On this International Women’s Day, we remind employers to take note of the value of their workforces, and their women in particular. Time and time again we see that clients who actively champion women and embed inclusive practices into their workplace culture consistently report more engaged teams and stronger overall quarters, year after year. Consequently, the entire organization benefits.
Far too often, employers (sometimes inadvertently) create barriers to success for the women in their workplace. Recognizing this, employers must take a proactive and multifaceted approach to address these barriers. At the very minimum, employers should be mindful of their obligations related to maternity leave, childcare needs and potential unequal pay gaps and opportunities.
In Ontario, discrimination on the basis of gender or sex is illegal under the Human Rights Code (the “Code”) and the equivalent legislation in other provinces. Women who take pregnancy and/or parental leave also have job protections under the Code and the Employment Standards Act (in Ontario and the equivalent legislation in other provinces). Terminating, demoting, or displaying negative treatment toward an employee who exercises their rights to such leaves can result in significant risk and costs for employers.
In a 2025 Ontario decision, McFarlane v. King Ursa Inc., 2025 ONSC 3553, an Executive Vice President with four years of service was demoted with a significant cut in pay following a maternity leave. Prior to her maternity leave, the VP held a senior position as Executive Vice-President, earning approximately $317,000. Upon her return, she was offered an Associate position at a salary of $210,000.
The court found that this significant change in position and salary constituted a constructive dismissal and awarded the employee 12 months’ notice despite being a relatively short-service employee. Furthermore, the Court added an award of $40,000 in moral damages for “unduly insensitive conduct” particularly for a vulnerable employee returning from maternity leave.
In another decision, Iskander v. 2363327 Ontario Incorporated, 2024 HRTO 1122, the Human Rights Tribunal of Ontario determined that the Applicant’s termination soon after revealing her pregnancy amounted to discrimination under the Code. The Tribunal concluded that her pregnancy was a contributing factor in the decision to dismiss her and awarded the Applicant $37,849 in damages.
The above cases are not exceptional, but illustrative of numerous such instances where employers have been found to have been deficient in the discharge of their obligations to female staff. These cases also demonstrate that workplace discrimination against women is a very real and current issue, which continues even amongst sophisticated employers.
As such, a better understanding and effort in understanding how discrimination may manifest in the workplace is not only an employer’s legal obligation, but it often also proves to be a sound business investment. Recognizing and being aware of the numerous ways in which women may be discriminated against in the workplace is simply the starting point for ensuring that women are not only treated equitably, but that they thrive in the workplace.
Organizations that shift their mindset away from viewing the accommodation of their female workforce as a “burden” and instead recognize the women on their team as essential contributors often see meaningful returns in both their business and workplace culture. Investing in women through supportive maternity leave policies, equal compensation practices, or equal leadership opportunities increases productivity, strengthens retention, and enhances overall team performance.
It is not a one-way street – when employers invest in their female employees, those employees invest back into the organization through engagement, loyalty, and providing meaningful contributions in the workplace.
If you are an employer that would like to explore how your current practices and policies can be improved to better protect and elevate your staff, we would be happy to help.
If you are an employee and believe you have faced discrimination in the workplace, contact Rodney Employment Law today for support.
