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Canada Labour Law Changes 2025

Employers in Canada need to be ready to implement these latest regulations for their employees in 2025

In this article, we will delve into the 2025 Employment Legislation Changes for Employers in Canada. Let’s understand the key updates and amendments in the provincial as well as federal labor laws that are expected to impact employers across various sectors.

These amendments impose new obligations on employers and address issues such as protection for gig workers, health & safety updates, leave policies, and workplace standards. 

Here’s what employers need to know to stay compliant and adapt to the new regulations across Canada.

Alberta

Updates to Occupational Health and Safety (OHS) Requirements

Alberta has introduced new requirements for violence and harassment prevention plans, reinforcing the need for safety and mutual respect at workplaces. Employers must now develop a comprehensive prevention plan that includes:

  • Risk Management: Strategies to eliminate or control risks related to workplace violence and harassment.
  • Worker Awareness: Procedures/ communications for informing employees about potential threats, whether general or specific.
  • Incident Reporting: Clear guidelines on how workers should report incidents of violence or harassment.
  • Investigation Process: A structured approach to investigating complaints and incidents thoroughly.
  • Confidentiality Protections: Measures to ensure confidentiality for all parties involved, unless disclosure is necessary for investigation, corrective action, or worker safety.

In addition, if a worker requires medical attention or treatment as a result of a workplace violence or harassment incident and this occurs during regular working hours, they must be paid for that time.

March 31, 2025 was the Compliance Deadline for employers to have these updated plans in place.

British Columbia

International Credentials Recognition Act

From July 1, 2025, employers will not be bound by the “Canadian experience” requirement in job postings. This amendment aims to remove barriers for internationally trained professionals, making it easier for skilled workers to enter BC’s labor market. Employers should review and update job descriptions to ensure compliance.

Updated Occupational First Aid Standards

British Columbia has aligned its first aid requirements with the standards set by the Canadian Standards Association (CSA). This update ensures greater consistency in workplace safety measures across industries. Employers must review their first aid policies to ensure compliance with the new standards.

Canada Labour Law Changes 2025

Stronger Protections for Gig Workers

Workers who find jobs through online platforms are now classified as employees under BC employment law rather than independent contractors. This shift grants them basic employment protections, including minimum wage, statutory holiday pay, and other benefits. Businesses that rely on gig workers must update their employment practices accordingly.

Pay Transparency Reporting Requirements

BC is introducing mandatory pay transparency reporting to address pay gaps across workplaces. Employers must prepare to disclose wage data based on company size, with reporting requirements phased as follows:

  • By November 1, 2024: Employers with 1,000+ employees must have published pay transparency reports.
  • By November 1, 2025: Employers with 300+ employees must comply.
  • By November 1, 2026: Employers with 50+ employees must follow suit.

Organisations should start collecting and analyzing compensation data with immediate effect to ensure that they meet reporting obligations.

Manitoba

Extended Leave for Serious Injury or Illness

Manitoba has extended the job-protected leave available to employees dealing with a serious injury or illness. Workers can now take up to 27 weeks of unpaid leave to recover or care for a loved one facing a significant health challenge.

Employers should update their leave policies to reflect this change and ensure that their HR teams understand the updated entitlements.

Newfoundland & Labrador

Extended Leave for Long-Term Illness, Injury, and Organ Donation

Employees in Newfoundland & Labrador now have access to a new job-protected unpaid leave of up to 27 weeks if they are dealing with:

  • long-term illness
  • injury, or
  • are undergoing organ donation.

For cases where an employee has suffered a long-term injury or illness as a result of any criminal offence, the leave entitlement extends up to 104 weeks.

However, the employee in question must not have been involved in the offence or contributed to the injury through gross negligence.

Changes to Sick Leave Documentation Requirements

Employers can no longer mandate a doctor’s note or a nursing practitioner’s certificate when an employee takes up to seven days of unpaid sick leave or family responsibility leave—even if the absence lasts for more than three consecutive days.

Businesses should adjust their leave policies and ensure that managers understand these updates to remain compliant with the new regulations.

Nova Scotia

Unpaid Sick Leave

Employees in Nova Scotia will now be entitled to five unpaid sick days per calendar year. This is in addition to the existing three unpaid leave days that can be used for medical appointments or caring for an ill family member. Employers should update their leave policies to reflect this extended entitlement.

Canada Labour Law Changes 2025

New Leave for Serious Illness or Injury

A new job-protected unpaid leave of up to 27 weeks is now available to employees who are recovering from a serious illness or injury. This extended leave ensures that employees facing long-term health challenges have the time they need to recover without the risk of losing their job.

Stronger Return-to-Work Obligations

From July 15, 2025, amendments to the Workers’ Compensation Act will place a legal duty on both employers and injured employees to cooperate in the return-to-work process. This means both parties must:

  • Communicate regularly about the return-to-work plan.
  • Consider suitable work options that accommodate the employee’s condition.
  • Make reasonable efforts to facilitate a smooth transition back to work.

Failure to cooperate could lead to penalties for either employers or workers as the case may be.

Mental Health to be recognised as Workplace Safety Issue

Starting September 1, 2025, the legal definition of “health and safety” will expand to explicitly cover both physical and psychological well-being. This means employers will have a legal responsibility to address workplace factors that could harm employees’ mental health, such as stress, burnout, and toxic work environments.

Mandatory Workplace Harassment Prevention Policies

By September 1, 2025, all employers will be required to have a written harassment prevention policy in place. This policy must outline measures to prevent workplace harassment and ensure a safe, respectful work environment. It is suggested that employers begin drafting or reviewing their existing policies to ensure compliance with this new requirement.

Ontario

Employment Standards Act (ESA) Amendments

Ontario has introduced several amendments to the Employment Standards Act (ESA) to clarify rules and strengthen worker protection. Here are the key updates:

  • Trial Periods Now Classified as Training: Any work performed during a trial period is now officially considered “training” under the ESA, ensuring clearer protections for workers.
  • Employee Choice for Direct Deposit: Employees have the right to choose which bank account their wages are to be deposited into. Employers cannot dictate this choice.
  • Vacation/Holiday Pay Agreements Must Be in Writing: Any alternative arrangements for vacation pay must now be documented in writing, reinforcing transparency in wage agreements.
  • Workplace Harassment Definition Expanded: The definition of workplace harassment now includes virtual harassment, in recognition of the challenges of remote and hybrid work environments.
  • Sick Leave Documentation: Employers can no longer mandate a medical certificate as proof of entitlement to ESA-mandated sick leave.
  • Higher Fines for ESA Offenses: Individuals guilty of an offense under the ESA now face fines of up to $100,000, emphasizing the importance of employer compliance.
  • Expanded Workplace Harassment Protection:
    • Virtual harassment through information and communications technology is now explicitly covered.
    • Workplace sexual harassment protection now includes gender identity and gender expression.
    • Employers must ensure that workplace harassment policies are digitally accessible and reflect these updated definitions.

New Protections for Gig Workers – Digital Platform Workers’ Rights Act (DPWRA)

From July 1, 2025, Ontario’s new Digital Platform Workers’ Rights Act (DPWRA) will introduce stronger protections for gig workers employed through online platforms (e.g., ride-sharing, delivery apps, freelance marketplaces). Key provisions include:

  • Transparency: Workers must receive clear information on pay calculations, work assignments, and performance ratings.
  • Recurring Pay: Platforms must establish consistent pay periods and paydays.
  • Minimum Wage Guarantee: Workers must be paid at least Ontario’s minimum wage for each assignment.
  • Platform Access Rights: Workers must receive a written explanation and two weeks’ notice if they are removed from a platform.
  • Local Dispute Resolution: All work-related disputes must be resolved within Ontario.
  • Record Keeping Requirements: Platforms must maintain detailed worker records for three years after termination of access.

Companies that rely on gig workers should review their policies and ensure compliance before the law takes effect.

Written Employment Information for New Hires

Also effective from July 1, 2025, employers with 25 or more employees must provide written employment details to new hires before their first day of work (or as soon as reasonably possible). The information must include:

  • Employer’s legal and operating name
  • Employer contact details
  • General description of workplace
  • Starting wage or commission rate
  • Pay period and payday details
  • General description of anticipated hours of work

This change promotes transparency from day one, ensuring employees fully understand their terms of employment. Employers should start preparing standardized templates for these disclosures to ensure smooth compliance.

Prince Edward Island

Paid Sick Leave

Prince Edward Island has introduced a paid sick leave program, allowing employees to gradually earn paid sick days based on their tenure with an employer:

  • After 12 months: 1 paid sick day
  • After 24 months: 2 paid sick days
  • After 36 months: 3 paid sick days

Employees are still entitled to three unpaid sick days after completing three months of employment. This new policy ensures greater support for workers needing time off due to illness.

Quebec

Lower Francization Threshold

From June 1, 2025, businesses with 25 or more employees in Quebec (down from 50) will need to comply with francization requirements under the Charter of the French Language. This includes:

  • Registering with the Office Québécois de la langue française.
  • Assessing how French is used in their operations.
  • Implementing a francization program, if required.

Workplace Harassment & Sexual Violence Prevention

Under Bill 42, employers now have expanded responsibilities to prevent and address psychological harassment and sexual violence, including:

  • Taking action against harassment by clients, suppliers, and third parties.
  • Updating internal policies to include mandatory training and reporting procedures.
  • Ensuring that workplace injury claims linked to sexual violence are recognized.

New rules also require employers to maintain confidentiality in harassment cases and retain records for two years.

Canada Labour Law Changes 2025

Whistleblower Protections & Amnesty Clause Ban

  • Sexual misconduct records can no longer be removed from an employee’s disciplinary file.
  • Whistleblowers now have stronger protection against retaliation.

Changes to Medical Certificate Requirements

Starting January 1, 2025, employers cannot mandate a medical certificate for:

  • An employee’s first three absences (up to three days each) due to illness.
  • Family-related absences.

Certificates are still allowed for longer absences or if there’s reason to suspect abuse.

New Privacy & Data Protection Rules

Employers must now:

  • Appoint a privacy officer and establish clear data protection policies.
  • Obtain explicit consent before collecting sensitive personal information.
  • Anonymize employee data if retained beyond its original purpose.

Occupational Health & Safety Changes

By October 6, 2025, new requirements will apply under Quebec’s modernized occupational health and safety system:

  • Health & Safety Representatives: Companies with 20+ employees must have a health & safety committee. Smaller businesses must appoint a liaison officer.
  • Mandatory training for committee members and officers.
  • Annual prevention plans to identify and mitigate workplace risks.

Saskatchewan

Amendments to the Saskatchewan Employment Act (SEA)

Saskatchewan has proposed some amendments to the Saskatchewan Employment Act, which, if passed, will impact overtime, leave policies, termination rules, and enforcement. Key proposed updates include:

  • Overtime Calculation: Employers may define a workday as a calendar day or any 24-hour period.
  • Tip Protection: Employers would be prohibited from deducting or withholding employee tips.
  • Mass Termination: The threshold for written termination notice would increase from 10 to 25 employees.
  • Enforcement Powers: The Director of Employment Standards could order reinstatement or compensation for discriminatory actions.

Changes to Leave Policies

  • Sick Leave: Medical notes would not be mandatory unless an absence exceeds 5 consecutive days or is frequent. Long-term sick leave would extend from 12 to 27 weeks.
  • Pregnancy Loss: Maternity leave would apply for pregnancy loss up to 20 weeks before the due date.
  • Violence Leave: A new 16-week unpaid interpersonal violence leave would supplement the existing 10-day leave.
  • Bereavement Leave: Would apply within six months of a death for “like family” relationships and pregnancy loss.

These updates, if implemented, would bring Saskatchewan in line with national employment standards. Employers should stay informed and prepare for potential changes.

Federal Law

The following federal law updates apply only to businesses operating in federally regulated industries.

Notice of Termination

Federally regulated employers must now follow a graduated notice of termination system, where the required notice period increases with an employee’s tenure. The breakdown is as follows:

  • 3 months to 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

This structured approach ensures that more experienced employees have the advantage of a longer advance notice before termination.

Canada Labour Law Changes 2025

Ban on Replacement Workers

From 20 June 2025, federally regulated employers will no longer be allowed to use replacement workers (commonly referred to as “scabs”) during a legal strike or lockout.

The only exceptions apply to roles essential for preventing immediate and serious danger to public health or safety. Non-compliance can result in substantial penalties going up to $100,000 per day.

New Leave Entitlements

Starting from December 2025, federally regulated employees will have access to new leave options related to pregnancy loss and child placement. These changes acknowledge the emotional and logistical challenges employees face in such situations.

  • Pregnancy Loss Leave: Employees who experience a pregnancy loss—either personally or through their spouse or partner—will be entitled to time off as elaborated below:
    • Stillbirths: Up to 8 weeks of leave, with the first 3 days paid (if the employee has at least three months of continuous service).
    • Other Pregnancy Loss: 3 days of leave.
  • Leave for Placement of a Child: Parents welcoming a child through adoption or surrogacy will be eligible for up to 16 weeks of unpaid leave. The exact start date for this provision is yet to be announced.

How Beyond Borders HR Can Help You

These 2025 employment legislation changes for Canada can be challenging for employers to process independently. Beyond Borders HR, a global HR consulting firm, stands ready to assist businesses in understanding and implementing these changes effectively.

With our extensive expertise in global HR practices, we ensure that your organization stays compliant with the evolving regulatory landscape. Reach out to Beyond Borders HR for tailored solutions, expert guidance, and seamless integration of these legislative updates into your HR policies and practices.

Our team is dedicated to empowering your business with the knowledge and support needed to thrive in this dynamic regulatory environment.

Get on a call with us and we can discuss your requirements and further steps.

For any further inquiries or to discuss your specific needs, please feel free to contact us
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