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Canadian Employment Law Updates 2025: What Employers Need to Know

Posted on  Feb 28, 25 by James Kelly

    From coast to coast, Canada's employment law landscape is transforming. New amendments across federal and provincial jurisdictions are reshaping work relationships, employee protections, and employer obligations—all against the backdrop of evolving workplace realities.

    Look closely at these changes, and clear patterns emerge. Provinces are tackling similar issues, just with their own unique approaches.

    Digital Platform Workers Gaining Recognition

    Take digital platform work, for instance. Ontario is building a comprehensive framework through its Digital Platform Workers' Rights Act, while British Columbia is taking a more direct route by simply declaring these workers employees under existing law. Both approaches aim to bring the gig economy under the protective umbrella of employment standards.

    Streamlining Sick Leave Administration

    There's also a noticeable push to reduce unnecessary administrative burdens around sick leave. Quebec, Ontario, and Newfoundland and Labrador are all limiting when employers can request doctor's notes for short absences—a practical change that acknowledges both the pressure on healthcare systems and the reality that minor illnesses don't always require medical intervention.

    Strengthening Harassment Prevention

    Workplace harassment prevention is getting a meaningful upgrade across jurisdictions too. Quebec now requires detailed policies and procedures, Ontario has expanded definitions to include virtual interactions, and Alberta is strengthening violence prevention requirements. 

    Recognising Psychological Safety

    Meanwhile, provinces like Nova Scotia and Quebec are explicitly recognising that workplace health and safety must include psychological well-being, not just physical safety.

    Canada's Unique Employment Law Structure

    For employers, especially those operating across provincial lines, understanding these changes starts with recognising Canada's unique regulatory framework.

    Unlike countries with one national labour code, Canada splits employment governance between federal and provincial/territorial systems. While the federal Canada Labour Code applies to about 6% of workers in sectors like banking and telecommunications, most Canadian employees fall under provincial rules.

    These provincial frameworks involve several interconnected pieces of legislation that collectively govern workplace relationships:

    • Employment Standards Acts (ESAs) - setting minimum requirements for wages, hours, leaves, and termination
    • Occupational Health and Safety Acts (OHSAs) - mandating workplace safety standards and employer obligations
    • Workers' Compensation Acts (WCAs) or Workplace Safety and Insurance Acts (WSIAs) - establishing insurance systems for workplace injuries (terminology varies by province)
    • Labour Relations Acts - governing unionisation and collective bargaining

    With this in mind, let's take a look at what's changing across the country and what these updates mean for employers and their teams.


    Federal Law

    Canada Labour Code - CLC

    The following section on "Federal" changes applies only to businesses and employees in federally regulated sectors. If your business is not in one of these industries, you'll primarily be concerned with the provincial/territorial updates that follow.

    Notice of Termination

    Federally regulated employers are now required to provide graduated notice of termination. This means the amount of notice an employee is entitled to increases based on how long they've worked for a company. Here's the breakdown:

    • 3 months - 3 years: 2 weeks' notice
    • 3 years: 3 weeks' notice
    • 4 years: 4 weeks' notice
    • 5 years: 5 weeks' notice
    • 6 years: 6 weeks' notice
    • 7 years: 7 weeks' notice
    • 8+ years: 8 weeks' notice

    Worker Misclassification

    The CLC now presumes anyone on an organisation’s payroll is an employee rather than an independent contractor. This means that if a business classifies workers as contractors, the burden is on them to prove it - a change that reflects growing scrutiny of worker classification.

    While worker misclassification has always carried risks, this reversal of the burden of proof was newly introduced last year. The consequences of misclassification remain serious and can include:

    • Retroactive payment of vacation pay, overtime, and statutory holiday pay
    • Penalties for non-compliance with the CLC
    • Liability for Canada Pension Plan and Employment Insurance contributions
    • Potential tax implications and CRA reassessments
    • Legal costs from worker claims and appeals

    This change doesn't create new penalties, but it does make it much easier for workers to establish employee status, increasing the practical risk for employers who misclassify.

    Upcoming/Expected Changes

    Replacement Workers

    Effective June 20, 2025, the use of replacement workers (sometimes called "scabs") during a legal strike or lockout will be prohibited in federally regulated workplaces. 

    There are very narrow exceptions, primarily related to maintaining essential services to prevent immediate and serious danger. Violations can result in substantial fines – up to $100,000 per day.

    New Leaves of Absence

    Pregnancy Loss Leave: From December 2025, employees will be entitled to a leave of absence if they or their spouse/partner experience a pregnancy loss:

    • Stillbirth: Up to eight weeks of leave (the first three days are paid if the employee has at least three months of continuous service).
    • Other Pregnancy Loss: Three days of leave.

    Leave for Placement of Child: Parents welcoming a child through adoption or surrogacy will be entitled to up to 16 weeks of unpaid leave. (Effective date to be determined). 


    Alberta

    Occupational Health and Safety Code Amendments

    Alberta has significantly updated its rules around violence and harassment prevention plans. This reflects a growing emphasis on creating safer and more respectful workplaces.

    What's Required: Employers must have a comprehensive, consolidated plan that includes:

    • Ways to eliminate or control hazards related to violence and harassment.
    • Procedures for informing workers about potential threats (both specific and general).
    • Clear steps for reporting incidents of violence or harassment.
    • A process for investigating complaints and incidents thoroughly.
    • Strong confidentiality protections for everyone involved, except when disclosure is absolutely necessary for the investigation, corrective action, or to inform workers of a threat.

    Compensation for Treatment: If a worker needs medical attention or a referral because of a violence or harassment incident, and they get that treatment during regular work hours, they are considered to be "at work" and must be paid accordingly.

    Compliance Deadline: The deadline to have these updated plans in place is March 31, 2025.


    British Columbia

    Occupational First Aid

    British Columbia has updated its first aid requirements to match the standards set by the Canadian Standards Association. This ensures consistency and a high level of workplace safety.

    Online Platform Worker Classification

    People who find work through online platforms are now clearly classified as employees under BC law, not independent contractors. This is a significant shift that gives these workers access to basic employment rights and protections.  Companies using online platforms to source labour must now treat these workers as employees.

    Pay Transparency Act

    BC is rolling out mandatory pay transparency reporting in stages. Companies of different sizes have different deadlines to start publishing reports on pay gaps This is part of a broader effort to promote equal pay.

    • By November 1, 2024: All employers with 1,000 or more employees.
    • By November 1, 2025: All employers with 300 or more employees.
    • By November 1, 2026: All employers with 50 or more employees.

    Employers need to prepare for data collection and reporting.

    Upcoming/Expected Changes

    International Credentials Recognition Act

    From July 1, 2025, a key provision will come into effect, prohibiting employers from requiring "Canadian experience" in job postings. This removes a significant barrier for internationally trained professionals seeking employment in BC. Employers should review and update their job posting templates to remove any Canadian experience requirements.


    Manitoba

    Employment Standards Code Amendments

    The leave available for employees dealing with a serious injury or illness has been extended to 27 weeks, providing more support during challenging times.


    Newfoundland & Labrador

    Unpaid Leave Changes

    A new unpaid, job-protected leave of up to 27 weeks is now available for employees dealing with:

    • Long-term illness
    • Long-term injury
    • Organ donation

    Employees who experience a long-term injury or illness as a result of a criminal offence may be eligible for up to 104 weeks of unpaid leave. The employee must not have been involved in the offence or contributed to the injury through gross negligence.

    Sick Leave Medical 

    Employers can no longer require a doctor's note or nurse practitioner's certificate for employees taking the existing seven days of unpaid sick leave or family responsibility leave, even if the absence is for three or more consecutive days. 


    Nova Scotia

    Unpaid Sick Leave

    Employees will be entitled to five unpaid sick days per calendar year. This is in addition to the existing three days of unpaid leave they can already take for medical appointments or family illness. 

    New Leave for Serious Illness or Injury

    A new unpaid leave of 27 weeks is now available for employees dealing with a serious illness or injury. This provides significant job protection during extended periods of recovery. 

    Upcoming/Expected Changes

    Workers’ Compensation Act Changes

    Effective July 15, 2025, both employers and injured workers will have a legal duty to cooperate in the return-to-work process. This means actively communicating, exploring suitable work options, and making reasonable efforts to facilitate the worker's return. There will be potential penalties for both employers and workers who fail to cooperate in the return-to-work process. 

    "Health and Safety" To Include Mental Health

    From September 1, 2025, the legal definition of "health and safety" will be expanded to specifically include both physical and psychological well-being. This means employers have a legal responsibility to address workplace factors that could negatively impact employees' mental health. 

    Mandatory Harassment Prevention Policies

    From September 1, 2025, employers will be required to have a written policy in place specifically addressing the prevention of harassment in the workplace.


    Ontario

    Employment Standards Act (ESA) Amendments

    Ontario has made numerous changes to the ESA aimed at clarifying rules and strengthening worker protections. Here are the key highlights:

    Trial Periods Now Classified as Training: Work performed during a trial period is now officially considered "training" under the ESA. 

    Employee Choice for Direct Deposit: Employees must be the ones to choose the bank account where their wages are directly deposited. Employers cannot dictate the account.

    Vacation/Holiday Pay Agreements Must be in Writing: Any agreements about alternative ways of paying vacation pay (other than the standard methods) must be documented in writing.

    Broader Definition for Workplace Harassment: Workplace harassment now includes virtual harassment.

    Sick Leave Documentation: Employers can no longer require employees to provide a medical certificate as evidence for entitlement to sick leave under the ESA.

    Increased Penalties for ESA Offenses

    Fines for individuals guilty of an offence under the ESA have increased to $100,000, reflecting a stronger enforcement approach to employment standards violations. This significant increase highlights the importance of compliance with all ESA provisions.

    Workplace Harassment Definition Expansion

    The definition of "workplace harassment" now explicitly includes:

    • Virtual harassment through information and communications technology
    • Expanded definition of workplace sexual harassment covering gender identity and expression
    • Requirements for posting information in readily accessible electronic formats

    Employers should update their harassment policies to reflect these expanded definitions and ensure they address online conduct, particularly with the rise of remote and hybrid work arrangements.

    Upcoming/Expected Changes

    Digital Platform Workers’ Rights Act (DPWRA)

    This is a landmark piece of legislation coming into effect from July 1, 2025, relevant for companies that rely on "gig workers" through online platforms (like ride-sharing apps, delivery services, or freelance marketplaces). The DPWRA establishes new rights and protections for these workers, covering areas such as:

    • Transparency: Workers must receive information on pay calculations, work assignments, and performance ratings
    • Recurring Pay: Operators must establish recurring pay periods and paydays
    • Minimum Wage: Operators must pay at least Ontario's minimum wage for each assignment
    • Platform Access: Workers must receive written explanation and two weeks' notice if removed from platform
    • Dispute Resolution: All work-related disputes must be resolved in Ontario
    • Record Keeping: Operators must maintain detailed records for three years after worker access termination

    Companies operating digital platforms that connect workers with customers should begin preparing compliance strategies well before the implementation date.

    Written Employment Information

    From  July 1, 2025, employers with 25+ employees must provide new employees with written information before their first day of work (or as soon as reasonably possible), including:

    • Legal name and operating name of employer
    • Employer contact information
    • General description of work location
    • Starting wage/commission rate
    • Pay period and pay day details
    • General description of anticipated hours of work

    This promotes transparency in the employment relationship from day one. Employers should develop templates for this required information to ensure consistent compliance.


    Prince Edward Island

    Paid Sick Leave

    Prince Edward Island has introduced a paid sick leave programme. Employees gradually earn paid sick days based on how long they've been with their employer:

    • After 12 months: one paid sick day
    • After 24 months: two paid sick days
    • After 36 months: three paid sick days

    Employees are still entitled to three unpaid sick days after three months of employment.


    Quebec

    Strengthening Workplace Harassment Prevention

    An Act to prevent and combat psychological harassment and sexual violence in the workplace came into full effect in September 2024. This law strengthens existing protections and mandates that employers update their harassment prevention policies. These policies must now detail:

    • How the company will identify and control risks of psychological harassment, including specific sections on sexual harassment.
    • Training programmes offered on harassment prevention.
    • Expected conduct during work-related social activities.
    • Procedures for filing and following up on complaints.
    • Measures to protect those involved in harassment complaints.
    • A clear process for managing harassment situations, including investigations.
    • How confidentiality will be maintained, including a two-year record retention period.

    The Act also makes it easier for employees to claim for workplace injuries resulting from sexual violence, extending the claim period to two years and limiting the medical information employers can access when contesting claims.

    Easing Rules On Short-Term Sick Leave

    From January 2025, Quebec’s Bill 68 will reduce the administrative burden on the employers' ability to demand medical certificates for short-term absences (for illness).

    • Employers cannot require a medical certificate for the first three absences of three days or less within a 12-month period.
    • Employers can still investigate suspicious absences.
    • Certificates can still be required for absences related to family or parental reasons and any absence exceeding four consecutive days.

    This change aims to reduce unnecessary doctor visits, easing the strain on Quebec's healthcare system.

    Upcoming/Expected Changes

    Revamping Occupational Health and Safety

    An Act to modernise the occupational health and safety system will be fully implemented by October 6, 2025. This Act, and its accompanying Regulation introduces major changes to workplace health and safety requirements:

    Health and Safety Representatives: Companies with 20 or fewer employees must appoint a health and safety liaison officer. Those with 20 or more must create a health and safety committee. These representatives will:

    • Work with the employer on health and safety communication.
    • Help develop and implement prevention programmes or action plans.
    • Recommend improvements to workplace safety.
    • File complaints with the CNESST (Quebec's labour standards, equity, and workplace health and safety commission) when necessary.

    Mandatory Training: Both liaison officers and committee members will need to undergo specific training.

    Prevention Plans:

    • Smaller companies (under 20 employees) need an action plan covering hazard identification, risk control, monitoring, and training.
    • Larger companies (20 or more employees) need a more comprehensive prevention programme, including risk analysis, preventative measures, monitoring procedures, protective equipment identification, health checks, training, and a list of hazardous materials.

    Annual Updates: All plans must be reviewed and updated each year.


    Saskatchewan

    Amendments to the Saskatchewan Employment Act (SEA)

    Saskatchewan has proposed several important amendments to the Saskatchewan Employment Act. While not yet law, they would bring significant updates to employment standards. Some of the key proposed changes include:

    Overtime Calculation: Employers could define a workday as either a calendar day or 24 consecutive hours

    Tip Protection: Employers would be prohibited from deducting or withholding tips

    Mass Termination: Written notice requirement would apply to the termination of 25+ employees (up from 10)

    Enforcement: The Director of Employment Standards could order reinstatement or compensation for discriminatory actions

    Sick Leave: Medical notes would be restricted unless absence exceeds 5 consecutive days or occurs frequently; long-term sick leave would extend from 12 to 27 weeks

    Pregnancy Loss: Maternity leave would cover pregnancy loss up to 20 weeks before due date

    Violence Leave: A new 16-week unpaid interpersonal violence leave would supplement the existing 10-day leave

    Bereavement Leave: Would be available within 6 months of death for "like family" relationships and for pregnancy loss

    These changes would align Saskatchewan with employment standards across Canada. Employers should monitor this legislation and prepare for potential implementation.


    Navigating the Changing Landscape

    As we've seen, employment legislation across Canada is evolving to meet the challenges of modern work relationships. From the federal Canada Labour Code to provincial statutes, these changes share common themes: better protection for platform workers, enhanced leave provisions, reduced administrative barriers, and greater recognition of psychological well-being in the workplace.

    For employers—particularly those operating across multiple jurisdictions—staying informed is crucial. The good news is that many of these changes have implementation periods extending through 2025, providing time to adopt policies and practices.

    Need a Broader Global Perspective?

    If you're managing international teams beyond Canada, we've got you covered. Download our free eBook, "Employment Legislation Changes 2025," for a comprehensive look at how employment law is evolving worldwide.

    This resource breaks down crucial updates across 20+ countries, helping multinational employers stay ahead of compliance requirements wherever they operate.

    Click here to get your free copy of our global employment legislative updates 2025 ebook

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    Written by James Kelly

    James Kelly leads content and communications at Boundless, where he creates resources that help businesses figure out global employment without all the usual confusion. With six years in B2B content marketing, he's developed a knack for translating technical jargon into plain English that business leaders can actually put to use.

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