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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:

1. Changes to Termination Notice Periods for Federal Employees

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.”

2. New Obligations for Ontario Employers Under Bill 149 – Working for Workers Four Act

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:

  • Job Postings: Employers who publicly advertise job postings are now required to disclose either the expected compensation or a range of expected compensation. The range of expected compensation shall be subject to conditions, limitations, restrictions or requirements as may be prescribed. Further, employers will also be required to disclose in job postings whether they used artificial intelligence in the hiring process (i.e., if AI was used to screen, assess or select applicants for the position). These new requirements will come into force on January 1, 2026.
  • Tips and Tip Policies: If an employer has a policy in respect of tip pooling, they are required to both post and keep posted a copy of their policy in a conspicuous place in their establishment where the policy is likely to come to the attention of employees. Further, employers are required to retain copies of any written tip pooling or sharing policy for a period of three years after it is no longer in effect.

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.”

3. Timely Judicial Reminder re Termination Provisions and Fixed-Term Contracts

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

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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…

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In the face of intensifying geopolitical risk and continuing economic uncertainty, the challenges for global employers to plan carefully and operate strategically to maintain a thriving workforce is greater than ever. We’ll help employers navigate those challenges in…

To wrap up 2023, we have highlighted the key developments in Canadian labour and employment law, with a focus on Ontario.

1. Ontario’s Working for Workers Acts

In 2023, the Ontario government continued building on previous legislation by passing Bill 79, Working for Workers Act, 2023, and introducing Bill 149, Working for Workers Four Act, 2023. These two bills are the latest in a series of legislative changes expanding employee rights which started with Bill 27 and Bill 88, passed in 2021 and 2022, respectively.

Bill 79, Working for Workers Act, 2023, received royal assent on October 26, 2023. Some of its key changes include:

  • The inclusion of remote employees in the head count for mass termination thresholds under the Employment Standards Act, 2000 (“ESA“);
  • An increase from $1.5 million to $2 million in the maximum fine that may be imposed on a corporation under Ontario’s Occupational Health and Safety Act; and
  • An expansion of eligibility criteria for reservist leave to include employees in treatment, recovery or rehabilitation for an illness or injury resulting from participation in certain reservist operations or activities.

Please consult our previous blog post for more detailed information on this Bill.

If passed, Bill 149, Working for Workers Four Act, 2023, which carried second reading on November 23, 2023 and was referred to a standing committee on social policy, would also introduce significant changes to a number of Ontario employment-related statutes. Among them, the Bill would require employers to disclose pay information in job postings (i.e., expected compensation or a range of expected compensation), and whether they use artificial intelligence in the hiring process. Additionally, and in an effort to eliminate discriminatory requirements towards immigrants, employers would also be prohibited from requiring Canadian experience. For more information on these changes, please read our previous blog post on the topic. 

2. Legislative Push for Pay Transparency in Canada

The past year has also seen a growing pay transparency trend, both in Canada and abroad, intended to help bridge the pay gap for historically-disadvantaged groups. Among the latest developments in this area, British Columbia passed the Pay Transparency Act, creating new obligations for employers to disclose certain pay information in publicly-advertised job postings, and to prepare annual pay transparency reports if they qualify as a “reporting employer” under the legislation. This new law also prohibits reprisal against employees for discussing or inquiring about their pay or for asking the employer to comply with its statutory pay transparency obligations.

Other provinces, including Newfoundland and Labrador, and Prince Edward Island have passed similar legislation. We covered this pay transparency trend in greater detail in two blog posts, accessible here and here. Ontario is also expected to amend the ESA to require the disclosure of certain pay information in job postings as part of Bill 179, as discussed above.  

3. New Tort of Harassment

Alberta recently became the first Canadian province to recognize the tort of harassment. The development is significant because it departs from Ontario and British Columbia, which have declined to recognize the tort.

In Alberta Health Services v Johnston, 2023 ABKB 209, the Alberta Court of King’s Bench recognized the tort of harassment because the harm in question could not be adequately addressed by any existing torts.  In this case, Alberta Health Services (“AHS”) and two of its senior employees sued Mr. Johnston for defamation, invasion of privacy, assault and harassment. Mr. Johnston, an online talk show host and mayoral candidate, used his talk show to frequently criticize the AHS’ response to the COVID-19 pandemic. He referred to the AHS as Nazis and suggested that they should be subject to violent attacks. He targeted one AHS employee, Ms. Nunn, by sharing photos from her social media accounts, attacking her family and alleging she was an alcoholic.

The Court awarded Ms. Nunn, among other things, $100,000 in general damages for harassment.

In recognizing the tort, Justice Feasby canvassed existing case law across the country and found that no existing torts squarely addressed the harms caused by the harassment in question. Justice Feasby determined the tort of harassment exists where a defendant has:

  1. Engaged in repeated communications, threats, insults, stalking, or other harassing behaviour in person or through other means;
  2. That he/she knew or ought to have known was unwelcome;
  3. Which impugn the dignity of the plaintiff, would cause a reasonable person to fear for his/her safety or the safety of his/her loved ones, or could foreseeably cause emotional distress; and
  4. Caused harm.

Besides the tort of harassment, other legal avenues that victims of harassment-related claims may pursue include human rights claims, occupational health and safety claims, a complaint with the police and, in Nova Scotia, an application for a cyber-protection order.

Employers should be aware of the legal remedies that may be available to victims of bullying and harassment, including the newly recognized tort of harassment in Alberta. More information can be found on our blog post here.Continue Reading Top Canadian Labour & Employment Law Developments of 2023

What Canadian Employers Need to Know to Ring in 2024

In 2023, we helped Canadian employers overcome a host of new challenges across the employment law landscape. Many companies started the year with difficult cost-cutting decisions and hybrid work challenges. We’ve worked hard to keep our clients ahead of the curve on these issues, as well…

Special thanks to our articling student Madison Bruno for contributing to this update.

On November 14, the Ontario Government introduced Bill 149, Working for Workers Four Act, 2023. If passed as expected, Bill 149 would significantly change several employment statutes, building on the Working for Workers Acts, 2021, 2022, and 2023. Key changes include: new requirements for Ontario employers to disclose pay information in job postings; a new obligation to disclose whether artificial intelligence was used during the hiring process; and it would prohibit using Canadian work experience as a job requirement.Continue Reading Ontario Poised to Pass Major Changes to Job Posting Requirements

Special thanks to our articling student Ravneet Minhas for contributing to this update.

In a previous post, we discussed the legislative trend for greater pay transparency across Canada, including in British Columbia with the recent adoption of the Pay Transparency Act.

The British Columbia government has since released guidance on the application of the Act. This clarifies the requirement to include salary or wage information in all publicly advertised job postings, effective November 1, 2023.

Required Wage and Salary Information in Job Postings

To comply with the Act, employers (and third parties posting on behalf of an employer) must include the expected wage or salary or expected wage or salary range in job postings. For example:

  • $20 per hour; or
  • $40,000 to $60,000 per year.

The wage or salary range cannot be unspecified or open-ended. For example, stating that a job pays “$20-$30 per hour” would comply with the Act, while “$20 per hour and up” would not.

The Province leaves it to the employer’s discretion to decide how extensive the advertised wage or salary range may be. Further, employers are not required to include bonus pay, overtime pay, tips, or benefits in their job postings. The above requirements do not prevent an applicant from requesting a higher wage or salary than the amount advertised. Similarly, employers are free to offer an applicant a higher wage or salary than the one included in the job posting.Continue Reading Update: New Guidance Details Requirements Under the British Columbia Pay Transparency Act

Special thanks to our summer associate Daniel Dai for contributing to this update.

British Columbia’s Pay Transparency Act, which received royal assent on May 11, 2023, imposes pay disclosure and reporting obligations on both public and private sector employers to address systemic discrimination in the workplace. It is the latest in a series of new pay transparency laws across Canada.

This push for more transparency to bridge the pay gap for historically disadvantaged groups is a global trend. In the United States, 8 states, including California, Colorado and Washington, along with cities like New York City, have recently adopted salary disclosure laws. There is also pending legislation at the federal level—the Salary Transparency Act—that would require all job postings to include the wage or wage range for a position. Similarly, the European Parliament approved the Pay Transparency Directive in March 2023, which is set to enter into force in 2024. Among other things, this Directive establishes a right to certain pay information and imposes pre-employment pay disclosure obligations on both public and private sector EU employers.

Recent Canadian Developments

Continue Reading The Legislative Push for Pay Transparency in Canada Mirrors Global Trend

With special thanks to our presenters Benjamin Ho (United States),  Matías Herrero (Argentina), Leticia Ribeiro (Trench Rossi Watanabe, Sao Paulo*), Maria Cecilia Reyes (Colombia) and Liliana Hernandez-Salgado (Mexico).

In this session, US-based multinational employers with business operations in the Americas region hear directly from Benjamin Ho and local practitioners on the major developments they…

Join us for a four-part webinar series as our US moderators welcome colleagues from around the globe to share the latest labor and employment law updates and trends. US-based multinational employers with business operations in Asia Pacific, Europe, the Middle East and Africa, and the Americas regions will hear directly from local practitioners on the…