Highlights
- Pay transparency laws require salary ranges to be disclosed on job postings to promote equity and reduce wage disparities.
- Stricter worker classification rules increase penalties for misclassifying independent contractors and employees.
- Enhanced data privacy regulations impact how candidate information is collected, stored, and shared by staffing firms.
- Compliance challenges around remote work include navigating tax, labour, and safety laws across multiple jurisdictions.
- Diversity, Equity, and Inclusion (DEI) reporting mandates require organizations to track and report workforce diversity metrics.
- Staying ahead of compliance trends requires collaboration, process improvements, and regular compliance audits.
Staying compliant with staffing regulations is a constant challenge, and 2025 brings new complexities. With updated labour laws, stricter compliance expectations, and evolving workplace standards, companies must adapt to protect themselves and their workforce. Here’s what’s changing and how you can best navigate these new requirements now and in the future.
1. Enhanced Pay Transparency Requirements
In 2025, several provinces have introduced or updated pay transparency legislation to promote pay equity and reduce wage gaps. Employers will need to be more proactive in how they disclose salary information, as failing to comply may result in reputational damage and financial penalties. These changes aim to foster a fairer hiring process, ensuring that job seekers have clear expectations from the start.
British Columbia: The Pay Transparency Act now mandates that employers include salary ranges in all job postings.
Ontario: The province is expected to reintroduce its Pay Transparency Bill, with similar disclosure requirements. Ontario has established effective dates for its new pay transparency laws indicating that as of January 1, 2026, employers with 25 or more employees will be required to include expected compensation or a range of expected compensation in publicly advertised job postings. The salary range provided in job postings must be within $50,000 of the actual expected salary, ensuring that pay transparency remains meaningful and accurate. These regulations also prohibit employers from asking candidates about their previous pay history. Additionally, starting July 1, 2025, these employers must provide new hires with specific employment information in writing before their first day of work, or as soon as reasonably possible thereafter. Finally, employers with more than 100 employees are required to submit pay transparency reports annually.
Québec: Wage reporting obligations under the Charter of Human Rights and Freedoms have been strengthened, requiring employers to provide clearer compensation data.
What To Do:
- Familiarize yourself with provincial regulations. For example, in some provinces such as B.C., failing to include salary ranges can result in penalties
- Ensure job postings clearly outline pay details early in the recruitment process
- Leverage resources from provincial labour ministries or consult compliance experts to stay informed
- Emphasize transparency throughout hiring to boost employee trust and satisfaction. Explore our blog post, below, for more on this.
3 Ways to Elevate Your Business’ Candidate Experience
2. Stricter Worker Classification Rules
With the rise of the gig economy, worker classification laws are becoming more stringent. Misclassification can lead to significant legal and financial consequences, including back pay, penalties, and tax liabilities. Companies must be vigilant in reviewing their workforce structure to ensure compliance and avoid potential disputes.
Canada Revenue Agency (CRA): The CRA has updated guidelines to distinguish between employees and independent contractors, focusing on factors like control, integration into business operations, and ownership of tools.
Alberta: Amendments to the Employment Standards Code enforce stricter criteria for determining worker status.
What To Do:
- Review the CRA's updated worker classification framework
- Conduct regular audits to ensure proper classification of employees and contractors
- Update contracts and job descriptions to align with current classification standards
3. Data Privacy and Protection
Canada is tightening data protection laws to address the rise of AI and digital recruitment technologies. Employers handling candidate and employee data must prioritize compliance to maintain trust and avoid regulatory fines. As privacy expectations evolve, businesses will need to implement stronger security measures and transparency in data handling.
PIPEDA Updates: Amendments to the Personal Information Protection and Electronic Documents Act emphasize greater transparency, consent management, and data security.
Quebec: Updates to the Act Respecting the Protection of Personal Information in the Private Sector enhance privacy requirements.
What To Do:
- Update privacy policies to reflect new requirements, including obtaining candidate consent
- Implement secure data handling practices and train staff on privacy protocols
- Be transparent with candidates about how their data is collected and used
- Monitor updates from the Office of the Privacy Commissioner of Canada
4. Remote Work Compliance
As remote work continues to expand, employers face new compliance challenges related to cross-border employment. Differences in employment laws, taxation, and benefits between provinces and even countries can create complex legal risks. Businesses must develop clear remote work policies that align with both employee rights and regulatory requirements.
What To Do:
- Stay informed about employment laws and tax regulations across different provinces
- Establish clear remote work policies, covering time tracking, health and safety, and local tax obligations
- Research local labour laws to ensure compliance with remote work policies
- Consult CRA’s Remote Work Tax Guide for guidance on tax filing and employment standards
- Subscribe to our Market Echo Newsletter to get insights from the Canadian Labour market delivered directly to your inbox through the signup form to the right!
5. DEI Compliance and Reporting
Diversity, Equity, and Inclusion (DEI) initiatives are increasingly regulated, with many jurisdictions requiring annual reporting on workforce diversity metrics. Companies will need to go beyond surface-level commitments and demonstrate measurable progress in their DEI efforts. Failing to comply could impact employer branding and access to government funding or contracts.
Ontario: Updated human rights regulations now mandate reporting on DEI initiatives.
What To Do:
- Strengthen partnerships with diverse talent networks
- Track and report workforce diversity metrics to comply with provincial regulations
- Implement inclusive hiring practices to foster a positive organizational culture and mitigate compliance risks
- Refer to guidelines from the Ontario Human Rights Commission for detailed requirements
6. Temporary Foreign Worker (TFW) Programs and Compliance
Governments have heightened oversight of Temporary Foreign Worker (TFW) programs to prevent exploitation and ensure fair treatment. Employers must navigate stricter compliance measures related to wages, working conditions, and program eligibility. Non-compliance can result in severe penalties, including bans from hiring foreign workers in the future.
What To Do:
- Partner with reputable staffing agencies, like TalentWorld, that adhere to compliance standards
- Stay updated on Employment and Social Development Canada (ESDC) regulations, including work permits and employment conditions
- Ensure fair employment terms, including proper documentation, transparent contracts, and worker protection policies
- Refer to ESDC’s Employer Guide for the Temporary Foreign Worker Program for detailed compliance expectations
By taking these proactive steps, employers can meet evolving compliance requirements while fostering a transparent and equitable work environment. It is more crucial than ever to stay flexible and adept to the ever-changing world around us.
At TalentWorld, we provide resources, training, and expert guidance to help businesses navigate the changing regulatory landscape. For more insights into industry trends, visit our Industry Insights Blog.
