As we enter 2025, significant updates to labour regulations are coming into effect for federally regulated workers and those in Ontario. These changes aim to address wage fairness, transparency, and workplace conditions, impacting both employees and employers.

Federal Minimum Wage Increase

Effective April 1, 2025, the federal minimum wage will increase from $17.30 to $17.70 per hour. This change aligns with requirements under the Canada Labour Code, which mandates annual reviews to ensure wages reflect inflation and living costs.

Employers in federally regulated industries such as transportation, telecommunications, and banking should prepare payroll systems to comply by this date.

Ontario Minimum Wage Adjustments

In Ontario, annual minimum wage adjustments under the Employment Standards Act, 2000 (ESA) will continue every October 1. While the current minimum wage stands at $17.20 per hour, forecasts indicate a potential increase in 2025 based on inflation trends.

Employers operating in Ontario should budget for these increases and communicate any changes to employees.

Gender Equity Reporting Requirements

For federally regulated employers, new gender equity measures require those with more than 100 employees to:

• Report on gender pay gaps.
• Implement corrective measures to address disparities.

These requirements are part of the Pay Equity Act, which mandates proactive pay equity plans, and the Employment Equity Act, which promotes fairness for designated groups. Employers must submit annual reports to federal authorities, including the Canadian Human Rights Commission (CHRC), to demonstrate compliance.

Employers can prepare by conducting internal pay audits, developing pay equity plans, and reviewing policies to ensure compliance.

New Rules for Gig Workers

Gig workers, particularly those using platforms like Uber and DoorDash, are gaining new protections under federal and Ontario legislation:

1. Federal Reporting Requirements
   Digital platform operators are now required to report workers’ income to the Canada Revenue Agency (CRA) annually by January 31. This measure, introduced in the 2023 federal budget, aims to improve tax compliance but has been criticized for disproportionately targeting gig workers.
2. Ontario’s Digital Platform Workers’ Rights Act
   Starting July 1, 2025, app-based gig workers in Ontario will have the right to:
   • A guaranteed minimum wage for all hours worked.
   • Transparent pay and tip information.
   • Regular pay periods and paydays.
   • Dispute resolution for work-related issues.

These measures aim to provide greater stability and fairness for gig workers, addressing income and transparency concerns.

Improved Workplace Conditions

In Ontario, new regulations under the Occupational Health and Safety Act (OHSA) and other workplace laws are enhancing conditions for employees:

1. Menstrual Products on Construction Sites
   Construction sites with 20 or more workers on projects lasting three or more months must provide menstrual products for employees. Employers are also required to ensure clean and sanitary washrooms and maintain cleaning records.
2. Broader Workplace Hygiene Standards
   These requirements highlight the government’s focus on health, safety, and accessibility in workplaces.

Employers should review their workplace facilities and hygiene protocols to ensure compliance with these updated standards.

Final Thoughts

These updates represent significant steps toward equity, transparency, and improved working conditions across Canada. Both federally regulated and provincially regulated employers should take proactive steps to ensure compliance by:

• Reviewing and updating payroll systems.
• Auditing internal policies for compliance.
• Implementing required workplace facility upgrades.

For employees, these changes bring new rights and protections. Understanding these developments ensures you can advocate for fair treatment in your workplace. If you have questions about how these changes affect you or your business, consulting an employment lawyer familiar with labour laws is a prudent step.

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