Canada introduces workplace leave rights, vacant home tax this December

The government of Canada has introduced federal laws and policy changes affecting workers and residents occupying properties.

The changes becomes effective as from December 12, 2025.

For workers, the amendments are reflected in Canada’s labour code and will now grant new rights to federally regulated workers, offering stronger support for those dealing with loss and strengthening job security during extended absences.

The key new entitlements are:

Eight weeks’ leave following a stillbirth occurring at or after 20 weeks.

Up to three days’ paid leave for other cases of pregnancy loss, available to employees with at least three consecutive months of service.

Expansion of bereavement leave up to eight weeks for the death of an employee’s child, spouse, or common-law partner’s child.

These changes will ensure workers on extended leave retain benefits and the right to return to the same or a similar position, modernising labour protections across the country.

Toronto vacant home tax

Homeowners in Toronto must note that the city has opened its declaration portal for the 2025 Vacant Home Tax (VHT).

All residential property owners in Toronto will now be required to submit a declaration for the occupancy period of January 1 to December 31, 2025. The deadline for submission is 30 April 2026.

The VHT applies to residential properties left vacant for more than six months in the year, unless valid exemptions are met. Failure to submit the declaration risks automatic assessment as vacant, triggering the tax.

This measure remains a core part of Toronto’s strategy to increase housing supply and discourage speculative property vacancies.

According to the Canadian Center for Housing, there have been some policy changes which affects residents and are aimed at cooling the housing market and improving affordability and the cost of living crises.

Here’s a look at the core areas and policies affecting housing in Canada.

Housing affordability: The ban on foreign non-Canadians purchasing residential property has been extended until January 2027. First-time homebuyers now benefit from an increased insured mortgage price cap of $1.5 million and expanded access to 30-year insured mortgages. The government is also establishing a Renters’ Bill of Rights to allow tenants to build credit history with rental payment.

Renters’ rights and protection fund:Announced in April 2024, the Canada Rental Protection Fund was established to assist non-profit organisations in acquiring and preserving affordable housing stock.

Canadian renters’ bill of rights, which will allow tenants to count their rental payments toward credit scores, aiding future financial access.

Mortgage rule adjustments:

This became effective from December 15, 2024, where the federal government increased the price cap for default-insured mortgages to $1.5 million.

Further, eligibility for 30-year insured mortgages was expanded to cover all first-time homebuyers and individuals purchasing newly constructed homes, aiming to increase purchasing power and access.

culled from BusinessDay