Newsletter – November 2025

 💡HRC Tip:

Review your employee handbook and ensure your medical leave policies align with upcoming legislative changes.

The Government of Ontario has announced nearly $12 billion in relief measures to support more than 80,000 small businesses across the province. The initiative was unveiled in recognition of Small Business Week.

According to the announcement from Nina Tangri, Associate Minister of Small Business, the relief includes the deferral of select taxes and rebates through the WSIB for safe employers. The goal is to help businesses manage current economic challenges while protecting jobs and workers.

 Other measures include:

• A $7.5 million investment in the Digitalization Competence Centre to provide coaching, training, and grants for technology adoption and AI readiness.
• A $2 million top-up to Futurpreneur Canada to assist 320 young entrepreneurs with business financing.
• Continued funding for the Starter Company Plus and Summer Company programs, which provide grants of up to $5,000, training, and mentorship for new business owners.
• Plans to introduce additional tools for succession planning and other business support resources in the coming months.

An Ontario arbitrator has ruled that a Toronto teacher dismissed in 2021 for wearing blackface as part of a Halloween costume should be reinstated with back pay.

The case involved Gorian Surlan, a teacher at Parkdale Collegiate Institute, who attended school wearing black clothing and black makeup as part of what he described as a “zombie” costume. The incident upset students and parents and led the Toronto District School Board (TDSB) to terminate his employment.

In an August 2025 decision, arbitrator Norm Jesin found that while the teacher’s conduct warranted a significant penalty, termination was excessive. Jesin noted that Surlan had no prior disciplinary record, showed remorse, and took steps to educate himself on the history and implications of blackface after the incident.

The arbitrator accepted that Surlan, who immigrated to Canada from Serbia in 1992, did not understand the racial implications of his actions at the time. Jesin ordered that the teacher be reinstated and compensated for lost wages and benefits from October 2023, following the completion of anti-Black racism and blackface education courses recommended by the Ontario College of Teachers (OCT).

At the time of reporting, Surlan’s teaching status with the OCT remained inactive/non-practising, meaning he is not currently eligible to teach in Ontario’s publicly funded schools.

HRC takeaway:
This case underscores the importance of assessing intent, awareness, and proportionality when determining disciplinary action. Employers should ensure staff are provided with clear education on cultural sensitivity, especially around holidays and themed events, and follow a measured and consistent approach to discipline that aligns with precedent and policy.

Reducing red tape, improving permit approvals, and supporting worker mobility

The Ontario government has introduced the Building a More Competitive Economy Act (the Act), a new piece of legislation aimed at cutting red tape and strengthening Ontario’s business climate.

If passed, the Act would streamline regulatory processes, reduce approval times for major projects, and make it easier for businesses and workers to operate across sectors and provincial borders.

Key Highlights of the Proposed Legislation

• Faster approvals for businesses:

  • The government plans to review all economic-development-focused permits by 2028, with a goal to eliminate or transform at least 35% of them while maintaining health, safety, and environmental protections.

     

• Centralized digital permitting system:

  • A new digital platform would allow businesses to apply for and track permits in one place, improving transparency and predictability for investors.

     

• Improved worker mobility across Canada:

  • Ontario would expand “as-of-right” recognition for licensed professionals—particularly healthcare workers—allowing them to work in Ontario without additional certification barriers.

     

• Regulatory updates:

  • Planned changes include streamlining forest management and municipal drinking water approval processes, and clarifying ministerial inspection powers to reduce administrative delays.

     

• Consultation on a Made-in-Ontario vehicle policy:

  • The province intends to explore ways to support the local auto sector, including how public-sector and municipal fleet purchases could stimulate economic growth.

     

What This Means for Employers

If enacted, these measures could speed up project timelines, reduce compliance costs, and improve access to skilled talent across Canada. The initiative also signals the government’s continued focus on modernizing permitting systems and simplifying regulatory requirements for Ontario’s 500,000+ small and medium-sized businesses.

Source.

In a recent Ontario Court of Appeal decision, Titus Steel Company Limited v. Hack (2025 ONCA 693), an employer proved that a former employee had taken over 1,000 confidential business documents. Yet, without evidence of actual harm, the company walked away empty-handed, and on the hook for over $182,000 in legal costs.

Why It Matters for Employers

This case underscores that even when an employer can show clear misconduct, damages must be proven to succeed in court. Simply demonstrating wrongdoing isn’t enough; employers must link it to a quantifiable loss such as lost sales, clients, or reputational damage.

Key Takeaways

• Always maintain clear policies on confidentiality and data handling.

• Conduct prompt internal investigations to document any tangible business impact.

Legal claims should be supported by measurable evidence of loss, not just ethical breaches.

 💡HRC Tip:

Our HR Advisory team is ready to provide advice to you when it comes to difficult employee situations. Visit our Hub at https://www.hrcoveredservices.com/ to initiate a chat or submit a ticket and gain an impartial ear.  

A Canadian Tire store owner in Etobicoke has been fined $111,000 by Employment and Social Development Canada (ESDC) for violating conditions of the Temporary Foreign Worker (TFW) program. The employer was found to have underpaid workers and assigned them to roles different from their job offers, leading to the company being declared ineligible to hire temporary foreign workers until the fine is paid.

The case highlights the federal government’s focus on protecting vulnerable workers and enforcing compliance under the TFW program. Employers are reminded that foreign workers are entitled to the same employment standards and protections as Canadian citizens and permanent residents.

Source.

In this B.C. case study, a hospital transfer driver injured in a workplace motor vehicle accident sought to recover WorkSafeBC-funded vocational rehabilitation expenses as part of his damages claim.

The B.C. Court of Appeal ruled that these expenses do not qualify as “health care” under the Workers Compensation Act, and are recoverable only if proven reasonable and necessary. 

👉 Read the full story to see how the court drew the line between medical treatment and vocational retraining, and what it means for employers coordinating return-to-work programs.

Read the full case study

A Manitoba government employee has filed a lawsuit against the province and Canada Life, claiming she was wrongfully denied long-term disability (LTD) benefits after being diagnosed with long COVID and chronic fatigue syndrome.

The plaintiff, a gift shop manager at the Manitoba Legislative Assembly, alleges that her condition has prevented her from performing her regular duties since late 2024. Despite medical documentation supporting her limitations, Canada Life denied her LTD claim, stating she was capable of performing sedentary work.

The lawsuit argues that her position was not sedentary and that the province should have intervened to approve the benefits. It seeks payment of LTD benefits from December 2024 onward, as well as aggravated and punitive damages for financial and emotional distress.

The case highlights the growing number of long COVID-related disability disputes, as insurers and employers face challenges assessing fatigue-based conditions that are difficult to quantify.

Source