Employment contracts shouldn’t be considered “set it and forget it” documents. With what feels like almost constantly evolving case law, employers need to keep contracts up to date or risk having key provisions thrown out by a court. 

If a termination clause is found to be invalid, the promises in your contract (most typically limiting notice to minimum standards) can be replaced by much more generous common law entitlements. Depending on the circumstances, that could mean months of additional pay you didn’t budget for. 

In this blog, we’ll take a brief look at two recent decisions in Ontario, which are now heading to Ontario’s top court, and explain what it could mean for your contracts going forward. 

Ontario’s Duelling Decisions 

Recently, two Judges of Ontario’s Superior Court of Justice seemed to come to two different conclusions about similar phrasing found in the termination provisions of two employment contracts. 

In the first case, the Court found, in part, that the phrase “we may terminate your employment at any time” was unenforceable. The Court concluded that the termination provision was unenforceable because Ontario’s Employment Standards Act prohibits the employer from terminating at particular times, including at the conclusion of an employees leave or in reprisal for attempting to exercise a right under the Act. Given the ESA prohibits termination at these times, a provision allowing for termination “at any time” was unenforceable according to the Court. 

In the second case, the Court found, in part, that the phrase “…the Company may terminate your employment at any time for any reason…by providing you with only the minimum statutory amount of written notice required by the ESA…” was in fact enforceable. While the Court acknowledged the result in the first case, it determined that the termination provisions in each case were distinguishable. Unfortunately, the Court did not explain exactly how the two provisions differed. 

Now What? Appeals and Takeaways

As it turns out, Ontario’s top court has just announced that it will hear the appeal of the two cases together early next year.  This should hopefully bring some much needed clarity on the enforceability of termination provisions which include the term “at any time”. 

If you’ve made it to this point of the blog, despite the caselaw discussion, congratulations and thank you for letting us nerd out. Now’s let’s talk in practicalities:

  • As you may have noticed, Ontario Courts have a lot to say about whether or not a termination provision will really hold up;
  • If the termination provision in your employment agreement doesn’t hold up, the promises in your contract when it comes to termination entitlements could be replaced by far more generous entitlements; 
  • From our perspective, it’s always the right time to get in touch, to have your employment contracts audited for compliance. 

The Case for Diversity

Beyond all the moral and ethical reasons for promoting a diverse workforce, the business case for diversity is clear. 

A decade ago, a McKinsey study of 366 companies in Canada, Latin America, the United Kingdom, and the United States found clear business advantages for diverse businesses.

According to the study, companies in the top 25% for racial and ethnic diversity were 35% more likely to have greater financial returns than the industry medians in their respective countries. Likewise, companies in the top 25% for gender diversity were 15% more likely to perform better than their respective industry medians. 

A 2020 Glassdoor survey found that the majority (76%) of employees or job seekers consider diversity as a key factor when evaluating companies and job offers. The survey also showed that nearly a third (32%) of candidates would simply not apply to a job at a company that lacks diversity. 

The benefits don’t end there. According to Great Place to Work, diversity and inclusion are associated with greater employee retention, pride, and desire to go to work 

The Problem with Hiring

Yet, bias in hiring is still preventing companies from achieving their goals when it comes to diversifying their workforces.

Even before the widespread use of AI, in 2017, the research was clear that resumes with racialized names got fewer callbacks compared to otherwise equivalent resumes. For resumes with Black or Asian names, this meant a 30% to 50% lower callback rate.

Factors like race, country of origin, immigration status, Indigeneity, gender and physical appearance continue to be barriers to hiring otherwise qualified candidates. 

Now, with AI adoption rapidly increasing among companies (to the tune of 98.4% for Fortune 500 companies), there are concerns that AI can automate discrimination in some cases. A study in 2024, for example, found that popular AI resume screening tools favour white and male candidates. 

Of course, it doesn’t have to be this way. 

Using AI to Promote Diversity

AI holds the promise of helping companies increase diversity in the workplace. In fact, companies are doing that already.

  • Unilever, for example, has recently used AI to increase the hiring of people from underrepresented groups by 16%, all while speeding up its recruitment process. 
  • Cisco has increased the number of women applying to positions by 10% by using tools from Textio, a company that develops AI tools with gender diversity in mind.
  • Software company Atlassian more than doubled its recruitment of women for technical roles in a three year period by using Textio.

While many AI tools are paid, some are free and can be leveraged by any business, no matter the size.

  • Gender Decoder, for example, is a free tool that checks job advertisements to see if they contain words that are masculine or feminine coded. It’s based on research showing that job postings that include more male wording tend to appeal less to women. As a result, this tool can help you make your job postings more gender neutral and attract a greater number of candidates.

If you decide to pay for AI based recruitment tools, be sure to consider the following:

  • Does the AI company use fairness-aware algorithms? Make sure the AI system analyzes data for demographic parity and that it is tested regularly for biases.
  • What kind of diversity are you looking to increase in your organization, and how does the AI system address that? Different companies may provide tools that are better suited to achieving different goals.
  • Is diversity one of the AI company’s main objectives? Ensure that the company does more than simply offer a non-biased AI tool.
  • Does the AI company provide training for hiring managers and HR professionals? Your employees need to be trained on how to use AI effectively, its limitations, and how to interpret its results.
  • Who will be making the final decisions? Ensure a human always makes the call of who to hire, as AI systems are there to assist, not replace human decision making.
Thinking about how to diversify your workforce or introduce AI in your recruitment process? Don’t hesitate to reach out. 

And, if you’re looking for a deeper dive into the legal and policy issues around AI at work, then watch our recent SpringForward webinar on AI and the Future of Work, where we explore AI’s impact on hiring, performance management, and termination, plus what you need to know about legal risks, disclosure rules, and privacy compliance. You’ll find it on our YouTube channel.

The way your team works is directly influenced by the spaces they work in. For employers, that means your hybrid or remote workforce’s productivity, creativity, and wellness are closely tied to their environment. Architect and author Donald M. Rattner put it this way:

“Our mental space (i.e. idea space) expands and contracts in direct proportion to our perception of physical space, both real and imagined.”

For business leaders, this isn’t just about home office décor; it’s about building policies and practices that support employee performance and wellbeing. Employers who take remote workspace design and wellness seriously can boost innovation, reduce burnout, and demonstrate compliance with evolving workplace expectations.

Here’s how employers can help their teams (and themselves) work better, without breaking the bank!

Why Employers Should Care About Home Workspaces

  • Productivity is a compliance and performance issue: A cluttered, poorly designed home office can lead to stress, mistakes, and lower output. For employers, that can mean: risk whether in missed deadlines, health claims, or accommodation requests. 
  • Wellness policies matter: With hybrid and remote work becoming the norm, regulators and courts are paying closer attention to employer obligations. A thoughtful approach to workspace design can support your duty to provide a safe and healthy work environment. 
  • Culture and retention: Small investments in supporting employees’ remote setups through stipends, flexible policies, or guidance can pay off in employee loyalty and engagement. 

Practical Tips for Productive Remote Workspaces

1. Encourage Dedicated Work Zones

Employers should make it clear: working from bed is not the policy. A designated workspace helps employees mentally switch into “work mode.” This improves focus and reduces stress, which benefits both employer and employee.

2. Light and Layout Affect Performance

Natural light and a good view can reduce mental fatigue and spark problem-solving. If windows aren’t available, large landscape art or calming visuals work as substitutes. Employers can share resources or offer allowances for items like ergonomic desks, chairs, or lighting.

3. Symbolic and Personal Touches Support Creativity

High ceilings aren’t practical for everyone, but surrounding employees with meaningful items such as: artwork or mementoes, can encourage expansive thinking. Employers can integrate this into wellness programs by providing stipends for art or décor that support focus.

4. Plants and Natural Elements Boost Focus

Studies show greenery and natural objects reduce stress and improve cognitive flexibility. Employers who encourage (or even subsidize) plants and natural elements send the message that they value employee wellbeing.

Legal & HR Implications for Employers

  • Remote Work Policies: Make sure your Remote and Hybrid Work Policies are up-to-date, compliant, and clear on expectations around home office setups. 
  • Wellness & Accommodation: Employers have obligations to accommodate disabilities, including supporting ergonomic or stress-reducing environments where reasonable. 
  • Compliance is cheaper than conflict: As we remind our clients, compliance costs less than litigation. Proactive policies help prevent disputes over burnout, stress leave, or unsafe home setups. 

The Trend: Remote Work + Wellness = The New Normal

In 2025, Canadian job seekers are overwhelmingly choosing remote or hybrid roles. Robert Half’s Canadian Remote Work Statistics and Trends 2025 report confirms this shift. At the same time, the Global Wellness Institute highlights workplace wellbeing as a top organizational priority.

Employers who ignore these realities risk higher turnover, legal exposure, and falling behind in the competition for talent.

Takeaway for Employers

Your employees’ environments affect their performance and your business outcomes. Supporting better home office setups isn’t just “nice to have.” It’s:

  • a compliance strategy,
  • a productivity tool, and
  • a retention advantage. 

At SpringLaw, we help employers design Remote Work and Wellness Policies that are practical, legally sound, and aligned with how Canadians work today.

Need help reviewing your policies or building a compliant remote work framework? Let’s talk.

Expanding into Canada brings opportunity, but also complexity. From tax obligations to compliance issues, managing employment in a new country requires careful planning. For many international companies, outsourcing HR and payroll functions is a strategic move. However, not all third-party employment solutions are the same.

Continue Reading Choosing the Right Employer Service Model in Canada: PEOs vs EORs vs Staffing Agencies

Since the amendment of the Employment Standards Act, 2000 (“ESA”) in 2022, Ontario employers with 25 or more employees as of Jan 1 are legally required to implement a written “disconnecting from work” policy. On paper, it sounds like a big shift. In reality, these policies do little for an already flexible or metrics-driven workforce that has moved beyond the traditional Mon-Fri or 9-5 dynamic. 

If your business already operates with a flexible, remote or asynchronous model, you might be wondering: Do we still need a formal disconnect policy? 

Continue Reading Your Workplace May Be Flexible, But Your Disconnecting Policy Obligations Are Not

When we meet with employers regarding a needed change or a tough new situation at work, we often find that mention of constructive dismissal can really catch employers off guard. When it comes to constructive dismissal, there’s no termination meeting or official decision by the employer, but the law can still treat the situation as if the employee was fired.

Substantial changes to a job, or a work environment that becomes so bad, the employee feels they have no reasonable choice but to leave, can trigger a constructive dismissal. Ultimately, constructive dismissal creates the same obligations for the employer as a termination, including paying termination pay, severance, and possibly damages to the employee. 

Continue Reading Oops, You Might’ve Fired Them: A Constructive Dismissal Reality Check

The Case of the Comma

Remember the online meme comparing “Let’s eat grandma!” with “Let’s eat, grandma!”? Well, here we have the legal version of it.

A judge in Nova Scotia recently invalidated part of an employment contract because it didn’t have a comma. Is that nitpicking, you ask? 

Not really, it’s actually important. Here’s why.

The part of the contract in question was the termination clause. Basically, a termination clause dictates what an employee is entitled to when they’re terminated. 

The case is named Brocklehurst v. Micco Companies Limited, 2025 NSSC 192.

Continue Reading “Let’s Eat Grandma” – How Commas Can Ruin or Make Your Case (and What To Do About It!)

When it comes to taking time off work in Ontario, many employees (and employers) are confused about the difference between vacation time and vacation pay. Both are mandated by the Employment Standards Act, 2000 (ESA), but they are distinct entitlements with different purposes and rules.

Continue Reading Vacation Math: Why Time ≠ Pay Under Ontario’s ESA

It’s 2025, and clients are using AI tools like ChatGPT in their legal matters. If you’re an HR professional or run a business, maybe you’ve seen a team member pull up ChatGPT to write a demand letter or question your workplace policies. Or maybe you’ve tried it yourself: “Can I fire someone for this?” or “Is this harassment under Ontario law?”

These tools aren’t going away. Just like WebMD changed how patients interact with doctors, ChatGPT is shifting the lawyer-client relationship. That can be a good thing, with the right boundaries.

Continue Reading When Clients Use ChatGPT for Legal Advice

Hiring and terminating employees are two of the most critical decisions an employer can make. These moments define workplace culture, shape legal risk, and directly affect an organization’s reputation.

Unfortunately, they are also common sources of human rights complaints under the Ontario Human Rights Code. Whether due to a lack of awareness or rushed processes, employers often make avoidable mistakes that can lead to costly disputes. A proactive approach rooted in fairness and compliance can go a long way toward reducing liability.

Continue Reading Avoiding Discrimination Claims: The Employer’s Guide to Compliant Hiring and Terminations