More Canadians over the age of 65 are continuing to work, whether full time, part time, or through multiple jobs. For employers, this is no longer a temporary trend. It is a workforce shift that is reshaping hiring, workplace policies, accommodations, benefits, and long-term planning.
Statistics Canada reports that 2025 marked the fifth consecutive year of increasing workforce participation among seniors. Participation rates now exceed pre-pandemic levels and are the highest recorded since tracking began in 1976. Approximately 2 out of 5 working seniors logged an average of 16 hours per week, and many worked more than one job.
The reasons behind this shift are complex. Older Canadians continue to face rising costs of living, food insecurity, personal debt, and declining access to pension plans. For many, working beyond age 65 is less about choice and more about financial stability.
The Government of Canada Economic Scan for Ontario for 2025 noted:
“Labour force participation has risen amongst workers aged 65 and over in recent years as the cost of living has increased.”
It also projected that:
“The proportion of seniors aged 65+ is projected to increase from 18.8% in 2025 to 22.5% in 2035.”
For employers, this means older workers will increasingly remain part of the workforce for longer periods of time. Businesses that proactively review their employment practices now will be better positioned to reduce legal risk, support retention, and create stronger workplace cultures moving forward.
This area of employment law can be nuanced because it often requires employers to balance employment standards obligations, human rights protections, benefits considerations, accommodations, and workplace policies simultaneously.
Link to Key Considerations When Employing Older Workers Key Considerations When Employing Older Workers
Link to Age Discrimination Remains Prohibited Age Discrimination Remains Prohibited
Age discrimination is not permitted in hiring, promotions, training opportunities, workplace treatment, or terminations.
As older workers remain active in the workforce longer, employers should ensure workplace decisions are based on legitimate business considerations rather than assumptions connected to age.
Link to Mandatory Retirement Is Largely Gone Mandatory Retirement Is Largely Gone
Mandatory retirement has mostly disappeared in Ontario workplaces, subject to limited exceptions that can be difficult to establish legally.
The Ontario Human Rights Commission has confirmed that employees over the age of 65 who believe they lost employment because of age may pursue human rights claims based on age discrimination.
Link to Benefits Plans Require Careful Review Benefits Plans Require Careful Review
Benefits and health insurance programs involving employees over age 65 remain legally complex.
Differential treatment in benefits plans may create tensions between legislation, insurance structures, and evolving human rights tribunal decisions. Employers should carefully review how their current plans apply to older workers and seek legal advice where needed.
Link to Practical Steps Employers Can Take Now Practical Steps Employers Can Take Now
One of the best places to start is with a policy review.
Employers should ensure workplace policies:
- avoid age-based assumptions or language
- are written clearly
- align with current legal requirements
- reflect how the workplace actually operates today
Policies worth reviewing may include:
- Anti-Discrimination and Human Rights Policies
- Recruitment and Hiring Policies
- Pay Equity Policies
- Accommodation and Accessibility Policies
- Health and Safety Policies
- Leave of Absence Policies
- Training, Development, and Performance Policies
- Flexible Work and Part-Time Employment Policies
- Termination Policies
Link to Workplace Culture Matters Too Workplace Culture Matters Too
Legal compliance is important, but workplace culture also plays a significant role in reducing risk and improving employee experience.
Employers should consider:
- encouraging intergenerational collaboration
- addressing ageism proactively
- supporting knowledge sharing between employees
- ensuring older workers feel included and respected
Accommodation also remains an important consideration. Appropriate ergonomics, flexible scheduling, technology support, and accessible workplace practices can help employees continue working safely and effectively.
Link to The Bottom Line The Bottom Line
Whether or not your business actively hires employees over 65, there is a growing likelihood that existing employees may continue working beyond traditional retirement age.
With Canada’s aging population and increasing financial pressures on seniors, employers who proactively assess their workplace policies, benefits structures, accommodations, and employment practices now will be far better positioned to reduce risk and support a stable workforce moving forward.A proactive review today can help prevent costly disputes, human rights complaints, and policy gaps tomorrow.