Ontario Compliance Updates Every Employer Needs to Know
Ontario Compliance Updates Every Employer Needs to Know
Admin Ontario has been busy amending the Employment Standards Act, 2000 (ESA) and other employment legislation through the Working for Workers Acts. These Acts are a series of Ontario legislative efforts to enhance worker rights, health, and safety, with specific provisions evolving each year. For employers, it has been a lot to keep up with. From trial periods to sick notes to pay transparency, the rules are shifting in ways that directly affect how employers in Ontario onboard, pay, and manage employees.
Want a list? Jump to the bottom of the blog ➡️
To help you stay ahead, here’s a walk-through of recent and upcoming changes specific to the Employment Standards Act. We will cover changes to other legislation in a separate blog.
What’s Already in Effect
Trial periods now count as work.
As of March 21, 2024, if someone is doing real work in a trial period, those hours must be treated as paid work. It doesn’t matter if you were “just assessing their skills” — if those skills are ones employees normally use (or could use), this period is considered working time under the ESA. This closes the loophole some employers used for unpaid “working interviews” 【Source: Ontario ESA, Hours of Work】.
No deductions for thefts beyond the employee’s control.
Ontario has also clarified wage deduction rules. Employers cannot dock pay for “dine and dash” or “gas and dash” incidents where employees had no control. That’s now spelled out clearly in the law.
Money matters got stricter on June 21, 2024.
Three key updates kicked in:
- Employees must be free to choose their own account for direct deposit. No more steering them to a bank your company prefers.
- Vacation pay agreements must be in writing (electronic or paper) not just a handshake deal.
- And if you have a tip-sharing policy that includes owners or shareholders, it has to be posted publicly in the workplace and kept on file for three years 【Source: Ontario ESA, Vacation Pay & Tips】.
October 28, 2024 brought two major changes – sick notes and fines.
First, employers can no longer require a medical note from a doctor, nurse, or psychologist as evidence for the ESA sick leave. Second, fines doubled. Individuals convicted of contravening the ESA now face up to $100,000 in penalties — a serious signal that compliance isn’t optional 【Source: Ontario ESA, Sick Leave & Fines】.
What’s Happened in 2025
Long-term illness leave began on June 19, 2025.
Employees with at least 13 weeks of service are entitled to up to 27 weeks of unpaid leave in a 52-week period if they’re unable to work due to a serious medical condition certified by a health practitioner. Employers will need to keep leave-related records for three years.
Day One Transparency effective July 1, 2025.
Employers with 25 or more employees will need to provide new hires with clear, written information before day one: your legal name, contact details, where they’ll be working, what their starting pay is, when they’ll be paid, and their anticipated hours. This move toward “day-one transparency” means HR will need to tighten up onboarding packages.
Looking Ahead to 2026
Job posting rules change January 1, 2026 (O. Reg. 476/24).
For employers with 25+ employees, job postings will require:
- Compensation disclosure – job postings must include a pay range of up to $50K wide, unless the role pays over $200K.
- Disclosure of use of AI in the hiring process Elimination of “Canadian experience” requirements on postings.
- Employers to note whether the posting is for a real vacancy
Employers are also required to follow up with interviewed candidates within 45 days from the date of the last interview about hiring decisions.
This is Ontario’s clearest step yet into pay transparency and fairness in recruitment 【Source: O. Reg. 476/24】.
Still Waiting for a Date
Finally, a new “Placement of a Child Leave” is on the horizon. Once proclaimed, employees with 13+ weeks of service will be entitled to up to 16 weeks unpaid leave when welcoming a child through adoption or surrogacy. The leave can begin up to six weeks before the placement. Like other leaves, employers will have record-keeping obligations. The effective date hasn’t yet been set.
The Working for Workers Acts have reshaped the way employers in Ontario recruit, compensate, and support employees. We can help update your policies and practices to stay compliant – contact us today.
Quick View:
Already in Force (2024)
March 21, 2024 – Expanded Definition of “Employee”
- The definition of employee now includes people performing work during a trial period if the skills being assessed are used (or could be used) by employees.
- Employers must count these trial period hours as work time.
- Learn more about what counts as work time.
March 21, 2024 – Clarified Wage Deduction Rules
- Employers are prohibited from deducting wages in “dine and dash,” “gas and dash,” or similar situations where others had access to the cash/property.
- This confirms that employees cannot be held liable for customer theft or shortages beyond their control.
June 21, 2024 – Payment of Wages (Direct Deposit)
- Employees must be free to choose their own bank account for direct deposit. Employers cannot require a specific financial institution.
June 21, 2024 – Vacation Pay Agreements
- Agreements to pay vacation pay on each paycheque (or at another time) must now be in writing (including electronic). Verbal agreements are no longer valid.
- Details on vacation pay rules.
June 21, 2024 – Tips & Gratuities
- Employers must pay tips by cash, cheque, or direct deposit into an account chosen by the employee.
If an employer (or director/shareholder) shares in a tip pool, they must post a written copy of the policy in the workplace and keep copies for three years. - Details on tips rules.
October 28, 2024 – Sick Leave Medical Notes
- Employers can no longer require a doctor’s note from a qualified health practitioner as evidence for ESA sick leave.
October 28, 2024 – Increased ESA Fines
- Maximum fines for individuals convicted under the ESA increased to $100,000 (up from $50,000).
- Provincial Offences Act reference.
Coming in 2025
June 19, 2025 – Long-Term Illness Leave
- Employees with 13+ weeks of service are entitled to up to 27 weeks of unpaid leave in a 52-week period if:
- They cannot perform duties due to a serious medical condition, and
- A health practitioner provides a certificate confirming the condition and timeframe.
- Employers must keep related records for three years.
July 1, 2025 – Employment Information for New Hires
Employers with 25+ employees must provide new hires with:
- Employer’s legal/operating name
- Contact info (address, phone, contact names)
- General description of where the employee will initially work
- Starting wage/commission details
- Pay period and pay day
- General description of initial hours of work
This must be given before the first day of work (or as soon as possible after).
Exemptions: Employers with <25 employees and assignment employees.
Coming in 2026
January 1, 2026 – Job Posting Transparency Rules (O. Reg. 476/24)
Applies to employers with 25+ employees posting public job ads. Key requirements:
- Pay Transparency: Must include expected compensation or a range (up to $50,000 wide, unless salary exceeds $200,000).
- AI Disclosure: Must disclose if artificial intelligence is used in the hiring process.
- No Canadian Experience Requirement: Employers cannot require “Canadian experience” in job postings or application forms.
- Vacancy Disclosure: Must state whether a posting is for an existing vacancy.
- Post-Interview Communication: Employers must inform interviewed applicants of the hiring decision within 45 days (in person, in writing, or electronically).
➡️ See O. Reg. 476/24 for full details.
Not Yet in Effect (Date TBD)
Placement of a Child Leave (Adoption or Surrogacy)
- Employees with 13+ weeks of service will be entitled to up to 16 weeks of unpaid leave:
- For adoption placement, or
- When a child is placed with the employee following surrogacy.
- Leave may begin up to six weeks before expected placement.
- Employers must keep related records for three years.
Effective date will be set by proclamation of the Lieutenant Governor.
