The Canadian labour market was disrupted in 2025 by an uncertain economy, an onslaught of
tariff policies and accelerated usage of artificial intelligence, and it’s expected to undergo further
changes this year.
Heightened momentum for employees to return to office, AI and new legislation around what
businesses must share in their job postings are the big themes shaping the hiring and employment landscape in 2026, Matthew Badrov, a Toronto-based labour lawyer at Littler Mendelson
P.C., said
“It’ll be a bit more of an interesting year from a hiring standpoint to see how both employers
react and potential applicants react,” he said.
Here are five major changes to employment and hiring rules taking place across the country.
BACK-TO-THE-OFFICE MANDATES
The return to the office is the biggest headline of 2026, David King, senior managing director at
human relations consultant Robert Half Canada Inc., said.
“The return to office is happening at a time where there’s more acceptance … of the benefits,” he
said, adding that in-person collaboration can help with professional development and career
growth as well as ideation and solutioning. “Organizations will need to be mindful that flexibility is still in very high demand for employees.”
Starting Jan. 5, Ontario provincial government employees were expected to be back in the office
five days a week. Alberta’s public sector will also be required in the office full time in February.
It’s unclear whether federal public servants, who currently go into the office at least three days a
week, could face similar mandates, though Badrov said he wouldn’t be surprised to see requirements for more in-person days later this year or in 2027.
PAY TRANSPARENCY IN JOB POSTINGS
More provinces are introducing legislation requiring employers to post salary information on
job postings. King said pay transparency removes some of the mystery for job seekers, builds
trust with the companies they are applying to and fosters equitableness across the workforce.
“It creates efficiency in the employment market,” he said. “People are now applying for roles that
they know will meet the pay expectation that they have, and companies know that people who
are applying understand what this role is going to pay.”
Ontario employers with 25 or more staff have had to include the expected pay or pay range in
publicly advertised jobs since Jan. 1.
Companies can’t get around the rule with massive pay ranges either, since the legislation stipulates pay ranges can’t exceed $50,000, with the exception of jobs paying salaries of $200,000 or
more, which Badrov said provides a little more clarity for job seekers.
‘Interesting’ year ahead, says labour lawyer
Five changes to employment rules you need to know in 2026
National Post · 7 Jan 2026 · Serah Louis Financial Post slouis@postmedia.com
British Columbia implemented its Pay Transparency Act in 2023 and in 2024 and began requiring some employers to produce annual pay transparency reports, which include reporting on the
gender pay gap. Employers there with 50 to 299 employees will need to post their first report by
Nov. 1.
SICK LEAVE STANDARDS
Lisa Goodfellow, a partner in the labour and employment group at Miller Thomson LLP, said
COVID-19 put “a magnifying glass” on the issue of people going into the workplace while ill due
to financial necessity.
But Badrov said he first saw these concerns emerge between 2015 and 2017, when the Ontario
government launched its Changing Workplaces Review.
“A lot of the change came from pressure from the Canadian Medical Association and related provincial bodies who felt that employers mandating sick notes for short-term absences was placing an unnecessary strain on the health-care system, particularly at the family doctor level,” he
said.
Albertan workers can now take up to 27 weeks of leave per calendar year, instead of 16, as of Jan.
1, matching federal standards for long-term illness and injury leave.
Saskatchewan’s new rules bar employers from asking for a sick note unless the employee has
been away due to illness or injury for five consecutive working days. The province also extended
its long-term sick leave to 27 days.
B.C. introduced a similar sick note policy in November for the first two instances when an
employee is absent for five consecutive days or fewer in a calendar year. Manitoba is expected to
introduce legislation in the spring of 2026 to axe the sick note altogether for most minor illnesses.
AI DISCLOSURE FOR JOB SCREENINGS
Artificial intelligence use has been exploding across the country, and more employers are using
the technology to screen and even select applicants.
Ontario on Jan. 1 became the first jurisdiction to specifically require employers to disclose in
publicly advertised job postings whether AI is used during the hiring process to screen, assess or
select applicants, Badrov said.
Goodfellow said this includes when AI is used to write the job-posting description, though the
legislation was likely put in place to address concerns around potential discrimination or biases
that Ai-screening technologies may have.
Badrov said he anticipates other jurisdictions to follow suit with the goal of providing greater
transparency in job postings, and it’s possible the federal government could take similar steps as
well.
Quebec doesn’t have legislation specifically addressing AI use during job screenings, but the
province’s Law 25, which was adopted in 2021, states that employers must disclose when
decisions are made using automated processes, which includes AI.
MINIMUM WAGE INCREASES
Workers across the country should see minimum wage bumps in 2026.
Nova Scotia is implementing a minimum wage boost in two stages this year: a 25-cent increase
to $16.75 in April and another 25-cent bump to $17 an hour in October. Prince Edward Island is
also increasing its minimum wage to $17 an hour in April.
King said the federal government is expected to raise its minimum wage to $18.10 in April. Other
provinces that index minimum wage increases to inflation are expected to implement higher
pay this year as well.
“A lot of people feel the challenge of keeping up with the cost of living,” he said. “These changes
in hourly rates and minimum wages are positive reflections of that.”