Employment Laws in Canada: Key Updates for HR Professionals

February 14, 2025•3 min read

1. Pay Transparency Laws in Ontario and British Columbia

Pay transparency is becoming a significant focus in Canadian employment law. Ontario and British Columbia have introduced new legislation aimed at reducing wage gaps and promoting fairness in the workplace.

Ontario’s Pay Transparency Act requires employers to include salary ranges in job postings and prohibits them from asking candidates about their past salaries. These measures aim to reduce wage discrimination based on gender and other protected grounds.
British Columbia’s Pay Transparency Act, which took effect in 2025, mandates that employers with 500 or more employees submit pay transparency reports by November each year. This law is expected to expand to smaller businesses in subsequent years.

To comply, HR professionals should:

Ensure all job postings include salary ranges.
Review and update internal pay structures for equity.
Train hiring managers on legal obligations related to salary discussions.

2. Changes to Workplace Surveillance and Employee Privacy

With the rise of remote and hybrid work, employee surveillance has become a contentious issue. New regulations in Canada now limit how employers can monitor their workforce.

Key changes include:

Employers must provide clear disclosure if monitoring tools (e.g., keystroke tracking, webcam monitoring) are in use.
Data privacy regulations restrict the collection and storage of employee activity records.
Provinces such as Ontario and Quebec have introduced fines for non-compliance with workplace privacy rules.

HR professionals should implement transparent monitoring policies and inform employees about any tracking measures used to ensure compliance with these new laws.

3. Updates to Employment Standards and Gig Worker Rights

Employment laws are evolving to address challenges faced by gig workers and part-time employees. Several provinces have introduced new standards to improve job security and benefits.

Minimum wage increases: Many provinces, including Ontario and Alberta, have raised minimum wage thresholds to adjust for inflation.
Gig worker classification: In 2025, new rules redefine independent contractors vs. employees, impacting app-based services like Uber and DoorDash.
Improved contract terms: Gig workers are now entitled to basic labor protections, including fair dismissal policies and access to benefits in some provinces.

HR professionals should ensure worker classifications are legally sound to avoid misclassification lawsuits and adjust compensation structures accordingly.

4. Termination Laws and Wrongful Dismissal Protections

Canadian courts have recently reinforced protections for employees facing termination. Employers must ensure they follow proper procedures to avoid wrongful dismissal claims.

Key updates include:

Extended notice periods: Courts have ruled in favor of employees receiving longer severance packages when termination is not justified.
Remote worker terminations: Employers must provide clear termination agreements outlining remote work policies and severance conditions.
Recent legal precedents: Cases such as Smith v. ABC Corp (2024) have reinforced the requirement for progressive discipline before termination.

To mitigate risks, HR professionals should update termination policies, ensure proper documentation of employee performance, and seek legal counsel when necessary.

5. Expanding Employee Benefits and Leave Policies

Canadian businesses must adapt to new legal requirements regarding employee benefits and leave policies.

Parental leave expansion: Some provinces have extended parental leave benefits, offering additional financial support and longer leave durations.
Mental health leave: Companies must now provide a minimum of 3-5 paid mental health days in several provinces, including British Columbia and Nova Scotia.
Gender-affirming and fertility benefits: Legal mandates require coverage for gender-affirming treatments and fertility assistance as part of employer-provided healthcare plans.

To comply, HR professionals should work closely with benefits providers to ensure policies align with new legal standards and communicate these updates to employees effectively.

Conclusion

As Canada’s employment landscape evolves, HR professionals and employers must stay informed about new laws affecting pay transparency, workplace privacy, employee classification, termination rights, and benefits. By proactively updating policies and ensuring compliance, businesses can reduce legal risks while fostering a fair and supportive work environment.

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