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Newsletter – July 2025

NEWS OF THE MONTH 

Historic Shift in Canadian Labour Law: “Anti-Scab” Bill Now in Full Effect

As of June 20, 2025, a significant new federal law, Bill C-58, has come into force in Canada, profoundly impacting labour relations in federally regulated workplaces (such as banks, airlines, and telecommunications).

Key changes include:

  • Ban on Replacement Workers: Employers are now prohibited from using replacement workers during legal strikes or lockouts. This applies to newly hired staff, transferred employees, contractors, and even existing non-union employees if their normal duties are different.

 

  • Stricter Penalties: Companies violating this ban face substantial fines of up to CAD $100,000 per day.
  • Enhanced Essential Services Process: Employers and unions must now agree on essential services to be maintained during a work stoppage within 15 days of notice to bargain, ensuring public safety.

This legislation is a major win for workers, aiming to balance bargaining power and encourage quicker, fairer resolutions to labour disputes by preventing employers from circumventing the impact of a strike.

For more information, read our blog

Watch recorded versions of all our
previous webinars here!

Federal News

Ottawa to Ditch Problematic Phoenix Pay System for Dayforce

The federal government is finally moving to replace the long-troubled Phoenix pay system, which has plagued public servants with pay delays and errors since its launch in 2016.

Backed by a $135 million boost in the 2024 federal budget, officials are accelerating the rollout of Dayforce—a payroll and HR platform already used by the governments of Ontario and California. Developed as a potential replacement since 2018, Dayforce aims to address Phoenix’s core issues, including its incompatibility with over 30 HR systems and 100+ collective agreements.

As of last month, over 300,000 of Phoenix’s 425,000 transactions failed to meet service standards, with 213,000 delayed by more than a year. Public Services and Procurement Canada reports Phoenix has cost taxpayers nearly $4 billion to date.

Federal official Alex Benay confirmed that Ottawa has “abandoned all hopes” of salvaging Phoenix, calling it a “deplorable” tool. The transition to Dayforce will begin gradually across departments. The system is expected to integrate both payroll and HR management, offering a more streamlined experience for Canada’s 420,000 federal employees.

Source

FEATURED BLOG

Understanding and Managing Heat Stress in the Workplace

Summer’s arrival brings not just sunshine and vacations, but also a significant threat to worker safety: heat stress. Working in hot environments poses significant risks to the health and safety of employees. Heat stress, if not managed properly, can lead to various heat-related illnesses, ranging from mild discomfort to severe medical emergencies. This article explores the causes of heat stress, common illnesses associated with it, and effective strategies for managing heat stress in the workplace.

 💡HRC Tip:

Health and safety (Protect) HRC clients have access to a Heat Stress Policy and checklist in their OHS manual. If you would like a separate copy of this, please log into our HR Hub to request the documents or type “Heat Stress” into the Search bar of the Hub.

PROVINCIAL NEWS

Ontario

Ontario’s Digital Platform Workers’ Rights Act Officially in Force as of July 1, 2025

As of July 1, 2025, Ontario’s Digital Platform Workers’ Rights Act, 2022 is officially in effect, bringing significant new protections to workers in the province’s growing gig economy. The legislation applies to individuals performing “digital platform work”—such as ride-sharing, food delivery, and courier services—as well as the platform operators that facilitate this work.

Originally introduced through the Working for Workers Act, 2022, the law establishes a legal framework tailored specifically to the realities of gig work, providing new rights around pay transparency, dispute resolution, and job security.

What’s Now in Effect

Key provisions of the Act include:

  • Minimum Wage for Every Assignment: Workers must be paid at least the general minimum wage (exclusive of tips or gratuities) for each assignment, from acceptance to completion.

     

  • Guaranteed Earnings: Platform operators are prohibited from withholding, deducting, or requiring repayment of any portion of a worker’s earnings or tips.

     

  • Consistent Pay Periods: Workers are now entitled to a recurring pay schedule and a set payday.

     

  • Mandatory Information Disclosure: Platform operators must provide written information within 24 hours of granting platform access, including:

     

    • How pay is calculated

       

    • Tip and gratuity policies

       

    • Pay period and payday details

       

    • Factors influencing work assignment distribution

       

    • Whether a rating system is used and its potential consequences

 

Additional Protections

  • Disputes Must Stay in Ontario: All work-related disputes between a worker and a platform operator must be resolved in Ontario.

     

  • Protection from Reprisal: Workers are protected from retaliation for asserting their rights under the Act.

     

  • No Opting Out: Platform operators cannot contract out of these obligations.


Learn more

 💡HRC Tip:

Platform operators are advised to ensure they are fully compliant with the Digital Platform Workers’ Rights Act, now in effect. This includes updating onboarding processes, pay practices, and contracts in line with the new requirements. If you’re unsure whether your practices meet the current standards, please Contact Us via the HR Hub and we’ll help ensure you have everything in place.

Ontario

Case Study: Analyzing the Validity of Layoff Provisions in Employment Contracts: Taylor v. Salytics Inc.

In Taylor v. Salytics Inc. (2025 ONSC 3461), an Ontario court upheld a temporary layoff under an employment contract, ruling that the layoff clause was not a termination provision—even though other termination terms violated the ESA. 

Key takeaways for employers:

  • Draft layoff clauses separately from termination terms to avoid invalidation.
  • ESA-compliant layoffs are enforceable, but improper drafting of layoff clauses risks constructive dismissal claims.
  • Last-minute pay cuts won’t reduce notice entitlements if layoffs are challenged.

 💡HRC Tip:

Employers are advised to ensure they are using up-to-date employment agreements for employment relationships. If your employment agreements are not up-to-date, please Contact Us via the HR Hub and we will ensure that you have our latest version (2025)

Ontario

Reminder: New Employer Obligations for Providing Job Information Take Effect July 1, 2025

Starting July 1, 2025, new rules under the Employment Standards Act, 2000 (ESA) will require certain employers to provide clear, written job information to new hires before their first day of work, or as soon as reasonably possible thereafter.

The regulation is designed to increase transparency and ensure employees are aware of key job details up front. The written information must include:

  • The legal name of the employer, and any operating or business name if different

  • Employer contact information, including address, phone number, and one or more contact names

  • A general description of the initial work location

  • The employee’s starting wage (hourly, salary, or commission)

  • The pay period and pay day

  • A general description of the employee’s initial expected hours of work

These requirements will apply only to employers with 25 or more employees on the new hire’s first day of work and will not apply to assignment employees (e.g., those placed through a temporary help agency).

Employers are encouraged to review and update their onboarding processes to meet these new obligations ahead of the July 1, 2025 deadline.

 💡HRC Tip:

If you are an Ontario employer with more than 25 employees (full time, part time, managers, etc.), we are happy to provide you with an updated Hiring Policy which includes this requirement. Please log into our HR Hub and type “Hiring Policy + 25 Employees- ON” or use our Submit Request button to request the policy.

Ontario

Case Study: “Private Messages, Public Consequences: The Legal Boundaries of Off-Duty Conduct in Metrolinx v. Amalgamated Transit Union, Local 1587”

A recent Ontario Court of Appeal decision (Metrolinx v. Amalgamated Transit Union, 2025 ONCA 415) has critical implications for employers managing workplace harassment. The court upheld the termination of employees for offensive private WhatsApp messages, ruling that even off-duty digital conduct can warrant discipline if it impacts the workplace. Key takeaways? Employers must investigate harassment—even without a formal complaint—and policies must explicitly address electronic communications. The case reinforces that “private” social media posts can still create liability if they contribute to a hostile work environment. Read more for actionable steps to protect your organization.

 💡HRC Tip:

Is your harassment policy up to date? It’s important to remember that Ontario recently updated its definitions for harassment and sexual harassment under the OHSA. Here at HRC we have also updated our Ontario Violence and Harassment training module and policy to reflect those changes. Please use our “Contact Us” form if you would like to enroll your employees in the updated version or require the updated Harassment Policy.

Alberta

Alberta Companies Ordered to Repay Almost $165K to Temporary Foreign Workers

Two Alberta companies—Allison Jones Consulting and AJ Immigration Group—have been ordered by Ontario’s Ministry of Labour to repay nearly $165,000 to temporary foreign workers illegally charged for job placements at a Canadian Tire in Etobicoke.

Workers from the Philippines say they paid up to $7,900 USD for jobs but were later underpaid and mistreated. One worker, Rowell Pailan, now in Nova Scotia, said he borrowed money for the fees and struggled after arriving.

Despite claims that the two companies are separate, the labour ministry found they operated as a single business and violated laws banning recruiters from charging foreign workers. Both companies are appealing the decision.

Labour advocates say the case highlights systemic failures. Investigations into the Canadian Tire location by provincial and federal authorities are ongoing. Canadian Tire has since banned stores from using recruiters who charge foreign workers.

Source

Britsh Columbia

B.C. Refinery Worker Fired Over Inflated Boot Receipt Loses Grievance

A B.C. refinery worker who lied about the cost of safety boots has lost his wrongful dismissal grievance.

Kent Andrist, an operator at Tidewater Midstream’s Prince George refinery, was fired in October 2024 after submitting a $399 boot receipt for reimbursement, despite the boots costing only $304 in-store. Arbitrator Tonie Beharrell ruled the overcharge was a “premeditated scheme” and not a simple mistake.

Andrist, who was also a union steward, submitted no mitigating evidence. The arbitrator found he intentionally inflated the expense—including socks to reach the $400 boot allowance—and later lied during the company’s investigation. The dismissal was upheld as reasonable.

Source

Britsh Columbia

Case Study: “Economic Dependence or Independence? The Legal Status of Borly Holdings Ltd. in Ursic v. Country Lumber Ltd.”

A recent BC Supreme Court decision, Ursic v. Country Lumber Ltd. (2025 BCSC 970), highlights the risks of misclassifying long-term contractors. The court ruled that Borly Holdings—a trucking company working exclusively for Country Lumber for 14 years—was a dependent contractor, entitling it to 10 months’ notice upon termination. The case reinforces that courts look beyond contracts to assess economic dependence, control, and integration—meaning businesses must carefully structure independent contractor relationships to avoid unexpected liabilities. Key takeaways: exclusivity and high control increase legal risks, written agreements are critical, and even incorporated contractors may be entitled to protections.

 💡HRC Tip:

If you’re uncertain about whether your “independent contractor” would be considered an independent contractor in the court’s eyes, our Advisory team or the legal experts at HRC Law are available to provide advice to you on this topic. Contact us with your questions!

Britsh Columbia

Port Moody Taco Truck Ordered to Pay Unpaid Wages After Appeal Fails

A Port Moody food truck business has been ordered to pay over $2,100 in wages and penalties to a former cook after losing an appeal before the B.C. Employment Standards Tribunal.

BC Taco Restaurant Group Ltd., which runs two taco trucks, was found to have violated the Employment Standards Act by failing to pay overtime, vacation pay, and statutory holiday wages to former employee Abel David Sanchez Florentino.

The company argued that “advance payments” totaling over $6,500 should offset what was owed, but the tribunal found no legal basis for the deductions. Florentino said the receipts were fake and signed under threats from the owner during a Service Canada investigation.

Tribunal member Alysha Bennett ruled the receipts lacked validity and did not meet legal standards for wage deductions. The appeal was dismissed, and BC Taco must now pay the full amount. If the company seeks repayment for the alleged advances, it must go through civil court.

Source

Manitoba

Manitoba Workplace Injury Claims Jumped in 2024, WCB Reports

Manitoba’s Workers Compensation Board (WCB) spent over $266 million on injury claims in 2024 — up 34.5% from 2023 and 26.6% over budget, according to its annual report.

The surge is linked to increased claim volumes, longer recovery times, and higher average costs per claim. The number of days lost to injury rose to 878,559, compared to 784,475 in 2023. The WCB recorded 13,918 time-loss injuries, 2,832 severe injuries, and 22 fatalities last year.

Despite higher spending, WCB remains financially strong, with a 165.3% funding ratio, and returned $122 million in rebates to employers. The agency pledged to focus on injury prevention in high-risk sectors and improve healthcare access.

A new data initiative is being launched to help reduce musculoskeletal injuries in healthcare settings.

Source

Saskatchewan

Case Study: “A Storm in the Boardroom: Constructive Dismissal and Mental Health in the Workplace – Denton v. Parriwi Management Inc.”

In Denton v. Parriwi Management Inc. (2024 SKKB 216), the Saskatchewan Court of King’s Bench ruled on a contentious wrongful dismissal case involving an employee who walked out after a heated meeting—only for the employer to later claim he had resigned. The court awarded 24 months’ pay in lieu of notice, emphasizing critical lessons for employers:

  • A frustrated “I quit” may not be a legal resignation—employers must confirm intent.
  • Indefinite mental health leave requires clear expectations to avoid wrongful dismissal claims.
  • Termination decisions must align with disability accommodations to prevent contradictions.
  • Mitigation arguments fail without proof of available work for the employee.

This case study is a must-read for HR professionals and business owners navigating dismissals, mental health accommodations, and termination letters.

     💡HRC Tip:

    In emotionally charged workplace situations – like a heated argument – avoid making snap decisions or assumptions. Our advisory team is here to support you with this every step of the way. Connect with us through online chat, email, phone, or virtual meetings for a confidential sounding board and guidance on your next moves. Taking that moment to check in could save you from costly litigation.

    Nova Scotia

    Ambiguous Termination Clause Costs Nova Scotia Employer Eight Months’ Pay

    A Nova Scotia court has awarded a former sales rep eight months’notice after ruling that his contract’s termination clause was too ambiguous to override common law entitlements.

    C.B. worked at Micco Companies Limited for over eight years before being let go without cause in June 2024. The company gave four weeks’ pay and argued that was sufficient under provincial standards. But the court disagreed, stating the clause didn’t clearly limit C.B.’s rights under common law.

    The judge said employment contracts must use precise language to reduce notice periods. Because Micco’s clause was open to multiple interpretations — and even referenced “severance pay,” which doesn’t exist under Nova Scotia law — it failed.

    The court also ruled C.B. was owed his full compensation during the notice period, including commissions and car allowance, bringing the total to $53,333. Micco’s argument that C.B. failed to mitigate by job-hunting online was also rejected as outdated.

    Source: Brocklehurst v. Micco Companies Limited, 2025 NSSC 192 (CanLII).

    Minimum Wage in Canada by

    Province/Territory (2024)

    erta: $15 per hour, which has been in effect since October 1, 2018. Students under 18 years of age who work less than 28 hours per week earn a minimum wage of $13.00 per hour. Salespersons (including land agents and certain professionals) earn a minimum wage of $598 per week. Domestic employees (living in their employer’s home) earn a minimum wage of $2,848 per month.

    British Columbia: $17.85 per hour, which has been in effect since June 1, 2025. For live-in camp leaders, the daily rate for each day or part day worked is $142.61. For live-in home support workers, the current daily rate is $133.05 per day or part day worked. The minimum wage for resident caretakers is a monthly wage based on the number of suites in the building: $1069.36 per month plus $42.84 for each suite for a building with 9 to 60 residential suites / $3642.51 per month for a building with 61 or more residential suites.

    Federal Minimum Wage: $17.75 per hour, which has been in effect since April 1, 2025.  

    Manitoba: $15.80 per hour, which has been in effect since Oct. 1, 2024. The minimum wage is set to rise to $16.00 starting October 1, 2025. 

    New Brunswick: $15.65 per hour, which has been in effect since April 1, 2025.  

    Newfoundland and Labrador: $16.00 per hour, which has been in effect since April 1, 2025. 

    Northwest Territories: $16.70 per hour, which has been in effect since Sep. 1, 2024.

    Nova Scotia: $15.70 per hour, which has been in effect since April 1, 2025. The minimum wage is set to rise to $16.50 on October 1, 2025.

    Nunavut: $19 per hour, which has been in effect since January 1, 2024. 

    Ontario: $17.20, which has been in effect since October 1, 2024. The minimum wage is set to rise to $17.60 effective October 1, 2025. The special minimum wage rates are as follows:

    • $16.20 per hour for students under the age of 18 who work 28 hours a week or less when school is in session or work during a school break or summer holidays.
    • $18.90 per hour for homeworkers (those who do paid work out of their own homes for employers).
    • Hunting, fishing, and wilderness guides earn $86 per day when working less than five consecutive hours in a day and $172.05 per day when working five or more hours in a day.

    Prince Edward Island: $16.00 per hour, which has been in effect since October 1, 2024.

    Quebec: $16.10 per hour, which has been in effect since May 1, 2025. 

    Saskatchewan: $15.00 per hour, which has been in effect since October 1, 2024.

    Yukon: $17.94 per hour, which has been in effect since April 1, 2025.

    Plan Ahead with Confidence:

    Holiday List 2025

    List of Provincial, Territorial, and Federal Statutory Holidays 2025

    We get it—keeping track of statutory holidays can be a bit of a headache when you’re juggling everything else. To make things easier, we’ve put together a complete list of this year’s holidays for you. 

    Thank You for Your Kind Words

    We’re incredibly grateful for your support and the thoughtful reviews you’ve shared on Google. Your feedback inspires us to keep raising the bar and delivering the exceptional service you deserve. In this section, we’re shining a spotlight on some of our latest reviews—each one a testament to the trust and partnership we value so deeply.