- within Employment and HR topic(s)
- with Senior Company Executives, HR and Finance and Tax Executives
- in Canada
- with readers working within the Accounting & Consultancy, Business & Consumer Services and Consumer Industries industries
2025 has brought significant developments in the area of labour and employment law. From key legislative amendments affecting employers' compliance obligations to impactful decisions within the courts and tribunals, 2025 has helped reinforce the importance of precise drafting in employment agreements, clear communication and procedural fairness. Throughout the year, CCPartners has been keeping employers updated on these important labour and employment developments through our Employers' Edge blog.
We are now pleased to provide a recap of the key cases and legislative changes from the past year, along with links to our original blogs for further reading.
Legislative Changes
Job-Seeking Leave and Extended Layoffs
Effective November 27, 2024
Bill 30 expands protections for employees impacted by mass terminations. Employees affected by a group termination are now entitled to a short period of unpaid leave to seek new employment, unless termination pay replaces most of the statutory notice period.
For non-unionized employees, the rules governing temporary layoffs have also been expanded. Longer layoffs may now be permitted where specific conditions are met, including the existence of a written agreement approved by the Director of Employment Standards. Employers must retain these agreements for three years after they expire.
Effective October 1, 2025
Ontario's general minimum wage will increase from $17.20 to $17.60 per hour. The change is expected to affect more than 800,000 workers province-wide and will place Ontario's minimum wage as the second highest provincial rate in Canada.
Required Information for New Hires
Effective July 1, 2025
Employers must provide newly hired employees with the following information in writing:
- The legal name of the employer
- Employer contact information
- A general description of where the employee is expected to initially perform work
- The employee's starting wage rate (hourly, salary, or commission)
- The pay period and pay day
- A general description of the employee's anticipated initial hours of work
Effective July 1, 2025
Amendments clarify and expand employer obligations related to group termination notices, reinforcing the importance of strict compliance with ESA notice requirements during mass terminations.
Effective June 19, 2025
The ESA now includes a new Long-Term Illness Leave, allowing eligible employees to take up to 27 weeks of unpaid leave for a serious medical condition.
Employees must provide a note from a qualified medical practitioner confirming:
- The existence of a serious medical condition; and
- The expected duration of the leave.
Effective July 1, 2025
Employers and constructors must ensure that washroom facilities provided to workers are maintained in a clean and sanitary condition. Cleaning schedules must be documented.
Effective January 1, 2026
Cleaning records must document the date and time of the two most recent cleanings for each washroom facility. These records must either:
- Be physically posted in a conspicuous location near the washroom; or
- Be made available electronically, with clear instructions on how workers can access them.
2025 Caselaw
Abbasbayli v. Fiera Foods Company, 2025 ONSC 3240
The Ontario Superior Court upheld a dismissal for cause following a fair and reasonable investigation. Swapping timecards, while seemingly minor, was found to be a serious breach of trust, and made worse by the employee's refusal to admit or explain the conduct. Honesty, the Court emphasized, is a fundamental piece to the employment relationship.
Baker v. Van Dolder's Home Team Inc., 2025 ONSC 952
Relying on Dufault, Justice Sprout on behalf of the Ontario Superior Court found the without-cause termination clause unenforceable because the ESA does not permit termination "at any time." The Court also struck down the with-cause clause for failing to distinguish between just cause and wilful misconduct. This case reaffirmed that even the inclusion of the words "at any time", without additional discretionary language, was sufficient to render the clause unenforceable. We will have to wait for the Court of Appeal's ruling in March on this important issue – stay tuned!
Bertsch v. Datastealth Inc., 2025 ONCA 379
The Ontario Court of Appeal rejected the argument that the termination clause was ambiguous to an ordinary employee. Relying on Amberber v. IBM Canada Ltd., the Court reaffirmed that ambiguity requires more than competing interpretations. The clause clearly and concisely limited entitlements to ESA minimums and excluded common-law notice.
Boyle v. Salesforce.com, 2025 ONSC 2580
Justice Brownstone on behalf of the Ontario Superior Court reinforced that employees terminated without cause are entitled to all compensation they would have earned during the notice period, including bonuses, unless there is a clear, enforceable, and properly communicated exclusion.
Salesforce's bonus plan failed on all fronts. The decision serves as a reminder:
- Bonus plans must be clearly drafted
- Clearly communicated
- Acknowledged by employees
- Preferably attached to the employment agreement
Precision matters at every stage of the employment relationship.
De Castro v. Arista Homes Limited, 2025 ONCA 260
The Ontario Court of Appeal emphasized the importance of precise language in termination clauses by dismissing the employer's appeal. The use of the word "or" created a disjunctive clause allowing termination for reasons that did not meet the ESA standard of wilful misconduct. As a result, the clause was unenforceable.
Li v. Wayfair Canada ULC., 2025 ONSC 2959
Clear, consistent and repeated references to ESA entitlements helped distinguish Wayfair's "at any time" termination clause from those struck down in prior cases. As a result, Wayfair was only required to provide the employee with their minimum statutory notice entitlement. This case, together with Baker, will be heard by the Court of appeal in March 2026 – stay tuned!
Lischuk v. K-Jay Electric Ltd., 2025 ABKB 460
The Court of King's Bench of Alberta awarded over $1.52 million to a long-serving senior employee, highlighting the significant financial exposure associated with terminating long tenured employees without cause. Clear contractual language and proactive risk management are essential.
Wijeratne v. UFCW Local 1006A and Hilton Garden Inn Toronto/Oakville (Board File No. 2840-24-R)
The Ontario Labour Board reaffirmed its preference to unseal ballot boxes and count votes unless compelling evidence of misconduct exists. Employers should remain neutral during decertification efforts and ensure any challenges are supported by credible evidence.
Arbitrator John Martelli upheld discipline under a Last Chance Agreement where an employee failed to provide timely medical documentation despite clear requirements and repeated warnings. The arbitrator found the employee knew exactly what was required, ignored direct warnings, and deliberately failed to follow the rules. The case was not a human rights issue but a contractual one: the failure to comply with agreed-upon documentation obligations justified discipline.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]