Happy Canada Day! As we celebrate everything that makes Canada both great and unique (personally as food lovers we’d like to mention poutine and butter tarts) we can’t help (because we’re lawyers) but reflect on what makes Canadian employment law so uniquely…Canadian.
Whether you’re running a business in Canada, or supporting HR for one, it helps to understand how our workplace laws differ from other countries, especially our neighbors to the south, and how new rules like updates to Ontario’s Employment Standards Act (“ESA”) effective July 1, 2025) continue to shape our employer obligations.
Let’s break it down.
Canada vs. the U.S.: Key Differences in Employment Law
If your company operates in both countries, or you’re just curious why HR in Canada feels different, here’s why:
- There’s no such thing as “at-will” employment in Canada: In the U.S. most employment is “at-will,” meaning either party can end the relationship at any time, for almost any reason, without notice. As many people who are used to the “at-will” way are surprised to learn, Canada generally handles terminating an employment relationship in a very different way (spoiler alert, as the stereotype goes, it’s typically a far ‘friendlier’ ending). Here in Canada, whether written or not, you are deemed to be in an employment contract with your employees, and unless there’s just cause, Canadian employers typically must give reasonable notice of termination or pay in lieu of notice. This notice may take the form of minimum standards notice under legislation like the ESA, or it may be far more generous notice known as common law notice.
Bottom line: Here in Canada, you can’t just walk someone out the door without consequence.
- Stronger Statutory Protections: Canadian provinces (and federally regulated workplaces) set minimum standards for things like vacation & public holiday pay, overtime, job-protected leaves (pregnancy/parental with an ever growing list here in Ontario), hours of work and breaks.
Bottom line: Here in Canada, we have broad non-negotiable statutory protections that are often stricter than what you’d find in many U.S. states.
Speaking of statutory protections, a quick reminder to our Ontario employers of new updates coming into effect on July 1, 2025, which include impacts to the content and form of your job postings (see our earlier blog for more information).
- Human Rights are Embedded in our Fabric: Every province and territory (plus the federal government) has its own human rights code. Discrimination based on things like race, sex, disability, religion, or age is prohibited in all aspects of employment. Employers also have a duty to accommodate, up to the point of undue hardship.
Bottom line: We take people’s rights seriously.
Final Thoughts on the True North’s Employment Landscape
Canadian employment law does its best to enforce our values: fairness, inclusivity, and balance between employer flexibility and worker protection. As always, these rules can be nuanced, and it’s important for employers to understand that failing to keep their stick on the ice can come with risk and cost. If you need some assistance ensuring you’re Canadian compliant, get in touch.
