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Special thanks to our articling student Rana Aly for contributing to this update.

Employers monitoring their employees in the workplace should be cognizant of their obligations under employment and data privacy laws. This article provides a primer on legal requirements for employee monitoring in Canada and contrasts employer compliance requirements in the provinces of Ontario, British Columbia, Alberta, Quebec, and Nova Scotia.

Employers must balance operational needs, such as safety, security, and productivity, with any privacy rights of their employees. Generally, monitoring should be reasonable, proportionate, and tied to a legitimate business purpose. Organizations must comply with applicable federal or provincial privacy laws, which can include safeguarding any employee personal information collected, obtaining employee consent in certain circumstances, and providing notice to employees of monitoring practices.

PIPEDA and Employee Monitoring

For federally regulated private-sector employers—such as banks, airlines, and telecommunications companies— employee monitoring is generally governed by the Personal Information Protection and Electronic Documents Act (PIPEDA). PIPEDA only applies to employee personal information in federally regulated workplaces; otherwise, it governs commercial and customer personal information across Canada.

Provinces that have enacted private‑sector privacy legislation deemed “substantially similar” to PIPEDA are exempt from PIPEDA’s collection, use, and disclosure provisions under section 26(2)(b). Presently, only British Columbia, Alberta, and Québec have privacy legislation that is substantially similar to PIPEDA.

In provinces which do not have substantially similar private‑sector privacy legislation, such as Ontario and Nova Scotia, PIPEDA does not apply to provincially regulated employers’ handling of employee personal information. In those provinces, employee privacy protections arise through a more fragmented framework that may include employment standards legislation, privacy torts under the common law, employment contracts, workplace policies, and collective agreements. While PIPEDA does not govern employee personal information for provincially regulated employers in such provinces, it continues to apply to commercial or customer personal information across all private‑sector organizations engaged in commercial activities.Continue Reading Employee Monitoring in Canada: What Employers Need to Know

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:

1. Termination Clause Update

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.

2. Regulation of Gig Workers

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 Looking Forward to 2026: Top 10 Canadian Labour & Employment Law Developments of 2025

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…

Changes to the capital gains inclusion rate and the employee stock option deduction rate (as proposed in Budget 2024) will apply to stock options exercised and shares sold on or after June 25, 2024. 

The new measure reduces the stock option deduction and capital gains tax exemption from 1/2 of the taxable amount to 1/3 of the taxable amount, if an individual’s annual combined limit of CAD 250,000 has been exceeded. The individual taxpayer can choose how to allocate the preferential tax treatment between the stock option income and capital gains to the extent the combined limit has been exceeded. 

There is still uncertainty as to how employers should manage tax withholding on stock option income (i.e., apply a 1/2 or 1/3 exemption), given they would not be in a position to know whether the combined limit has been reached by the employee and how the employee has chosen to allocate the exemptions. Further technical changes in the legislation are expected to be introduced at the end of July 2024 that may provide additional clarification on this point. For now, it may be reasonable for employers to assume that only 1/3 of the stock option income is exempt and withhold taxes accordingly and leave it up to the employees to claim the 1/2 deduction (if available) when they file their individual tax returns. Continue Reading Changes to Taxation of Stock Options and Capital Gains – Effective Immediately

Cyberbullying is becoming an increasingly pertinent issue in the workplace. With the growing prevalence of remote work and employee social media groups, employers face greater liability for online communications that occur outside of the office.

While the law is sparse on the topic of cyberbullying, victims may have several legal avenues to address this issue.

Employers are being faced with difficult decisions about potentially reducing their headcount to eliminate redundant positions in light of a shift in the economic climate and an increased focus on business efficiency.

With any termination comes liability.

In this 3-part series of In Focus videos specific to Reductions in Force, our Labour and Employment…

Background

In May 2020, the Government of Ontario first introduced O. Reg. 228/20: Infectious Disease Emergency Leave (the “Regulation”) under the Employment Standards Act, 2000 (the “ESA”). The Regulation provided employers with temporary relief from the notice of termination and severance pay obligations under the ESA during the COVID-19 period. The Regulation first defined the…

On June 1, 2022, the Québec National Assembly passed Bill 96, An Act respecting French, the official and common language of Québec, introducing significant changes to the Charter of the French Language and other laws. The Bill aims to reinforce the use of French in business, services, communications, education, and the workplace by…