In today’s evolving workplace, fostering inclusivity isn't just a nice-to-have – it's a legal and cultural imperative. And for HR managers and business owners across Canada, one of the most critical and often misunderstood areas of inclusion is the fair treatment of trans employees. It touches everything from your policies to your people, from compliance to culture.

Despite progress in law and society, many transgender and gender-diverse individuals still face unnecessary hurdles at work. Misgendering, limited access to appropriate facilities, outdated systems that don’t recognize their identity, and even outright harassment are unfortunately common. But they don’t have to be.

In this article, we’ll walk through the legal framework, share recent case law, outline common missteps, and offer actionable strategies that HR leaders can use to build workplaces that are welcoming, legally compliant, and genuinely inclusive.

The Legal Landscape: What The Law Says About Trans Rights At Work

Let’s start with the basics. In Canada, trans employees are protected under both federal and provincial human rights laws. These laws prohibit discrimination based on "gender identity" and "gender expression," placing them on the same level of protection as race, religion, sex, and disability.

At the federal level, Bill C-16, passed in 2017, amended the Canadian Human Rights Act to include gender identity and expression. This means that federally regulated employers – such as banks, airlines, railways, and telecommunications companies – must not only avoid discrimination but take proactive steps to ensure trans employees feel safe and respected at work.

Provincially, each jurisdiction has either explicitly included gender identity and expression in their human rights codes or interpreted existing language in a way that protects trans individuals. Here’s how it breaks down:

While the protections are widespread, applying them in real workplace scenarios is where many organizations stumble. That’s where HR leadership becomes essential.

Real-World Examples: Recent Cases That Illustrate The Stakes

Sometimes the best way to understand the law is to look at how it’s being enforced.

Case 1: Misgendering as a Form of Harassment

In the 2023 Ontario case Nelson v. GoodLife Fitness, a trans employee repeatedly asked her coworkers and supervisors to use her correct name and pronouns. Unfortunately, she was continually misgendered, often in front of customers. Despite raising the issue with HR, no meaningful corrective action was taken.

The Human Rights Tribunal of Ontario sided with the employee, noting that persistent misgendering constituted a hostile and poisoned work environment. Even more importantly, they ruled that failure to address the behaviour amounted to constructive dismissal. The employer was ordered to pay damages for injury to dignity and financial loss.

This case highlights the real impact of inaction. HR cannot afford to treat misgendering as a minor mistake – it can be a legal liability and a violation of someone’s basic dignity.

Case 2: Washroom Access and Equality

In a British Columbia case from 2022, a trans woman working at a large retail chain was denied access to the women’s washroom. Instead, she was told to use a separate "gender-neutral" staff-only bathroom. Her cisgender coworkers were not subject to the same restriction.

The BC Human Rights Tribunal ruled decisively: denying trans employees access to the facilities aligned with their gender identity is discriminatory. Creating "special" options doesn’t remove the harm if those options are not equal.

The lesson? Segregation is not accommodation.

Common Mistakes Employers Still Make

Even well-meaning employers can fall into traps that expose them to legal or cultural risk. Here are some of the most frequent mistakes we see.

1. Treating Gender Identity as Optional

Gender identity isn’t a preference. It’s a core aspect of who someone is. When companies treat pronouns or chosen names as optional to respect, they’re sending a message that trans people are optional too. That’s not only demoralizing – it’s dangerous.

1. Misgendering, Deadnaming, and Shrugging It Off

Using the wrong pronoun or calling someone by their former name (known as deadnaming) can be deeply distressing. And when it happens repeatedly – especially after someone has corrected the behaviour – it crosses the line into harassment. Intent doesn’t matter nearly as much as impact.

1. Making Trans Employees Do All the Work

It’s not your trans employee’s job to educate the team or fix the culture. Employers who expect trans individuals to shoulder the burden of inclusion are effectively outsourcing their legal obligations.

1. Gendered Dress Codes and Policies

If your dress code still has different rules for men and women, it might be time to retire it. Trans and nonbinary employees should be free to dress in accordance with their identity without fear of discipline or judgment.

1. Outdated Admin Systems

From ID badges to payroll systems, administrative rigidity can lead to daily microaggressions. Systems should allow for preferred names and pronouns regardless of legal documentation status.

What Hr Can Do: Practical Steps To Create A Trans-Inclusive Workplace

1. Update Your Policies Across the Board

Make sure your harassment, accommodation, health and safety, and privacy policies explicitly include "gender identity" and "gender expression." A vague reference to "diversity" won’t cut it. Be specific.

Also, consider adding a standalone Trans Inclusion Policy that outlines rights, expectations, and procedures for transition support.

1. Review Your Benefits Plan

Many benefits plans don’t yet offer adequate coverage for gender-affirming care. Work with your provider to ensure your plan supports:

• Hormone therapy
• Mental health support
• Gender confirmation procedures

Doing so isn’t just a best practice. It could help attract and retain valuable employees.

1. Provide Company-Wide Training

One of the most effective ways to build understanding is through regular training. Focus on:

• What gender identity and expression mean
• How to respectfully use pronouns
• What inclusive language looks like
• What to do (and not do) if you make a mistake

Importantly, this training should include all staff, not just managers.

1. Create a Clear Transition Plan Process

If an employee is transitioning on the job, your organization should have a structured support process in place. This could include:

• Confidential conversations with HR or a manager
• A communication plan (with the employee’s input)
• Name and ID changes
• Workspace adjustments if needed
• Flexibility during medical or legal processes

The goal is to reduce stress and show that your organization has their back.

1. Normalize Inclusive Practices

Encourage all staff to add pronouns to email signatures. Offer non-gendered uniforms where possible. Provide at least one all-gender washroom. And use intake forms that say "Name" instead of "Legal Name."

These may seem like small changes, but they signal inclusion loud and clear.

Beyond Compliance: Building A Culture Of Respect

Laws help set the minimum standard. Culture is how you go beyond that. An inclusive workplace culture isn’t built overnight, but it is built – step by step, policy by policy, leader by leader.

Some ways to deepen your culture of inclusion:

• Celebrate events like Trans Awareness Week and International Day of Trans Visibility
• Support employee-led diversity committees or resource groups
• Highlight and share the voices of trans and nonbinary employees
• Hold leadership accountable for diversity and inclusion goals
• Regularly audit hiring and retention practices for equity

Inclusion isn’t just about avoiding lawsuits. It’s about living your values and treating every person with respect.

Final Thoughts

Trans rights in the workplace are non-negotiable in 2025. Whether it’s a new hire updating their name in your HRIS or a long-time employee beginning their transition journey, your response says everything about your company culture.

For Canadian HR professionals, the path forward is clear: know the law, avoid common pitfalls, and take proactive steps to make your workplace welcoming to everyone, regardless of gender identity or expression. Because when we create space for everyone to bring their full selves to work, we all thrive.