Navigating Ontario’s New Employment Regulations: Key Insights for HR Professionals

Over the past year, we have shared insights and practical tips to help your organization prepare for upcoming changes introduced by the Working for Workers Four Act, 2024; Working for Workers Five Act, 2024; and Working for Workers Six Act, 2024.

In November 2024, Ontario filed O. Reg. 476/24, which comes into force on January 1, 2026. This regulation provides organizations with more information regarding

(a) the meaning of certain terms used in the Employment Standards Act, 2000 (Act): “artificial intelligence” (AI), “publicly advertised job posting” (PAJP), “compensation”, and “interview”;

(b) the criteria applicable to compensation disclosure in PAJPs; and

(c) duties related to disclosure to interviewed applicants.

The regulation also provides that Part III.1 of the Act does not apply to an employer that employs fewer than 25 employees on the day the PAJP is posted.

Set out below are some action items to consider taking to help your organization meet its new obligations.

Carefully review your current job posting practices and adjust your templates to take into account the new disclosure obligations. Section 8.2(1) of the Act requires employers who advertise a PAJP to include, in the posting, information about the expected compensation or range of expected compensation.

O. Reg. 476/24 (when read in connection with the Act) provides that the range must not exceed $50,000 annually (thus, for example, one cannot advertise a position (in a PAJP) as having an expected annual salary range of $60,000 to $120,000). Note that the requirement does not apply if the PAJP is for a position that has an expected compensation of more than $200,000 per year or the range of expected compensation ends at an amount of more than $200,000 per year.

When thinking about the restriction on the range, keep in mind that “compensation” is defined as “wages,” and the term “wages” in the Act is not restricted to salary. Compensation may therefore include other payments, like commissions and non-discretionary bonuses.

Section 8.4(1) of the Act provides that employers who advertise a PAJP and use AI to screen, assess, or select applicants for the position must include in the PAJP a statement disclosing the use of the AI. AI is defined in O. Reg. 476/24 as a “machine-based system that, for explicit or implicit objectives, infers from the input it receives in order to generate outputs such as predictions, content, recommendations or decisions that can influence physical or virtual environments.” Given the increasing use of AI, it is possible that an organization may be using AI for a variety of purposes without all staff being aware. Consider meeting with your IT team and service providers if you are not sure whether your HR tools use AI to screen, assess, or select applicants.

Also, keep in mind that the definition of PAJP includes a posting by a person acting on behalf of the employer.

Section 8.6 of the Act (when read in conjunction with O. Reg. 476/24) requires employers who interview an applicant for a PAJP to, within 45 days of the interview date (or, if an applicant is interviewed more than once, within 45 days of the last interview), provide the applicant with information regarding whether a hiring decision has been made with respect to the PAJP. This information must be provided irrespective of whether an employee requests it (the regulation sets out 3 means by which the information can be provided: in person, in writing, or using technology).

Review and, if necessary, adjust your practices to ensure that your organization will meet this new obligation.

Also in November 2024, Ontario filed O. Reg. 477/24, which comes into force on July 1, 2025. This regulation requires employers who employ 25 or more employees to provide employees (other than an assignment employee) with specific information, in writing, before the employee’s first day of work (or, if it is not practicable to provide the information before that day, as soon thereafter as is reasonably possible). The information required to be provided is set out below:

1.  The legal name of the employer, as well as any operating or business name of the employer if different from the legal name.

2.  Contact information for the employer, including address, telephone number, and one or more contact names.

3.  A general description of where it is anticipated that the employee will initially perform work.

4.  The employee’s starting hourly or other wage rate or commission, as applicable.

5.  The pay period and pay day established by the employer in accordance with section 11(1) of the Act.

6.  A general description of the employee’s initial anticipated hours of work.

A number of other new requirements related to how organizations advertise for, recruit, and onboard employees will come into force in the coming months. It is essential for HR professionals to review these changes to ensure compliance.

Key changes include:

(a) the prohibition on requiring Canadian experience in PAJPs or application forms (section 8.3(1) of the Act);

(b) the obligation to disclose whether a PAJP is for an existing vacancy or a future opportunity (section 8.5(1) of the Act); and

(c) record retention obligations (to retain copies of PAJPs, associated application forms, and certain information provided to interviewed applicants (sections 15(7.1) and 15(7.1.1) of the Act)).

With these and other new compliance responsibilities, HR professionals are encouraged to take steps to update their policies and practices and consult with their advisors to understand the nuances of the various changes. The resources below provide further guidance to help organizations understand and implement these and other new obligations.