5 Workplace Legal Trends in Canada That HR Teams Must Be Aware Of
April 10, 2025 Written by Rafael Spuldar
Labour legislation in Canada evolves constantly, keeping pace with changes in the workforce and individual concerns such as employee well-being, fair compensation, and digital privacy. Failing to adapt to those legal shifts can lead to compliance risks, legal challenges, and workplace dissatisfaction – which means HR professionals must stay ahead of the curve.
This article highlights five legal developments that HR professionals should be aware of in 2025, providing a high-level overview to help you anticipate changes, update policies, and foster a legally compliant workplace. Be advised that this isn’t a substitute for legal advice, though: if any new law impacts your organization, it’s essential to consult legal experts for tailored guidance.
How federal and provincial labour laws impact workplaces
Labour laws in Canada operate on both federal and provincial levels, each influencing workplace policies differently. On one hand, the Canada Labour Code governs federally regulated industries such as banking, telecommunications, and transportation. On the other, most employment laws – such as those covering wages, leaves, and workplace safety – are regulated at the provincial level.
With this legal framework, HR teams must monitor both federal updates and province-specific amendments to stay compliant.
5 labour legal trends in Canada right now
Now, let’s take a closer look at five significant workplace legal trends HR professionals must prioritize in 2025. From updates to paid sick leave to stronger workplace harassment protections, those topics are essential for HR teams to better understand the shifts in labour relations and protect organizations from potential legal challenges.
1. Paid sick leave
The importance of paid sick leave has gained significant attention, particularly after the COVID-19 pandemic. Governments and lawmakers now recognize the necessity of paid time off for health-related absences to prevent workplace outbreaks, support employee well-being, and reduce financial strain on workers. However, these policies also pose challenges for employers who must balance operational continuity with the costs and requirements of paid sick leave.
On the provincial level, British Columbia took the lead in 2022 by mandating five paid sick days per year for eligible employees. In Ontario, amendments to the Employment Standards Act (ESA) have removed the requirement for employees to provide a doctor’s note when taking up to three days of sick leave. This change aims to ease the burden on the healthcare system and prevent employees from being discouraged from taking necessary time off.
HR tip:
To stay compliant, HR should update sick leave policies to align with any new legal standards. Consider implementing an internal verification process that balances trust and accountability, such as self-declaration forms or requiring confirmation only for extended absences.
Additionally, HR should educate managers on handling leave requests fairly and ensure employees understand their rights. Establishing clear guidelines on sick leave tracking will help HR teams to monitor usage trends while preventing system abuse. Investing in a digital leave management system can also streamline the process and reduce administrative burden.
2. Minimum wage increases
Minimum wage in Canada mostly follows the rates set by provinces, and many of them are passing legislation to help workers keep up with the continuing rise of the cost of living. British Columbia’s Employment Standards Amendment Act (ESA) of 2024, for example, mandates automatic, inflation-tied annual increases to the minimum wage. After this, in June, the minimum wage in the province increased from $16.75 to $17.40 per hour – a 3.9% increase. In June 2025, the minimum wage in British Columbia is already set to increase to $17.85.
The same increase rate was applied in Ontario in October 2024 following the Working for Workers Four Act, which also determines an inflation-tied rise to the minimum wage. Last year, the amount went up to $17.20 per hour. Nationwide, the federal minimum wage, which applies to workers in federally regulated industries, increased to $17.30 per hour in April 2024.
HR tip:
HR teams should conduct a wage analysis to ensure compliance and assess the broader impact of wage increases on salary structures. Adjusting pay scales proactively helps to maintain fairness and competitiveness in the job market.
Additionally, HR should review payroll budgets, reassess overtime policies, and ensure salary bands remain equitable for new and existing employees. Regular benchmarking against industry standards will help businesses to remain attractive to job seekers while balancing financial sustainability. Employers should also consider compensation strategies such as offering non-monetary employee benefits to offset wage increases where possible.
3. Privacy and digital work regulations
With the rise of remote work and AI-driven recruitment, digital privacy is becoming an increasingly critical issue for employers. Employees are growing more concerned about how their personal data is collected, stored, and used by organizations, making compliance with privacy laws more relevant than ever.
New regulations are placing stricter requirements on employers to be transparent about monitoring practices and the use of AI in hiring decisions. Recent legal updates include:
- Ontario’s Bill 149 & Bill 190 (2024): Requires employers to disclose their use of AI in hiring processes and online job postings.
- Ontario’s Digital Platform Workers’ Rights Act: Set to come into effect in July 2025, it establishes rights for gig workers, including fair wages and better working conditions.
- Quebec’s Privacy Law (Bill 64): Enforces stricter employee data protection policies, requiring businesses to appoint a Privacy Officer and establish robust data security measures.
HR tip:
Employers must review and update data privacy policies to comply with evolving regulations. Conducting regular privacy audits will ensure that digital workplace tools adhere to new legal requirements and best practices.
HR teams should collaborate with IT departments to strengthen data security protocols and ensure that employees know how their information is being used. Training managers on privacy laws and implementing transparent AI and digital monitoring policies will also help to build employee trust and reduce legal risks.
4. Pay equity and transparency
Pay equity and transparency have become key priorities for employees and regulators in recent years. Workers are demanding fair compensation and greater clarity in salary structures, and new laws are pushing organizations toward greater transparency. Through pay fairness, companies can stay compliant, boost employee morale, and strengthen their reputations.
The Federal Pay Equity Act, which came into effect in 2021, requires federally-regulated employers with 100 employees or more to implement a pay equity plan. The deadline for this implementation was 31 August 2024, which means organizations falling into federal regulation must already be compliant. Meanwhile, in Ontario, a 2024 amendment to the Working for Workers Act mandated that job postings include salary ranges to promote fair pay practices.
HR tip:
HR teams should conduct a pay equity audit to identify and correct wage disparities. Implementing a structured compensation framework will ensure salaries remain fair and competitive.
Additionally, HR should train hiring managers to communicate salary expectations transparently during the hiring process. Establishing clear salary adjustment and promotion guidelines will further reinforce trust and compliance with evolving pay equity standards.
5. Workplace harassment protections
Workplace harassment is one of the most serious concerns for HR teams and managers, which prompts strong legal protections. With employees demanding safer workplaces, new laws are holding employers more accountable for preventing and addressing harassment. Businesses that fail to comply risk lawsuits, reputational damage, and decreased employee morale.
Key legal updates regarding workplace harassment include:
- Federal Workplace Harassment and Violence Prevention Regulations: Since 2021, the regulations enforce stricter reporting and prevention measures.
- Quebec’s Bill 42: Passed in 2024, it enhances protections against psychological harassment and sexual violence in the workplace.
- Ontario’s Occupational Health and Safety Act (OHSA): In 2024, amendments to this legislation expanded the definitions of workplace harassment and sexual harassment.
HR tip:
HR teams should implement robust harassment prevention training and establish clear reporting mechanisms. Conducting regular risk assessments will help to identify potential problem areas before they escalate.
HR should also develop anonymous reporting channels, educate employees on recognizing and addressing workplace harassment, and ensure investigations are fair and unbiased. Creating a respectful, inclusive workplace culture will further contribute to long-term prevention efforts.
Workplace legal trends in Canada: key takeaways
By staying ahead of the legal trends listed here, HR teams will foster compliant, supportive, and legally sound workplaces. Make sure to review policies regularly, educate employees, and take action proactively, so you’re on the right track to successfully navigate this legal landscape.
As well as staying up-to-date with labour legislation, there are other ways for HR teams and business leaders to make life easier for employees. One of them is offering outplacement services, ensuring individuals impacted by layoff have the best possible assistance to find new opportunities. By partnering with a modern outplacement firm like Careerminds, you’ll be better positioned to boost retention and productivity while improving your company’s reputation.Contact our experts today and learn more about the Careerminds approach to outplacement!
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