Denton’s Canadian Employment and Labour Year in Review and Future Trends Report has recently identified four crucial labor and employment legislative developments:
AI use disclosure in HR and the future of talent acquisition: In 2023, Ontario introduced measures requiring employers to disclose whether they use AI for screening, assessing, or selecting job candidates. However, unlike the EU AI Act, the requirement doesn’t specify when the technology cannot be used.
Action plan: Global employers must proactively devise a talent strategy in line with both related legislation around the world and their own business objectives. The future of talent acquisition will require balancing AI's efficiency with the keen judgment of experienced HR leaders. AI can efficiently manage data-intensive tasks, freeing up HR professionals to focus on their core strengths – establishing connections, comprehending, and assessing the elusive qualities of talent.
The push for increased pay transparency gaining momentum: All provincially regulated employers in British Columbia must disclose salary or wage details in all public job advertisements. Private sector employers, depending on their size, must prepare and publish pay transparency reports, the earliest from November 1, 2024. Ontario is also considering similar legislation.
Action plan: It is likely that comparable legislation will be seen across Canada. Employers should start reviewing and assessing their pay practices across the country.
Non-disclosure agreements ban: Ontario has already outlawed non-competition clauses in employment contracts and is now contemplating prohibiting non-disclosure agreements in instances of workplace sexual harassment, misconduct, or violence. Prince Edward Island was the first Canadian jurisdiction to pass a similar law in 2021. Nova Scotia and Manitoba also have similar proposals.
Action plan: Considering these legislative activities, employers must keep a close eye on this area for further developments.
New Canadian forced and child labor reporting: After Canada enacted its first legislation on reporting modern slavery and child labor, covered entities must submit their initial reports by May 31 to meet the new Government guidance requirement.
Action plan: This significant new obligation calls for meticulous planning and review by affected employers. They must prepare relevant statements and policies, disclose supply chain structures, conduct risk analyses, implement countermeasures and remediations, assess effectiveness, and provide training to employees and suppliers.
