Author: Carlos Abarca
Fair pay, transparency, and equal opportunity: What every Ontario worker and employer needs to know.
Starting January 1, 2026, Ontario is introducing significant changes to job posting and hiring requirements under the Employment Standards Act, 2000 (the “ESA”). These updates arise from the Working for Workers Four Act, 2024 (“Bill 149”), which received Royal Assent earlier this year, as well as Ontario Regulation 476/24, which sets out detailed rules and exemptions for job postings.
These changes aim to create a more transparent, equitable hiring process across the province. Whether you’re a job seeker wanting to understand your rights or an employer preparing for compliance, it’s essential to understand what’s coming.
Below are five key updates and what they mean for both workers and employers.
1. Canadian Experience Can No Longer Be Required
Employers will be prohibited from requiring “Canadian experience” in job postings or applications. This protects newcomers and internationally trained workers from discrimination related to race, place of origin, ancestry, or ethnic origin.
Employers may still confirm whether a candidate is legally authorized to work in Canada.
For workers:
If you see a posting requiring Canadian experience, you can raise the issue with the Ministry of Labour or seek legal advice.
For employers:
Review your job postings and application forms to ensure they do not include Canadian experience requirements. Updating your hiring templates now can help prevent compliance issues later.
2. Job Postings Must Include Pay Information
By January 1, 2026, most publicly advertised positions (for employers with 25 or more employees) must show:
- Either an expected salary or a pay range
- Pay ranges cannot exceed a $50,000 spread
- Compensation must include salary, allowances, non-discretionary bonuses, and other monetary benefits
This rule does not apply to roles with expected compensation exceeding $200,000 per year.
For workers:
If pay information is missing, you can request it directly from the employer or seek guidance from the Ministry of Labour or a legal professional.
For employers:
Start reviewing your compensation structures and internal processes now. Pay transparency supports equitable hiring and reduces future risk of audits or penalties.
3. Disclosure of Artificial Intelligence (AI) in Hiring
Starting in 2026, employers must disclose in job postings when AI is used to screen, assess, or select applicants. This helps protect applicants from undisclosed biases and increases transparency.
For workers:
Knowing AI is used lets you better understand the screening process and challenge potential discrimination.
For employers:
If your organization uses AI, whether for screening resumes or scoring assessments, you’ll need to implement disclosure practices and ensure your tools comply with human rights standards. Seeking a legal professional to ensure language is compliant with the changes is a good start.
4. New Notification and Record-Keeping Rules
“Ghosting” applicants will become illegal. Employers will be required to:
- Notify applicants within 45 days of the final interview whether a hiring decision has been made
- Keep records of job postings, applications, and related communications for three years
For workers:
If you don’t receive a follow-up after an interview, you can contact the employer or report the issue to the Ministry of Labour after 45 days. Finding a legal representative to help you navigate these challenges could be helpful.
For employers:
This is a major operational shift. Implementing internal processes now, such as applicant tracking systems or standardized communication templates, can help ensure compliance.
5. Employment Information Must Be Provided to New Hires
Effective July 1, 2025, all new employees must receive written details, including:
- Employer’s legal and business name
- Contact information and work location
- Hours of work, rate of pay, pay period, and pay day
Small employers (fewer than 25 employees) and temporary assignment employees are exempt from this new update.
For workers:
You are entitled to transparency about your job terms from day one. If an employer does not give any of this information, it could be a red flag. Seeking a legal professional could help you if you feel your employer is not being fully transparent.
For employers:
Consider revising your onboarding documents and employment contracts to align with the new standards.
What Happens if Employers Don’t Comply?
Failing to meet the ESA’s new requirements can potentially lead to:
- Ministry of Labour investigations
- Orders for compensation or back pay
- Administrative penalties or other fines
Both employees and employers benefit from a fair system: workers gain protection, and employers avoid legal exposure and strengthen their hiring practices.
Key Takeaways
- Job postings can no longer request Canadian experience.
- Pay ranges must be disclosed for most roles.
- Employers must reveal when AI is used during hiring.
- Applicants must receive timely updates after interviews.
- New hires must receive key employment information in writing.
These changes make Ontario’s hiring landscape more transparent and consistent and understanding your rights and obligations helps ensure a smoother process for everyone involved.
Need Guidance? Contact Abarca Law
Whether you’re a job seeker looking to understand your rights or an employer preparing to meet new compliance requirements, at Abarca Law, we are here to help you.
We advise both workers and employers on ESA compliance, hiring practices, and resolving disputes. Contact us for legal guidance that is designed exactly for your needs.
Disclaimer
This blog post is provided for general information purposes only and does not constitute legal advice or a legal opinion. The information contained here may not apply to your specific circumstances and should not be relied upon as a substitute for obtaining legal advice from a lawyer. Reading this article, contacting our firm, or requesting further information does not create a solicitor–client relationship. If you require advice about your particular situation, please contact a licensed lawyer in Ontario or in your jurisdiction.
