Protecting Privacy and Consumer Data Act would reshape how employers handle employee information, deploy AI in hiring and transfer data abroad

Canadian employers will face new rules on how they collect employee information, deploy AI in hiring and move personal data outside the country under a new legislation.

Bill C-36, the Protecting Privacy and Consumer Data Act (PPCDA) – tabled June 15, 2026 – recasts privacy as a fundamental right and exposes organisations to fines of up to $25 million or 5% of global revenue.

Evan Solomon, Minister of Artificial Intelligence and Digital Innovation, announced the bill in Ottawa. Innovation, Science and Economic Development Canada (ISED) calls it a modernisation of a private-sector privacy law it says is more than 25 years old and predates AI at scale and algorithmic decision making.

The PPCDA would "require meaningful consent for the use of personal information and plain-language explanations for how personal information is handled," ISED says — a test for the dense notices many employers embed in onboarding and HR systems.

It would also create a right to deletion, raising operational questions for retention schedules, departed-employee records and databases of unsuccessful candidates.

AI hiring and automated decisions

The provision most relevant to recruitment requires that "organizations are transparent about their use of automated decision making for significant decisions about individuals," per ISED — language that covers resume...

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