February 2025 Workplace HR Recap & News - Feb 28, 2025
Enjoy our latest edition of Workplace Recap for Canadian employers.
Legislation Updates
- BC minimum wage increases from $17.40 to $17.85 /hr June 01.
- Alberta updates workplace safety requirements effective Mar 31.
HR News
- Canadian Gen Z's prioritize benefits, workplace policies over higher wages.
- Inter-provincial trade won’t save Canada from Trump.
- Take-aways from Amazon's messy push to bring everyone back to the office.
- Canada’s January unemployment rate: 6.6%—job market grows—workers stay put.
- GenAI skills still rarely mentioned in white-collar job postings.
- Feds announce latest National Cyber Security Strategy to protect businesses & workers.
- The number of UK companies operating a four-day week has surpassed 200.
- Preparing for Tariffs : Planning workforce adjustments during economic slowdown.
- 2 employees terminated, 1 resigned as Ottawa reports increase in fraud incidents.
Case Law Round Up
- CRA executive challenges prorating of performance award.
- BC Jazz pilot fired for false bribe and money laundering claims loses arbitration.
- Ex-Toronto cop loses appeal of firing over ‘libelous’ tweets.
- Alberta termination clause providing for 90 days’ notice enforced despite employee’s C-Suite promotion.
- Ontario court finds employer’s reversing remote-work arrangement was constructive dismissal
- Ontario. Remote worker's discrimination claim dismissed due to lack of jurisdiction.
- B.C. employer ordered to pay $25,000 in punitive damages after worker refuses to sign release.
Case Law relating to Ontario Termination Clauses
- Ontario court raises bar for 'at any time' termination clauses — yet again!
- Fired Ontario sales exec gets 6 mos’ pay $163k after 10 mos on the job—invalid termination clause.
- Well-drafted Ontario termination agreement results in pro-employer court ruling.
Legislation Updates
BC minimum wage increases from $17.40 to $17.85 /hr June 01.
Alberta updates workplace safety requirements effective Mar 31.
The Government of Alberta has introduced new workplace safety amendments. Employers have until March 31, 2025, to comply.
Key Takeaways:
- Simplified Violence & Harassment Policies – Employers no longer need separate prevention plans but must include confidentiality procedures for handling complaints.
- Expanded Confidentiality Protections – Employers cannot disclose information related to harassment or violence unless necessary for investigations, corrective actions, or legal requirements.
- Industry-Specific Updates – Employers in explosives handling and oil & gas must review new safety procedures to ensure compliance with updated best practices.
HR News
Canadian Gen Z's prioritize benefits, workplace policies over higher wages.
Canadian young workers (18–29) are demanding more than just a paycheck. In a survey of 231 respondents, non-monetary perks—robust health care, ample rest, and family-friendly policies—proved essential, especially for women and those just starting out. These preferences mirror international decent work standards and signal a strong call for workplaces to champion health and well-being post-pandemic.
Inter-provincial trade won’t save Canada from Trump.
Since January 20, Canada has found itself at economic war with its largest ally. While a 25% tariff on Canadian goods has been temporarily paused, the looming threat could disrupt key sectors and risk thousands of jobs. Critics argue that instead of chasing deregulation myths like dismantling inter-provincial trade barriers, Canada should double down on investing in robust domestic infrastructure, green energy, and local manufacturing. This debate is prompting a strategic pivot toward building a resilient, inward-focused economy that can weather external pressures and secure long-term prosperity.
Take-aways from Amazon's messy push to bring everyone back to the office.
Amazon is shifting gears from an era of remote work to a more in-person model, aiming to spark enhanced collaboration and rejuvenate its office culture. However, this pivot comes with challenges—longer commutes and questions about maintaining work-life balance.
Key Takeaways
- The return-to-office policy reflects a broader industry trend toward reclaiming in-person teamwork post-pandemic.
- Employees face the prospect of lengthier commutes, potentially impacting daily routines and personal time.
- The move is designed to bolster creativity and strengthen corporate culture, even as it tests the flexibility employees have grown accustomed to.
- This strategic shift highlights the balancing act companies face in leveraging remote work benefits while addressing operational and cultural needs.
Canada’s January unemployment rate: 6.6%—job market grows—workers stay put.
According to the latest Stats Can numbers:
Key Takeaways
- Employment grew by 76,000 in January, with manufacturing (+33,000) and professional services (+22,000) leading job gains.
- The unemployment rate fell slightly to 6.6%, continuing a positive labor trend.
- Wage growth remained steady at 3.5% year-over-year, bringing the average hourly wage to $35.99.
- Job-changing rates are declining, indicating that workers may be opting for job stability over new opportunities.
- Ontario, British Columbia, and New Brunswick saw the largest regional employment increases.
GenAI skills still rarely mentioned in white-collar job postings.
A recent HiringLab article reveals that, despite the hype around generative AI, it remains rarely mentioned in white-collar job postings. Employers appear cautious, with few ads highlighting GenAI skills or integration into job roles.
Key Takeaways
- Generative AI is not yet a common requirement in white-collar job ads.
- The technology's buzz has not translated into widespread hiring practices.
- Employers may be in an exploratory phase, preferring proven skills over emerging technologies.
- The gap between public discourse and recruitment suggests a measured adoption of GenAI in the workplace.
Feds announce latest National Cyber Security Strategy to protect businesses & workers.
The Canadian government has announced its updated National Cyber Security Strategy (NCSS), aiming to strengthen the country’s cyber resilience. The strategy builds on previous efforts by deepening partnerships, fostering innovation, and improving cyber threat detection and disruption.
Key Takeaways;
- Greater Public-Private Collaboration – The government is increasing engagement with businesses, academia, and international partners to strengthen cyber defenses, including launching the Canadian Cyber Defense Collective.
- Investment in Cybersecurity Innovation – Canada aims to become a global leader in cybersecurity through funding, regulatory updates, and new certification programs to enhance industry standards.
- Stronger Threat Detection & Response – Authorities will enhance cybersecurity enforcement, implement new reporting systems for cybercrime and fraud, and take steps to discourage ransomware payments.
The number of UK companies operating a four-day week has surpassed 200.
A recent article highlights the positive impact of a four-day workweek on employees' well-being and productivity.
Key Takeaways:
- Enhanced Employee Well-Being: Reducing the workweek can alleviate stress and boost morale, contributing to a healthier workforce.
- Maintained or Improved Productivity: Despite fewer hours, employees often maintain or even enhance their output, debunking concerns about reduced productivity.
- Competitive Recruitment and Retention: Offering a four-day workweek can make organizations more attractive to top talent, aiding in recruitment and retention efforts.
This approach suggests that rethinking traditional work structures can benefit both employees and employers.
Preparing for Tariffs : Planning workforce adjustments during economic slowdown.
With the U.S. and Canada imposing and then pausing tariffs, the Canadian economy faces uncertainty. Employers must proactively plan for potential slowdowns and workforce adjustments. This article outlines legal and strategic workforce measures that businesses can use to navigate economic downturns while minimizing risk.
Key Takeaways:
- Flexible Workforce Adjustments – Employers can explore temporary layoffs, work-sharing agreements, reduced hours, and voluntary compensation adjustments to manage costs while retaining employees. However, these changes must comply with employment laws and contractual agreements.
- Risk of Constructive Dismissal – Unilateral changes (e.g., pay reductions or layoffs) may expose businesses to constructive dismissal claims unless contracts allow for such measures. Employers should seek legal advice before implementing workforce changes.
- Mass Termination Considerations – Large-scale layoffs may trigger group termination laws, requiring additional notice periods and compliance with provincial regulations. Employers should carefully assess legal obligations before implementing significant reductions.
Employers have multiple workforce management options during economic downturns, but each comes with legal risks. Proactive legal consultation and clear employee communication are critical to mitigating disputes and maintaining operational stability.
2 employees terminated, 1 resigned as Ottawa reports increase in fraud incidents.
The City of Ottawa's fraud and waste hotline has exposed more than allegations of a high-profile kickback scheme: A higher-than-usual number of tips last year also led investigators with the auditor general's office to employees accused of stealing both time and property. In one case, an employee is accused of selling that property on Facebook Marketplace.
Case Law Round Up
CRA executive challenges prorating of performance award.
In Hamon v. Canada Revenue Agency, executive Cathy Hamon’s challenge to her prorated performance pay during a 4‑month medical leave was dismissed. The adjudicating board ruled that the CRA’s policy—designed to prorate lump sum performance awards when an executive is absent—was not a disciplinary measure or a financial penalty. Despite Hamon’s argument for an exemption, the decision confirmed that following established compensation protocols, even during medical leave, leaves no room for discretionary exceptions.
BC Jazz pilot fired for false bribe and money laundering claims loses arbitration.
A former Jazz pilot has been fired after fabricating allegations of bribery and money laundering. The incident has raised serious questions about internal oversight and accountability in the aviation sector, while igniting debates over the credibility of whistleblower claims and the integrity of corporate governance.
Ex-Toronto cop loses appeal of firing over ‘libelous’ tweets.
In the case of Zarabi-Majd v. Toronto Police Service, 2025 ONSC 277, a former Toronto police officer has lost their appeal over being dismissed for libelous tweets that targeted issues of workplace sexual harassment and racism. The ruling underscores that when public servants misuse social media to air grievances or make unfounded claims, they face serious professional repercussions.
Key Takeaways
- The officer's appeal was rejected, reaffirming that defamatory social media conduct can lead to termination.
- The case highlights the need for responsible online behavior, especially within sensitive public institutions.
- It serves as a stark reminder that free speech does not protect libelous content in professional environments.
Alberta termination clause providing for 90 days’ notice enforced despite employee’s C-Suite promotion.
In the case of Singh v. Clark Builders, the Alberta Court of King's Bench addressed the enforceability of a termination clause within an employment contract. Mr. Singh, initially hired as Vice President of Corporate Operations in 2013, was promoted to Chief Operating Officer (COO) in 2015. Upon his termination in 2019, a dispute arose regarding the applicability of the original employment contract's termination clause, which stipulated a 90-day notice period.
Key Findings:
- Enforceability of the Termination Clause: The court upheld the 90-day notice provision, emphasizing that Mr. Singh, a sophisticated and experienced executive, had actively negotiated the terms of his employment contract. The court found no ambiguity in the clause and determined it was a clear agreement between the parties.
- Changed Substratum Doctrine Not Applicable: Mr. Singh argued that his promotion to COO constituted a fundamental change in his role, rendering the original contract obsolete. The court rejected this claim, noting that the promotion was anticipated in the original agreement, and thus, the contract remained valid.
- Good Faith Allegation of Just Cause: Clark Builders initially alleged just cause for termination due to performance issues but later withdrew this claim. The court held that, since the employer had a reasonable and good faith basis for the allegation, it did not invalidate the termination clause, even though just cause was not ultimately proven.
Takeaways:
- Clarity and Precision in Contracts: Ensure that termination clauses are clearly worded and unambiguous. Explicit language can prevent potential disputes and reinforce the enforceability of the contract terms.
- Consideration of Role Evolution: When drafting contracts, anticipate potential changes in an employee's role. Including provisions that account for promotions or shifts in responsibilities can help maintain the contract's relevance over time.
- Good Faith in Termination Proceedings: Employers should approach allegations of just cause with a genuine and reasonable basis. Even if such claims are not substantiated, demonstrating good faith can preserve the enforceability of termination provisions.
Ontario court finds employer’s reversing remote-work arrangement was constructive dismissal
In Byrd v. Welcome Home Children’s Residence Inc., the Ontario Superior Court ruled that an employer’s demand for an employee to return to in-person work after over a year of remote work constituted constructive dismissal. The plaintiff was award nearly $19,000. The court found that remote work had become an accepted part of the employment relationship, and since the employer never established or communicated a right to recall the employee, the ultimatum to return or resign was effectively a termination.
Key Takeaways:
- Document Remote Work Agreements – Employers should clearly outline remote work expectations and recall rights in writing to avoid disputes.
- Unilateral Changes Can Trigger Constructive Dismissal – If remote work becomes a standard part of an employee’s role, requiring a return to the office without clear prior notice may be seen as a fundamental change to the employment contract.
- Plan for Hybrid & Remote Work Policies – Employers allowing remote work should include explicit terms in contracts or remote work agreements to reserve the right to require in-office attendance.
Ontario remote worker's discrimination claim dismissed due to lack of jurisdiction.
In Musolino v. Teccweb Inc., 2024 HRTO 1835, the Ontario Human Rights Tribunal dismissed a worker’s sex discrimination claim, ruling that her employment lacked a sufficient connection to Ontario. The worker, based in Nova Scotia, worked remotely for a Waterloo-based company but reported to a U.S.-based supervisor. The tribunal determined that the company’s Ontario headquarters alone was not enough to establish jurisdiction.
Key Takeaways:
- Jurisdiction Matters in Remote Work – Employers operating across provinces and countries should clearly define governing jurisdiction in employment agreements to avoid legal uncertainty.
- Provincial Human Rights Laws Have Limits – A company’s Ontario presence does not automatically mean the Ontario Human Rights Tribunal has jurisdiction, especially for remote employees working outside the province.
- Remote Work Raises Legal Complexity – Employers with a multi-jurisdictional workforce should ensure clarity in contracts, tax documentation, and HR policies to align with applicable laws.
B.C. employer ordered to pay $25,000 in punitive damages after worker refuses to sign release.
In Thompson v. Revolution Resource Recovery Inc., 2025 BCSC 8, a British Columbia court awarded a terminated worker five months’ salary, commissions, and $25,000 in punitive damages after her employer conditioned her statutory termination pay on signing a release and found that the employer attempted to pressure the employee into signing a release in exchange for statutory severance pay, which constituted bad faith conduct warranting punitive damages.
Key Takeaways:
- Statutory Pay Cannot Be Conditional – Employers cannot require employees to sign a release waiving legal claims in exchange for statutory termination pay. Courts will view this as bad faith conduct, potentially leading to punitive damages.
- Commissions Must Be Included in Severance – If an employee regularly earns commissions, termination pay must account for lost commissions unless the employment contract explicitly and unambiguously excludes them.
- Good Faith in Termination Matters – Courts expect employers to act fairly and transparently when terminating employees. Withholding statutory pay or pressuring employees into waiving their rights can lead to significant financial penalties.
Breakdown of the Award:
- 5 months’ pay (salary + commissions): $32,000
- Punitive damages: $25,000
- Legal costs: (to be determined)
Ontario Termination Clauses
Due to the large number of cases we track in this category, case law related to the enforcement of Ontario termination clauses now has its own dedicated section.
Ontario court raises bar for 'at any time' termination clauses — yet again!
A recent Ontario wrongful dismissal case, Baker v. Van Dolder’s Home Team Inc. has set a new precedent by ruling that termination provisions allowing employers to fire employees 'at any time'—without notice or compensation—are unenforceable. This landmark decision reaffirms the statutory protections granted to employees and could trigger widespread changes in employment contracts across the province.
Key Takeaways
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As courts increasingly scrutinize termination clauses, employers should review both existing agreements and any new contracts being drafted. Recent case law indicates that older contracts often include problematic "at any time" language. It’s wise to update these agreements and avoid overly broad clauses that fail to differentiate between willful misconduct and common-law just cause.
Fired Ontario sales exec gets 6 mos’ pay $163k after 10 mos on the job—invalid termination clause.
In Shelp v. GoSecure Inc., an Ontario court awarded six months’ pay in lieu of notice ($163,659.92) to a sales executive terminated after just 10 months on the job. The employer relied on a termination clause in the contract, but the court ruled it unenforceable, defaulting to common law notice. The executive sought 12 months’ notice, arguing inducement, but the court settled on six months, rejecting the inducement claim.
Key Takeaways:
- Invalid Termination Clauses Can Be Costly – If a termination clause is deemed unenforceable, courts will award common law notice, which can be significantly higher.
- Short Service Doesn’t Equal Short Notice – Even employees with less than a year of service can receive substantial notice periods.
More Link provides solid reference materials for notice calculations.
Well-drafted Ontario termination agreement results in pro-employer court ruling.
In Preston v. Cervus Equipment Corporation, the Ontario Court of Appeal ruled that a former employee’s settlement agreement barred him from claiming vested stock units, even though he had not specifically included them in his wrongful dismissal claim. The court overturned an earlier decision that had attempted to reinterpret the agreement in the employee’s favor, emphasizing that clear and specific settlement terms will be upheld.
Key Takeaways:
- Precise Settlement Language Matters – Courts will enforce settlement agreements as written, so employers must ensure they clearly cover all possible claims, including equity compensation.
- Broad Releases Can Still Be Enforced – While courts sometimes narrowly interpret releases, specific language in an agreement will generally override broader contextual arguments.
- Finality of Settlements Is Key – Employers can rely on well-drafted agreements to avoid post-settlement disputes, reinforcing the need for meticulous drafting and legal review.
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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