The Employment Standards Act Ontario (ESA) is a set of rules that protect workers and make sure employers treat employees fairly. It covers things like pay, hours of work, and job safety. But laws change over time, and employers need to stay updated to avoid legal trouble and keep their workplaces fair.
Starting in 2025 and 2026, Ontario will introduce new ESA rules that will affect how businesses hire and manage employees. These changes include new job posting rules, written employment details, and even bans on certain hiring practices.
If you’re an employer, then you need to prepare now to avoid fines and legal issues. This blog breaks down the upcoming changes in ESA Ontario, what they mean for your business, and how to stay compliant.
Overview of Upcoming Changes to the ESA
Mandatory Written Employment Information (July 1, 2025)
Starting July 1, 2025, employers with 25 or more workers must give new hires a written document explaining their job details before their first day. This includes pay, hours, benefits, and job duties.
Why does it matter?
- Helps avoid misunderstandings between employers and employees.
- Ensures workers know their rights from day one.
- Reduces legal risks for businesses.
New Job Posting Rules (January 1, 2026)
From January 1, 2026, job ads in Ontario must include:
- Salary or wage ranges (no more hidden pay).
- If AI is used in hiring like resume-screening software.
Why does it matter?
- Makes hiring more transparent.
- Helps job seekers know what to expect.
- Employers must update job ads to follow the law.
Ban on Canadian Experience Requirements (January 1, 2026)
Employers can no longer ask for Canadian work experience in job postings or applications.
Why does it matter?
- Helps newcomers and immigrants get fair job opportunities.
- Encourages diversity in hiring.
- Avoids discrimination claims.
Duty to Inform Rejected Candidates (January 1, 2026)
If a job applicant is not selected, employers must tell them. No more ghosting candidates!
Why does it matter?
- Improves candidate experience.
- Builds a positive employer brand.
- Keeps hiring processes fair and professional.
Implications for Employers
Compliance is a Must
The government can fine businesses that don’t follow the new rules. To stay safe:
- Update job ads to include salary ranges and AI use.
- Remove “Canadian experience” requirements.
- Give written job details to new hires before they start.
Better Record-Keeping
Since employers must now document job offers and hiring decisions, having clear records is key. This helps if there’s ever a dispute.
Training Your Team
HR and hiring managers must learn the new rules. Training sessions can help avoid mistakes that lead to legal trouble.
How to Prepare for the ESA Changes?
Review and Update Hiring Policies
- Check job postings and remove banned requirements.
- Add salary ranges and AI disclosures to ads.
- Make sure new hires get written job details before starting.
Train Your Hiring Team
- Teach HR and managers about the new laws.
- Explain why transparency in hiring matters.
- Keep everyone informed to avoid compliance issues.
Get Legal Advice If Needed
Employment laws can be tricky. If you’re unsure, talk to a lawyer or HR expert to ensure your business follows the rules.
Wrap Up
The Employment Standards Act Ontario will receive important updates in 2025 and 2026. These changes will make hiring fairer and more transparent, but only if employers take proactive steps now.
By updating job ads, training staff, and keeping good records, you can avoid fines and build a workplace that follows the law.
Need help navigating these updates?
Hire Labour is here to support you with expert staffing solutions and compliance guidance. Contact us today to future-proof your hiring process and stay ahead of the curve.
FAQs
When do the new ESA changes take effect?
The changes roll out in two phases:
- July 1, 2025: Employers with 25+ employees must provide written employment details to new hires before their first day.
- January 1, 2026: New job posting rules (salary transparency, AI disclosure), a ban on Canadian experience requirements, and a duty to inform rejected candidates take effect.
Do small businesses (under 25 employees) need to follow these rules?
The written employment terms requirement (effective July 2025) only applies to businesses with 25+ employees. However, all other changes (job posting rules, interview notifications, etc.) apply to all employers, regardless of size.
What happens if an employer doesn’t comply?
Non-compliance can lead to:
- Fines from the Ministry of Labour.
- Legal disputes from employees or job applicants.
- Reputation damage (e.g., negative reviews, difficulty attracting talent).
How should employers update their hiring process?
- Revise job postings to include salary ranges and AI use (if applicable).
- Remove “Canadian experience” from all job ads and applications.
- Train hiring teams on the new rules (especially notifying rejected candidates).
- Consult an employment lawyer if unsure about compliance.
