As Canadian workplaces continue to evolve, so too does the legal framework that governs them.
From remote work policies to pay transparency and gig economy regulations, 2025 has brought several key changes to Canadian employment law — changes that HR professionals must understand and apply to remain compliant and forward-thinking.
This blog outlines the most significant legal updates across Canada, focusing on federal legislation and provincial updates from Ontario, British Columbia, Alberta, and Quebec — with practical insights for HR professionals and employers.
Why These Legal Changes Matter
Ignoring or misunderstanding changes in employment law can result in:
- Costly lawsuits or penalties
- Reputational damage
- Lower employee morale
- Poor HR decision-making
HR leaders are responsible not only for keeping the organization compliant, but also for helping to foster an ethical, fair, and legally sound workplace culture.
1. Pay Transparency Laws Expanding Nationwide
In 2025, multiple provinces (notably Ontario and British Columbia) have implemented or expanded pay transparency legislation requiring employers to:
- Include salary ranges in job postings
- Provide rationale for pay decisions
- Track and report wage gaps based on gender and other protected characteristics
What HR Should Do:
- Update all public job postings to reflect salary bands
- Audit internal pay equity and address inconsistencies
- Train hiring managers on pay disclosure compliance
Why it matters: Pay transparency helps address systemic inequality, especially for women, racialized employees, and underrepresented groups.
2. Tighter Rules on Terminations and Severance
Several provinces, including Ontario and Alberta, have amended rules regarding terminations and group layoffs:
- Remote and hybrid workers are now included in calculating group termination thresholds.
- New rules clarify minimum notice requirements based on tenure and company size.
- Employers must now provide written rationale when terminating employees without cause in many provinces.
Action Steps:
- Review and revise your termination letter templates
- Consult legal experts before large-scale restructurings
- Ensure remote staff are factored into compliance checks
3. Stronger Protections for Gig and Platform Workers
To address the rise of non-traditional employment, governments have started extending certain employment rights to gig workers and freelancers.
Under pilot programs in Ontario, Quebec, and BC, app-based drivers and delivery personnel are now entitled to:
- Minimum wage guarantees
- Break entitlements
- Protection from unfair deactivation (account bans)
- Limited access to benefits or collective representation
HR Implications:
- Companies that rely on freelance or gig labor must reevaluate worker classifications
- Platform-based businesses should stay alert for updates under proposed “Digital Worker Protection Acts”
4. Remote Work and the “Right to Disconnect”
With hybrid work here to stay, new federal and provincial policies are setting boundaries to prevent burnout and promote work-life balance.
In 2025:
- Employers with 25+ employees must implement a “Right to Disconnect” policy, outlining expectations for after-hours communication.
- New rules mandate equity for remote workers in promotions, training access, and group benefit participation.
HR Best Practices:
- Draft and communicate a Disconnecting from Work policy
- Review how remote staff are included in engagement and advancement
- Ensure IT systems securely track hours worked outside the office
5. DEI Policies Required for Large Employers
In a landmark move, federal employment equity legislation now mandates employers with 100+ employees to:
- Publish an annual Diversity, Equity, and Inclusion (DEI) report
- Create targeted outreach programs for Indigenous, racialized, LGBTQ+, and disabled candidates
- Demonstrate progress toward representation goals
Some provinces are considering similar requirements for provincially regulated sectors.
What HR Needs to Do:
- Implement DEI data tracking systems (e.g., self-ID surveys)
- Launch inclusive hiring and mentorship programs
- Provide DEI training to all levels of leadership
6. Stronger Enforcement and Penalties for Non-Compliance
The federal government and provincial Ministries of Labour have announced increased funding for inspections and audits.
Violations related to unpaid wages, wrongful dismissals, misclassification, and harassment will result in:
- Higher financial penalties
- Public disclosure of violations
- Mandatory third-party audits for repeat offenders
Stay Ahead By:
- Conducting internal HR compliance audits annually
- Training HR staff and supervisors on updated laws
- Keeping records meticulously — including digital communications, timesheets, and employment agreements
7. Modernization of Leave Policies
Provinces have expanded leave entitlements, including:
- Paid sick days (now 7+ in some provinces like BC and Quebec)
- New leave for domestic violence or caregiving
- Enhanced parental leave access for contract and gig workers
These changes reflect the growing expectation that employers support mental health, family care, and employee well-being.
Next Steps:
- Update your employee handbook and onboarding documents
- Ensure payroll systems accommodate new leave types
- Communicate changes clearly to all staff
