March 2025 Workplace Recap - March 31, 2025
Enjoy our latest edition of Workplace Recap for Canadian employers.
Legislation Updates
- Canada expands Work-Sharing Program in response to U.S. tariffs.
- B.C. signs major pharmacare deal for contraceptives, diabetes and HRT.
- Federal minimum wage increases to $17.75 on April 1.
- Canadians aged 18 to 64 can apply for the expanded Canadian Dental Care Plan in May.
HR News
- February unemployment rate holds at 6.6%.
- More immigration, more labour – but not fewer shortages.
- Facing tariff turmoil? Here’s your HR playbook.
- Hudson’s Bay to liquidate: 9,300+ jobs on the line.
- Ottawa’s National Cyber Security strategy aims to position Canada as a global leader.
- 7 Reasons why your team is burned out by change.
- $40K Blue Jays retreat leads to backlash and Director of Education resignation.
- Meta fires 20 for leaks—and warns more terminations are coming.
Case Law Round Up
- BC $800k award. Termination clause limiting pay & commissions, found unenforceable.
- Alberta share buy-back clause blocks 20 months of profit-sharing damages.
- Ontario termination’s benefit limitation clause fails ESA compliance test.
- Ontario dispute resolution clause backfires on independent contractor.
- Ontario short-service executive awarded 14 months due to inducement.
- $7k award to employee for disability discrimination after only 6 days on the job.
- Firing of long-time BC employee for cause for time theft—upheld.
- No Alberta WCB payout for psychological injury without objective proof.
- Ontario employee awarded $43k in damages in mishandling of maternity leave mishandling .
- Ontario employer ordered to pay $12k vacation, termination pay for misclassified independent contractor.
- Off-duty conduct justified dismissal for BC employee.
- Purolator ordered to pay over $300K due to lack of mitigation proof.
Legislation Updates
Canada expands Work-Sharing Program in response to U.S. tariffs.
The federal government is temporarily loosening the rules on the Work-Sharing Program to help businesses hit by economic ripples from U.S. tariffs. Employers can now access the program more easily and for a longer period — up to 76 weeks — to avoid layoffs. Eligibility is also expanded to seasonal, part-time, and even recovery-support roles. It's not a full return to COVID-style subsidies, but it’s a stopgap to keep skilled employees on payroll through downturns.
B.C. signs major pharmacare deal for contraceptives, diabetes and HRT.
British Columbia is now the second province to sign on to Ottawa’s pharmacare initiative, locking in $670 million over four years to cover diabetes meds, contraceptives, and hormone replacement therapy. Coverage is expected to start in March 2026. The deal comes just before a potential federal election, adding urgency to the government’s race to secure buy-in from other provinces.
Federal minimum wage increases to $17.75 on April 1.
Canadians aged 18 to 64 can apply for the expanded Canadian Dental Care Plan in May.
Canada’s national dental care program is expanding. Starting in May, adults aged 18 to 64 without private dental insurance can apply for coverage, depending on income and age group. The phased rollout begins May 1 for those 55–64, with younger age bands following later in the month. The plan, which already covers kids, seniors, and eligible individuals with disabilities, will now help millions more access preventive dental services like cleanings, fillings, and dentures.
HR News
February unemployment rate holds at 6.6%.
More immigration, more labour – but not fewer shortages.
Despite a dramatic increase in immigration from 2015 to 2024, Canada’s labour shortages haven’t eased. The boost in worker supply was offset by rising demand, as more people also meant more economic activity. Job vacancy rates remain higher than pre-pandemic levels, and data shows that provinces with higher immigration saw larger increases in vacancy rates. It’s a classic case of the macro picture not matching employer expectations.
Facing tariff turmoil? Here’s your HR playbook.
U.S. tariffs are here—and employers, especially in B.C., need to act fast. From temporary layoffs to group terminations, HR teams must navigate ESA rules carefully to avoid triggering wrongful dismissal claims. Non-union workplaces need airtight contracts to use temporary layoffs legally, and union shops must follow collective agreements. Employers should also consider cost-saving alternatives and get legal advice before restructuring
Hudson’s Bay to liquidate: 9,300+ jobs on the line.
Hudson’s Bay Company, Canada’s oldest retailer, has announced a full liquidation of its operations after failing to secure financing for restructuring. While stores will remain open during the process, the move threatens over 9,300 jobs. HBC says it’s still hoping for last-minute stakeholder support to salvage parts of the business, but the writing may be on the wall.
Ottawa’s National Cyber Security strategy aims to position Canada as a global leader.
Canada has launched an ambitious National Cyber Security Strategy, calling for a "whole-of-society" response to mounting digital threats. The plan spans government, business, academia, and Indigenous communities—and focuses on building a resilient infrastructure, growing homegrown talent, and making cyber innovation a Canadian strength. Expect new legislation, funding, and tighter partnerships to become part of your reality.
7 Reasons why your team is burned out by change.
Change fatigue is real—and it's wreaking havoc on leadership pipelines. With 222 CEOs stepping down in January alone, it’s clear that organizations are pushing change too fast and too often. From launching too many initiatives at once to failing to factor in human energy cycles, companies are paying the price. If change feels like chaos at your workplace, it may be time to rethink your approach
$40K Blue Jays retreat leads to backlash and Director of Education resignation.
The Thames Valley District School Board’s director of education has resigned following backlash over a pricey Toronto retreat that cost nearly $40,000. The trip, which included a Blue Jays stadium stay, sparked an audit by the Ministry of Education and the director was placed on paid leave shortly after. Now, the interim director is staying on as the ministry investigates.
Meta fires 20 for leaks—and warns more terminations are coming.
Meta has fired about 20 employees for leaking internal information and is promising more heads will roll. The tech giant is cracking down hard after repeated leaks of unannounced products and internal meetings made their way to the press. With morale already shaky after mass layoffs and policy shifts, the message is loud and clear: keep it inside or you’re out.
Case Law Round Up
BC $800k award. Termination clause limiting pay & commissions, found unenforceable.
In Hoem v. Macquarie Energy Canada Ltd., 2025 BCSC 446, a BC court awarded a terminated employee over $800,000 after finding the employer failed to prove just cause and handled the termination in bad faith. The employee, a national account manager, was dismissed and given base salary only, based on a termination clause that limited pay in lieu of notice to base salary and earned commissions. The court ruled the clause unenforceable under the Employment Standards Act because it excluded benefits and commissions. The employer’s after-acquired cause allegations—centered on weak evidence like personal notes and CBD gummy usage—also failed to hold up.
Key Take-Aways for Employers
- ESA requires all regular earnings—not just base salary—in pay in lieu of notice.
- Avoid relying on flimsy evidence for cause; courts expect clear proof.
- Don’t try to shoehorn after-acquired cause post-termination without doing your homework first.
Alberta share buy-back clause blocks 20 months of profit-sharing damages.
In Kirke v Spartan Controls Ltd., the Alberta Court of Appeal ruled that a properly worded share buy-back clause limited an employee’s profit-sharing entitlement to just 90 days after termination, even though the common law notice period was 20 months. The employee’s shares were subject to a Unanimous Shareholder Agreement (USA), which gave the employer the right to buy them back at any time with 90 days’ notice. The court found the language unambiguous and enforceable, distinguishing the case from Matthews v Ocean Nutrition where compensation wasn’t clearly limited.
Key Take-Aways for Employers
- Shareholder and bonus agreements must clearly define forfeiture terms.
- The courts will uphold explicit contractual limits—if they’re well written.
- Don’t rely on vague good faith arguments to override clear contract clauses.
Ontario termination’s benefit limitation clause fails ESA compliance test.
In Ramotar v. Trader Corporation, an Ontario small claims court tossed a termination clause that made benefit continuation conditional on insurer approval. The clause stated that insurance benefits would be continued for the ESA-required period "provided such coverage is available from the insurer." The court said that was illegal under the ESA. Employers must pay the premiums, even if the insurer won’t cover the employee. ESA doesn’t care about insurer refusals—it only cares that you keep paying.
Key Take-Aways for Employers
- ESA requires benefit premiums be paid, not that coverage be guaranteed.
- Conditional benefit language tied to insurer availability will void the clause.
- You can be on the hook if an employee loses benefits due to your lapse.
Ontario dispute resolution clause backfires on independent contractor.
In Fowlie et al v. Wrestling Canada Lutte, a dispute resolution clause designed to avoid legal disputes ended up creating one. The contractor sued, claiming the employer had to go through the dispute process before terminating his agreement. The court disagreed, finding the clause didn’t expressly require dispute resolution before termination. Since the contract also allowed for termination with 30 days’ notice, the employer was off the hook—and the contractor was ordered to pay $17,000 in costs.
Key Take-Aways for Employers
- Vague dispute clauses can backfire. Be crystal clear.
- Don’t mix arbitration-style language into independent contractor agreements unless you really need to.
- Define the process—and say whether it applies before termination.
Ontario short-service executive awarded 14 months due to inducement.
In Miller v. Alaya Care Inc., the Ontario Superior Court awarded 14 months’ notice to a VP terminated after only seven months. Why? Because she was heavily courted to leave a secure 12-year role, and the offer letter implied long-term employment. The court also found conflicting and ESA-noncompliant termination language in her contract. Since inducement was proven, her short tenure didn’t matter.
Key Take-Aways for Employers
- If you woo someone away from a stable job, expect to pay for it.
- Contracts must be ESA-compliant—and consistent across all documents.
- Avoid language that implies permanent employment unless you mean it.
$7k award to employee for disability discrimination after only 6 days on the job.
In Bayrock v. Correctional Service Canada, 2025 CHRT 9, the Canadian Human Rights Tribunal found that CSC discriminated against a casual worker by terminating her just six days into the job due to her part-time schedule, which was tied to her disability. CSC argued poor performance, but the tribunal found no evidence to support that and noted CSC failed to engage in a meaningful accommodation process. Damages totaled $7,000, with $2,000 for reckless conduct.
Key Take-Aways for Employers
- You can’t terminate someone because they can’t work full-time due to a disability.
- Passive or rushed accommodation processes will not pass legal muster.
- Always document performance issues—don’t just rely on gut reactions.
Firing of long-time BC employee for cause for time theft—upheld.
In Basic v. Solid Rock Steel Fabricating Co. Ltd., 2025 BCSC 287, a project manager was found to have committed time theft by padding his hours and defied a clear directive not to take extra time off. The court found his behavior deliberate, deceitful, and insubordinate. His wrongful dismissal claim for $200,000+ was tossed, and termination for cause was upheld.
Key Take-Aways for Employers
- Honest time tracking matters—padding hours, even by 30 minutes, adds up.
- Clear policies + enforcement = solid footing for cause.
- Insubordination and dishonesty can tank long-tenured employees too.
No Alberta WCB payout for psychological injury without objective proof.
In 2025 CanLII 15639 (AB WCAC), Alberta’s Workers’ Compensation Appeals Commission denied a psychological injury claim, reinforcing that stress from regular workplace drama doesn’t meet the threshold. The claimant alleged bullying, but the panel found no traumatic incident and ruled the distress stemmed from normal employment pressures—not compensable under WCB.
Key Take-Aways for Employers
- Document everything. Good records = strong defense.
- Regular workplace friction isn’t enough for WCB claims.
- Objective evidence must tie mental health issues to a workplace "accident."
Ontario employee awarded $43k in damages in mishandling of maternity leave mishandling .
In Li v. CMR Kumra Medicine Professional Corporation, 2025 HRTO 399, an Ontario clinic was ordered to pay over $43,000 after demoting a receptionist returning from maternity leave and showing preference to her replacement. The Ontario Human Rights Tribunal found this violated her rights under the Human Rights Code and constituted constructive dismissal.
Key Take-Aways for Employers
- Employees on maternity leave have the right to return to their old job.
- Don't sideline returning staff to keep a replacement.
- Poorly managed transitions post-leave can result in costly discrimination claims.
Ontario employer ordered to pay $12k vacation, termination pay for misclassified independent contractor.
In 11541722 Canada Inc v. Jcyk Josefsberg, 2025 CanLII 11895, a chef who helped open and run a restaurant was found to be an employee—not an independent contractor—despite no formal contract. The employer was ordered to pay nearly $12,000 in public holiday, vacation, and termination pay. The company also failed to prove just cause despite serious allegations.
Key Take-Aways for Employers
- Labeling someone a contractor doesn’t make it true.
- Lack of invoices, HST number, or financial risk = employee in the eyes of the law.
- You can’t claim just cause without evidence and prior warnings.
Off-duty conduct justified dismissal for BC employee.
In Richmond v. Deputy Head (Correctional Service of Canada), 2024 FPSLREB 167, a federal worker was fired after being criminally charged for breaking into her boyfriend’s home and damaging property. The board found her conduct violated CSC’s code and policies, and she failed to take responsibility even when given multiple chances. Her grievance was dismissed.
Key Take-Aways for Employers
- Off-duty misconduct can justify termination—especially in public-facing roles.
- Multiple infractions + no accountability = little sympathy from tribunals.
- Employers must show they investigated thoroughly and gave due process.
Purolator ordered to pay over $300K due to lack of mitigation proof.
In 2025 CanLII 47 (AB), an arbitrator awarded a terminated courier more than $300,000 in back pay after finding that Purolator failed to prove the employee hadn’t tried to mitigate his losses. The company never asked for documentation of job search efforts until it was too late. The arbitrator believed the worker’s testimony and criticized Purolator for not being proactive.
Key Take-Aways for Employers
- You must formally notify employees of their duty to mitigate.
- Track job market data to support your claims.
- No documentation = no case when challenging mitigation.
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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