Budget 2025 includes proposals to crack down on worker misclassification

On November 4, 2025, Canada’s Minister of Finance and National Revenue, François-Philippe Champagne, tabled the Liberal Government’s federal budget, Building Canada Strong, in the House of Commons (Budget 2025). 

Relevant to the labour and employment space, among other things, Budget 2025 announced measures intended to ‘crack down’ on employers who misclassify employees as independent contractors, an issue that is of particular concern in the trucking industry. Budget 2025 proposes to amend information sharing provisions under applicable tax legislation to enable information sharing between the Canada Revenue Agency and the Department of Employment and Social Development Canada solely for administering and enforcing the Canada Labour Code as it relates to the misclassification of employees.  

For a discussion of these tax measures and others in Budget 2025, please see McCarthy Tétrault’s 2025 Canadian Federal Budget Commentary – Tax Initiatives.