July 2026 Workplace Recap – July 31st, 2026
Enjoy our latest edition of Workplace Recap for Canadian employers.
Legislation Updates
HR News
Case Law Round Up
Legislation Updates
Feds looking for feedback on how to regulate deepfakes, chatbots & AI agents.
Canada is asking the public how AI systems and AI-generated content should be made easier to identify and understand. The consultation covers labelling synthetic content, disclosing when people are interacting with AI, explaining system capabilities and limitations, tracking serious incidents and monitoring AI agents that act on users’ behalf. Feedback is open until September 23, 2026, and will help shape future government action. For employers already using AI, the direction is worth watching: transparency expectations are moving from good practice toward a likely compliance issue.
Ottawa commits $2 billion in new trades funding as to offset skilled labour shortage.
Canada is adding $2 billion over five years to help provinces and territories expand skilled-trades training under Team Canada Strong. The funding is intended to increase pre-apprenticeship and technical training, reduce certification barriers, clear program waitlists and improve completion rates. The broader plan aims to recruit, train and hire up to 100,000 new Red Seal workers for housing, infrastructure and defence projects. For employers facing persistent trades shortages, this could widen the talent pipeline, but the real test will be how quickly funding turns into qualified workers.
$100 million available to help women advance into leadership and AI careers.
Canada is investing $100 million in projects designed to remove barriers and expand women’s economic and leadership opportunities. Funding will support initiatives that increase participation in senior leadership, STEM, skilled trades and emerging industries, while helping women build skills for an AI-driven economy. Proposals are due September 15, 2026, at noon Pacific time. For organizations with practical ideas, this is more than a policy announcement: it is a chance to turn equity goals into measurable workplace and economic outcomes.
HR News
Canada Post lost $1.6 billion, took a $1 billion bailout, then paid $30.8 million in bonuses. And it’s not the only one.
Canada Post paid $30.8 million in performance-based compensation to executives and managers in 2025, the same year it posted a record $1.57-billion pre-tax loss and relied on government funding to remain solvent. The Crown corporation says the payments help retain experienced leaders through a major transformation and represent less than one per cent of annual labour costs. Still, compensation decisions do not exist in a vacuum. When employees and taxpayers are being asked to accept cuts, disruption or restructuring, leaders should expect every reward to face close scrutiny.
Desire for attention, control makes narcissists more likely to oppose remote work.
New research suggests leaders with stronger narcissistic traits are more likely to resist remote and hybrid work, not necessarily because performance suffers, but because distance can limit their sense of power and status. Across three studies involving more than 1,000 executives, managers and supervisors, narcissism consistently predicted opposition to flexible work. The findings do not mean every office mandate is ego-driven. They do suggest leaders should test these decisions against evidence, business needs and employee outcomes before calling them “culture.”
Jobs filled by temporary foreign workers are the ones Canadian youth don’t want.
CFIB research suggests high youth unemployment is not solving every small-business labour shortage. Nearly half of surveyed youth would avoid regular overnight or heavily physical jobs, while more than a third would skip outdoor or near-minimum-wage work. Relocation interest drops even further, especially for rural and remote roles. Meanwhile, 90% of small firms using the Temporary Foreign Worker Program say they struggle to replace those workers locally. The labour market problem may be less about a lack of applicants and more about a mismatch in location, schedules and working conditions.
Smart glasses at work. Time to update your policies.
Smart glasses are already entering Canadian workplaces, bringing discreet recording, livestreaming, translation and AI tools with them. Most employers do not need a brand-new policy, but existing rules on technology, privacy, confidentiality, cybersecurity and conduct should be updated. Policies should focus on behaviour, including unauthorized recording, AI processing of company information and approved business use, while still respecting accommodation and legal rights. The technology will keep changing. Clear, flexible rules now can prevent a very modern workplace problem later.
June unemployment rate declined 0.1 % to 6.5%.
BC report urges ban on non-disclosure agreements for workplace abuse.
A B.C. legal advocacy group is urging the province to restrict non-disclosure agreements in workplace cases involving sexual harassment and other gender-based violence. Its report argues that NDAs can silence workers, prevent proper reporting and allow harmful conduct to remain hidden. The province is reviewing possible reforms, while Prince Edward Island remains the only Canadian jurisdiction with standalone NDA legislation. Employers should not wait for the law to change: confidentiality clauses should protect legitimate interests, not bury misconduct or block employees from seeking support.
50 Bell employees dismissed for swiping their badges, then going home. Now they’re suing.
Nearly 50 former Bell employees are suing BCE over “swipe and go” terminations, alleging the company used attendance violations as cover for a broader cost-cutting plan. Bell says workers deliberately misrepresented their office presence and were dismissed after thorough investigations. The case may turn on whether expectations were clear, managers approved the arrangements and each employee received an individual assessment. A return-to-office rule is only as strong as its communication, consistent enforcement and documentation.
Ottawa investigates CN after viral wildfire train incident.
Federal authorities are examining whether CN violated railway and workplace safety rules after a freight crew became surrounded by wildfire near Armstrong, Ontario. Video captured workers urgently calling for help as flames closed in, and the crew was later evacuated and treated for smoke inhalation. CN suspended service in the area and launched its own review. The incident shows how quickly routine operations can become a life-or-death decision. Emergencies are not the time to test the limits of a safety plan: workers must come before schedules, cargo and business continuity.
Share of Ontario job postings mentioning AI triples.
Ontario’s new disclosure rules have pulled back the curtain on just how common AI has become in recruiting. The share of job postings mentioning AI-related terms jumped from 9% in October 2025 to 28% by May 2026, with increases across nearly every occupation. The spike appears to reflect employer use of AI in recruiting and screening, not simply demand for AI skills. Job seekers have not shown a clear preference either way, but employers still need to watch for bias, poor candidate experiences and overreliance on automation. Transparency is useful, but human judgment still has to do the heavy lifting.
Case Law Round Up
Ontario: RBC’s unfair investigation leads to a $2.6 million wrongful dismissal award.
An Ontario court found that RBC wrongfully dismissed a successful financial planner after an investigation marked by bias, conflicts and what the judge described as “ammunition gathering.” The employee was not given clear allegations, key records or a meaningful chance to respond, while evidence supporting her position was overlooked. The court awarded 16 months’ notice, nearly $1.92 million for lost earning capacity, $150,000 in aggravated damages and punitive damages. Read the decision: Silva v. Royal Bank of Canada, 2026 ONSC 3841.
Key Take-Aways for Employers
- Investigations must be impartial and focused on establishing facts, not building support for a predetermined outcome.
- Give employees clear allegations, relevant information and a fair opportunity to respond.
- Keep anyone with a conflict of interest from directing or influencing the process.
- A flawed investigation can turn a termination into a costly award for notice, reputational harm and lost career opportunities.
Ontario court upholds prison sentences for police officer & civil servant in $835k estate fraud.
Ontario’s highest court has upheld the convictions and seven-year prison sentences of a suspended Toronto police officer and a former employee of the Office of the Public Guardian and Trustee. The pair used a fabricated will to claim the $834,351 estate of a vulnerable senior with dementia, drawing on confidential records, professional access and the credibility attached to their public positions. The court found that the serious breach of trust justified sentences beyond the usual range for comparable fraud cases. Read the decision: R. v. Konashewych, 2026 ONCA 497.
Key Take-Aways for Employers
- Employees in trusted positions should not have unchecked control over sensitive records, client assets or approval processes.
- Require employees to disclose personal relationships or conflicts that could affect their work.
- Use access controls, activity logs and separation of duties to make insider misconduct harder to hide.
- When criminal allegations arise, follow applicable legislation, policies and collective agreements before changing an employee’s pay or employment status.
Ontario court approves $60 million settlement for abuse survivors of youth institutions.
The Ontario Superior Court has approved a $60-million settlement for former residents of 13 provincially operated training schools who experienced harm between 1953 and 1984. Eligible class members may receive up to $100,000 through a claims process designed to be trauma-informed and reduce the risk of retraumatization. Ontario has formally acknowledged and expressed regret for the abuse, while the court found the settlement fair and in the class members’ best interests. Read the decision: Brown v. His Majesty the King in Right of the Province of Ontario, 2026 ONSC 2880.
Key Take-Aways for Employers
- Organizations responsible for young or vulnerable people need strong oversight, clear accountability and accessible reporting channels.
- Complaints of abuse or misconduct should be documented, investigated promptly and handled without protecting the institution’s reputation at the expense of those affected.
- Trauma-informed processes can make investigations and claims procedures safer and more accessible for people reporting serious harm.
- Legal and reputational accountability may arrive decades later, making reliable records and responsible leadership essential.
B.C. Company directors can be held personally responsible for environmental violations.
The British Columbia Court of Appeal has confirmed that directors, officers and agents may be personally liable for a company’s environmental offences even when the Crown cannot prove they knew about or intended the breach. The court found that failing to prevent a foreseeable offence may amount to permitting or acquiescing in it, particularly where the individual was responsible for compliance. A due diligence defence remains available, but it requires evidence that reasonable precautions were actually taken. Read the decision: R. v. Mossman, 2026 BCCA 75. Staying uninformed is not much of a shield when oversight is part of the job.
Key Take-Aways for Employers
- Clearly assign responsibility for regulatory compliance, monitoring and incident reporting.
- Do not assume that a leader’s lack of direct knowledge will prevent personal liability.
- Act on warning signs and foreseeable risks before they become regulatory offences.
- Document training, inspections, audits, corrective action and other steps that may support a due diligence defence.
Melina Laird is the Operations Coordinator for Sienna HR, a company that provides practical HR services and support to Canadian small businesses.
You can contact her here.