Employee Privacy And Data Protection In Canada. What Employers Must Comply With
Canada has comprehensive privacy legislation that governs how employers collect, use, store, and disclose employee personal information.
For international employers, particularly those accustomed to the lighter-touch privacy environment in parts of the U.S, Canadian requirements can be stricter than expected.
The Federal Framework: PIPEDA
The Personal Information Protection and Electronic Documents Act (PIPEDA) is Canada’s federal privacy law. It governs how private-sector organisations handle personal information in the course of commercial activity. Key principles include:
- Consent – Organisations must obtain meaningful consent where required, for the collection, use, and disclosure of personal information.
- Limited Collection – Only collect what is necessary for identified purposes.
- Accuracy And Safeguards – Keep information accurate and protect it with appropriate security measures.
- Access – Individuals have the right to access their personal information and request corrections.
- Accountability – Organisations are responsible for personal information under their control.
Provincial Privacy Laws
Several provinces including B.C, Alberta, and Québec have their own private-sector privacy laws, but PIPEDA may still apply in some contexts, such as interprovincial / international activities or federally regulated employment.
- British Columbia – The Personal Information Protection Act (B.C. PIPA) governs private sector data handling, including employee personal information specifically.
- Alberta – The Personal Information Protection Act (Alberta PIPA) similarly governs employee and customer data.
- Québec – Law 25 (formerly Bill 64) is Québec’s specific privacy legislation.
Québec’s Law 25 - The Strictest In Canada
Québec’s Law 25 came into force in stages between 2022 and 2024, and dramatically strengthened privacy obligations. It is the closest thing in North America to Europe’s GDPR. Requirements include:
- Appointing a person responsible for the protection of personal information (a privacy officer).
- Conducting privacy impact assessments before implementing systems that handle personal information.
- Mandatory breach reporting to the Commission d’accès à l’information and affected individuals.
- Explicit consent requirements and enhanced transparency obligations.
- Data portability rights and rights related to de-indexing or cessation of dissemination in certain circumstances.
- There are significant penalties for non-compliance administrative including monetary penalties, depending on the entity.
If you have employees in Québec, Law 25 applies to how you handle their personal information.
This is not optional, and the penalties for getting it wrong can be severe.
What This Means For Employers
- You must have a clear basis for collecting employee personal information (banking details, SIN, health information for benefits, etc.).
- Employee data must be stored securely and access limited to those who need it.
- Employees have the right to access their own information.
- Cross-border data transfers (for example, storing Canadian employee data on US servers) carry specific obligations such as transparency, contractual safeguards, and, in Québec, and privacy impact assessments in some cross-border disclosure contexts.
- Breach response procedures must be in place, especially in Québec where reporting is mandatory in certain confidentiality incidents, especially where there is a risk of serious injury.
How We Handle It
As your Employer of Record, we are the legal employer and assist in handling employee personal information in compliance with the applicable federal and provincial privacy legislation, including Québec’s Law 25.
Employee data is collected, stored, and managed according to Canadian requirements. This helps reduce a significant compliance burden from international employers who would otherwise need to navigate multiple privacy regimes themselves.
Concerned About Canadian Privacy Compliance?
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We handle employee data in line with PIPEDA, provincial laws, and Québec’s Law 25.