New & Potential Changes to Canadian Employment & Labour Laws

Legislative Update: Information on the ESA, OHSA, WSIACLC, and the Digital Platform Workers’ Rights Act

In our last update, we outlined the new changes to the Employment Standards Act, 2000 (the “ESA”) and the Occupational Health and Safety Act (the “OHSA”), which were set to take effect on July 1, 2025 to the ESA and on January 1, 2026 to the OHSA.

Since that last update, there has been further updates to the Canadian employment and labour law landscape. The Ontario government tabled its most recent update to employment laws in Bill 30, the Working for Workers Seven Act.

On the federal level, Bill C-58, An Act to amend the Canada Labour Code and the Industrial Relations Board Regulations came into force on June 20, 2025.

Both these Bills will significantly change areas of employment and labour law for provincially regulated employers in Ontario and for federally regulated employers, respectively.

The Working for Workers Seven Act

If passed, Bill 30 will change the ESA, the OHSA, and the Workplace Safety and Insurance Act, 1997 (the “WSIA”).

Proposed Changes to The ESA

1. A requirement for anyone operating a job posting platform, such as Indeed, Monster, or Glassdoor, to include a process for a user to report a fraudulent publicly advertised job posting and a written policy for addressing publicly advertised job postings.
2. Introduction of a new “job seeking leave”, triggered if fifty or more employees receive notice of termination in the same four week period. Each employee who receives this notice becomes eligible for three days of unpaid, job-protected leave. An employee who is dismissed normally (meaning that fifty or more employees are not dismissed in a four week period) would not be eligible for this leave.
3. Introduction of a new extended layoff of more than 35 weeks in any period of 52 consecutive weeks, but not 52 or more weeks in any period of 78 consecutive weeks. This will be applicable only where the employer and employee agree to this leave and the Director of Employment Standards approves the longer period of layoff. This will be a new, third option for a layoff under the ESA, which currently permits a layoff of up to 13 weeks in a 20 week period or one of 35 weeks in a 52 week period, if the employer meets certain criteria.

Proposed Changes to the OHSA

1. Introduction of a program to reimburse an employer who is required under the WSIA to have a defibrillator on site.
2. Introduction of a new process for levying an administrative penalty where an inspector determines that an employer has breached either the OHSA, the requirement of an inspector or Director, or the requirement of the Minister.

Proposed Changes to the WSIA

1. Introduction of a prohibition and new administrative penalty for an employer who makes a false or misleading claim to the Workplace Safety and Insurance Board about an employee’s claim for benefits under the WSIA.
2. An increase in the maximum fine payable by an employer for a breach of the WSIA where the employer is convicted of two or more counts of the same offence in the same legal proceeding. The maximum fine would be increased to $750,000.00 for each conviction. Any fine extended would be determined based on aggravating factors, which will include:
   1. The defendant was previously convicted of an offence under the WSIA.
   2. The defendant has been convicted of two or more counts of the same offence in the legal proceeding to which the determination of the penalty relates.
   3. The defendant has a record of prior non-compliance with the WSIA.

Bill 30 has passed First Reading and ordered for Second Reading. The language of the Bill may be revised prior to its passage; we will provide an update on this blog if any further amendments are made to it. Given the current political situation in Ontario, it can be expected to receive Royal Assent once it has made it through all stages in the Ontario Legislature.

An Act to amend the Canada Labour Code and the Industrial Relations Board Regulations(the “Act”)

The Act changes the Canada Labour Code (the “CLC”) and associated regulations to prevent a federally-regulated employer from using another worker to replace an employee who is not in their job due to being on strike or locked out.

The CLC previously included language which prevented an employer from using replacement workers “for the demonstrated purpose of undermining a trade union’s representational capacity rather than the pursuit of legitimate bargaining objectives”. This language has been repealed from the CLC and replaced with an overall restriction on an employer from using a number of designated types of workers, where these workers are performing the duties of an employee who is on strike or locked out.

The designated types of workers that an employer is prevented from using are:

• any employee or any person who performs management functions or who is employed in a confidential capacity in matters related to industrial relations, if that employee or person is hired after the day on which notice to bargain collectively is given;
  
• any contractor, other than a dependent contractor, or any employee of another employer;
  
• any employee whose normal workplace is a workplace other than that at which the strike or lockout is taking place or who was transferred to the workplace at which the strike or lockout is taking place after the day on which notice to bargain collectively is given; or
  
• any volunteer, student or member of the public.

The Act provides for exemptions on this overall restriction, including where the use of a replacement is to prevent a specified imminent threat or hazard, or where a contractor worked for the employer prior to the labour disruption.

The Act only impacts a federally regulated employer, such as an airline or a telecommunications company.

Digital Platform Workers’ Rights Act in Effect July 1, 2025 

We previously reviewed the Digital Platform Workers’ Rights Act (the “DPWRA”), which is a new piece of legislation in Ontario that provides a baseline of rights for gig workers. The Government of Ontario confirmed that the DPWRA came into effect on July 1, 2025. We will provide updates in our blog as the DPWRA is reviewed and applied by courts and tribunals.

Key Takeaways

If Bill 30 receives Royal Assent, it will provide employees with several additional rights under the ESA while also setting out new penalties for an employer under the OHSA and WSIA. In advance of either of these changes coming into force it is worth reviewing your policies and procedures to ensure they are up to date and ready to be amended to incorporate this new information if necessary.  

The Act may have a dramatic effect on an employer’s labour contingency plans as an employer may no longer plan to hire replacement workers in the event of a strike or lockout, except in very narrow circumstances. It remains to be seen whether the Government of Ontario makes a similar revision to the Labour Relations Act, 1995.

We can assist you to review and update your employment agreements and policies, and help you stay on top of legal changes like these and ensure your business is compliant. If you are an employee and want to understand how these new requirements impact you, please reach out to us.