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ARTICLE · 27 JANUARY 2026

Federal Budget 2025: Key Employment-Related Changes And Proposals

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For federally regulated employers, the most relevant changes relate to restricting non-competition clauses, imposing higher penalties for wage theft, and correcting employee misclassification.

CanadaEmployment and HR
Tala Khoury
Tala Khoury
Andrew Gould
Andrew Gould
Rebecka Arraial
Rebecka Arraial
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On November 4, 2025, Canada's Finance Minister François-Philippe Champagne delivered the 2025 Federal Budget (the "Budget"), which included proposed employment-related amendments to the Canada Labour Code, Canadian Human Rights Act, Employment Insurance Act, and the Federal Public Sector Labour Relations Act. The amendments are modest, but areaimed at modernizing workplace legislation, improving protections for employees, and addressing long-standing employment-related issues.

For federally regulated employers, the most relevant changes relate to restricting non-competition clauses, imposing higher penalties for wage theft, and correcting employee misclassification.

Parliament narrowly passed the Budget on November 17, 2025.

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