Newsletter – May 2025

In De Castro v. Arista Homes Limited, 2025 ONCA 260, the Ontario Court of Appeal reaffirmed the importance of aligning employment contracts with the Employment Standards Act (ESA). The Court found that Arista Homes’ termination for cause clause was overly broad and unenforceable, awarding the employee eight months’ notice under common law. The decision turned largely on the use of the words “or” and “shall include”, which the Court found introduced ambiguity and failed to meet ESA standards. This case is a strong reminder that even well-intentioned clauses must be carefully drafted to avoid invalidation.

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The Ontario government is rolling out $11 billion in tax relief and rebates to help businesses weather the impact of U.S. tariffs and global economic uncertainty. Key measures include a six-month deferral on select provincial taxes—like the Employer Health Tax and Insurance Premium Tax—effective retroactively from April 1 to October 1.

Premier Doug Ford said the move will give businesses around $9 billion in relief and improve cash flow to help retain workers. Additionally, the Workplace Safety and Insurance Board (WSIB) will issue another $2 billion in rebates to safe employers, following a previous $2-billion rebate last month.

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Premier Doug Ford has introduced landmark legislation positioning Ontario as the first province to remove all exceptions to interprovincial trade, in a bid to strengthen Canada’s economy against mounting U.S. tariffs. The initiative, backed by Nova Scotia and New Brunswick, calls for full mutual recognition of goods, services, and professional credentials among provinces.

Highlights include:

• A $50M fund to help Ontario businesses expand interprovincial reach.
• Automatic recognition of licensed workers from other provinces.
• Proposed interprovincial alcohol sales, allowing direct purchases between producers and consumers across provinces.
• Consultations on U.S. health professionals practicing in Ontario “as of right.”

With interprovincial trade barriers costing Canada up to $200B annually, this move seeks to eliminate duplication and red tape, and promote a more united and self-reliant national economy.

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Two Ontario companies—Aemulus Corporation and Jackman Enterprises—and their director, Christopher Winston Jackman-El-Hajj, have been fined a combined $86,000 after failing to pay six workers approximately $85,000 in wages and subsequently ignoring Ministry of Labour orders to comply.
Key details:

• The unpaid wages date back to July 2019 – July 2020.
• Despite official orders, neither the companies nor the director paid the workers.
• Jackman-El-Hajj was fined $50,000 for six counts of failing to comply.
• The corporations were fined $36,000 for two counts.
• A 25% victim fine surcharge was added, as per the Provincial Offences Act.

This case highlights persistent wage recovery challenges in Ontario—$60 million in unpaid wages has gone uncollected from 2017 to July 2024.

Under the Employment Standards Act, noncompliance with wage orders is a prosecutable offence, with directors facing fines up to $50,000 and corporations up to $500,000 for repeat offences. 
The incident follows broader national concerns over worker exploitation, including a recent BC tribunal case where a foreign worker was awarded over $115,000 in unpaid wages and employment-related fees. These enforcement actions serve as a clear reminder of the legal risks for employers who disregard employment standards.

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A BC worker, Matthew Seward, was awarded $2,000 after being forced to take a drug test following a minor ankle injury at the Kitimat LNG project. Seward, a painter for Altrad Services, twisted his ankle on a gravel path but explained the fall as a result of wearing heavy coveralls and having worn-down ankles from years of sports. Despite his explanation, the health and safety manager doubted the cause and pressured Seward into taking a urine test, which came back negative.

 The Union representing Seward argued that the drug test was unwarranted, as the incident was a minor stumble with no clear signs of impairment. The labour arbitrator sided with the Union, stating the company’s actions violated Seward’s privacy rights and bodily integrity. The decision also criticized the company’s investigation, which failed to visit the accident site or speak with witnesses. The arbitrator ordered Altrad Services to pay Seward $2,000 in damages for the unreasonable and intrusive request.

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Harminder Singh, a worker from India, has been awarded $115,574.69 by the BC Employment Standards Tribunal after claiming he paid $25,000 to secure a mechanic job at A J Boyal Truck Repair in Richmond, BC. Singh paid the amount in installments, including $10,000 in cash, to the company’s owner, Sarvpreet Boyal. The tribunal ruled that this payment violated the Employment Standards Act, which prohibits charging for employment. Singh was also shorted wages, overtime, and benefits.

The tribunal sided with Singh, noting contradictions in Boyal’s testimony and discrepancies in employment records. In addition to the damages, the company was fined $4,000 for violating labour laws. Singh had initially been awarded a smaller amount but successfully appealed the decision, leading to this larger settlement.

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Saskatchewan was the only province in Canada to see employment increase in March, according to new data from Statistics Canada.

Saskatchewan’s employment surged by 6,600 jobs in March, marking a 1% increase. This rise represents the second increase in four months for the province.

In contrast, provinces like Alberta and Ontario saw employment declines, with Alberta’s workforce shrinking by 0.6% and Ontario by 0.3%. Most other provinces experienced little to no change in their employment figures compared to February.

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Nationally, employment saw a decline of 33,000 jobs, or 0.2%, and the national unemployment rate rose by 0.1 percentage points to 6.7%.

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