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Running a business in 2026 means operating in one of the most complex HR and legal environments Canada has ever seen. This industry report examines the current state of the Construction, Tech, and Professional Services sectors, focusing on labour shortages, regulatory pressure, and rising employee expectations around benefits, mental health, and flexible work. 

The goal is to present objective, data-driven evidence of the HR and legal pressures these industries face, and highlight where HR and legal issues intersect with business risk.

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Construction: High Demand, Not Enough People

Canada’s construction industry is the driving force of Canada’s national GDP, housing affordability, and infrastructure — there were 1.6 million construction workers across Canada in 2024, taking up 8% of total employment. With the fierce labour shortage impacting construction businesses’ production capabilities, this is a problem that affects all Canadians, including other industries.

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The Labour Crunch

Construction employers are being squeezed by the labour shortage in Canada, both in residential and ICI work. In British Columbia alone, 72% of construction contractors can’t find enough qualified, skilled workers in the trades they require, with 83% of companies identifying the Canadian labour shortage as their biggest challenge.

This is spilling over into their long-term plans, forcing them to turn down projects or delay new work. Canadian construction companies have ambitious goals for new infrastructure and commercial builds, with Ontario firms targeting 1.5 million homes by 2031. BuildForce and industry analyses describe a recruiting shortfall of as many as 108,300 construction workers nationally by 2034, against a backdrop of millions of homes needed to restore housing affordability in Canada.

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Financial and Operational Impact

Longer build times mean slower cash‑in, more working capital tied up in work‑in‑progress, and more difficulty hitting annual revenue and profit targets. Persistent shortages also drive wages and overtime costs higher as firms compete for scarce talent, with wage growth in construction outpacing the overall economy in recent years. To attract and retain people, employers are offering higher starting salaries, more overtime, and richer benefits, all of which put pressure on project budgets, bidding strategies, and margins.

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HR and Legal Issues Behind the Numbers

Behind these numbers sit much larger HR and legal issues. National projections suggest roughly 1 in 5 workers will retire within the next decade, with some provinces facing especially steep cliffs. Ontario and British Columbia together account for a large share of upcoming retirements, while smaller provinces such as New Brunswick are preparing for a substantial part of their construction labour force to exit in a compressed timeframe.

At the same time, employers are still working to increase participation from women (accounting for only 13.6% of tradespeople in 2024), Indigenous people, and newcomers, groups that remain underrepresented in many trades. This creates both an opportunity and an obligation to review recruitment practices, equity commitments, and workplace culture through an HR–legal lens.

The skills mismatch adds another dimension. Many firms report a surplus of unskilled or semi‑skilled workers relative to demand, but a shortage of certified trades, forepersons, and supervisors who can manage complex projects safely and efficiently. Government‑funded training programs, apprenticeships, and upskilling initiatives are expanding, but they take time to translate into fully qualified workers on site.

In parallel, retention remains a challenge: 28% of businesses cite retaining skilled employees as a major problem. Long hours, overtime, and physically demanding conditions contribute to burnout, injuries, and turnover. When workloads, safety obligations, and overtime rules are not managed carefully, companies increase their exposure to safety investigations, grievances, and potential legal claims related to employment standards and occupational health and safety.

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Tech: Volatile Headcount, Rise of Automation

Canada’s tech sector has degraded recently from years of rapid, venture‑fuelled expansion into a phase marked by layoffs, restructuring, and more cautious hiring as funding conditions tightened and interest rates rose, a trend tracked in detail by BetaKit. CompTIA’s State of the Tech Workforce Canada 2025 notes that Canada still employed more than 1.4 million tech workers in 2024, but growth has slowed and become uneven across regions and subsectors.

What’s worse is that job postings for tech roles in Canada have dropped significantly since 2020, even as certain hubs like Vancouver and Toronto continue to show long‑term growth. The result is an industry where employers are tightening headcount and rebalancing teams, while many workers face a more crowded and competitive market than during the pandemic boom.

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HR–Legal Risk in Constant Change

The pace of change has amplified the consequences of getting people decisions wrong. Frequent reorganizations, the push for AI technology, and shifting product roadmaps mean employees are more likely to experience changes in duties, reporting lines, and compensation, or to be laid off as priorities evolve. 

When these changes are not documented carefully, aligned with provincial employment standards, and assessed against common law notice requirements, companies increase their exposure to wrongful dismissal and constructive dismissal claims, as well as disputes over bonuses, commissions, and equity payouts. In an environment where many employees receive a large portion of their compensation through variable pay and stock‑based incentives, clarity around how terminations and role changes affect those entitlements becomes a foundational legal and financial question rather than a minor policy detail.

The distributed nature of tech teams adds another layer of complexity. Many Canadian tech firms now employ staff across multiple provinces and, in some cases, across borders, creating a mosaic of rules around hours of work, overtime, vacation, statutory holidays, and protected leaves. Employers must ensure that policies and practices comply with the most protective applicable standards, even when teams collaborate across time zones and jurisdictions. 

At the same time, remote work increases exposure around data privacy, cybersecurity, and confidentiality, because employees may access sensitive systems from home networks or shared spaces. Employment contracts, handbooks, and remote‑work policies therefore need coordinated input from HR, legal, and finance to remain enforceable, cost‑effective, and aligned with the company’s risk appetite.

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Evolving Employee Expectations

Employee expectations in tech continue to evolve alongside these structural shifts. Employees across all industries now prioritize mental health benefits, access to counseling, and psychologically safe workloads as much as they value salary or equity. Others require accommodations for disabilities or neurodiversity that affect how, when, and where they can work, which engages human rights obligations and duty‑to‑accommodate requirements. 

Moreover, companies attempting to recalibrate their remote or hybrid models — such as by encouraging more in‑office days — must manage these changes carefully to avoid allegations of unequal treatment or constructive dismissal if new expectations fundamentally alter the employment relationship. Missteps in these areas don’t just affect culture; they can quickly escalate into legal disputes and reputational damage among a talent pool that is highly networked, skilled, and vocal online.

Taken together, these dynamics mean that every major HR decision in tech — from performance management and restructuring to compensation design and remote‑work policy — has immediate legal and financial implications. An integrated approach that aligns HR practices, legal compliance, and financial planning is increasingly necessary to navigate this environment without eroding trust, incurring unnecessary liability, or undermining the company’s ability to attract and retain key talent.

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Professional Services: Growing, But Under Pressure

Professional services firms sit at the centre of Canada’s shift toward a knowledge‑based economy, providing legal, financial, engineering, IT, and advisory support to virtually every sector. There’s been a steady growth in headcount and revenue over the past several years, yet now the industry operates under tighter client budgets, rising expectations for flexibility, and a more demanding regulatory and risk environment. This makes how they manage people — hiring, workload, hybrid work, and exits — not just an internal HR concern but a major driver of profitability, compliance risk, and long‑term firm value.

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Size and Growth of the Sector

Professional services in Canada represent one of the fastest‑growing knowledge sectors in the country, driven by population growth, digital transformation, and regulatory complexity across industries. In Ontario alone, professional, scientific, and technical services employed about 828,300 people in 2023, accounting for 10.5% of the province’s workforce and contributing $74.4 billion or 8.6% of provincial GDP. Employment in this sector grew 3.5% in 2023, outpacing overall provincial employment growth and extending a multi‑year trend where professional services consistently grow faster than the broader economy.

This pattern is mirrored in Atlantic Canada, where the sector employed around 78,600 people in 2023, representing 6.5% of total employment, and is expected to grow at an average of 2.7% annually between 2024 and 2026, again outpacing overall employment growth. The Job Bank’s Atlantic Canada profile notes that growth exceeded 10% per year in 2021 and 2022 before cooling to 3.0% in 2023, underscoring that demand remains strong but more normalized after the post‑pandemic surge. A broader industry focus estimates roughly 140,000 employer establishments in Canada’s professional services sector, generating about $259 billion in annual revenue across accounting, legal, engineering, consulting, IT, advertising, and related services.

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Workload, Margin Pressure, and People Risk

Despite strong top‑line growth, it’s common to see professional services firms experiencing margin pressure as clients push for fixed‑fee or value‑based pricing, more transparency, and demonstrable ROI on advisory spend. BDC’s Canada 2026 economic outlook anticipates a period of slower overall growth and elevated borrowing costs, which makes corporate clients more selective and price‑sensitive in their use of consultants, law firms, and agencies. 

At the same time, market research on the management consulting services segment projects continued revenue growth — on the order of mid‑single‑digit annual increases — suggesting that demand is shifting rather than disappearing, with more emphasis on technology, transformation, and risk‑related mandates.

This combination of robust demand and pricing pressure intensifies people risk. Traditional billable‑hours models and client‑driven deadlines often translate into long working hours, high utilization expectations, and uneven workloads, especially in law and consulting. Survey data and firm‑level reporting in these sectors consistently point to burnout, stress‑related attrition, and mental‑health claims as rising concerns, particularly among mid‑level professionals and associates. When firms fail to manage these pressures through staffing levels, workload allocation, and supportive policies, they not only risk losing key talent but also increase exposure to harassment complaints, toxic‑workplace allegations, and disability‑related leaves that are costly to manage and can damage reputation.

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Hybrid Work, Compliance, and Talent Competition

Hybrid and remote work have become entrenched in professional services, particularly in consulting, IT, and parts of legal and accounting, where knowledge work can be done from almost anywhere. This creates a more flexible talent market but also raises compliance complexity: firms must manage confidentiality, data security, and conflicts of interest when staff work from home networks or client sites, and they must ensure that hours, overtime, and leaves comply with provincial employment standards even when work is done off‑site.

Regulators and professional bodies increasingly expect formal policies, documented training, and clear accountability around remote work, information handling, and client confidentiality, making these issues inseparable from HR and legal strategy.

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Competition for experienced professionals in Canada remains high, especially in knowledge‑based roles, and professional services sits squarely in that tight labour market. Recent labour‑market and employer surveys report low unemployment for skilled professionals and persistent difficulty filling specialized roles, even as overall hiring intentions soften, which keeps experienced accountants, lawyers, engineers, consultants, and IT specialists in a strong position.

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Retention now depends on more than pay: employers consistently cite workload sustainability, flexibility, development opportunities, and culture as critical to keeping top performers, while workers say they are willing to move if those elements are lacking. When performance management is weak or terminations are informal, firms increase their risk of wrongful dismissal disputes, human‑rights complaints, and reputational fallout — particularly in a sector where departing professionals are well‑networked and visible.

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Overall, this points to a sector that is growing in scale and importance, but where decisions about workload, hybrid work, and talent management are now central business‑risk and profitability issues, not back‑office concerns. In this environment, integrating HR, legal, and financial expertise is becoming essential for professional services firms that want to protect margins, stay compliant, and maintain the calibre of workforce their clients expect.

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In the world of non-profit organizations and associations, the ultimate success metric isn't profit, it's impact. Every moment spent by staff and leaders is meant to drive the core mission forward, whether it's supporting a community, advocating for a cause, or delivering essential services. Yet, the complex, shifting landscape of modern human resources management often becomes a confusing distraction, obscuring the path and draining valuable resources.

This is where the concept of the HR Guide becomes crucial. Just as a guide illuminates the path ahead, external HR support takes on the burden of personnel administration, compliance, and policy development. This strategic partnership ensures that the organization's leaders, the "team" can clearly focus on the horizon: their mission.

Freeing the Team to Attend to the Core Value and Envision Possibility

For non-profits, staff time is perhaps the most precious commodity. When internal resources are tied up dealing with performance management, policy updates, or benefits administration, the mission delivery suffers.

External HR partners are specialists who bring deep expertise and economies of scale. By handling the transactional and compliance-heavy aspects of HR, they create an immediate dividend: time.

Staff members are liberated to concentrate on core programmatic work, fundraising, and strategic planning. They move from administrative tasks back to impactful work, accelerating the organization’s progress toward its goals.

Additionally, non-profits are intrinsically linked to their community. When internal stress over HR issues is reduced, staff can dedicate more energy to listening, collaborating, and effectively serving their stakeholders, strengthening the vital bond with the people they exist to help.

Laying the Bedrock for True Teamwork and Collaboration

A healthy organization is one where people feel safe, valued, and focused. External HR support acts as an unbiased, highly informed guide, ensuring the organization operates smoothly and legally, which directly boosts internal health and collaboration.

Regulatory compliance, from local labor laws to federal reporting, is a requirement that changes constantly. A misstep can result in severe financial penalties and, critically, damage to reputation. An external HR guide points you to the compliant path, giving leaders peace of mind.

Furthermore, these partners specialize in building robust internal systems that promote positive working relationships:

• Fair Policy Development: They implement modern, equitable policies for everything from PTO to conflict resolution, creating a level playing field.
• Unbiased Conflict Resolution: External professionals can mediate disputes objectively, fostering a culture of mutual respect and making it easier for disparate teams to collaborate effectively toward a shared objective.
• Talent Development: They can help associations and non-profits build the structure for effective training and leadership pipelines, ensuring the right people are in the right seats and working together harmoniously.

The Moral Compass: Upholding Trust and Integrity

Non-profits thrive on trust and integrity. Donors, grantors, and community members invest in an organization not just because of its cause, but because they believe in how that organization operates. In the digital modern landscape, these values are more important, and more fragile than ever.

The speed and reach of digital communication mean that a lapse in ethical behavior, a failure of internal governance, or a poorly handled personnel issue can be instantly publicized, leading to an immediate and catastrophic erosion of public confidence.

External HR helps non-profits safeguard their values in multiple ways. They establish clear codes of conduct and reporting mechanisms that uphold the highest standards of integrity., they ensure HR processes are fair, well-documented, and transparent, reinforcing that the organization lives its stated values and they advise on policies related to data privacy, digital communication, and social media behavior, ensuring staff conduct reflects the organization's core values in every online interaction.

By partnering with an HR guide, non-profits gain a vigilant advocate for ethical practice, ensuring that every internal procedure reinforces the values of trust and integrity that are essential for long term survival and mission success in the connected world.

Fulfilling the Promise

External HR support is not an expense; it is a strategic investment in the organization's capacity for impact. It is the expert guide that manages the complexity, ensures compliance, reinforces essential values, and frees up the organizational leaders to focus on their core competencies, driving the mission, uplifting the community, and promoting seamless collaboration within their ranks.

With an expert guide illuminating the path and supporting the administrative depth, non-profits can truly concentrate on their purpose.

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As a business leader, you're constantly told that AI is the future, the ultimate tool for efficiency, a new engine for growth, and a non-negotiable part of staying competitive.

All of that is true. But it’s only half the story.

The conversations happening in boardrooms across Canada aren't just about what AI can do. The smartest leaders are asking the much more critical question: What can AI do to us?

Before you invest in a single piece of AI software, consider this: every time your team uses a generative AI tool, they're having a conversation. They might be uploading client data, inputting strategic plans, or drafting sensitive internal communications.

Have you stopped to ask who might be listening?

The Two Questions Every Leader Must Ask Before Adopting AI

1. From a Legal & Compliance Standpoint: Who Owns This Conversation?

When you input your proprietary data into a third-party AI, you are stepping into a legal grey area. In British Columbia, privacy legislation like PIPA has strict rules about how personal information is handled.

• Data & Privacy: Does your AI vendor's policy align with your legal obligations to your clients? Is your data being used to train their model?
• Intellectual Property: Who owns the output? If AI helps you create a brilliant new business strategy, is that strategy truly yours to protect?
• Accountability: If an AI provides incorrect legal or financial advice that you act on, who is liable for the mistake?

Navigating this requires more than just a software license. There’s an urgent need for a bulletproof legal framework.

2. From an HR & People Standpoint: Is Your Team Ready for This Conversation?

The second, equally critical risk is internal. AI is not just a tool; it's a new kind of team member, and integrating it without a clear plan can create significant friction.

• Policy & Governance: Do your employees know what is and isn't acceptable to share with an AI? An "Acceptable AI Use Policy" is no longer a nice-to-have; it's an essential piece of corporate governance.
• Bias & Fairness: If you use AI to screen resumes or analyze performance data, how do you ensure it's not perpetuating hidden biases that could lead to discrimination claims?
• Upskilling vs. Replacing: The real opportunity with AI isn't replacing people but augmenting them. A thoughtful strategy for training and role evolution is required to reduce fear and unlock your team's potential.

Know Where You’re Going Before You Take Off

AI offers incredible possibilities, no question. But adopting it without clear legal, operational, and human frameworks is like taking off and flying blind. You might gain altitude quickly, but without direction, you risk veering off course or running out of fuel. Strategic alignment keeps innovation airborne and helps you reach your intended destination.

We help Canada's most ambitious companies build that solid foundation. We provide the integrated legal, HR, and strategic guidance to ensure you can leverage AI with total confidence.

Your first step is to understand where you stand.

Find out if your business is truly ready for AI, and equally important, if AI is ready for your business. Enter your email to the right to receive our complimentary AI Readiness Assessment. It's a simple, 7-question scorecard designed to give you immediate clarity on your biggest risks and opportunities.

Each month, Spraggs Law publishes Vancouver Legal News, a curated selection of legal stories making headlines in British Columbia. This month, we examine four recent employment law decisions involving wrongful dismissal, constructive dismissal, and severance disputes, plus a ruling that clarifies the limits of suing employers for workplace injuries. We also explore two estate-related matters, including a denied request to vary a will, before concluding with a significant Supreme Court land title ruling that could reshape how BC handles fee simple property ownership.

Recent Wrongful and Constructive Dismissal Rulings in BC

Pandemic-related layoff leads to wrongful dismissal finding

The British Columbia Supreme Court case Gent v. Askanda Business Services Ltd. highlights the complexities of wrongful dismissal versus resignation. An employee who was laid off during the COVID-19 pandemic maintained he did not resign despite his employer’s claims. The court ruled in favour of Gent, emphasizing that clear and unequivocal evidence of resignation is necessary. Furthermore, the employer failed to seek clarification on Gent’s intentions, ultimately leading to an award of six months’ pay for wrongful dismissal. This case highlights the importance of clear communication and thorough documentation in employment relationships.

Non-compliance with vaccine policy is not constructive dismissal

The British Columbia Supreme Court’s ruling in Clark v. City of Prince George affirms the validity of employer-mandated vaccination policies, determining that an employee’s unpaid leave for non-compliance does not constitute constructive dismissal. The court emphasized the implied authority of employers to enforce health and safety measures and recognized the necessity of such policies during the pandemic. This decision provides crucial guidance for employers navigating similar legal challenges and reinforces their ability to implement reasonable workplace safety protocols.

Unfounded allegations lead to a costly penalty in dismissal case

The Supreme Court of British Columbia has ordered Macquarie Energy Canada to pay increased costs to a former employee, B.A.H., in a wrongful dismissal case due to three unfounded just cause allegations. While the court found no evidence of bad faith, it deemed the company’s conduct unusual enough to justify a higher cost indemnity. The allegations involved cannabis use, unauthorized pricing quotes, and disclosing confidential information, all deemed baseless. However, a fourth claim regarding a remote work policy was upheld, and each party will bear its own costs for the application. The ruling underscores the importance of substantiated claims in employment disputes and the potential financial repercussions of pursuing baseless allegations.

When Employer Protections Hold, and When They Don’t

Tribunal ruling shields employer from lawsuit under workers’ compensation law

A British Columbia Supreme Court judge upheld a tribunal’s decision preventing a First Nation finance director from suing her employer after a workplace assault. Despite filing a civil lawsuit and claiming various torts, the tribunal ruled her injuries fell under workers’ compensation provisions, which prevent legal action against employers for work-related incidents. The ruling emphasized the applicability of provincial workers’ compensation laws to federal workplaces and reinforced the balance between providing workers with no-fault compensation and protecting employers from lawsuits, with costs awarded to the defendants.

Ambiguous contractual language costs BC employer severance payout

A BC Supreme Court ruling awarded a 64-year-old engineer five months’ severance following his termination from a BC communications company, despite only six months of employment. The court rejected the company’s claim that the employee’s notice period was limited to five weeks, citing ambiguous contractual language and inadequate evidence. The judge highlighted the engineer’s senior role and extensive job search efforts, which revealed challenges in securing comparable employment. This decision reinforces the importance of clear contractual terms and reasonable notice based on individual circumstances in termination cases.

Recent Developments in BC Trusts and Estate Law

Size of inheritance key in denied request to vary will

Earlier this year, a British Columbia court denied a beneficiary’s request to vary her late mother’s will, which sought to establish a discretionary trust for her $1.8 million inheritance. The beneficiary sought this adjustment to protect her disability benefits, arguing the will lacked adequate provisions for her support. The court ruled that the will’s distribution was sufficient, emphasizing that the beneficiary’s inheritance could meet her needs without jeopardizing her benefits. Ultimately, the court found that no moral obligation was breached by the mother’s decision not to include a trust, deeming the will’s terms appropriate given the size of the estate. The court’s decision reinforces the need for claimants to prove a will’s failure to make adequate provisions before it can grant an application to vary a will.

Landmark Land Title Ruling Challenges Foundations of BC Land Ownership

Aboriginal title recognized as superior to fee simple in BC case

A landmark land title ruling by the British Columbia Supreme Court in Cowichan Tribes v Canada establishes Aboriginal title as a superior claim over fee simple interests, creating significant uncertainty for private landowners. The court concluded that historical Crown grants infringe upon Cowichan’s Aboriginal rights and invalidated many fee simple titles within the claimed area. This decision challenges the traditional land title system and raises critical questions about property ownership in BC. With the provincial government planning to appeal, the ruling underscores the complex interplay between Indigenous land rights and private ownership, potentially reshaping the future of land titles in the province.

Each quarter, Spraggs Law publishes a curated selection of articles about trending HR and employment-related topics. This quarter, we explore two significant appellate decisions that clarify how British Columbia’s labour laws apply when employees or operations cross provincial borders. We also examine recent BC cases and local rulings where courts awarded substantial damages to former workers, highlighting the financial and reputational risks employers face when return-to-work plans or termination processes fall short. Finally, we round out this update with timely news from WorkSafeBC and a reminder about BC’s 2025 minimum wage increase.

Recent BC Cases Involving Jurisdictional Overlap

BC Court of Appeal upholds ban on out-of-province replacement workers

In a landmark ruling released on July 14, 2025, the BC Court of Appeal upheld a decision by the Labour Relations Board that barred Gate Gourmet Canada from deploying out-of-province workers to replace striking union members at Vancouver International Airport. Despite the replacement workers being based in Alberta and Ontario, the Court held that their deployment was substantially connected to BC operations and, therefore, subject to the Labour Relations Code. The decision affirms the province’s jurisdiction over labour practices affecting BC-based services, even when labour is sourced from outside of the province.

Forum selection clause enforced in interprovincial employment dispute

In Bit v. Krahn Engineering Ltd., 2025 BCCA 167, the Court of Appeal enforced a forum selection clause in favour of Alberta, where the employee had worked despite residing in BC. The Court deferred to the existing Alberta proceedings and upheld the contractually agreed jurisdiction. The case underscores the complexities of corporate governance and fiduciary duties that extend across provincial boundaries.

For businesses with operations or employees across provinces, clear forum selection clauses are essential to avoid duplicative litigation and jurisdictional uncertainty.

Two BC Cases That Cost Employers

Dependent contractors may be entitled to employee-like notice periods

In Ursic v Country Lumber Ltd., 2025 BCSC 970, the Court ruled that a dependent contractor was entitled to reasonable notice, similar to an employee. The plaintiff had worked almost exclusively for one company for over 14 years and was awarded over $82K in damages for being terminated without notice. The Court considered the degree of reliance and integration into the business in determining the extended notice period. Employers using long-term contractors would be wise to assess whether these individuals function more like employees. If so, termination obligations may be significantly higher than anticipated.

Employer penalised re. out-of-province workers, a mishandled return to work, and more

In Nunez-Shular v. Osoyoos Indian Band, 2025 BCSC 491, an employee who had returned from medical leave was demoted and gradually excluded from her role, culminating in a finding of constructive dismissal. The Court awarded her 24 months’ notice and $50,000 in aggravated damages, citing the employer’s poor handling of her reintegration and the resulting psychological harm. The case serves as a critical reminder to employers that return-to-work plans must prioritize dignity, fairness, and continuity. Any reduction in responsibility or change in reporting structure must be justified, documented, and communicated carefully.

Recent Updates to WorkSafeBC Rates and BC’s Minimum Wage

WorksafeBC confirms 2026 premium rate freeze

WorkSafeBC has confirmed that the average base premium rate for 2026 will remain at $1.55 per $100 of assessable payroll, marking the ninth consecutive year without an increase. The agency will also return a portion of its surplus to eligible employers. While stable premium rates offer welcome predictability, employers should review the proposed regulatory changes and submit feedback where appropriate.

BC Minimum Wage Increased to $17.85/hr

As of June 1, 2025, British Columbia’s general minimum wage increased from $17.40 to $17.85 per hour. The adjustment, mandated by the annual inflation-linked framework in the Employment Standards Act, also updated specialized rates for “live‑in camp leaders, home support workers, resident caretakers, and app-based delivery and ride-hail workers.”

In today’s digital landscape, protecting employee data is not just a best practice—it’s a legal imperative for employers in British Columbia. With growing concerns around cyberattacks and data misuse, employers must take proactive steps to ensure employee privacy is safeguarded. The Province’s Personal Information Protection Act (PIPA) outlines clear obligations for managing and safeguarding personal information. Recent events, such as the class-action lawsuit filed against Interior Health over a 2009 data breach, underscore the potential consequences of failing to uphold these responsibilities.

Understanding PIPA: Employer Obligations

British Columbia’s Personal Information Protection Act (PIPA) applies to all private sector organizations and outlines the rules for collecting, using, disclosing, and safeguarding personal information, including that of employees. For employers, this includes the following duties:

• Obtain Consent: Before collecting, using, or disclosing personal information, employers must obtain the individual’s consent, unless an exception applies.
• Limit Collection: Collect only the data necessary for the identified purpose.
• Ensure Accuracy: Keep employee data accurate, complete, and up to date.
• Safeguard Information: Implement appropriate security measures to protect personal information from unauthorized access, use, or disclosure.
• Be Transparent: Inform employees about how their personal information is used and stored.
• Provide Access: Provide employees with access to their personal data upon request.

Failure to meet these obligations can result in investigations by the Office of the Information and Privacy Commissioner (OIPC), reputational damage, and in some cases, legal action.

Interior Health Data Breach: A Cautionary Tale

A recent example highlights the long-term risks of failing to prioritize employee data protection. In 2009, Interior Health – a public body governed by the Freedom of Information and Protection of Privacy Act (FOIPPA) – experienced a data breach that compromised the personal information of thousands of former employees. Although the breach occurred over 15 years ago, a class-action lawsuit filed in 2025 alleges that sensitive personal data, including health and employment records, was sold on the dark web.

The plaintiffs claim that Interior Health failed to notify affected employees adequately or take sufficient steps to protect their information. This breach underscores the lasting consequences that inadequate employee privacy protection can have, not only for individuals but also for the credibility and legal standing of an organization.

Best Practices for Protecting Employee Data

To mitigate risks and ensure compliance with PIPA, private sector employers should consider the following best practices:

1. Conduct Regular Privacy Audits: Assess current data handling practices to identify potential vulnerabilities and ensure compliance with legal obligations.
2. Implement Robust Security Measures: Utilize up-to-date security software, such as antivirus programs, firewalls, and encrypted servers to protect against unauthorized access.
3. Develop Clear Privacy Policies: Ensure that your company has documented procedures for handling employee data and that these policies are accessible and understood by staff.
4. Train Staff on Data Protection: Educate employees on privacy obligations, internal policies and best practices for handling personal information.
5. Limit Data Collection and Retention: Only collect the information you genuinely need, and have a retention schedule for securely disposing of outdated or unnecessary records.
6. Have a Breach Response Plan: Establish and rehearse a comprehensive breach response strategy that includes clear employee notification protocols and accurate regulatory reporting timelines.

For additional guidance, the BC government outlines examples of personal information and four steps private sector organizations can take to stay compliant with PIPA and uphold strong data stewardship practices.

Final Thoughts

Protecting employee personal information is a critical responsibility for employers in British Columbia. Compliance with PIPA not only fulfills legal obligations but also fosters trust and integrity within the workplace. The Interior Health data breach serves as a stark reminder of the potential consequences of inadequate data protection. By implementing proactive measures and fostering a culture of privacy, organizations can safeguard their employees’ information and uphold their legal and ethical responsibilities.

Learn More

To understand your responsibilities under the Personal Information Protection Act, visit the official PIPA legislation or speak with an employment law specialist at Spraggs Law.

Join our experts, Charlene Kane, Jay Spiro, and Aaren Terrett for a practical, no-fluff webinar about the common mistakes we see small to medium sized businesses make when it comes to terminations.

In this webinar, we’ll discuss topics such as:

• The high bar for “just cause” and why a termination based on minor misconduct can lead to serious repercussions.
• Legal differences between terminating employment with and without cause, helping you avoid severance liabilities.
• How to audit your employment contracts to ensure they are legally valid and compliant with minimum ESA requirements.
• Clear language and procedural requirements necessary to restrict an employee’s notice entitlement to the statutory minimums.
• How to conduct a professional and legally compliant termination meeting while protecting both parties.

Get a 20% discount with our new Employment Hero partnership! Plus, the $10M tax window for Employee Ownership Trusts and Canada’s move to Indo-Pacific trade.

Explore the new Carney mega-bloc, the 2.3% inflation drop, Frank McKenna’s blunt warning for the Atlantic region.

Canada lost 25k jobs in Jan, but full-time roles are up by 45k. Discover why this hiring window is a competitive advantage for stable SMBs.

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Tech surges, gold cools, and the IPO market wakes up. Inside: why current gov programs are missing the mark for Canadian SMBs.

From the ‘Carney Doctrine’ to a $200B internal trade win. Plus, why AI is the great equalizer for SMBs in a slow-growth economy.

In today’s edition, we break down the regulatory, economic, and cultural shifts hitting your desk this month, as well as how your business can capitalize on these emerging trends.

Business insights and a curated look at the trends, regulations, and HR crisis shaping the SMB market to help you move at the speed of clarity.

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