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 Top 10 Canadian Labour & Employment Law Developments of 2025