Poorly handled change can erode trust, create resentment and increase the likelihood of complaints as well as expose organizations to risk, Kim Morris of Citation Canada writes. Trust is more than a cultural asset. It is foundational for practical, preventive controls within broader compliance frameworks.
When organizational change is poorly managed, the impact often extends beyond employee morale. Unclear communication, inconsistent implementation and low employee trust can fuel workplace resentment. Canadian organizations can approach change management through a compliance lens, while recognizing that similar considerations may apply in other jurisdictions.
Change has become a constant for many organizations, often driven by shifting workplace policies and evolving regulatory requirements. Leaders likely notice how these factors can impact employee productivity and performance, but the effect on compliance may be overlooked.
Canadian regulation & legislation
Employee trust is often viewed as a cultural metric, but it can also affect how workplace compliance issues emerge and escalate.
Canadian occupational health and safety legislation, such as the Canada Labour Code Part II and Ontario’s Occupational Health and Safety Act, contains employer obligations related to workplace health and safety, including requirements addressing workplace harassment and violence. The National Standard of Canada for Psychological Health and Safety in the Workplace provides voluntary guidance to promote psychological health and prevent psychological harm.
When employees trust their organization, they are more likely to raise concerns internally, follow established policies and accept organizational decisions. When that trust erodes, the reverse tends to follow. Employees may disengage, escalate concerns to external bodies or trigger formal complaint processes under legislation they may not have previously considered.
Findings from a 2024 public service employee survey show that job satisfaction among federal public servants dropped from 81% in 2022 to 77% in 2024. Even minor drops in sentiment can signal underlying concerns that are magnified during periods of change.
Declining trust during change can activate obligations and risks across several Canadian regulatory frameworks:
- Employment standards and common law: Under the Canada Labour Code (Part III) and provincial employment standards legislation, major unilateral changes to duties, compensation, hours or work location may give rise to constructive dismissal claims if not handled properly.
- Occupational health and safety legislation: Ontario’s OHSA provisions on workplace violence and harassment, introduced through Bill 168, may be relevant where workplace change contributes to harassment, violence or related safety concerns.
- Human rights legislation: Under the Canadian Human Rights Act and provincial human rights codes, employers can face complaints if workplace changes disproportionately affect employees in protected groups, even unintentionally, which may lead to discrimination complaints before a human rights tribunal.
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Read moreDetailsCompliance risks from poor change management
Not all organizational change leads to negative outcomes, but when change is poorly managed, it can quickly contribute to workplace resentment.
Common indicators of poor change management include limited or unclear communication, inconsistent messaging across leadership, lack of transparency around decision-making and sudden implementation of new policies without context.
These could lead employees rejecting change or seeing it as unfair.
Once employees perceive unfair treatment, they may be less likely to accept the policy and more likely to raise concerns about its application. What started as a workplace decision can then escalate into a policy enforcement issue, or even a human rights or legal issue.
When trust erodes and resentment builds, organizations may begin to see emerging compliance risks.
1. Constructive dismissal and employment standards exposure
In Canada, constructive dismissal occurs when an employer makes a fundamental change to the terms of employment without the employee’s consent. Courts, adjudicators or employment standards decision-makers may consider whether the change was significant, how it was communicated and whether the employer acted reasonably and in good faith.
Depending on the jurisdiction and forum, a constructive dismissal finding may trigger statutory termination or severance obligations and may also expose the employer to broader common law damages.
Return-to-office mandates, role restructuring and shift changes are all areas where claims have increased in recent years.
2. Human rights tribunal complaints
Under the Canadian Human Rights Act and provincial human rights codes, employees can challenge workplace changes that unfairly affect them on the basis of protected grounds, such as disability, family status or age.
Inconsistent implementation of change across a workforce can become relevant in a human rights complaint, particularly where the difference in treatment appears connected to a protected ground. An employer who cannot show a consistent, documented, non-discriminatory rationale for treating certain employees differently is in a difficult position.
3. Occupational health and safety violations
Health and safety obligations are expanding across Canada. Ontario’s OHSA and Bill 168 requirements regarding harassment prevention, along with federal workplace harassment and violence prevention regulations, place growing expectations on employers to proactively manage workplace risk, including during periods of change.
4. Labor relations board complaints
In unionized workplaces, major operational changes made without proper consultation can lead to labor board complaints or grievances under the Canada Labour Code (Part I) or provincial labor relations legislation. In nonunionized environments, employees may also have organizing rights under the Canada Labour Code or applicable provincial labor relations legislation, depending on the workplace.
5. Documentation failures
One of the most common employer vulnerabilities is poor documentation. In constructive dismissal litigation, human rights proceedings and OHS investigations, decisions are routinely examined for how they were made, communicated and applied. Missing or inconsistent records can significantly weaken an employer’s position.
Where change management and compliance intersect
Change management is often treated as a communications or HR function, but it also plays a direct role in risk mitigation. Reducing compliance risk during organizational change requires more than communication planning. Employers also need processes that align with Canadian legal obligations.
- Document the rationale behind decisions.
- Review changes for human rights impact.
- Assess employment law implications early.
- Treat psychological safety as part of compliance.
- Create clear internal escalation channels.
Organizational change is unavoidable, but the way leadership manages it can significantly influence compliance outcomes.
Kim Morris is the lead HR consultant at Citation Canada. She supports employers and people leaders through complex workplace situations, including employee relations and conflict, performance concerns, terminations and policy questions. 
