What Is a Toxic Workplace?
A toxic work environment doesn’t always start with open hostility; sometimes it develops gradually through gossip, disrespect, or unchecked harassment.
In Ontario, these environments are more than unpleasant; they can breach the Human Rights Code and the Occupational Health and Safety Act (OHSA), exposing employers to significant liability.
- With roughly three-quarters of human rights complaints in Ontario tied to workplace issues, recognizing and addressing a toxic workplace has never been more important for both employees and employers.
As Christopher Achkar, employment lawyer and founder of Achkar Law, explains:
“A toxic workplace doesn’t just harm morale, it can create serious legal risks for both employers and employees. Understanding your rights and responsibilities early can make all the difference in restoring balance and protecting everyone involved.”
What Does a Toxic Workplace Look Like?
A toxic workplace often develops from repeated behaviours that erode respect, safety, and trust. While some conduct is obvious, others, like exclusion, gossip, or dismissive management, can be equally damaging.
Common signs include:
1. Bullying or Abuse
Frequent criticism, humiliation, or intimidation by supervisors or colleagues can create a climate of fear. This includes shouting, mocking, undermining, or isolating someone from workplace activities.
2. Harassment and Discrimination
Harassment or unequal treatment based on race, sex, disability, religion, age, or other protected grounds violates Ontario’s Human Rights Code. Examples include unwanted jokes, comments, exclusion, or biased decisions in hiring, promotion, or pay.
3. Gossip and Rumours
When misinformation spreads unchecked, it damages trust and morale. Gossiping about colleagues or sharing confidential information can quickly poison team culture.
4. Systemic Discrimination
Sometimes, the problem lies not in individuals but in systems like rigid scheduling that disadvantage caregivers, or promotion practices that exclude certain groups.
These hidden biases create long-term inequity and disengagement.
5. Nepotism or Favouritism
When advancement depends on who you know rather than what you contribute, morale suffers. Favouritism undermines fairness and drives talented employees away.
6. Overwork and Unrealistic Expectations
Chronic overwork, excessive quotas, or pressure to skip breaks contribute to burnout, a major factor in toxic workplaces. Under Ontario law, excessive workloads and lack of accommodation can breach health and safety obligations.
7. Retaliation for Feedback
Employees who fear punishment for raising concerns are trapped in silence. Retaliating against complaints can violate both the Human Rights Code and OHSA.
8. Microaggressions
Seemingly small jokes or remarks that stereotype or dismiss others can accumulate into a hostile and unsafe environment.
9. Unsupportive or Dismissive Management
When leaders ignore complaints, fail to recognize achievements, or disregard well-being, it signals to employees that respect and fairness are not priorities.
When Is a Toxic Work Environment Illegal in Ontario?
Not every difficult workplace is “toxic” in a legal sense, but when the conduct or culture interferes with dignity, health, or equality, the law steps in.
1. Human Rights Protections
Under the Ontario Human Rights Code, employees are protected from harassment and discrimination based on protected grounds. Employers can be held vicariously liable for misconduct committed by supervisors or co-workers, even if they were unaware of it.
2. Health and Safety Obligations
The Occupational Health and Safety Act requires employers to maintain a safe and harassment-free workplace. Failing to investigate complaints or ignoring harassment can lead to Ministry of Labour investigations and penalties.
3. Constructive Dismissal
If a toxic work environment becomes intolerable and the employer fails to address it, an employee may be entitled to treat the situation as a constructive dismissal and claim full severance pay.
Employer Liability for a Toxic Workplace
Employers can be found liable when they:
- Engage in, condone, or ignore harassment or discrimination;
- Fail to conduct adequate investigations into reported misconduct;
- Retaliate against employees for raising legitimate complaints; or
- Maintain policies or practices that disadvantage certain groups.
Even “joking” remarks can create legal exposure if a reasonable person would find them hostile or unwelcome.
Courts and tribunals use an objective test to determine whether a reasonable employee finds the workplace poisoned by the conduct? If yes, liability may follow.
Preventing a Toxic Work Environment
Employers play a central role in setting the tone for workplace culture.
Prevention requires more than a written policy; it requires consistent action.
Best practices include:
- Conducting thorough investigations into all complaints.
- Offering regular anti-harassment and inclusivity training.
- Reviewing policies under the OHSA and Human Rights Code.
- Promoting transparency and communication between management and staff.
- Documenting performance and behavioural issues carefully and consistently.
Taking proactive steps doesn’t just reduce risk it strengthens retention, morale, and productivity.
What Employees Can Do
If you believe you’re working in a toxic environment:
- Document everything. Keep copies of emails, messages, and incident notes.
- Report concerns through your employer’s internal process.
- Seek medical advice if your health is affected.
- Consult an employment lawyer to understand your options, including potential claims for harassment, discrimination, or constructive dismissal.
You don’t have to tolerate a poisoned workplace ,and you don’t have to navigate it alone.
Creating a Healthy Workplace with Achkar Law
Whether you’re an employer striving to improve culture or an employee facing a toxic work environment, Achkar Law can help you take the right steps.
Our team advises across Ontario on:
- Workplace investigations and policy development;
- Harassment and discrimination claims;
- Constructive dismissal and severance disputes; and
- Legal compliance under the Human Rights Code and OHSA.
Contact Achkar Law
Contact Achkar Law today for strategic, practical advice to help you build or restore a healthy, lawful workplace.
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©