September 2025 Workplace Recap - September 30, 2025
Enjoy our latest edition of Workplace Recap for Canadian employers.
Legislation Updates
- Carney announces $80-million tariff-relief fund for Canadian businesses.
- Ontario employers must get ready: new OINP Employer Portal puts jobs first.
- Ontario opens door: certified professionals in by Jan 2026 under fast-track rule.
HR News
- Ontario professor put on leave after Charlie Kirk comment.
- Ontario public servants mandated back full-time to the office in 2026.
- BC nurse suspended and fined after posting anti-transgender comments online.
- Digital care redefines youth mental health in Canada, says GreenShield report.
- Canada shed 66,000 jobs in August as unemployment hits highest in years.
- Canada ups military pay by about 20% in sweeping compensation overhaul.
- BC Hydro engineer barred after admitting to sexual harassment toward junior colleague.
Case Law Round Up
- Alberta court shatters 24-month notice ceiling for terminations.
- Finally, a clear example termination clause upheld by Ontario Superior Court!
- Ontario Chamber of Commerce steps into high-stakes contract fight.
- Ontario tribunal slams Canadian Tire for graphic harassment and reprisal.
- Harassment doesn’t clock out: Ontario court says employers must investigate off-duty conduct.
- Ontario ruling says “at any time” doesn’t kill termination clause, but failing to reconfirm benefits does.
- Ontario ruling finds workplace poisoned after single remark
Legislation Updates
Carney announces $80-million tariff-relief fund for Canadian businesses.
Prime Minister Mark Carney unveiled sweeping new measures in St. John’s, Newfoundland and Labrador, aimed at insulating Atlantic Canadian businesses from trade shocks. The plan includes workforce training, income supports, and a $5 billion Strategic Response Fund plus a Buy Canadian policy. The Regional Tariff Response Initiative (RTRI) will dedicate $80 million to Atlantic Canada to help small and medium enterprises hurt by tariffs modernize, protect jobs, and explore new markets.
Ontario employers must get ready: new OINP Employer Portal puts jobs first.
As of July 2, 2025, Ontario’s Immigrant Nominee Program (OINP) launched a new Employer Portal that shifts the process for the Job Offer Stream. Previously, foreign workers started by submitting an Expression of Interest; now employers must register their business, post a detailed job offer, then foreign applicants can enter the EOI. The change applies to all Job Offer Stream categories, including Foreign Worker, International Student, and In-Demand Skills streams. Employers will have more responsibility up front and face stricter eligibility rules around revenue, staffing, location, and median wage.
Ontario opens door: certified professionals in by Jan 2026 under fast-track rule.
Ontario is introducing new “As of Right” labour mobility rules that will allow Canadians in certified professions to start working in the province within 10 days of having their credentials and requirements confirmed by the relevant regulator. The rules kick in on January 1, 2026, and apply to more than 50 regulatory authorities and 300 certifications.
Current registration delays can stretch from several months to half a year, so this move aims to help employers hire sooner, reduce delays, and boost the workforce for key sectors.
HR News
Ontario professor put on leave after Charlie Kirk comment.
The University of Toronto placed an associate professor in political science and religion on leave after “concerning social media posts” surfaced in the wake of the assassination of conservative influencer Charlie Kirk. The professor reportedly said the shooting was “too good for fascists.” The post appears to have since been removed. The university confirmed the professor is off campus while the incident is under investigation.
Ontario public servants mandated back full-time to the office in 2026.
The Ontario government is ordering all public service employees—including those in provincial agencies, boards and commissions—to return to full-time in-office work as of January 5, 2026. The ramp-up begins October 20, 2025, when employees who currently work three days a week in-person must increase that to four days. Minister Caroline Mulroney says the move reflects what’s going on in the wider Ontario workforce. Premier Doug Ford emphasised that in-person work is essential for mentoring and productivity. The union AMAPCEO pushed back hard, arguing remote work has proven successful and the policy could override existing contracts.
BC nurse suspended and fined after posting anti-transgender comments online.
Amy Eileen Hamm, a registered nurse and educator with over 13 years’ experience, has been found guilty of unprofessional conduct by the British Columbia College of Nurses and Midwives. The panel determined she made discriminatory and derogatory public statements about transgender people from 2018-2021, while identifying herself as a nurse or nurse educator. Hamm was suspended for one month and ordered to pay $93,639.80 in legal costs.
Digital care redefines youth mental health in Canada, says GreenShield report.
A new GreenShield report shows that integrated digital health—and a platform that unites benefits, telemedicine, mental health, and pharmacy—may be more than hype for younger Canadians. GreenShield+ data reveals that after just three sessions of digital cognitive behavioural therapy (CBT), over half of users under 35 report being “recovered” from anxiety (52%) and depression (51%) symptoms. The report also highlights high satisfaction with rapid therapist matching, virtual‐care “first-visit resolution,” and better medication adherence than industry averages.
Canada shed 66,000 jobs in August as unemployment hits highest in years.
The latest Statistics Canada data shows the economy lost about 65,500 jobs in August, mostly part-time, pushing the national unemployment rate to 7.1%—the highest it’s been since 2016 when you exclude the pandemic period. While sectors like construction saw some gains, losses hit hardest in services: professional, scientific and technical services, transportation & warehousing, and manufacturing. Meanwhile, average wages for permanent workers still rose, indicating some upside.
Canada ups military pay by about 20% in sweeping compensation overhaul.
The Government of Canada has unveiled major changes to pay and benefits for members of the Canadian Armed Forces (CAF). Rolled out over the next 12 months, the package includes a retroactive boost to the Military Factor (which compensates for the extra demands of military life), service-based lump sums, larger allowances for instructors and for stress trades, recruiting bonuses, and better compensation for postings. It amounts to roughly a 20% increase in the total CAF compensation envelope.
BC Hydro engineer barred after admitting to sexual harassment toward junior colleague.
Former senior dam safety engineer Peter Charles Gaffran has admitted to serious unprofessional conduct while employed at BC Hydro. In a July 11 consent order with Engineers and Geoscientists BC (EGBC), Gaffran acknowledged inappropriate sexual communications and advances toward a junior colleague between June 2020 and February 2021. His behaviour included kissing, unwanted physical contact during a work trip, repeated messages and calls, and even driving by her home after being told to stop. Gaffran resigned his registration in 2022 and later agreed not to reapply. He will also pay a $15,000 penalty and $12,000 in legal costs. The matter will not proceed to a full hearing.
Case Law Round Up
Alberta court shatters 24-month notice ceiling for terminations.
In a case that should get every employer’s attention, the Alberta Court of King’s Bench broke past the long-assumed 24-month “cap” on common law reasonable notice. In Lischuk v. K-Jay Electric Ltd., a 34-year employee with no written contract was awarded 26 months’ notice, translating into more than $1.5 million in damages. The Court pointed to “exceptional circumstances”: long service, senior management role, and limited re-employment prospects. The absence of a written contract left the employer fully exposed.
Key Take-Aways for Employers
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In Alberta, 24 months is not a hard ceiling. Courts can go higher in exceptional cases
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Long service, specialized roles, and limited mobility increase risk of extended notice
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Absence of an employment contract leaves employers wide open to liability
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Contracts should be updated when employees take on new responsibilities
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Damages can include benefits, bonuses, and vacation pay over the full notice period
Finally, a clear example termination clause upheld by Ontario Superior Court!
In a ruling that has employers sighing in relief, the Ontario Superior Court upheld a termination clause in Li v. Wayfair Canada Inc. that restricts an employee to only the statutory minimums under the Employment Standards Act (ESA). The employee, employed less than nine months and dismissed without cause, sought five months of common-law notice. The Court said no because the contract clearly stated that termination would “at any time” be limited to ESA’s minimums.
Key Take-Aways for Employers
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Well-drafted termination clauses that refer explicitly to ESA minimums can be enforceable, even with “at any time” language.
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Just having “at any time” doesn’t automatically invalidate a termination-provision under ESA.
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Contracts must be interpreted as a whole; isolated phrases won’t sink a termination provision if the rest of the agreement complies.
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Make sure employment agreements clearly reference statutory requirements and obligations.
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Shorter service and interim employees have less leverage, but clarity in contracts still matters.
Ontario Chamber of Commerce steps into high-stakes contract fight.
A decision with ripple effects: in Baker v. Van Dolder’s Home Team Inc. (2025 ONCA 578), the Ontario Court of Appeal granted intervention rights to the Ontario Chamber of Commerce (OCC) in an appeal dealing with unenforceable termination clauses. The case began when an employer terminated an employee without cause and later tried to dismiss a wrongful dismissal suit. The motion judge struck down both the “without cause … at any time” and “with cause … at any time” clauses as violating the Employment Standards Act (ESA). The OCC, but not the Canadian Association of Counsel to Employers (CACE), was allowed to intervene to help clarify how termination provisions should comply with ESA rules.
Key Take-Aways for Employers
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Termination clauses with “at any time” language (without proper limitation) can be struck down as non-compliant with ESA
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Even “with cause” clauses may be unenforceable if they blur lines between different legal standards such as “just cause” versus “wilful misconduct”
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Large organizations like the OCC can intervene in cases that have broad public policy impact which means courts are increasingly focused on consistency and clarity in contract law
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Employers should revise contracts to ensure termination provisions meet ESA standards with clear differentiation, valid legal terminology, and no sweeping “at any time” catch-alls
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Legal challenges around termination clauses are not private matters only and can become precedent setters with wide-ranging effect
Ontario tribunal slams Canadian Tire for graphic harassment and reprisal.
A recent decision out of the Human Rights Tribunal of Ontario makes it very clear that certain workplace behaviour will not be tolerated. In a case involving Timothy J. Tallon Sales Inc. (a Canadian Tire outlet), a promotions manager subjected a young sales-floor associate to repeated sexual harassment, vulgar comments, lewd gestures, unsolicited advances, and an image that strongly resembled male genitalia. The employer failed to investigate complaints, reduced the employee’s hours, terminated her employment, and retaliated when she spoke up. The employee was awarded one year’s lost wages plus $20,000 for injury to dignity, feelings, and self-respect, with interest dating back to 2018. Full case here: Picanco v. Timothy J. Tallon Sales Inc., 2025 HRTO 1681.
Key Take-Aways for Employers
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Sexual harassment and inappropriate sexual imagery are serious offences under human rights law, even when contested or “interpreted” by respondents.
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Employers must respond promptly to complaints, investigate and take action—even when the respondent denies misconduct or is non-responsive.
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Retaliation (reprisal), such as cutting hours or terminating an employee for speaking up, will aggravate liability.
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Training requirement: courts/tribunals may order training or other remedial processes in addition to monetary awards.
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Default or non-participation in proceedings by the employer or respondent can lead to judgments going ahead anyway, with full consequences.
Harassment doesn’t clock out: Ontario court says employers must investigate off-duty conduct.
In Metrolinx v. Amalgamated Transit Union, Local 1587 (2025 ONCA 415), the Ontario Court of Appeal made it clear: if harassment is known or suspected, you can’t pretend “off-duty” lets you off the hook. Under the Occupational Health and Safety Act, employers are required to investigate misconduct even when it happens outside work hours, on private devices, or through social media. In this case, employees exchanged offensive WhatsApp messages that undermined workplace trust. Because it affected the work environment, the employer was obligated to act.
Key Take-Aways for Employers
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OHSA requires investigation of harassment once it becomes known, regardless of whether a formal complaint is filed
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Off-duty behaviour that spills into the workplace (e.g. via social media, private chats) can trigger employer liability
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Privacy or encryption doesn’t shield misconduct when it causes harm at work
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Policies must explicitly cover off-duty conduct and digital communications
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Training, documentation, and consistency in enforcement are essential to reduce legal risk
Ontario ruling says “at any time” doesn’t kill termination clause, but failing to reconfirm benefits does.
In Jones v. Strides Toronto, 2025 ONSC 2482, the court held that a termination clause containing the phrase “at any time” is not automatically invalid under the ESA so long as the rest of the clause complies. But the clause in this case failed because it did not reconfirm the employer’s obligation to continue providing benefits (group RRSP, insurance, etc.) during the statutory notice period. The employee won four months of common-law notice.
Key Take-Aways for Employers
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Just because a contract uses “at any time” doesn’t mean the termination clause is void under the ESA.
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But failing to explicitly promise continuation of benefits during notice can make the clause illegal.
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Even where a clause attempts tiers (willful misconduct / just cause / without cause), the employer must uphold all statutory obligations during the notice period.
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Ensure your termination provisions clearly reference benefits-continuation or equivalent contributions.
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Contracts should be reviewed to confirm they don’t attempt to reduce or alter terms of employment during a notice period in violation of section 60(1) of the ESA.
Ontario ruling finds workplace poisoned after single remark
In Iron Forming Inc. v. Labourers’ Int’l Union of North America, Local 183, an arbitrator found that a single utterance of a racial slur was enough to create a poisoned work environment. The decision holds the employer vicariously liable under the Ontario Human Rights Code because it had knowledge of the harassment and failed to act. This case shows that even one extremely serious comment can cross the line, not just repeated offenses.
Key Take-Aways for Employers
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One racial slur, if egregious, can be sufficient to establish a poisoned work environment under the Human Rights Code
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Employers are liable if they know about harassment and do nothing to stop or respond to it
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Investigate promptly even what seem like “one-off” incidents—don’t assume that because it’s a single incident it’s harmless
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Policies should make clear that all harassment—big or small, repeated or isolated—is unacceptable
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Training and awareness are key: employees should understand that protected-ground insults are serious even if they occur only once
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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