This issue is framed, incompletely, as 'religious freedom against gay and lesbian rights'. To be clear, TWU's Community Covenant also denies entry to heterosexuals who do not subscribe to the university's prohibition against sex outside of marriage. 

Religious freedom includes the right to be agnostic. Section 2 (a) of the Charter has been interpreted by the SCC to include protection from the imposition by others of religiously motivated sanctions against conduct that is otherwise legal. The covenant infringes therefore on the rights of heterosexuals broadly, and - given the obvious double standard governing premarital sex - discriminates against women in particular. 

TWU, of course, claims exemption on the basis it is a private Christian university. What the SCC must decide is whether that exemption compels the legal profession and justice system, which ostensibly stand for fairness and equity, to accept the graduates of a university that openly repudiates those principles.