January 2026 Workplace Recap - January 30, 2026
Enjoy our latest edition of Workplace Recap for Canadian employers.
Legislation Updates
HR News
- Canada’s unemployment rate rises to 6.8 % in December
- VSO backs off NDA legal dispute over sexual assault allegations
- Remote Global Affairs workers forced to transfer to capital or quit
- Statistics Canada to cut 850 positions
- Bus driver sentenced for impaired driving with 52 school kids aboard
- B.C. RCMP off-duty chats cost him his career
- Telus offers separation packages to 700 workers to accelerate self serve
- Canadians take the least time off, even when policies say they can
- Denny sues former employees for large-scale tip theft
- Calgary temporary foreign workers abuse leads to criminal sentences
Case Law Round Up
- Ontario courts throw out weak digital theft claims for employers
- BC grocer pays $750K after secret washroom videos posted to Russian porn site
- Alberta: Suncor's tunnel vision investigation costs employer 16 months’ notice
- Ontario Court awards 14 mos notice for inducement after 7 mos employment .
- Ontario court confirms employers can terminate over reputational social media posts
- Court sends former Millbrook First Nation employee to prison for 4.5 years for $4 million fraud
Legislation Updates
Reminder: BC & Alberta 27-week Job Protected Sick Leave is in effect.
Long-term illness and sick leave rules are evolving across Canada, and the impact on employers is real. Several provinces now provide job-protected sick or long-term illness leave of up to 27 weeks within a 52-week period, closely aligning with federal Employment Insurance sickness benefits. In most cases, employees must support their request with medical documentation, and the leave may be taken in blocks rather than all at once. For employers, this raises important considerations around policy updates, leave tracking, accommodation obligations, and how extended absences intersect with disability management and workforce planning.
HR News
Canada’s unemployment rate rises to 6.8 % in December
Statistics Canada’s December Labour Force Survey shows national employment was essentially unchanged, while the unemployment rate increased to 6.8 percent as more people searched for work.
VSO backs off NDA legal dispute over sexual assault allegations
The Vancouver Symphony Orchestra has stepped back from threatening legal action against a former violinist who went public about past sexual-assault allegations despite being bound by a confidentiality agreement. After public criticism and a petition, the orchestra issued an open letter saying it won’t pursue a lawsuit and will stop using NDAs in future sexual-misconduct cases unless the claimant requests one. The episode raises questions about how organizations handle sensitive complaints and confidentiality in workplace agreements.
Remote Global Affairs workers forced to transfer to capital or quit
Remote work expectations are being tested after employees at Global Affairs Canada said they are being told to relocate to Ottawa or leave their roles. While many believed their positions were permanently remote, official employment letters still list the National Capital Region as the work location. That distinction gives the employer the legal ability to require a transfer. For employers, the situation is a clear reminder that informal assurances do not replace written terms, and that unclear remote work language can quickly turn into trust, retention, and labour relations issues.
Statistics Canada to cut 850 positions
Statistics Canada has announced a workforce adjustment that will see about 850 positions cut as part of federal government efforts to reduce administrative costs and rein in public service growth. The reductions include a significant number of executive roles and will unfold over a period of notifications to employees whose roles may be affected. The agency says it will follow established workforce adjustment and collective agreement procedures and aims to balance staffing changes with its mandate to produce reliable national data.
Bus driver sentenced for impaired driving with 52 school kids aboard
A Saskatchewan charter bus driver has been sentenced to six months in jail after operating a bus while impaired with 52 elementary students and two teachers on board. The 71-year-old was found to have a blood alcohol level more than twice the legal limit and was also taking strong prescription pain medication at the time. The judge described the behaviour as an outrageous risk to the children’s safety. In addition to custody, the sentence includes a two-year driving ban and probation. The case highlights employer and safety obligations around driver screening, substance use policies, and risk management for staff in safety-critical roles
B.C. RCMP off-duty chats cost him his career
A British Columbia RCMP officer has been fired after making vulgar, sexist and offensive comments in private group chats and on police computer terminals, conduct that an adjudicator ruled was discreditable to the force. The messages, which also included racial content and disparaging remarks about members of the public and colleagues, were exposed after a complaint by another officer, and two fellow members have already left or face proceedings. The case highlights how workplace conduct standards extend to digital communications and the reputational and legal risks of unprofessional behaviour online.
Telus offers separation packages to 700 workers to accelerate self serve
TELUS has launched another round of voluntary buyout offers to hundreds of employees across its Business Solutions units as the company accelerates its move toward digital and self-serve customer service. Close to 700 workers, including over 500 union members, have been invited to consider separation packages with a Jan. 21 deadline, part of an ongoing transformation that already saw past rounds of buyouts. The labour union argues these workforce changes could affect service quality and local jobs, prompting debate about balancing tech shifts with employee stability.
Canadians take the least time off, even when policies say they can
New research shared through a fresh editorial hub by a global HR platform exposes a striking divide in how paid time off is actually used around the world. Data from over 159 000 time-off requests shows European workers take far more time off than their North American counterparts even when policies look similar. In fact, Canadians take the fewest days off overall. The findings suggest that culture matters as much as policy and that unlimited PTO on its own may not solve time-off use issues.
Denny sues former employees for large-scale tip theft
A Denny’s restaurant in Kamloops is taking three former employees to court, alleging they siphoned off large sums from the restaurant’s digital tip system, potentially totaling nearly half a million dollars. Internal audits triggered the civil suit in B.C. Supreme Court after unauthorized transfers were spotted, and police are investigating the alleged fraud. The case underscores how vulnerable payroll and tip distribution systems can be without strong internal controls and oversight, and how quickly trust and finances can be jeopardized when those systems are exploited.
Calgary temporary foreign workers abuse leads to criminal sentences
Three partners in a Calgary restaurant have been sentenced to 90 days in jail on weekends after a court found they defrauded three temporary foreign workers by falsely claiming they owed large “government fees” for a Labour Market Impact Assessment when the real fee is much lower. The workers paid tens of thousands under this false pretense before reporting the situation. The case highlights serious risks around compliance with immigration and employment-related programs and the legal consequences of exploiting vulnerable workers.
Case Law Round Up
Ontario courts throw out weak digital theft claims for employers
A recent Canadian HR Reporter article highlights how the Ontario Superior Court of Justice rejected an employer’s digital theft counterclaim in Contino v. Olymel L.P, 2025 ONSC 7064 because it lacked specific evidence of what confidential information was misused and how the employer suffered financially as a result. The case underlines that employers must be detailed and precise in pleadings when alleging digital theft or breaches of confidentiality.
Key Take-Aways for Employers
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Ensure written confidentiality agreements are specific and tailored to protect sensitive information.
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When alleging digital theft or misuse, describe exactly what was taken and the financial impact.
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Develop compliant monitoring practices that respect privacy laws and focus only on necessary oversight.
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Be prepared that courts will closely scrutinize evidence and pleadings before allowing claims to proceed.
BC grocer pays $750K after secret washroom videos posted to Russian porn site
A Vancouver Island grocery market has agreed to pay $750,000 to resolve a voyeurism class action after a former employee secretly recorded women in an on-site washroom and uploaded intimate images to an online adult site without consent. The settlement arises from a lawsuit brought by women who were filmed and, in some cases, had their images published, and follows criminal proceedings in which the employee pleaded guilty to unlawful recording and publication. As part of the civil resolution, affected women will receive compensation reflecting whether their images were distributed and a court order assigns control of all recordings to the plaintiffs. See Ahmed v Alberta College of Pharmacy, 2026 ABCA 15 for the full case.
Key Take-Aways for Employers
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Review workplace privacy and surveillance policies to prevent unauthorized monitoring.
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Ensure employee access to private areas is tightly controlled and regularly audited.
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Understand that employer liability can extend to harms caused by employees’ illegal actions.
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Prompt and transparent response to misconduct can mitigate reputational and legal impact.
Alberta: Suncor's tunnel vision investigation costs employer 16 months’ notice
An Alberta court in O’Driscoll v Suncor Energy Inc., 2026 ABKB 43 found that Suncor Energy did not have just cause to terminate a shift supervisor it alleged was sleeping on the job because its investigation was flawed, weighing only evidence that supported the employer’s theory and ignoring or failing to preserve material evidence that could support the employee’s account of events. The judge described the HR investigator’s approach as “tunnel vision,” noting that key GPS data and corroborating witness evidence were overlooked while hearsay was relied on to draw adverse inferences. The court confirmed that the onus is on the employer to establish just cause and awarded the employee reasonable notice and severance, including overtime and certain bonuses, while addressing a counterclaim for repayment of a housing subsidy.
Key Take-Aways for Employers
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Conduct workplace investigations objectively by collecting and preserving all relevant evidence.
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Avoid forming early conclusions that lead to biased fact-finding or ignoring exculpatory information.
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Understand that failure to meet procedural fairness norms can undermine just cause claims.
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Be prepared to justify severance and benefit entitlements when just cause is not established.
Ontario Court awards 14 mos notice for inducement after 7 mos employment .
In Miller v. Alaya Care Inc., 2025 ONSC 1028 the Ontario Superior Court awarded a senior executive 14 months’ compensation in lieu of common law reasonable notice even though she had only seven months’ service with her new employer because the Court found AlayaCare had significantly induced her to leave 12 years of secure employment with another company. AlayaCare actively recruited the vice-president role by offering a higher salary, bonuses, restricted share units, assurances of strategic responsibility and an agreement to indemnify her against potential litigation by her former employer, actions the judge said went beyond ordinary recruitment. The decision underscores that aggressive recruitment and assurances can elevate termination obligations dramatically and that employers should negotiate enforceable termination provisions early.
Key Take-Aways for Employers
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Understand that active inducement of senior, long-tenured employees can increase common law reasonable notice well beyond actual service.
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Structure recruitment communications carefully to avoid commitments implying long-term job security.
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Ensure termination clauses in employment agreements are clear and enforceable to limit undue exposure.
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Consider the total compensation and promises made in offers when assessing potential inducement risks.
Ontario court confirms employers can terminate over reputational social media posts
An Ontario Superior Court upheld the Ontario Labour Relations Board’s decision that an employee’s termination for refusing to remove a lengthy social media post that management deemed harmful to the employer’s reputation was lawful and not an unlawful reprisal or unfair labour practice. In Cai Song v. Ontario Labour Relations Board, 2026 ONSC 165, the Board heard evidence that the employee had posted allegations of racism and discrimination on a widely viewed community platform, was asked to delete the post and declined, and was then dismissed for conduct perceived as damaging to business. The Board found the decision-makers were unaware of any protected activity such as union organizing or a Ministry complaint when the termination decision was made and rejected the employee’s claims. The Superior Court, applying judicial review principles, confirmed the Board’s credibility findings and reasonableness, emphasizing that the existence of a clear, independent reason for termination means timing alone does not prove unlawful retaliation.
Key Take-Aways for Employers
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Ensure disciplinary decisions are grounded in documented misconduct and clear business reasons.
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If social media or reputational harm is involved, communicate expectations and consequences in writing before termination.
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Understand that temporal proximity between complaints and termination does not automatically create a reprisal finding.
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Maintain thorough records of investigations, decisions, and communications to support legal challenges.
Court sends former Millbrook First Nation employee to prison for 4.5 years for $4 million fraud
A Nova Scotia Supreme Court has sentenced a former Millbrook First Nation employee to 4½ years in federal prison after she pleaded guilty to fraud, theft, and possession of property obtained by crime for defrauding the First Nation of more than $4 million between 2016 and 2019. The court also ordered her to repay the stolen funds over the next 15 years, reflecting the significant financial harm inflicted on the community and its governance. Millbrook leadership expressed that no sentence can fully address the loss of economic opportunities and the erosion of trust within administration that resulted from the offences. The RCMP Financial Crimes Unit led the investigation that culminated in the guilty plea and sentencing.
Key Take-Aways for Employers
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Strong financial controls and regular audits are essential to detect and deter internal fraud.
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Segregation of duties and oversight can reduce opportunities for prolonged misconduct.
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Prompt investigation and involvement of law enforcement can support recovery and accountability.
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Fraud by employees can have lasting impacts on trust, morale, and community or stakeholder relationships.
Melina Laird is Operations Coordinator for ConnectsUs HR, a company that provides tools & resources to quickly set up a Human Resources department.
You can contact her here.
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