March 2026 Workplace Recap - March 31, 2026
Enjoy our latest edition of Workplace Recap for Canadian employers.
Legislation Updates
- Which jurisdictions are increasing minimum wage effective April 01?
- 600K EI claims expected as Canada extends tariff support measures
- Labour shortages push Ottawa to ease rules for rural hiring
- $24.7M investment targets Quebec trades for green economy shift
- Ottawa to spend $94.5M to fix gaps in job market data
- Canada’s daylight saving debate heats up as provinces push for change
- B.C. announces minimum wage increase
HR News
- BC avalanche tragedy triggers WorkSafeBC workplace investigation
- New Feds initiative for career access & support for Black public service employees
- Federal pay rollout disaster may end up costing taxpayers over $9B
- Majority of Canadians want tipping gone as expectations reach a breaking point
- Fired after Slack criticism of Atlassian’s CEO, now testing workplace speech limits
- Ontario moves to open retail on Family Day and Victoria Day
- Canada sheds 84,000 jobs in 1 month as unemployment climbs to 6.7%
- Social services employee convicted after defrauding $73K from mentally ill client
- Entry-level job market hits worst level in 37 years
- Outdated labour laws struggle to keep up with AI-driven job loss
- Gossiping about your boss may boost teamwork, but comes with tradeoffs
- Missed emails trigger automatic suspensions for 20 B.C. teachers
- 7.3 million Canadians now rely on gig work as a second income
Case Law Round Up
- The non-binary salon case and the credibility crisis in human rights.
- BC: Misuse of company funds leads to $800K employee repayment & just-cause dismissal
- Ontario: Staffing agency fined $100k after obstructing ESA investigation
- Ontario: A one-year job turns into a decade-long court battle
- BC: 3-year fixed-term clause in asset deal leads to full payout after termination
- Ontario: Windsor EV battery plant creates 1300 jobs. Produces 1 million cells within months.
Legislation Updates
Which jurisdictions are increasing minimum wage effective April 01?
600K EI claims expected as Canada extends tariff support measures
The federal government is extending temporary EI supports, with more than 600,000 additional claims expected to benefit from waived waiting periods alone. The measures also include suspending rules around separation pay and adding up to 20 extra weeks of benefits for long-tenured workers. In place until October 2026, the extension reflects ongoing pressure from tariffs and broader economic uncertainty affecting jobs across multiple sectors.
Labour shortages push Ottawa to ease rules for rural hiring
Canada is introducing temporary measures to help rural businesses hire and retain more foreign workers, responding to persistent staffing gaps in smaller communities. Employers will be able to maintain or increase their current workforce levels under the program, provided they still demonstrate efforts to recruit Canadians first. The policy highlights a balancing act between limiting reliance on temporary workers and keeping essential industries operating.
$24.7M investment targets Quebec trades for green economy shift
The federal and Quebec governments are investing $24.7 million over five years to train workers in 18 Red Seal trades tied to reducing carbon emissions. The funding is expected to support up to 3,750 apprentices and journeypersons, focusing on skills needed for sustainable construction and infrastructure. The initiative reflects a broader push to align workforce training with climate goals, while also addressing labour shortages in skilled trades.
Ottawa to spend $94.5M to fix gaps in job market data
The federal government plans to invest up to $94.5 million over five years to better track what’s happening across Canada’s labour market. The funding will go to 14 organizations to build detailed forecasts and dashboards on job vacancies and workforce trends across key industries. The goal is to give clearer insight into where jobs are growing or shrinking, especially in sectors hit by tariffs like manufacturing and forestry, as well as construction and trucking.
Canada’s daylight saving debate heats up as provinces push for change
The debate over daylight saving time is picking up again across Canada, with growing pressure to stop changing clocks twice a year. While most provinces still follow the March-to-November switch, some are moving ahead independently. British Columbia, for example, has decided to adopt permanent daylight time and stop changing clocks altogether. The challenge is coordination. Because time rules are set provincially but tied closely to the U.S., any change risks creating a patchwork of time zones that could complicate business, travel, and daily life.
B.C. announces minimum wage increase
- General minimum wage will increase from $17.85 to $18.25 per hour starting June 1, 2026
- Annual minimum-wage increases are based on the province’s average inflation rate from previous year
- B.C.’s average monthly inflation in 2025 was just over 2.1%
HR News
BC avalanche tragedy triggers WorkSafeBC workplace investigation
An avalanche in B.C. that killed three people is being investigated by WorkSafeBC as a workplace incident, expanding the scope beyond a natural disaster. The investigation will examine employer responsibilities, including hazard assessments, safety planning, and whether adequate precautions were in place. For employers, especially in high-risk or outdoor environments, this reinforces that unpredictable conditions do not remove the duty to protect workers. WorkSafeBC expectations still apply, even when risks come from nature.
New Feds initiative for career access & support for Black public service employees
The government has introduced additional programs to support Black employees, including skills development for digital transformation, enhanced workplace conflict support, and mental health initiatives tied to lived experience. These efforts build on a larger action plan designed to remove barriers to advancement and improve workplace conditions. This signals rising expectations to move beyond general DEI language and invest in practical, targeted support systems.
Federal pay rollout disaster may end up costing taxpayers over $9B
Canada’s long-running federal pay system issues are far from over, with Phoenix already costing taxpayers over $5 billion and the replacement system, Dayforce, estimated at more than $4.2 billion. The transition is now being fast-tracked, but risks remain, including unresolved backlogs and complex pay rules carrying over. For employers, this is a large-scale example of what happens when payroll systems are rolled out without full testing and simplification. Fixing it later is significantly more expensive than getting it right upfront.
Majority of Canadians want tipping gone as expectations reach a breaking point
A recent survey by H&R Block shows 67% of Canadians are ready to move away from tipping, driven by growing dissatisfaction with when and how often tips are requested. With widespread frustration over “tip creep,” consumer behaviour is already shifting, including avoiding businesses that push for gratuities. For employers, the takeaway is clear. Pay structures tied to tipping may not align with where customer expectations are heading.
Fired after Slack criticism of Atlassian’s CEO, now testing workplace speech limits
An Atlassian employee was terminated after posting critical comments about leadership during an internal Slack discussion about layoffs, sparking a legal challenge over whether her remarks were protected workplace speech. The case now hinges on where the line sits between employee rights to speak about working conditions and employer expectations around respectful conduct. This highlights a growing risk area. Internal chat platforms may feel informal, but they are still workplaces, and how policies address tone, dissent, and discipline matters.
Ontario moves to open retail on Family Day and Victoria Day
Ontario is proposing to allow retailers to open on Family Day and Victoria Day, aiming to create a more consistent, province-wide approach instead of the current patchwork of municipal rules. Employees would still receive full public holiday pay, plus time-and-a-half if they choose to work, and many would retain the right to refuse shifts. For employers, this adds flexibility but also complexity. Holiday pay, scheduling, and policy updates will need to be handled carefully before these changes take effect.
Canada sheds 84,000 jobs in 1 month as unemployment climbs to 6.7%
Canada’s economy shed 84,000 jobs in February, pushing the unemployment rate up to 6.7 per cent, according to Statistics Canada. It marks a sharp setback for the labour market and one of the largest monthly job losses outside the pandemic. The drop was driven mainly by declines in full-time and private sector jobs, wiping out the modest gains seen earlier in the fall. Losses were concentrated across both goods- and services-producing industries. Wholesale and retail trade lost 18,000 jobs, construction dropped by 12,000, and manufacturing fell by 9,200. The hardest hit were men aged 25 to 54 and youth aged 15 to 24.
Social services employee convicted after defrauding $73K from mentally ill client
A former director at an Edmonton social services organization has been found guilty of fraud after exploiting a vulnerable client and misusing more than $73,000 over time. The case centred on abuse of trust, with access to the client’s finances used to carry out repeated unauthorized transactions. The court’s decision highlights how prolonged misconduct can occur when one individual has unchecked control over financial matters.
Entry-level job market hits worst level in 37 years
The entry-level job market is now at its weakest point in nearly four decades, with fewer openings and significantly more competition for each role. Hiring has slowed sharply, particularly in white-collar and tech roles, while job postings for fields like software development remain well below pre-pandemic levels. At the same time, more experienced workers are competing for the same positions, shrinking opportunities for new grads. The result is a crowded, slower-moving job market where getting a first role is taking longer and requiring more experience than before.
Outdated labour laws struggle to keep up with AI-driven job loss
Canada’s labour framework has seen little meaningful update to address technological job loss since the 1970s, despite rapid advances in AI. Current protections apply to only a small portion of the workforce, and support systems like Employment Insurance cover fewer unemployed workers than in the past. As AI reshapes jobs across industries, the article highlights a growing mismatch between modern workplace realities and the protections available to workers.
Gossiping about your boss may boost teamwork, but comes with tradeoffs
New research from Rutgers University finds that gossiping about a boss can actually strengthen team relationships, increasing collaboration and a sense of belonging among coworkers. At the same time, employees often feel guilt or discomfort afterward and may avoid their manager, which can impact communication and productivity. The study highlights a more complex reality. What’s typically seen as negative behaviour can also serve as social glue within teams.
Missed emails trigger automatic suspensions for 20 B.C. teachers
Twenty teachers were pulled from classrooms after missing key emails about their criminal record check renewals, which were filtered into spam. Under B.C. rules, failing to respond within set timelines results in automatic licence suspension, regardless of intent. The teachers were able to resolve the issue and return to work, but not before facing disruption and lost wages tied to the lapse.
7.3 million Canadians now rely on gig work as a second income
Gig work is no longer a side hustle. About 22% of Canadians, roughly 7.3 million people, now rely on it, often alongside full-time jobs. For many, it’s not optional. Rising costs are pushing workers to take on extra income just to stay afloat, with gig earnings jumping from 15% to 38% of total income in a short period. The shift points to a deeper change in the labour market, where one job is no longer enough and financial stability is becoming harder to secure.
Case Law Round Up
The non-binary salon case and the credibility crisis in human rights.
In this opinion piece, the author talks about a Quebec Human Rights Tribunal decision ordering a salon to pay $500 after a client could not book an appointment without selecting “male” or “female.” The issue came down to how services were categorized in the booking system, which the tribunal found discriminatory based on gender identity. While the damages were modest, the decision raises broader questions about how everyday business systems may unintentionally create barriers under human rights law.Key Take-Aways for Employers
- Review booking systems and forms for unintended barriers
- Avoid requiring gender selection unless it is clearly necessary
- Ensure services are structured in a way that is inclusive and flexible
- Small operational details can carry legal risk
BC: Misuse of company funds leads to $800K employee repayment & just-cause dismissal
A B.C. Supreme Court ruled that a former Penticton mayor must repay over $814,000 after misappropriating funds from a family-owned business over more than a decade. The court found he used company money for personal expenses, including vacations and insurance, and paid inflated wages to himself and family members without approval. His wrongful dismissal claim was dismissed, with the court confirming there was just cause for termination based on admitted misconduct.
Key Take-Aways for Employers
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Financial misuse over time can lead to significant repayment orders
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Just cause can be upheld where misconduct is well documented
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Lack of oversight can allow issues to continue for years
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Family-run businesses are not exempt from governance expectations
Ontario: Staffing agency fined $100k after obstructing ESA investigation
A Hamilton-based temporary help agency, ML Staffing Solutions, was fined $100,000 after pleading guilty to providing false records and obstructing an Employment Standards Act (ESA) inspection. The issue began when an employment standards officer requested records to assess compliance, but the company submitted inaccurate and incomplete information. A review found major discrepancies between company records and verified bank and client data, preventing the inspection from being completed. The court also imposed a 25% victim fine surcharge on top of the penalty.
Key Take-Aways for Employers
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Providing inaccurate records can escalate into legal offences, not just compliance issues
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Obstructing an investigation carries separate and serious penalties
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Regulators may cross-check records with third-party data
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Incomplete or inconsistent documentation can trigger deeper scrutiny
Ontario: A one-year job turns into a decade-long court battle
An Ontario court refused to dismiss a long-running wrongful dismissal case in Lee v ITW Canada Inc., even after years of delay, allowing it to move forward with a strict timeline. The case involved a short-term employee, yet the litigation stretched out through extensive procedural steps. Despite the delay, the court found it would be unfair to shut the case down entirely, reinforcing that these claims can remain active far longer than expected. The decision highlights how even lower-value disputes can evolve into prolonged legal battles if not resolved early.
Key Take-Aways for Employers
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Delay alone may not be enough to dismiss a claim
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Even short-term employment can lead to long litigation
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Courts may prioritize fairness over procedural timelines
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Early resolution can prevent prolonged legal exposure
BC: 3-year fixed-term clause in asset deal leads to full payout after termination
A B.C. Supreme Court decision found that a clause in an asset purchase agreement created a binding three-year fixed-term employment contract, overriding the employee’s written employment agreement. The employee was terminated early but awarded pay for the remainder of the term, with no obligation to mitigate losses. The court looked beyond the employment contract and relied on the broader deal structure, finding the parties clearly intended a minimum employment period tied to the business sale.
Key Take-Aways for Employers
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Fixed-term obligations can come from outside the employment contract
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Courts may prioritize overall deal intent over contract wording
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Early termination of fixed-term roles can trigger full-term payouts
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Conflicting agreements increase legal and financial risk
Ontario: Windsor EV battery plant creates 1300 jobs. Produces 1 million cells within months.
Canada’s first large-scale EV battery plant in Windsor has already produced over one million battery cells since launching production in late 2025, marking a rapid ramp-up in advanced manufacturing. Backed by more than $5 billion in investment, the facility has created over 1,300 jobs and is expected to scale further as demand grows. The milestone highlights how quickly new industries can expand, with production extending beyond electric vehicles into broader energy systems.
Key Take-Aways for Employers
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Large-scale projects can scale hiring and production faster than expected
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Competition for skilled labour will increase in advanced manufacturing
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New industries are expanding beyond their original scope, shifting workforce needs
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Workforce planning needs to adapt quickly to rapid growth cycles
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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