October 2026 Workplace Recap – October 31, 2026
Enjoy our latest edition of Workplace Recap for Canadian employers.
Legislation Updates
HR News
Case Law Round Up
Legislation Updates
ON: Ontario cuts WSIB premiums for 2027, saving employers $160 million.
Ontario’s average WSIB premium rate will fall from $1.23 to $1.18 per $100 of insurable earnings in 2027. More than 80% of premium-paying businesses are expected to benefit, although individual rates will vary.
FED: Equal pay rules are now in force for federally regulated employers.
Effective October 20, federally regulated employers can no longer pay employees different wage rates solely because of their employment status, including full-time, part-time, permanent or temporary arrangements. Specific criteria and exceptions apply. Additional protections also affect employees of temporary-help agencies.
MB: Manitoba employers can no longer demand sick notes for short absences.
Effective October 1, employers generally cannot require sick notes for illness or injury absences of one week or less, or up to 10 days in a calendar year. Different rules apply to longer absences, workplace accommodation and return-to-work documentation.
FED: Severance without the EI penalty. Temporary federal rules change the calculation.
Effective October 11, temporary EI measures waive the usual one-week waiting period and prevent qualifying separation payments, including severance, from delaying or reducing benefits. Additional provisions support qualifying long-tenured workers and people who recently changed jobs before becoming unemployed through no fault of their own.
FED: Caught in the trade war? Ottawa opens applications for funding to help employers avoid layoffs.
The federal Workforce Retention and Retraining Program is now accepting applications. Eligible employers can receive up to $1,000 per participating worker for training and administration costs, while workers may receive income support during reduced hours. The launch builds on funding announced in August.
FED: Hiring foreign talent? Big changes to Express Entry arrive November 3.
New federal immigration rules will award additional points for eligible Canadian work experience and qualifying high-wage job offers. LMIAs will no longer be required for qualifying job offers under specified Express Entry rules, although separate Temporary Foreign Worker Program requirements remain.
HR News
Canada loses 68,000 jobs in September. Unemployment rises to 6.5%.
Canadian employment fell by 68,000 in September, following a decline of 42,000 in August. The unemployment rate increased to 6.5%, with young workers accounting for much of the latest employment decline.
TD fires executive over Christian email signature. She wants more than $400,000.
A former TD Insurance executive is suing after being dismissed following a dispute over a Christian message in her work email signature. She alleges wrongful dismissal and discrimination. TD maintains that she was terminated for repeatedly refusing to follow its email signature policy. The allegations have not been proven in court.
44 years at Walmart. A bouquet of flowers. Internet loses its mind. Then the facts emerge.
A photo of a long-serving Walmart employee receiving flowers sparked outrage over how the retailer supposedly rewarded 44 years of loyalty. Except she wasn’t retiring, and the flowers weren’t her only recognition. Another example of how quickly an incomplete story can become a viral controversy before anyone bothers to check the facts.
BC brewery fires co-owner over controversial T-shirt. Social media backlash erupts.
A Vancouver Island brewery announced the termination of a co-owner after a photo circulated showing him wearing a controversial T-shirt on the National Day for Truth and Reconciliation. The backlash included a flood of negative online reviews, prompting public apologies and a temporary closure. The legal implications of terminating someone with an ownership interest remain unclear.
Ontario manufacturer lays off 118 workers while investing $41 million in the U.S.
EcoPoly/Polyethics temporarily laid off 118 employees at its Orillia operations while pursuing a major manufacturing investment in Ohio. The company cited tariffs, reduced demand and financing difficulties among the factors contributing to the layoffs.
Canadian CEO pay jumps nearly 12%. How’s that for a raise?
Median CEO compensation among S&P/TSX Composite companies climbed 11.8% in fiscal 2025 to approximately $6 million. That’s the largest annual increase since 2022, driven primarily by long-term incentive awards.
Ottawa threatens legal action against Stelco’s American owner over planned layoffs.
The federal government gave Cleveland-Cliffs 15 days to reverse planned layoffs at Stelco or face potential legal action. Ottawa alleges that the company breached employment commitments made during its acquisition of the Canadian steel producer. Cleveland-Cliffs disputes the allegations.
Microsoft offers 60,000 employees a voluntary exit. Canada included.
Approximately 60,000 Microsoft employees across Canada, the U.S., the U.K. and India are eligible for a voluntary exit package offering financial support and career-planning resources. That’s roughly 27% of Microsoft’s global workforce eligible for the offer, although the company hasn’t announced how many departures it expects.
American Express cuts 5% of its workforce to prepare for AI. Profits are up.
American Express plans to eliminate approximately 5% of its global workforce while reporting record quarterly revenue and raising its profit forecast. Executives say the restructuring will reduce management layers, improve efficiency and prepare the business for greater use of AI.
6 Tim Hortons restaurants affected by franchisee insolvency. 26% of staff were temporary foreign workers.
Court filings reveal that 41 of 156 employees across six eastern Ontario Tim Hortons locations were temporary foreign workers. The franchise operator cited pandemic-related losses, denied wage subsidies, and restrictions to the federal Temporary Foreign Worker Program as contributing factors to its insolvency. All six restaurants remained open during restructuring.
BC won’t turn its clocks back this November. Employers elsewhere need to adjust.
On November 1, most of BC will remain on permanent Pacific Time while neighbouring jurisdictions turn their clocks back. The change affects scheduling, meetings and coordination across provincial borders. Some northern and southeastern BC communities retain their existing time arrangements.
Forget the holiday party. 81% of employees would rather have cash.
A Canadian survey found that 81% of full-time employees would prefer a cash bonus over attending their company holiday party. Just 13% preferred the party, with the preference for cash consistent across age groups. Something to consider before booking the annual celebration.
Tariffs and AI are changing Canadian workplaces. 77% of employers have already taken action.
A survey of 200 Canadian executives, HR leaders and in-house lawyers found that 77% had made workforce changes over the previous year. Nearly half had reduced or paused hiring, 35% had conducted layoffs and 28% had increased automation or AI to reduce labour needs.
Case Law Round Up
ON: Court upholds termination clause. Executive’s claim for 24 months’ pay dismissed.
An executive terminated after less than three months sought 24 months’ reasonable notice plus additional damages. The Ontario Superior Court upheld the employment agreement’s termination clause despite potentially conflicting confidentiality language elsewhere in the contract. The case, governed by federal employment legislation, offers employers an encouraging application of Ontario’s recent Baker ruling.
Henshell v. BFN of Ojibways, 2026 ONSC 5768.
ON: Signed a $100,000 settlement and changed your mind? Court says too late.
A former City of Mississauga employee attempted to reopen a wrongful dismissal settlement, arguing that she signed under duress without independent legal advice. The Ontario Court of Appeal upheld the agreement, finding no improper pressure or grounds to overturn the settlement. The employee was also ordered to pay $10,000 in appeal costs.
Martin v. Mississauga (City), 2026 ONCA 753.
ON: Employer tries to recover $33,000 in commission advances. Court says no.
An insurance firm sought repayment of nearly $33,000 in commission advances after a broker resigned. Ontario’s Divisional Court dismissed the claim because the employment agreement didn’t establish a personal obligation to repay the shortfall. A reminder that commission arrangements need clear contractual terms.
BC: Employee refuses reasonable accommodation options. Human rights complaint dismissed.
A Douglas College professor alleged disability discrimination, harassment and retaliation. Following a 21-day hearing, the Tribunal dismissed her complaint, finding that the employer had proposed reasonable accommodations and sought appropriate medical information. The employee’s failure to cooperate consistently undermined her allegations.
BC: Nearly two years of modified duties. Mine employer wins accommodation dispute.
A BC mine worker received modified duties for almost two years after an injury left him unable to perform his original position. The Human Rights Tribunal dismissed his complaint at a preliminary stage, finding the employer was reasonably certain to establish that accommodation had reached undue hardship.
AB: Reject a reasonable settlement offer? Your human rights complaint could be dismissed.
Two Alberta employers successfully defended against human rights complaints after employees rejected settlement offers of $25,000 and $23,000. The Alberta Human Rights Commission found the offers fair and reasonable, demonstrating that employers may be able to resolve complaints without proceeding to a full hearing.
Lahoda v. Canadian Natural Resources Limited, 2026 AHRC 115; Heggenstaller v. Ensign Drilling Inc., 2026 AHRC 119.
FED: Not your employees? You could still be liable for their discriminatory conduct.
TELUS was ordered to pay $10,000 after a federal tribunal found discrimination involving personnel employed by third-party service providers. The Tribunal rejected the argument that separate employment arrangements eliminated TELUS’s responsibility for ensuring employees could access workplace services without discrimination.
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.