May 2025 Workplace Recap - May 30, 2025
Enjoy our latest edition of Workplace Recap for Canadian employers.
Legislation Updates
HR News
- Unemployment rate rises to 6.9%.
- What your drug plan needs to know in 2025.
- Why mental health is the next long-term disability wave.
- The AI trust gap your business can’t ignore.
- Why Shopify is making AI mandatory for every employee.
- Virtual meeting fatigue is real — here’s how to fight it.
- Employee terminated after $295K in unaccounted gift card purchases uncovered.
- Amazon brings back metal detectors after $2M theft.
- TTC employee loses job after working a second job while receiving disability benefits.
- $650K bribery scandal rocks Saskatchewan immigration program.
- $23K in personal charges leads to SaskPower firing and audit crackdown.
- Three Ontario businesses fined for illegal foreign worker hires.
- Hudson’s Bay collapse leaves 8,000+ workers without severance.
Case Law Round Up
- Ontario court voids Salesforce termination clause.
- Ontario attempt to reverse remote-work arrangement leads to constructive dismissal.
- Alberta’s $9.5M settlement sends a message on workplace misconduct.
- Ontario Employer appeals ruling on flawed termination clause—and loses.
- BC tribunal draws the line on burnout claims.
- Ontario Court rejects retirement claim and increases wrongful dismissal damages.
- Ontario Court of Appeal sides with clear ESA termination clause.
Legislation Updates
Minimum wage increasing in Ontario in October.
Quebec’s bold push to protect hybrid work rights.
Québec Solidaire is proposing a new bill that could shift the power dynamic in hybrid work arrangements. The legislation would let employees formally request remote work—within a hybrid model—and challenge rejections through the CNESST if the reasons are flimsy. It also aims to ban boss-as-big-brother surveillance software. While the bill faces steep odds as an opposition proposal, it signals growing pushback on full return-to-office mandates.
HR News
Unemployment rate rises to 6.9%.
What your drug plan needs to know in 2025.
Ozempic’s off-label weight loss run is over—Wegovy took over, making weight management the fastest-growing drug category in 2024. Specialty drugs are also back in the spotlight, now eating up nearly 33% of drug-plan spend, thanks to high-cost biologics and newer therapies. Biosimilar switching helped slow costs—for now. And ultra-high-cost drugs like Trikafta ($300K/year) continue to reshape benefit budgets. Regional trends and utilization patterns show there’s no one-size-fits-all solution.
Why mental health is the next long-term disability wave.
Mental health is no longer a side note—it’s now the top driver of long-term disability (LTD) claims in Canada, hitting 40% in 2024. And it’s climbing. Anxiety and adjustment disorders are leading the charge, with adjustment claims doubling since 2019. Women are especially impacted, with 45% of their LTD claims tied to mental disorders. The takeaway? Employers need to shift from stigma to strategy. Supporting mental health isn't just the right thing—it's a retention and performance win.
The AI trust gap your business can’t ignore.
AI adoption is growing fast—but trust isn’t keeping up. A sweeping global study reveals 66% of people use AI regularly, yet only 46% actually trust it. Even more concerning? Over half have made mistakes at work because they didn’t question AI-generated output. The message is clear: businesses need to boost AI literacy, build trust, and lead with stronger governance.
Why Shopify is making AI mandatory for every employee.
A leaked internal memo from Shopify’s CEO makes one thing clear: AI isn’t optional anymore. All employees—yes, all—are now expected to integrate AI into their daily work. From performance reviews to project prototypes, AI use is baked into how Shopify measures success. Need more resources? First, prove AI can’t do the job. This isn’t about tech for tech’s sake—it’s a cultural shift. CEOs and business leaders, take note. This is what leading in the age of AI looks like.
Virtual meeting fatigue is real — here’s how to fight it.
Yes, Zoom fatigue is real — and your brain agrees. New neurological research shows that virtual meetings physically wear us out by overstimulating the brain and nervous system. Even as some teams return to the office, most meetings still involve at least one remote attendee. So the fatigue problem isn't going anywhere. The article outlines four science-backed ways to make online meetings less draining. If your calendar is still full of video calls, this one’s worth a look.
Employee terminated after $295K in unaccounted gift card purchases uncovered.
The City of Richmond, B.C. has fired an employee and called in the RCMP after discovering $295K in unaccounted gift card purchases tied to its employee recognition program. A total of $446K in gift cards were bought between 2022 and 2024, but only $151K can be traced. A forensic audit is underway, and the city is overhauling its program to remove gift cards entirely. If your workplace uses prepaid incentives, it might be time to revisit how they're managed.
Amazon brings back metal detectors after $2M theft.
Amazon is reinstating metal detector screenings and phone checks at its U.S. warehouses after a $2M theft incident. Staff must now register their phones with serial numbers and stickers to prove ownership. While Amazon says it’s about security and trust, critics are raising eyebrows over fairness and worker treatment. With 750,000 employees impacted, expect renewed debates on privacy, policy, and workplace rights.
TTC employee loses job after working a second job while receiving disability benefits.
An Ontario arbitrator upheld the firing of a TTC fare inspector who worked a second job while on short-term disability. Though she had no prior discipline and claimed she didn’t know about a new disclosure form, the arbitrator sided with the employer, citing a breach of trust and clear policy violations. The case highlights why consistent workplace rules—and following them—matter.
$650K bribery scandal rocks Saskatchewan immigration program.
A former Saskatchewan immigration employee has been charged with fraud, money laundering, and breach of trust after allegedly pocketing over $650K from foreign worker program participants. The RCMP says the accused used his government job to manipulate documents and access databases without authorization. The province has since overhauled the nominee program with tighter criteria.
$23K in personal charges leads to SaskPower firing and audit crackdown.
A SaskPower employee charged over $23,000 in personal expenses to company cards—and they’re no longer on the payroll. Another worker is under investigation for a similar $3,100 charge. Internal auditors have stepped in, recommending tighter controls and better oversight. Management says corrective actions are underway. A reminder for all employers: monitor those company cards.
Three Ontario businesses fined for illegal foreign worker hires.
Three Ontario businesses have been hit with a combined $450K in fines after pleading guilty to illegally employing foreign nationals. The CBSA and OPP investigation, sparked by a traffic stop in 2019, uncovered over 700 unauthorized workers linked to the companies. Some individuals have since been deported. The case is a warning shot for employers skirting immigration rules.
Hudson’s Bay collapse leaves 8,000+ workers without severance.
After 350+ years in business, Hudson’s Bay is shutting its remaining stores, cutting over 8,300 jobs—most without severance. The company filed for CCAA protection in March and is now asking the court to let workers access the federal Wage Earner Protection Program (max payout: $8,844.22). Benefits for many—including those on long-term disability—are ending. Meanwhile, unions demand accountability as court hearings continue into June.
Case Law Round Up
Ontario court voids Salesforce termination clause.
In Boyle v. Salesforce.com, an Ontario court has awarded a former Salesforce employee eight months’ notice after finding his termination clause didn’t comply with ESA standards. The clause’s conflicting language—mixing U.S. “at-will” concepts with Canadian law—was too ambiguous. The employee also received pro-rated bonuses and RRSP contributions, despite Salesforce’s objections. While the court noted the termination was handled poorly, it declined to award bad faith damages.
Key Take-Aways for Employers
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Termination clauses must be ESA-compliant and unambiguous.
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U.S.-style “at will” language won't fly in Ontario.
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Courts won’t award punitive damages for impersonal—but lawful—terminations.
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Always document bonus plans and ensure employees acknowledge them.
Ontario attempt to reverse remote-work arrangement leads to constructive dismissal.
After more than a year of working remotely from Europe, a manager was told to return to the office or resign. The court saw that as constructive dismissal. The employer never put the remote terms in writing or clarified a right to recall. That silence proved costly. If remote or hybrid work is part of your setup, put it in writing and define expectations clearly. Otherwise, a flexible arrangement today might lock you in tomorrow. See Byrd v Welcome Home Children’s Residence Inc.
Key Take-Aways for Employers
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Remote work terms should be in writing.
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If you want the right to recall someone, spell it out early—and clearly.
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Allowing remote work long-term can create new contract terms, even if informal.
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Avoid vague agreements and verbal arrangements when job location is at stake.
Alberta’s $9.5M settlement sends a message on workplace misconduct.
The City of Leduc has paid over $9.5M to settle a class-action lawsuit from 155 women alleging workplace sexual misconduct, believed to be a first in Canada involving a municipality or fire department. While the city initially tried to keep the payout under wraps, the court disagreed. The settlement isn’t just a dollar figure, it’s a signal to employers that culture and accountability are not optional.
Key Take-Aways for Employers
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Sexual misconduct claims aren’t just reputational—they carry financial risk.
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Insurance covered the cost, but prevention is still the better business strategy.
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Failing to address systemic issues can lead to widespread legal fallout.
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Transparency and updated policies are critical to rebuilding trust.
Ontario Employer appeals ruling on flawed termination clause—and loses.
Another reminder from the Ontario Court of Appeal: if your termination clause doesn’t align exactly with the ESA, it could be tossed out. In De Castro v. Arista Homes, vague wording in a “just cause” clause meant the whole termination provision was void, resulting in eight months' pay instead of four weeks. “Shall include” turned out to be an expensive phrase. In Ontario, good intentions don’t matter—only the exact language does.
Key Take-Aways for Employers
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“Cause” clauses must match ESA language—no grey zones allowed.
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Ambiguity = risk. Courts won’t guess what you meant.
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A flawed “for cause” clause can void even a perfect “without cause” clause.
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Review and revise contracts regularly—especially in Ontario.
BC tribunal draws the line on burnout claims.
A BC worker’s burnout claim was recently denied after the WCAT found no formal DSM diagnosis or proof her workload was beyond industry norms. The takeaway? Burnout is real, but it won’t always get you compensation. Employers still have a duty to act when employees raise concerns, and solid documentation of your efforts can be your best defense. See A2202387 (Re), 2025 CanLII 9894 (BC WCAT).
Key Take-Aways for Employers
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Compensation requires a DSM diagnosis and clear work-related stress.
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Courts weigh objective workload conditions over subjective feelings.
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Document your efforts to reduce stress and support staff.
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Preventative safety assessments can help flag trouble before it escalates.
Ontario Court rejects retirement claim and increases wrongful dismissal damages.
Ontario’s Court of Appeal confirmed that a 29-year employee was wrongfully dismissed, not retired as Koolatron claimed. The court dismissed the employer’s arguments about inadequate mitigation efforts and a vague part-time job offer. It also corrected a calculation error, increasing damages by nearly $18,000. Koolatron’s appeal was dismissed, and they were ordered to pay $15,000 in costs. For details, see Pateman v. Koolatron Corporation.
Key Take-Aways for Employers
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A termination notice isn’t a retirement, no matter how nice the send-off.
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Courts expect solid proof of mitigation failures, not speculation.
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Vague job offers don’t count as real opportunities.
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Be precise with termination calculations. The courts will double-check your math.
Ontario Court of Appeal sides with clear ESA termination clause.
In Bertsch v. Datastealth Inc., the Ontario Court of Appeal backed a well-drafted termination clause, reinforcing that clarity and ESA compliance are non-negotiable. The exec, fired after 8.5 months, claimed the clause was ambiguous. The court disagreed, emphasizing that legal wording isn’t unclear just because it’s complex. If your contracts are buttoned up and ESA-compliant, the courts may just side with you.
Key Take-Aways for Employers
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Clear, ESA-compliant language is non-negotiable.
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Courts won’t rewrite sloppy clauses in your favour.
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Consider Rule 21 motions to strike early if your contract is airtight.
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Summary judgment isn't the only option for dismissal claims.
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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