agreements to ensure they meet the requirements of the Employment Standards Act, 2000 to avoid potential legal challenges. Employers should continue to confirm their termination provisions are:
Bertsch demonstrates that while courts will continue to closely scrutinize termination provisions in employment agreements, employers must only ensure that the provisions are legal and unambiguous. This provides some relief for Ontario’s employers by indicating that they do not necessarily have to rely on “perfect” termination clauses that reference all scenarios and laws in their employment agreements to enforce them.
Even with this positive decision for employers, we continue to encourage all Canadian employers to assess the enforceability of termination provisions in existing employment agreements.Continue Reading Don’t Let Perfect Be the Enemy of Excellent: Ontario Court Validates Termination Clause that is Unambiguous and Legal
Special thanks to our articling student Mario Lofranco for contributing to this update.
In a previous blog post, we discussed the proposed changes that Bill 149 would bring to several employment statutes, building on the Working for Workers Acts, 2021, 2022, and 2023.
Bill 149 received royal assent on March
Special thanks to our articling student Ravneet Minhas for contributing to this update.
Federal employers should be aware of recent amendments to the Canada Labour Code, which increased the minimum termination notice period for federally regulated private sector employees.[1] The changes came into force February 1, 2024 and provide employees who have completed at least three years of continuous service with a longer notice period if terminated without cause.
Previously, employers had to provide a minimum of two weeks’ notice of termination or pay in lieu of notice to an employee who had completed at least three months of continuous employment with the employer.Continue Reading Reminder for Federal Employers: Changes to Termination Notice Period in Effect NOW
Special thanks to presenters Andrew Boyd, Andrew Morreale and Haran Viswanathan.
Tune in to our latest quick chat where we outline what employers need to know about Canada’s augmented mandatory reporting rules for tax in certain transactions. This is tailored for tax professionals, lawyers, compliance officers, General Counsel, and Canadian business leaders involved
