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ARTICLE · 01 OCTOBER 2026

Employment Law Update 2026: Key Developments For Employers

Ontario employers continue to face a rapidly evolving employment law landscape. Recent appellate decisions have provided much needed guidance on termination clauses and equity compensation, while proposed federal legislation signals a significant shift in the treatment of non-compete agreements. Below is a summary of several notable developments from 2026 so far.

CanadaEmployment and HR

Ontario employers continue to face a rapidly evolving employment law landscape. Recent appellate decisions have provided much needed guidance on termination clauses and equity compensation, while proposed federal legislation signals a significant shift in the treatment of non-compete agreements. Below is a summary of several notable developments from 2026 so far.

Ontario Court of Appeal Confirms Validity of “At Any Time” Termination Language

In Baker v. Van Dolder’s Home Team Inc. and Li v. Wayfair Canada ULC, 2026 ONCA 568, the Ontario Court of Appeal addressed conflicting lower court decisions regarding whether a termination clause permitting termination “at any time” or “for any reason” violates the Employment Standards Act, 2000 (“ESA”).

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