Canada Employment Law Update

Workwell Global is here to help you navigate the evolving landscape of the Canada employment law, keeping you informed with our 2025 updates and expert insights

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As an Employer of Record in Canada Workwell Global is here to provide any updates on upcoming employment laws in Canada. The following laws are set to take effect in the upcoming year, or took effect in the second half of 2025.

Please note, the following is a brief list of labour and employment laws for 2025. If you are an existing client of Workwell Global, please reach out to your Business Manager for an extensive, detailed list of important updates stored in our Client Toolkit!

What Canada Employment Law Updates are Included in This Blog?

 

Canada Federal Employment Law Updates 2025

Annual Pay Equity Statement Due

The Pay Equity Act requires employers and groups of employers to provide an annual statement to the pay equity commissioner. The first report will be due no later than June 30, 2025. Employers must complete a statement annually. The pay equity commissioner may release a draft form of the annual statement for employers to complete, along with associated guidelines for employers, by early 2025. These obligations apply to all federally regulated employers in Canada that had 10 or more employees either (1) at the time the Act came into force on August 31, 2021 or (2) after the Act came into force.

An Act to Implement Certain Provisions of the Fall Economic Statement

In June, this Act received Royal Assent. It includes the following changes to the Canada Labour Code for federally regulated employees:

Leave Related to Pregnancy Loss: A new three-day paid leave following a pregnancy loss. Dealing with pregnancy loss can be extremely challenging, and individuals who experience it often need time away from work to support their recovery. This new leave will come into force on December 17, 2025, or on an earlier date to be fixed by order.

Leave for Placement of a Child: A new 16-week unpaid leave to support workers who need to carry out responsibilities related to the placement of a child into their care, whether through adoption or surrogacy. This will ensure they can access the Employment Insurance benefit for adoptive parents without fear of losing their jobs. This new leave is expected to come into force through an Order in Council.

Newfoundland and Labrador

  • An Act to Amend the Labour Standards Act

The Act received Royal Assent on December 4, 2024, and is now in force. The Act amends the Labour Standards Act to include the addition of unpaid, job-protected leave related to long-term illness, long-term injury, and organ donation. An employee can take 27 weeks per year of job-protected leave, or 104 weeks if the leave is the result of a criminal offense for which the employee is not responsible.

  • An Act to Amend the Labour Standards Act No. 2

The Act was introduced on December 2, 2024 and received Royal Assent on December 4, 2024. The Act amends the Labour Standards Act by removing the requirement for employees to provide employers a sick note from a medical or nurse practitioner after taking three consecutive days of sick leave. The goal of this amendment is to reduce the administrative burden on physicians and financial strain on employees.

Nova Scotia

Serious Illness and Sick Leave Updates

Effective: January 1, 2025

The Stronger Workplaces for Nova Scotia Act will amend the Labour Standards Code by:

  • Creating a 27-week unpaid, job-protected leave for eligible employees while dealing with serious illness or injury. This leave will align with the federal employment insurance benefit period.
  • Providing employees with five unpaid sick leave days for general illness, in addition to the three unpaid days for medical appointments and family illness currently provided under the Labour Standards Code.

Prince Edward Island

Serious Illness and Sick Leave Updates

Effective: October 1st, 2025

  • Paid Sick Leave: On October 1, 2024, Prince Edward Island’s sick leave laws were amended. Prior to October 1st, an employee in Prince Edward Island was entitled to up to three days of unpaid leave in a year after three months of continuous service with an employer; after five years of continuous service, an employee was entitled to one day of paid sick leave and three days of unpaid sick leave per calendar year.

In addition to the unpaid leave available to all employees, employees became entitled to paid sick leave on the following basis:

  • One day of paid sick leave after 12 months of continuous employment
  • Two days of paid sick leave after 24 months of continuous employment
  • Three days of paid sick leave after 36 months of continuous employment

Please note that this will be billed back to you in the event a worker does take this entitled leave.

Got Questions About Canada Employment Law?

Keeping up with Canada employment law can be complex and time-consuming. Businesses face the challenge of navigating a myriad of regulations while trying to stay focused on growth.

That’s where Workwell Global makes it work for you. From onboarding to payroll, expenses, insurance, and benefits, we take care of the details compliantly, in accordance with the latest regulations.

With decades of experience as a trusted Employer of Record in Canada, we specialise in simplifying workforce management for businesses looking to enter the Canadian market. Whether you wish to test out the market with your first hire, or want to scale your current operations, our team provides the guidance and support you need to succeed.

Schedule a consultation to discuss your business expansion goals and how you can easily start hiring employees wherever in Canada!

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Disclaimer: The information provided here does not, and is not intended to, constitute legal advice. Instead, the information and content available are for general informational purposes only.

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