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
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
We are pleased to share a recent Benefits Canada article, “Employers seeking to withhold termination entitlements must prove wilful misconduct pre-planned: Ontario court,” with quotes from George Avraam. A recent Ontario Court of Appeal decision raises the bar for employers seeking to withhold minimum entitlements under the Employment Standards Act from employees dismissed for cause.
In Render v. ThyssenKrupp Elevator (Canada) Limited Group, the Ontario Court of Appeal redefined wilful misconduct under the Employment Standards Act and confirmed the modern day approach to assessing sexual harassment in the workplace.
Mark Render was terminated for cause after slapping a female co-worker on her behind. The trial judge found
On April 11, 2022 Bill 88, Working for Workers Act, 2022 received royal assent, introducing significant changes to a number of employment-related statutes, and introducing the Digital Platform Workers Rights Act, 2022.
The most important changes introduced by Bill 88 include:
On December 9, 2021, the Ontario Government filed a regulation that extended the COVID-19 Infectious Disease Emergency Leave (“Deemed IDEL“) and the temporary measures previously introduced by O. Reg. 228/20: Infectious Disease Emergency Leave under the Employment Standards Act, 2000 (the “ESA“) until July 30, 2022. Further details
On December 2, 2021, the Ontario government passed Bill 27, Working for Workers Act, 2021, introducing significant changes to workplace laws. The most significant changes include:
On May 21, 2021, we reported in a blog post that the British Columbia government passed Bill 13, Employment Standards Amendment Act (No. 2), 2021, which amends the Employment Standards Regulation to add a permanent and paid sick leave program. The Government did not provide details on the leave at that time. However,
On June 4, 2021, the Ontario Government announced that the “COVID-19 Period” and the temporary measures introduced by O. Reg. 228/20: Infectious Disease Emergency Leave (the “Regulation”) under the Employment Standards Act, 2000 (the “ESA”) have been extended until September 25, 2021.
The Regulation, which was first introduced in May 2020,
