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
Special thanks to our summer student Brianna Grieff for contributing to this update.
With an uncertain economy amidst tariff concerns, Canadians continue to make bolder workforce demands. Although many workers have returned to pre-pandemic attitudes, notable union activity remains rampant across Canadian workforces. For example, over the past 18 months, Canada Post has faced ongoing negotiations and strike notices from the union that represents 55,000 postal workers. On July 5th, 10,000 LCBO employees walked off the job, demanding higher wages and improved benefits. Finally, the professors at McGill University’s Faculty of Law made headlines by striking for five weeks in support of their right to unionize.
Employers are justifiably concerned about the potential for increased union activity, which can cause significant disruptions to operations. There are many strategies employers can use to stay union free, but it requires treading carefully, as labour laws offer extensive protections to employees’ right to unionize. One wrong step by an employer can lead to penalties, fines, and automatic union certification.
The certification process formalizes the collective bargaining relationship. And, understanding how this process works and appreciating how quickly it can move forward is essential for developing an effective union avoidance strategy.
The process for certification in Ontario involves three steps:
1. The Organizing Drive
First, the union will try to keep the organizing drive a secret. During this period, the union will typically attempt to gauge employee interest by having union representatives approach them at the workplace, typically while they are coming to or leaving work, as well as online. Union representatives will talk to employees about any issues they may have with the workplace and share the union’s contact information with them. Union organizing drives usually involve signing up employees as union members and collecting union membership cards. One way that unions target employers for a union drive is by obtaining the names, contact information, and/or home addresses of the employees of a certain workforce, which they use to send them propaganda.Continue Reading Best Practices for Employers Experiencing Labour Union Activity
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 Preston v. Cervus Equipment Corporation, Ontario’s Court of Appeal offered employers a friendly reminder that well-drafted settlement documents will survive judicial scrutiny.
Preston underscores the necessity of clear and precise language in settlement agreements. Employers should use broad and inclusive release language that can encompass a wide range of claims, even those not explicitly mentioned. By carefully drafting settlement agreements, employers can ensure that the settlement documents have the intended effect of concluding the employment relationship without courts stepping in to frustrate the finality of the settlement documents.
The case revolves around the interpretation of a release and indemnity clause in the settlement documents signed by Mr. Preston after his termination from Cervus Equipment Corporation. Mr. Preston was employed by Cervus from 2014 to 2018 and participated in the company’s Deferred Share Plan.
Upon his termination without cause in January 2018, Mr. Preston had 4,964.04 vested stock units valued at $75,949.81 and 4,499 unvested stock units. Cervus informed him that his vested stock units could be exercised according to the Plan and offered him a severance package of 15 weeks’ pay in lieu of notice. The parties then discussed and settled the matter. The settlement documents included a broad release of claims, which Mr. Preston signed after receiving independent legal advice.
Notably, the release language in the settlement documents did not specifically refer to the stock plan and vested stock units in question, but did reference that Mr. Preston was releasing all claims connected to his employment, and that he had no entitlement or claim with respect to any bonus, share award, stock option, or similar plan that his employer had offered to him.Continue Reading Ontario’s Court of Appeal Highlights the Importance of Respecting Broad Release Language in Employment Settlement Agreements
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 Andie Hoang for contributing to this update.
In 2022, the Ontario government sought to establish a new legal framework for “digital platform work” through the introduction of the Digital Platform Workers’ Rights Act, 2022. It is now set to come into force on July 1, 2025. The Act, stemming from the Working for Workers Act, 2022, introduces new rights and protections for workers within the gig-economy. Specifically, the Act will apply to workers who perform “digital platform work” (such as ride share, delivery, or courier services) and “operators” who facilitate the performance of digital platform work through a digital platform.
In conjunction with the Act, the Government of Ontario has recently published regulations that further clarifies the new rights and obligations under the Act. Key worker rights and new obligations include:
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
