Key changes to Employment Standards Act affecting employers with 25+ employees, effective July 2025 and January 2026
Ontario employers need to prepare for significant changes coming to the Employment Standards Act, 2000 (ESA). New requirements affecting job postings and employment recordkeeping will roll out in two phases, with confirmed effective dates now available.
These changes will impact employers with 25 or more employees and represent Ontario’s latest effort to increase workplace transparency and fairness.
Key Implementation Timeline
The new ESA requirements will take effect in two phases:
- July 1, 2025: Employment information requirements for new hires (this update does not apply to assignment workers and therefore no update to system generated notifications is required)
- January 1, 2026: Public job posting requirements
Both sets of changes apply only to employers with 25 or more employees.
Job Posting Requirements (Effective January 1, 2026)
The Working for Workers Four Act, 2024 and Working for Workers Five Act, 2024 introduced comprehensive new requirements for publicly advertised job postings. Recent regulations have clarified the scope and details of these obligations.
What Qualifies as a Publicly Advertised Job Posting
A publicly advertised job posting includes any external job posting that an employer or someone acting on their behalf advertises to the general public in any manner.
Important exceptions include:
- General recruitment campaigns that don’t advertise a specific position
- General help wanted signs without specific position details
- Postings restricted to existing employees
- Positions where work is performed outside Ontario (with specific conditions)
New Requirements for Job Postings
Compensation Range Disclosure
Employers must include expected compensation or compensation range information in job postings. Key details:
- If providing a range, the difference between top and bottom rates cannot exceed $50,000 (example: $70,000 to $120,000)
- Compensation includes what the ESA defines as “wages”
- This requirement doesn’t apply to positions with expected annual compensation exceeding $200,000
Canadian Experience Restrictions
Employers cannot include any requirements related to Canadian experience in job postings or application forms.
Artificial Intelligence Disclosure
Employers using artificial intelligence to screen, assess, or select applicants must disclose this use in the job posting. The regulation defines artificial intelligence as “a machine-based system that, for explicit or implicit objectives, infers from input it receives to generate outputs such as predictions, content, recommendations or decisions that can influence physical or virtual environments.”
Existing Vacancy Status
Job postings must include a statement disclosing whether the posting is for an existing vacancy or not.
Post-Interview Communication
If an employer interviews an applicant, they must inform the candidate within 45 days after the last interview whether a hiring decision has been made regarding the job posting.
Record Retention Requirements
Employers must retain job postings, associated application forms, and post-interview information provided to applicants for three years.
Employment Information for New Hires (Effective July 1, 2025)
Starting July 1, 2025, employers must provide new employees with specific information in writing before their first day of work, or as soon as reasonably possible if providing it beforehand isn’t practicable.
Important Exemptions
These employment information requirements do not apply to:
- Employers with fewer than 25 employees on the employee’s first day of work
- Assignment employees (those employed by temporary help agencies for temporary client assignments)
Required Information
Employers must provide:
- The legal name of the employer and any different operating or business names
- Contact information including address, telephone number, and contact names
- A general description of where the employee will initially perform work
- The employee’s starting hourly wage, other wage rate, or commission structure
- The established pay period and pay day
- A general description of the employee’s initial anticipated hours of work
Next Steps for Employers
These new requirements represent significant changes to Ontario’s employment landscape. Employers with 25 or more employees should begin preparing now by:
- Reviewing current job posting practices and templates
- Establishing compensation range policies and procedures
- Updating recruitment processes to accommodate new disclosure requirements
- Implementing systems for tracking and retaining required records
- Training HR teams and hiring managers on new obligations
Employment standards legislation continues to evolve as governments respond to changing workplace dynamics. These Ontario ESA changes reflect broader trends toward greater transparency and worker protection.
At People2.0, we monitor legislative developments across all jurisdictions where we operate, ensuring our partners receive timely updates and practical guidance for implementation.
For questions about how these changes may affect your operations, contact our team at HRCanada@people20.com.
