Canada: 2026, Looking Ahead

Significant changes to the world of work have been on the horizon and 2026 is the year that many impending legal developments will finally come into effect in Canada. With new legislative obligations and contradictory lines of emergent case law, employers in Canada must remain proactive in order to keep up with the rapidly evolving labour and employment law landscape.

1. Major Changes to Job Posting Requirements and Pay Transparency in Ontario

Over the last few years, the Ontario Employment Standards Act, 2000, S.O. 2000, c. 41 (the “ESA”) has been repeatedly amended. On January 1, 2026, a series of changes will come into effect following the enactment of the Working for Workers Four Act, 2024, S.O. 2024, c. 3, Working for Workers Five Act, 2024, S.O. 2024, c. 19 and Working for Workers Seven Act, Bill 30. One significant change pertains to job postings for employers with 25 or more employees on the date of the posting. Publicly advertised job postings and related application forms must:

• Include salary transparency about expected compensation or the range of compensation (within $50,000), where the expected compensation or upper limit of the expected range of compensation is less than $200,000 annually;
• Include disclosure of the use of artificial intelligence to screen, assess or select applicants for the position (if applicable);
• Include whether the posting is for an existing vacancy; and
• Not include any requirements for applicants to have Canadian work experience.

Not all job postings are considered “publicly advertised.” A job posting must meet specific conditions to be considered “publicly advertised” for the purposes of these requirements.

These changes expand the scope of an employer’s obligations to provide transparent information to prospective job applicants. Employers should review their standard job postings and application forms to ensure that they comply with these new legislative requirements.

Beyond the additional information that must now be included in job postings, employers will also have to inform candidates whom they interview for a publicly advertised position as to whether they made a hiring decision, within 45 days of the applicant’s last interview.

Employers will also have to retain every publicly available job posting and related application form, in addition to records of what information they provided to candidates, for three years after the posting is removed or the information is provided.

These legislative changes will also impact the operators of job posting platforms, who will be required to have a mechanism or procedure for users to report fraudulent publicly advertised job postings and have a written policy with respect to fraudulent publicly advertised job postings.

2. Ontario Removes Interprovincial Employment Barriers

Ontario filed regulations under the Ontario Labour Mobility Act, 2009, S.O. 2009, c. 24 to remove interprovincial barriers for certain Canadian workers, making it faster and easier for those workers to move to Ontario from other Canadian provinces and territories.

Starting 1 January 2026, certified professionals in non-health occupations from other Canadian provinces and territories will be able to begin working in Ontario much more quickly. Under the new process, referred to as the “As of Right” rules, these workers can apply to have their credentials deemed as certified in Ontario, enabling them to begin working within 10 business days once their credentials and other requirements are confirmed by the regulatory authority. They will then be able to work in Ontario for a one-time, six-month period while the regulatory authority makes a final decision on their certification application.

The “As of Right” rules mark a dramatic shift from the current system, which can require out-of-province workers to wait up to six months before they can begin working in Ontario. These changes will apply to workers in over 300 certifications across 59 regulatory authorities, covering a wide range of occupations including accountants, architects, electricians, and engineers.

We expect to see interprovincial employment barriers continue to break down throughout Canada due to international economic pressures and the federal government’s commitment to a unified Canadian economy.

3. Ongoing Changes to Permissible Termination Clause Language

Since the Dufault v The Corporation of Township of Ignace, 2024 ONSC 1029 decision, seemingly contradictory lines of case law have emerged relating to the enforceability of termination clauses. Specifically, certain phrases used in termination provisions including “at any time” and “sole discretion” have been heavily scrutinized by the Court. In cases such as Baker v Van Dolder’s Home Team Inc., 2025 ONSC 952 and Chan v NYX Capital Corp., 2025 ONSC 4561, the Court has struck down termination clauses that seek to permit employers to terminate employees “at any time” upon providing their statutory entitlements. These decisions are contrasted by recent 2025 decisions, Jones v Strides Toronto, 2025 ONSC 2482, and Li v Wayfair Canada Inc., 2025 ONSC 2959. These cases demonstrate that the “at any time” language does not inherently represent an attempt to illegally contract out of the ESA.

We expect more litigation around termination clauses as the employment law community seeks clarity regarding the inherent right of employers to limit termination entitlements owing upon termination.

4. Permitting New Leaves and Longer Layoffs in Ontario

The Working for Workers Seven Act will require employers to permit job-seeking leave where 50 or more employees receive notice of termination. Employees subject to a mass termination are entitled to three days leave of absence without pay to engage in activities related to obtaining employment.

In addition, the Working for Workers Seven Act also permits extended layoffs in some circumstances. Layoffs may be 35 or more weeks in any period of 52 weeks, but not 52 or more weeks in any period of 78 consecutive weeks. The employer and the employee must agree for an extended layoff to be permitted.

5. Continuing the Rollout of British Columbia’s Pay Transparency Legislation

British Columbia’s Pay Transparency Act, SBC 2023, c 18 requires select employers to post an annual pay transparency report, in an attempt to address the gender pay gap. The report must contain information on pay, such as salary, number of hours worked, bonus pay, with a comparison based on employee gender. Reporting requirements have been implemented in phases. On 1 November 2026, this reporting obligation extends to organizations that have fifty or more employees.

6. Expansion of Health and Safety Obligations in Quebec

An Act to modernize the occupational health and safety regime, SQ 2021, c 27 is legislation which amends the Act respecting occupational health and safety, CQLR c S-2.1. A notable change is the expansion of the application of prevention and worker participation mechanisms according to the size of each employer. This includes the requirement for all employers with at least 20 workers to implement a prevention program, establish a health and safety committee and designate a health and safety representative. Even employers with fewer than 20 workers are now required to implement an action plan and designate a health and safety liaison officer. These changes will come into effect by October 2026.