Newsletter – March 2025

In an undefended claim, Ontario’s Superior Court of Justice ruled that the employers, Artisan Development Labs (ADL) and its Canadian subsidiary Artisan Cell Labs (ACL), repudiated an employee’s employment agreement by terminating him without cause and failing to pay his contractual severance. The court awarded the employee nine months’ common law notice, amounting to $456,908 in damages.

Key Findings:

• The employee, a senior executive in a niche industry, was entitled to severance under his contract. However, the employers offered less than required and made payment conditional on signing a full and final release.
• The court found that this constituted repudiation, as the employers attempted to leverage severance payments to secure additional benefits.
• Drawing from precedent (Perretta v. Rand A Technology), the court ruled that the employee was entitled to common law notice based on his seniority, earnings, and job market limitations.
• The employee’s claim for punitive damages was denied, as the court deemed the common law notice award sufficient deterrence.

Employer Takeaway:

Failing to honour contractual severance obligations can lead to repudiation claims and significantly higher common law notice awards. Employers should seek advice from professionals before terminating employees to avoid costly litigation.

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The Alberta government has introduced the Alberta Disability Assistance Program (ADAP), set to launch in July 2026, allowing people with disabilities to work while keeping their financial and health benefits. ADAP will complement the existing Assured Income for the Severely Handicapped (AISH) program, which supports those unable to work.

Key Features of ADAP:

• Higher income exemptions – Recipients can earn more without losing benefits.
• Continued health benefits – Full health coverage remains regardless of income.
• Employment supports – Career planning, job placement, and training opportunities.
• New medical review panel – Determines eligibility and reassesses cases.

Minister Jason Nixon emphasized that ADAP addresses concerns that AISH discourages employment by limiting earnings before benefits are reduced. He cited statistics showing that reducing employment barriers for people with disabilities could add $18.7 billion to Alberta’s GDP.

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Saskatchewan has paused employers’ ability to hire foreign workers under the Saskatchewan Immigrant Nominee Program (SINP), citing a 50% reduction in provincial nominee allocations by the federal government. The province’s allocation for 2025 is 3,625 spots, the lowest since 2009.

The unexpected pause, announced on Feb. 18, has left employers struggling to fill positions and immigrants uncertain about their future. Businesses, particularly in smaller towns, rely on SINP to address labour shortages, while many foreign workers use it as a pathway to permanent residency.

The federal government stated that the immigration cuts are aimed at managing national challenges like housing, infrastructure, and social services. Saskatchewan officials criticized the decision, while employers, immigrants, and consultants expressed frustration and concern over the sudden halt.

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Nova Scotia will implement its largest-ever minimum wage increase in 2025 to help workers manage the rising cost of living. The minimum wage will increase by $1.30 over the year, first rising to $15.70 per hour on April 1 and then to $16.50 on October 1.
Labour, Skills and Immigration Minister Nolan Young emphasized that inflation continues to pressure families, and the government is taking action to support workers. The increase follows the province’s annual adjustment based on the consumer price index and an additional 1% to address affordability concerns.
For full-time workers earning minimum wage, these increases could mean an annual pay boost of up to $2,535. The Minimum Wage Review Committee, which includes employee and employer representatives, submitted its recommendations in December.

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Nova Scotia’s latest budget includes tax relief for small businesses, a higher minimum wage, and workforce development investments, with significant implications for employers across the province.

Key Highlights for Businesses:

• Small Business Tax Reduction:
  The small business tax rate will drop from 2.5% to 1.5% on April 1, and the income threshold for small businesses will rise from $500,000 to $700,000, allowing businesses to reinvest in growth.
• Minimum Wage Increases:
  The general minimum wage will rise to $15.70/hour on April 1 and $16.50/hour on October 1, following recommendations from the Minimum Wage Review Committee.

• Workforce Development Investments:

• $30.1M to extend the More Opportunity for Skilled Trades (MOST) tax refund, benefiting workers under 30 in high-demand industries like skilled trades, healthcare, and film.
• $35M to support green job creation under the province’s Climate Change Plan for Clean Growth.
• $39M to bolster the film industry, including $14M for the Washington Black television series.

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The Yukon government is extending its Paid Sick Leave Rebate Program until March 31, 2026, pending legislative approval of Budget 2025–26. The program, backed by $850,000 in funding, reimburses employers and self-employed workers for up to 40 hours of sick leave per year for those earning up to the territory’s average private-sector wage.

Since its launch in April 2023, over 170 businesses have participated, benefiting more than 1,100 employees. The rebate aims to support worker well-being, improve public health, and enhance business competitiveness. However, government employees, federally regulated workers, and certain other groups remain ineligible.

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