Canada: 2026 Looking Ahead

2026 brings significant changes for Canadian workplaces. With new laws, evolving case law, and regulatory updates, employers must stay proactive to remain compliant. Here’s what to watch.
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1. Ontario Job Posting & Pay Transparency Changes
Effective January 1, 2026, amendments to the Employment Standards Act (ESA) through the Working for Workers Four, Five, and Seven Acts introduce new obligations for employers with 25+ employees:

Job Postings Must:

• Include salary or salary range (within $50K, if under $200K);
• Disclose AI use in applicant screening;
• Indicate if the posting is for an existing vacancy;
• Remove Canadian work experience requirements.

Additional Obligations:

• Notify interviewed candidates of hiring decisions within 45 days;
• Retain postings, applications, and communications for 3 years;
• Platforms must have policies to report fraudulent postings.

Tip: Update job postings and hiring workflows to ensure compliance.​

2. Termination Clause Uncertainty
Recent Ontario case law has scrutinized clauses with phrases like “at any time” and “sole discretion.” Some courts have struck them down, while others found them valid.

2026 Outlook: More litigation is likely as courts clarify permissible language.

Action: Review employment agreements and consider updating termination clauses.

3. New Leaves & Extended Layoffs in Ontario
Under the Working for Workers Seven Act:

• Job-Seeking Leave: 3 unpaid days for employees in mass terminations (50+ employees);

• Extended Layoffs: Possible for 35+ weeks in 52 weeks, with employer-employee agreement.
  

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4. BC Pay Transparency Rollout
From November 1, 2026, employers with 50+ employees must submit annual pay transparency reports, including:

• Salary and hours worked;
• Bonus pay;

• Gender-based pay comparisons.

​5. Quebec Health & Safety Expansion
By October 2026, under Quebec’s modernized occupational health and safety regime:

• Employers with 20+ employees must have a prevention program, health & safety committee, and a representative;
• Employers with <20 employees must implement an action plan and appoint a liaison.

Even smaller workplaces face new compliance responsibilities.

Preparing for 2026
Employers should:

• Audit recruitment processes and hiring materials;
• Review employment agreements and termination clauses;
• Update record-keeping and reporting systems;
• Prepare for expanded health & safety obligations;
• Monitor emerging case law and regulations.

Next Step: Proactive compliance reduces risk, improves transparency, and positions your organization for success. Contact our team for a tailored 2026 employment law review.

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