After more than a decade practising employment law, I can say with confidence that most workplace lawsuits don’t start with bad intentions – they start with employers doing things the way they always have.
Many employer habits that once seemed harmless are now legal liabilities. But the good news is that with some planning, employers can run more efficient workplaces, save money and dramatically reduce legal risk.
Here are practical, 2026 tips for employers looking for certainty in an increasingly complex employment landscape.
Clean up hiring practices: New Ontario pay-transparency rules coming into force in 2026 require employers with 25 or more employees to include salary ranges in job postings, disclose the use of artificial intelligence in screening applicants, and confirm that advertised roles are genuinely vacant. Employers who get this right early will reduce complaints, attract stronger candidates and avoid regulatory attention.
Revisit employment contracts (again): Recent Ontario court decisions continue to invalidate termination clauses that conflict with the Employment Standards Act or give employers unfettered discretion to terminate “at any time.” When a clause is struck down, employees often become entitled to far greater entitlements. Employers should review contracts again, even if you recently updated your contracts and ensure termination provisions clearly comply with minimum statutory standards.
Temporary layoffs still a legal minefield: Courts have repeatedly confirmed a temporary layoff, even during economic downturns, can amount to constructive dismissal unless the employment contract expressly allows it. Employers relying on flexibility should ensure layoff rights are clearly written into agreements or consider alternative measures such as reduced hours with employee consent.
Avoid misclassifying workers as independent contractors: Courts look beyond labels and examine the true nature of a working relationship. If the worker is economically dependent, controlled by the business, or integrated into its operations, they may be an employee regardless of what the contract says. Misclassification can lead to liability for termination pay, vacation pay and statutory benefits.
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Document employee decision-making: Many wrongful dismissal claims succeed not because the employer lacked a reason, but because the process was poorly documented or inconsistently applied. Performance and disciplinary concerns should be addressed early, in writing, with clear expectations and follow-up. Managers should be trained on how to document issues professionally and objectively.
Strike a balance with off-duty conduct: Courts continue to recognize an employer’s right to discipline off-duty behaviour that has a real impact on the workplace, while also emphasizing the duty to investigate harassment complaints properly. Clear policies, fair investigations and thoughtful decision-making are essential.
Finally, employers must stay current with minimum wage and ESA changes. Wage increases affect not just hourly employees but also salaried staff, commission structures and piece-work arrangements. Regular payroll audits can prevent costly retroactive liability.
The reality is that employment law is no longer just a legal issue – it is a business issue.
Employers who invest in compliance, clarity and consistency in 2026 will spend less time reacting to disputes and more time building productive, sustainable workplaces.
In today’s environment, certainty is not a luxury – it is a competitive advantage.
Source – https://torontosun.com/opinion/columnists/tips-employers-in-2026