Ontario Employment Standards Act Guide for Employers: ESA Rules, Compliance Checklist, and Common Mistakes

Plain-English Ontario ESA guide for employers. Learn key Employment Standards Act rules on wages, hours, overtime, vacation pay, public holidays, termination, severance, leaves, job postings, layoffs, and workplace policies.

Overview

Last reviewed: May 2026 Jurisdiction: Ontario Applies to: Most provincially regulated Ontario employers, subject to exemptions and special rules.

Most Ontario employers do not intentionally break employment law.

The problem is usually much simpler.

A policy manual gets copied from another province. A payroll rule is remembered incorrectly. A manager assumes salaried employees never receive overtime. A nonprofit hires part-time event staff without checking public holiday pay rules. A job posting is reused from last year without checking the new 2026 requirements.

That is where Employment Standards Act compliance becomes risky.

The Ontario Employment Standards Act, 2000, often called the ESA, sets minimum employment standards for most provincially regulated workplaces in Ontario. It covers many everyday HR rules employers deal with: wages, hours of work, overtime, vacation pay, public holidays, leaves of absence, termination, severance, recordkeeping, workplace policies, job postings, layoffs, and certain written information requirements.

This guide explains the Ontario ESA in plain English for employers, HR teams, nonprofit leaders, small business owners, office managers, executive directors, and anyone responsible for employee policies.

It is not a legal textbook. It is a practical employer guide.

By the end, you should understand:

This article provides general information only and is not legal advice. Employers dealing with a specific termination, workplace dispute, employee complaint, ESA exemption, unionized workplace, human rights issue, or complex employment contract should get legal advice.

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Quick Answer: What is the Ontario ESA?

The Ontario Employment Standards Act, 2000 is the main provincial law that sets minimum employment standards for most Ontario workplaces.

In plain English, it tells covered employers the minimum rules they must follow for things like pay, work hours, overtime, vacation, public holidays, job-protected leaves, termination notice, severance pay, records, certain written workplace policies, and some job-posting requirements.

The ESA is a minimum standard law. That means an employer can usually provide more than the ESA requires, but generally cannot provide less.

TopicWhat the ESA usually does
Minimum wageSets minimum hourly wage rules
Hours of workSets daily and weekly limits for many employees
OvertimeSets overtime pay rules for many employees
VacationSets minimum vacation time and vacation pay
Public holidaysSets public holiday pay and time-off rules
LeavesCreates job-protected unpaid leaves for eligible situations
TerminationSets minimum notice or termination pay rules
SeveranceSets severance pay rules for certain employees and employers
RecordsRequires employers to keep certain employee records
PoliciesRequires certain written policies for covered employers
Job postingsCreates specific public job-posting requirements for covered employers

A simple way to think about it:

The ESA is the floor, not the ceiling.

If your employment contract, policy manual, offer letter, collective agreement, or workplace practice gives an employee a greater right or benefit than the ESA minimum, the greater benefit may apply.

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What Changed Recently for Ontario Employers?

Ontario employment standards changed several times in 2025 and 2026. This is one reason employers should be careful about relying on old policy manuals, old job posting templates, or older HR checklists.

Here are several recent, upcoming, and pending changes Ontario employers should know:

Date / StatusChange
June 19, 2025New long-term illness leave came into effect, providing eligible employees with up to 27 weeks of unpaid, job-protected leave in a 52-week period due to a serious medical condition.
July 1, 2025Employers with 25 or more employees must provide certain written information to new employees before the first day of work or as soon as reasonably possible.
October 1, 2025Ontario’s general minimum wage increased from $17.20/hour to $17.60/hour. Employers should ensure payroll, offer letters, job ads, wage grids, and policy references reflect the current rate.
November 27, 2025New job seeking leave came into effect for certain employees who receive mass-termination notice. The ESA provides up to three unpaid days for activities related to obtaining employment, including job searches, interviews, and training. The ESA requires employees to advise the employer at least three days before beginning the leave, if possible.
November 27, 2025Ontario added an extended temporary lay-off pathway for certain non-unionized layoffs. This may apply where a temporary layoff is 35 or more weeks in any 52 consecutive weeks but less than 52 weeks in any 78 consecutive weeks, with a written agreement and Director of Employment Standards approval.
January 1, 2026New public job-posting requirements took effect for covered Ontario employers, including pay transparency, AI disclosure, vacancy statements, no Canadian experience requirements, candidate notification, and record retention.
October 1, 2026Ontario’s general minimum wage is scheduled to increase from $17.60/hour to $17.95/hour.
Pending — not yet in forcePlacement of a child leave has been enacted but has not yet been proclaimed in force. The ESA text says section 47.1 will come into force on a day to be named by proclamation, and employers should monitor for the official effective date.

This is why ESA compliance is not something employers should review only once every few years.

A policy manual that looked acceptable in 2024 may be missing important 2025 and 2026 updates.

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Why Ontario Employers Should Care About ESA Compliance

ESA compliance is not only a “big company” issue.

It matters for:

A small payroll mistake can multiply across many employees. A weak termination process can become expensive. A missing written policy can create avoidable risk. A job posting that looked normal in 2025 may need new compliance language in 2026.

For nonprofits and charities, the risk is even more sensitive.

Many nonprofits operate with lean HR capacity, part-time staff, grant-funded roles, volunteers, program coordinators, event workers, and managers who wear many hats. That makes it easy for employment standards responsibilities to fall through the cracks.

Common nonprofit examples include:

The biggest issue is not whether an employer is “good” or “bad.”

The issue is whether the employer’s policies, payroll practices, records, and HR decisions match the law that applies today.

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Who Does the Ontario ESA Apply To?

The Ontario ESA generally applies to provincially regulated employers and employees in Ontario, unless an exemption or special rule applies.

Most Ontario workplaces are provincially regulated. However, some workplaces are federally regulated instead. Examples of federally regulated sectors may include banks, airlines, telecommunications, interprovincial transportation, and certain federal Crown corporations. Federally regulated employers are generally governed by the Canada Labour Code, not Ontario’s ESA.

For Ontario employers, the ESA can apply to many types of employees, including:

This is where many mistakes happen.

An employer may say:

“They are only part-time, so ESA rules do not apply.”

That is usually not the right way to look at it.

Part-time employees can still have ESA rights. Casual employees can still have ESA rights. Salaried employees can still have ESA rights. Whether a specific ESA rule applies depends on the employee’s role, the type of work, the industry, and any applicable exemptions or special rules.

Employer takeaway

Do not assume a worker is outside the ESA just because they are:

Classification should be reviewed carefully.

The ESA Areas Every Ontario Employer Should Review

1. Wages and Pay

Employers must pay employees properly and on time.

ESA wage rules include minimum wage, pay periods, wage statements, deductions, vacation pay, public holiday pay, overtime pay, termination pay, tips and gratuities, and other wage-related obligations.

Ontario’s general minimum wage is currently $17.60 per hour, in effect from October 1, 2025 through September 30, 2026. Effective October 1, 2026, the general minimum wage is scheduled to increase to $17.95 per hour. Ontario’s minimum wage rates usually change on October 1, so employers should always verify the current rate before making payroll decisions, updating offer letters, or finalizing budgets for new hires.

Common employer mistake

An employer updates hourly rates for new hires but forgets to review existing part-time, casual, or student roles.

Practical example

A nonprofit hires a weekend administrative assistant for events. The role is casual, but the employee is still paid wages. The employer should check minimum wage, hours worked, overtime possibility, vacation pay, public holiday pay, wage statements, and recordkeeping.

Payroll note: tips, gratuities, and tip-sharing policies

Employers in industries where tips or gratuities are relevant should review their tip practices carefully. If an employer, director, or shareholder participates in a tip pool, the employer should ensure its tip-sharing policy is properly posted and kept current. This is especially relevant for restaurants, hospitality employers, event venues, and some nonprofit or charitable event operations.

Employer takeaway

Your payroll process should include a regular review of:

2. Hours of Work

Ontario’s ESA has rules around hours of work, eating periods, daily rest, weekly rest, and maximum hours for many employees.

The weekly maximum is 48 hours for most employees. This can be exceeded only if the required ESA conditions are met, such as a written employee agreement and any applicable ESA process or approval requirement.

This matters because many employers do not track hours carefully for salaried employees, supervisors, nonprofit staff, hybrid workers, or employees who attend events outside regular office hours.

Common employer mistake

A manager says:

“She is salaried, so we do not need to track her hours.”

That can be risky.

Salary does not automatically remove every ESA obligation.

Practical example

A charity program coordinator works Monday to Friday, then attends a Saturday community event and a Sunday donor meeting. If the employee is not truly exempt from relevant hours or overtime rules, the employer may need accurate records of all hours worked.

Employer takeaway

Your policy manual should explain:

3. Overtime Pay

Ontario overtime is one of the most misunderstood ESA topics.

Overtime is generally payable after 44 hours in a work week and is usually calculated at 1.5 times the employee’s regular rate, unless an exemption or special rule applies.

Common employer mistake

An employer assumes overtime only applies to hourly workers.

That is not always correct.

A salaried employee can still be entitled to overtime if they are covered by the overtime provisions and work more than the overtime threshold.

Simple example

An employee earns $24 per hour and works 50 hours in a week.

If the employee is covered by the ordinary overtime rule:

That overtime pay is in addition to regular pay for the first 44 hours.

Nonprofit example

A nonprofit program coordinator works 38 hours during the week, then works 10 additional hours during a weekend fundraising event.

Total weekly hours: 48.

If the employee is covered by overtime rules and no exemption applies, the employer should review whether overtime pay is owed for hours above 44.

Employer takeaway

Your policy manual should clearly explain:

A policy cannot remove ESA minimum rights, but it can help create a clear process.

4. Vacation Time and Vacation Pay

Vacation rules are another area where employers make mistakes.

In Ontario, employees with less than five years of employment are generally entitled to two weeks of vacation time after each 12-month vacation entitlement year. Employees with five or more years of employment are generally entitled to three weeks.

Vacation pay is generally at least:

Simple example: employee with less than five years

An employee earns $40,000 in gross wages during the vacation entitlement year.

Minimum vacation pay:

$40,000 × 4% = $1,600

Simple example: employee with five or more years

An employee earns $50,000 in gross wages during the vacation entitlement year and has five or more years of employment.

Minimum vacation pay:

$50,000 × 6% = $3,000

Common employer mistake

An employer pays vacation pay correctly for hourly employees but forgets to review vacation entitlement when an employee crosses the five-year mark.

Another common mistake

An employer thinks an employee who worked only a short period earns no vacation pay.

That can be wrong. Employees can earn vacation pay as they earn wages, even if they work for a short period.

Payroll note: vacation pay agreements should be documented

If an employer pays vacation pay on each paycheque instead of when vacation is taken, the arrangement should be handled carefully and documented properly. For practical HR purposes, employers should avoid informal verbal assumptions about vacation pay timing.

Employer takeaway

Your employee policy manual should explain:

5. Public Holidays

Ontario has nine public holidays under the ESA:

  1. New Year’s Day
  2. Family Day
  3. Good Friday
  4. Victoria Day
  5. Canada Day
  6. Labour Day
  7. Thanksgiving Day
  8. Christmas Day
  9. Boxing Day

This list is important because some days that are commonly observed by certain employers are not ESA public holidays in Ontario. For example, Civic Holiday and Remembrance Day are not listed as Ontario ESA public holidays.

Most qualifying employees are entitled to take public holidays off work and receive public holiday pay. Public holiday pay is generally calculated using the employee’s regular wages earned and vacation pay payable in the four work weeks before the work week with the public holiday, divided by 20.

Plain-English formula

Public holiday pay is generally:

regular wages earned in the four work weeks before the holiday week plus vacation pay payable for those four work weeks divided by 20

Common employer mistake

An employer assumes part-time employees do not get public holiday pay.

That assumption can be wrong.

A qualifying part-time employee may be entitled to public holiday pay, even if they do not work every day of the week.

Practical example

A part-time employee works two days per week at a nonprofit. A public holiday falls on a Monday. The employer should not automatically assume the employee receives nothing. The employer should check whether the employee qualifies and calculate public holiday pay using the ESA method.

Employer takeaway

Your policy manual should explain:

6. Job-Protected Leaves

Ontario’s ESA provides several job-protected leaves. These leaves are important because an employee may be entitled to time away from work without losing their job, even if the leave is unpaid.

Ontario ESA leaves include several categories, such as:

Sick leave

Ontario sick leave generally provides eligible employees with up to three unpaid, job-protected sick leave days each calendar year for personal illness, injury, or medical emergency.

Important precision: the employee generally must have been employed by the employer for at least two consecutive weeks to qualify for ESA sick leave.

Family responsibility leave

Ontario family responsibility leave generally provides eligible employees with up to three unpaid days each calendar year for certain family-related illness, injury, medical emergency, or urgent matters.

Again, the employee generally must have been employed by the employer for at least two consecutive weeks to qualify.

Bereavement leave

Ontario bereavement leave generally provides eligible employees with up to two unpaid, job-protected days each calendar year following the death of certain family members.

The employee generally must have been employed for at least two consecutive weeks.

Employers can offer more generous paid bereavement leave through a contract, policy, or collective agreement, but the ESA minimum itself is unpaid.

Job seeking leave

Effective November 27, 2025, Ontario added job seeking leave.

Subject to limits, this leave gives certain employees up to three unpaid days for activities related to obtaining employment, including job searches, interviews, and training.

This leave applies in the context of mass termination, which generally means 50 or more employees at an employer’s establishment are terminated within a four-week period. It is not a general leave available for every termination or resignation.

Employees are not entitled to job seeking leave if the employer terminates them with a period of notice that is 25% or less of the notice required under the ESA and pays termination pay instead of the remaining notice.

The ESA also says an employee who wishes to take the leave must advise the employer at least three days before beginning the leave, if possible.

Long-term illness leave

Long-term illness leave came into effect on June 19, 2025.

It provides eligible employees with unpaid, job-protected leave of up to 27 weeks in a 52-week period due to a serious medical condition.

To qualify, the employee must generally:

This leave is separate from the three-day ESA sick leave. It is also separate from any short-term disability, long-term disability, paid sick leave, or benefits program an employer may offer.

Placement of a child leave — enacted but not yet in force

Placement of a child leave has not yet come into force in Ontario.

The leave was enacted under the Working for Workers Six Act, 2024 and added to the ESA as section 47.1, but the official ESA text says it will come into force on a day to be named by proclamation of the Lieutenant Governor. Employers should not describe this as an active ESA leave until the government proclaims it in force.

Once in force, the leave is expected to provide up to 16 weeks of unpaid, job-protected leave when a child comes into the employee’s custody, care, and control for the first time through adoption, surrogacy, or certain other formal child placement situations.

The enacted but not-yet-in-force rules state that:

The timing and entitlement details are in the legislation, but employers should not treat this as active law until it is proclaimed in force.

Common employer mistake

A policy manual lists pregnancy and parental leave but never flags pending placement-of-child leave. Then, when the leave is proclaimed in force, the employer has no internal process to update the policy, train managers, or respond to employee questions.

Employer takeaway

Your policy manual should explain:

7. Termination of Employment

Termination is one of the highest-risk areas of employment standards compliance.

Ontario’s ESA termination rules deal with minimum notice of termination or termination pay instead of notice.

Termination pay must be paid either seven days after employment is terminated or on the employee’s next regular pay date, whichever is later.

But employers need to be careful: ESA termination rules are only one part of the risk.

In many cases, an employee may have:

Extended temporary lay-off note

As of November 27, 2025, Ontario added an extended temporary lay-off pathway for certain non-unionized employees.

This pathway is relevant where a temporary layoff may last 35 or more weeks in any 52 consecutive weeks but less than 52 weeks in any 78 consecutive weeks. For non-unionized employees, the ESA requires a written agreement with the employee and approval from the Director of Employment Standards. The employer must also provide required written information before the agreement is made, including the latest date the employer intends to recall the employee.

This matters because layoff decisions can create termination or severance risk if the ESA conditions are not followed.

Common employer mistake

An employer only checks the ESA termination table and assumes the full risk is solved.

That can be dangerous.

ESA minimums are not always the full amount an employee may claim, especially if the employment contract is weak, outdated, or unenforceable.

Practical example

A small business terminates a long-service office administrator. The employer pays ESA termination pay but does not check the employment agreement, benefits continuation, vacation pay, severance eligibility, or common law exposure. The employer may still face a claim.

Employer takeaway

Your termination process should include a checklist for:

8. Severance Pay

In Ontario, severance pay is different from termination pay.

This is a major source of confusion.

Termination pay is about minimum notice or pay instead of notice. Severance pay is a separate ESA entitlement that can apply in certain situations.

Under Ontario’s ESA, severance pay can generally become relevant where an employee has at least five years of employment and the employer meets certain statutory criteria, such as having a global payroll of at least $2.5 million or severing the employment of 50 or more employees in a six-month period because all or part of the business permanently closes, subject to the detailed ESA rules.

Common employer mistake

An employer says:

“We already paid termination pay, so severance is not relevant.”

That may be wrong depending on the employee’s length of service and whether the employer meets the ESA severance criteria.

Employer takeaway

For every termination, employers should separately ask:

  1. Is ESA termination notice or termination pay owed?
  2. Is ESA severance pay owed?
  3. Is anything more owed under the contract or common law?
  4. Are there human rights, reprisal, leave, or accommodation issues?

9. Recordkeeping

Recordkeeping is not glamorous, but it is one of the most important parts of ESA compliance.

If an employer cannot prove hours, wages, vacation, public holiday pay, leaves, and employment details, defending a complaint becomes harder.

Records employers should carefully maintain

Employers should maintain organized records for:

Common employer mistake

A small employer pays correctly but does not keep proper documentation.

That can still create risk.

Practical example

A part-time employee later claims they worked unpaid overtime. The employer believes the claim is wrong but has no reliable time records, no overtime approval policy, and no weekly hours tracking. Even if the employer acted in good faith, the lack of documentation creates a problem.

10. Written Policy on Disconnecting from Work

Ontario employers with 25 or more employees in Ontario on January 1 of a year must have a written policy on disconnecting from work before March 1 of that year.

Disconnecting from work generally means not engaging in work-related communications, including emails, calls, video calls, or other messages, so employees can be free from performing work.

This does not mean every employee has a universal right to ignore every message at every time. The employer’s actual obligations depend on the ESA requirement and the contents of the policy.

But covered employers must have the written policy.

Common employer mistake

An employer had 24 employees last year, grew to 30 employees this year, and forgets to create the policy after crossing the January 1 threshold.

Practical example

A nonprofit has 27 employees in Ontario on January 1, including full-time and part-time employees. The organization should check whether it needs a disconnecting from work policy by March 1.

Employer takeaway

Your policy should explain:

11. Written Policy on Electronic Monitoring

Ontario employers with 25 or more employees on January 1 of a year are also required to have a written policy on electronic monitoring of employees in place before March 1 of that year.

Electronic monitoring can include tools such as:

Common employer mistake

An employer uses monitoring software but has no employee-facing policy explaining it.

Practical example

A home care agency gives employees a scheduling app that records location when they clock in and out. If the employer meets the 25-employee threshold, it should review whether its electronic monitoring policy clearly explains the monitoring.

Employer takeaway

Your policy should explain:

12. Mandatory Written Information for New Employees

As of July 1, 2025, Ontario employers with 25 or more employees on a new employee’s first day of work are required to provide that new employee with certain information in writing.

Timing matters.

This information should generally be provided before the employee’s first day of work or as soon as reasonably possible.

This requirement matters because many employers still rely only on a short offer letter or verbal explanation.

Common employer mistake

An employer gives a new employee a start date and wage by email but does not provide all required written information.

Practical example

A charity hires a new development coordinator. The person starts Monday. The employer should check whether the required written employment information has been provided before the first day of work or as soon as reasonably possible.

Employer takeaway

Your onboarding checklist should include:

13. Ontario Job-Posting Rules Employers Must Know in 2026

Ontario’s job-posting rules are one of the most important newer ESA compliance areas.

New requirements for publicly advertised job postings came into force on January 1, 2026. They apply to employers with 25 or more employees in Ontario on the day the publicly advertised job posting is made.

This is an important distinction: for job postings, the employee count is measured on the day the posting is published, not January 1 like the disconnecting from work and electronic monitoring policy requirements.

Public job postings may now need to address issues such as:

Compensation range cap

If an employer gives a compensation range, the range generally cannot exceed $50,000 annually.

For example:

There is also an important higher-compensation exception. The compensation disclosure requirement does not apply to job postings for positions with expected compensation of more than $200,000 annually, or where the upper end of the compensation range is more than $200,000 annually.

AI disclosure

If the employer uses artificial intelligence to screen, assess, or select applicants for a publicly advertised job, the posting must disclose that AI is used.

Vacancy statement

Covered postings must state whether the posting is for an existing vacancy. This matters because some employers post roles to build a future candidate pool even when no current opening exists.

Canadian experience requirements

Covered employers are prohibited from including Canadian experience requirements, or equivalents, in publicly advertised job postings or associated application forms.

Candidate notification after interview

Employers must inform applicants who interviewed for a publicly advertised job posting whether a hiring decision has been made within 45 days after the date of the interview, or if there are multiple interviews, within 45 days after the date of the last interview.

Record retention

Covered employers must retain copies of publicly advertised job postings and associated application forms for three years after public access to the posting is removed. They must also retain copies of prescribed information provided to interviewed applicants for three years after the day the information was provided to the applicant.

Job posting platforms

Most employers are not job posting platforms. But employers that operate a job board, career marketplace, or job-posting platform should also be aware that Ontario added requirements for job posting platforms, including a fraudulent-posting reporting mechanism and a written policy.

Common employer mistake

An employer copies a 2025 job posting into 2026 without updating pay transparency, AI disclosure, vacancy statement, candidate notification, and record-retention processes.

Practical example

A nonprofit posts this role:

Program Manager Salary: Competitive Must have Canadian experience We may use automated tools to review applications

This posting may need careful review. “Competitive” may not be enough if compensation information is required. “Canadian experience” language may create compliance problems. AI-related language may need to be more specific if AI is used in the hiring process.

Employer takeaway

Before posting a public Ontario job ad in 2026, employers should review:

Sources

Need an Ontario Employee Policy Manual That Reflects ESA Requirements?

Canada Policy Manual helps Ontario employers create practical, province-specific employee policy manuals with clear workplace policies, compliance checklists, and employee acknowledgment support.

Create Your Ontario Policy Manual

ESA Examples for Small Businesses and Nonprofits

Example 1: Nonprofit Hiring a Part-Time Program Coordinator

A nonprofit hires a part-time program coordinator for 20 hours per week.

The executive director thinks:

“This is only part-time, so we can keep the paperwork simple.”

That is risky.

The employer should still check:

Better approach

The nonprofit gives the employee:

This reduces confusion and protects both the employee and the organization.

Example 2: Charity Using Casual Weekend Event Staff

A charity hires casual workers for weekend fundraising events.

The manager assumes:

“They only work occasionally, so public holiday pay and vacation pay do not matter.”

That can be wrong.

Casual employees may still earn vacation pay. Public holiday pay may also apply depending on the facts.

Better approach

Before the event season starts, the charity creates a simple event-staff checklist:

This is especially important for recurring annual events.

Example 3: Small Employer Terminating a Long-Service Employee

A small business terminates an employee who has worked there for nine years.

The owner checks only one thing:

“How many weeks does the ESA say?”

That is not enough.

The employer should review:

Better approach

The employer uses a termination checklist and gets legal advice before communicating the decision.

Example 4: Employer Posting a Job Without a Pay Range

An Ontario employer posts:

Office Administrator Full-time Competitive salary Must have Canadian experience Only shortlisted candidates will be contacted

In 2026, this posting should be reviewed carefully if the employer is covered by the public job-posting requirements.

The employer may need to update compensation information, remove Canadian experience requirements, add an existing-vacancy statement, disclose AI use if applicable, maintain required records, and set up a process to notify interviewed applicants within the required 45-day timeline.

Better approach

The employer creates a 2026 job-posting template that includes:

Example 5: Manager Assuming Salaried Staff Never Get Overtime

A salaried employee works 50 to 55 hours per week during a busy project.

The manager says:

“You are salaried, so overtime does not apply.”

That may be wrong.

The employer should check whether the employee is covered by overtime rules or whether an exemption applies.

Better approach

The employer creates an overtime approval and time-tracking process for all non-exempt employees, including salaried employees.

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Ontario ESA Compliance Checklist for Employers

Use this checklist as a practical starting point.

Basic ESA Coverage

Payroll and Wage Compliance

Hours of Work and Overtime

Vacation

Public Holidays

Leaves of Absence

Termination, Layoff, and Severance

Written Policies

New Hire Information and Onboarding

Job Posting Compliance

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Common ESA Mistakes That Create Risk

Mistake 1: Copying a Policy Manual From Another Province

A policy manual from Alberta, British Columbia, or the federal sector may not match Ontario ESA rules.

This can create problems with:

Better approach

Use Ontario-specific policies and review them regularly.

Mistake 2: Assuming Part-Time Employees Have Fewer Rights

Part-time employees may still have ESA rights.

They may be entitled to:

Better approach

Train managers to avoid saying “part-time employees do not qualify” unless HR has checked the specific rule.

Mistake 3: Not Tracking Hours for Salaried Employees

Salaried does not automatically mean exempt.

Some salaried employees may still be entitled to overtime.

Better approach

Track hours for roles where overtime risk exists.

Mistake 4: Missing the Five-Year Vacation Threshold

Employees with five or more years of employment may be entitled to higher vacation time and vacation pay minimums.

Better approach

Run a monthly or quarterly report showing employees approaching five years of service.

Mistake 5: Treating Termination Pay and Severance Pay as the Same Thing

Termination pay and severance pay are different ESA concepts.

Better approach

Use separate checklist lines for termination pay and severance pay.

Mistake 6: Forgetting Job Posting Updates

Ontario’s 2026 job-posting requirements make older templates risky.

Better approach

Create new 2026 job-posting templates and stop reusing old versions without review.

Mistake 7: Having Policies But No Proof Employees Received Them

A policy is more useful when the employer can show the employee received it.

Better approach

Use employee acknowledgments, version history, and dated policy distribution records.

Mistake 8: Not Updating Policies After Legal Changes

Employment standards rules change. If your manual is not reviewed regularly, it can become outdated.

Better approach

Review policies at least annually and whenever there is a legal update.

Mistake 9: Treating enacted-but-not-in-force changes as active law

Some ESA amendments are passed before they actually come into force.

Better approach

Separate policy manual updates into:

Placement of a child leave should be treated as enacted but not yet in force, not as an active ESA entitlement.

Sources

What Ontario Employers Should Update in Their Policy Manual

An Ontario employer policy manual should not be generic. It should clearly explain Ontario-specific rules and internal procedures.

At minimum, review these sections:

Employment Standards Policy

Explain that the organization follows applicable employment standards legislation and provides at least the minimum required standards.

Hours of Work Policy

Explain regular hours, approval for extra hours, eating periods, rest periods, and time recording.

Overtime Policy

Explain the overtime approval process, how overtime is calculated, and how time off in lieu is handled if used.

Vacation Policy

Explain vacation entitlement, vacation pay, vacation requests, approval process, carryover rules, payout, and vacation pay timing.

Public Holiday Policy

List Ontario public holidays and explain holiday pay handling.

Leaves of Absence Policy

Include active Ontario ESA leaves, including sick leave, family responsibility leave, bereavement leave, long-term illness leave, job seeking leave, pregnancy leave, parental leave, domestic or sexual violence leave, and other applicable leaves.

Do not describe placement of a child leave as active until it is proclaimed in force. It can be included as a pending monitored change if your manual has a “pending legal updates” section.

Tips, Gratuities, and Tip-Sharing Policy

If tips or gratuities are relevant to the workplace, explain how tips are handled, whether a tip pool exists, who participates in the tip pool, and where employees can find the tip-sharing policy.

If the employer, a director, or a shareholder participates in a tip pool, the employer should ensure the tip-sharing policy is posted and kept current.

Disconnecting From Work Policy

For covered employers, explain expectations around work-related communications outside working hours.

Electronic Monitoring Policy

For covered employers, explain whether and how employees are electronically monitored.

Hiring and Job Posting Policy

Explain compensation transparency, AI disclosure, actual vacancy statements, Canadian experience restrictions, 45-day candidate notification, and three-year record retention.

Termination and Layoff Policy

Explain final pay, termination pay, severance review, temporary layoff, extended temporary layoff, mass termination, job seeking leave, return of property, benefit handling, and HR/legal review.

Recordkeeping Policy

Explain what records are kept and who is responsible.

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Plain-English ESA FAQ for Ontario Employers

This FAQ summarizes some of the most common Ontario ESA questions employers ask. Each answer reflects general information only and is not legal advice. For specific situations — especially terminations, exemptions, complaints, and complex contracts — employers should seek legal advice.

What is the Ontario Employment Standards Act?

The Ontario Employment Standards Act, 2000 is the main provincial law that sets minimum employment standards for most Ontario workplaces. In plain English, it tells covered employers the minimum rules they must follow for things like pay, work hours, overtime, vacation, public holidays, job-protected leaves, termination notice, severance pay, records, certain written workplace policies, and some job-posting requirements. The ESA is a minimum standard law. That means an employer can usually provide more than the ESA requires, but generally cannot provide less.

Who does the Ontario ESA apply to?

The Ontario ESA generally applies to provincially regulated employers and employees in Ontario, unless an exemption or special rule applies. Most Ontario workplaces are provincially regulated. However, some workplaces are federally regulated instead. Examples of federally regulated sectors may include banks, airlines, telecommunications, interprovincial transportation, and certain federal Crown corporations. Federally regulated employers are generally governed by the Canada Labour Code, not Ontario's ESA.

Does the ESA apply to small businesses?

Yes, in many cases. Small businesses are not automatically exempt from the ESA. However, some rules depend on employee count, industry, role, or specific exemptions.

Does the ESA apply to nonprofits?

Usually, yes, if the nonprofit or charity is a provincially regulated Ontario employer and no exemption applies. Nonprofit status does not automatically remove employment standards obligations.

Are part-time employees covered by the ESA?

Often, yes. Part-time employees can still have rights to minimum wage, vacation pay, public holiday pay, leaves, overtime where applicable, and termination pay where applicable.

Are salaried employees entitled to overtime in Ontario?

They can be. Being paid a salary does not automatically remove overtime rights. The employer should check whether the employee is covered by the overtime rules or whether an exemption applies.

How much vacation pay do Ontario employees receive?

Ontario vacation pay is generally at least 4% of gross wages for employees with less than five years of employment and at least 6% for employees with five or more years, subject to the ESA's detailed rules.

How many public holidays does Ontario have?

Ontario has nine ESA public holidays: New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Christmas Day, and Boxing Day.

How is public holiday pay calculated in Ontario?

Public holiday pay is generally calculated by adding the employee's regular wages earned in the four work weeks before the work week with the public holiday plus the vacation pay payable for those four work weeks, then dividing the total by 20. In plain English: regular wages earned in the four work weeks before the holiday week plus vacation pay payable for those four work weeks divided by 20. For example, if an employee earned $2,400 in regular wages during the four work weeks before the holiday week and had no vacation pay payable during that period: $2,400 ÷ 20 = $120. The employee's public holiday pay would generally be $120, subject to the ESA's detailed rules.

Is Civic Holiday an ESA public holiday in Ontario?

No. Civic Holiday is commonly observed by some employers, but it is not one of Ontario's nine ESA public holidays.

Is Remembrance Day an ESA public holiday in Ontario?

No. Remembrance Day is not one of Ontario's nine ESA public holidays.

Do Ontario employees get paid sick leave under the ESA?

Ontario ESA sick leave is generally unpaid. Eligible employees may receive up to three unpaid, job-protected sick leave days per calendar year after at least two consecutive weeks of employment. Employers can offer paid sick leave through a contract, collective agreement, or workplace policy.

How many bereavement leave days are required in Ontario?

Eligible employees are generally entitled to up to two unpaid bereavement leave days each calendar year after at least two consecutive weeks of employment.

What is Ontario long-term illness leave?

Long-term illness leave came into effect on June 19, 2025. It provides eligible employees with unpaid, job-protected leave of up to 27 weeks in a 52-week period due to a serious medical condition, subject to eligibility and certificate requirements.

What is Ontario job seeking leave?

Job seeking leave came into effect on November 27, 2025. Subject to limits, it provides up to three unpaid days for certain employees who receive mass-termination notice, so they can engage in job searches, interviews, training, or other activities related to obtaining employment. It generally applies in the context of a mass termination involving 50 or more employees at an establishment within a four-week period. Employees are not entitled to this leave if they receive notice equal to 25% or less of the ESA-required notice period and receive pay instead of the remaining notice. Employees must advise the employer at least three days before beginning the leave, if possible.

Is Ontario placement of a child leave currently in force?

No. Placement of a child leave has been enacted but is not yet in force. The ESA text says the section will come into force on a day to be named by proclamation of the Lieutenant Governor.

What will Ontario placement of a child leave provide once in force?

Once proclaimed in force, placement of a child leave is expected to provide up to 16 weeks of unpaid, job-protected leave for eligible employees when a child comes into the employee's custody, care, and control for the first time through adoption, surrogacy, or certain other formal placement situations. The enacted rules require at least 13 weeks of employment, provide up to 16 weeks of leave, require the leave to be taken in a single period, and set timing rules around the expected or actual placement. But employers should not treat it as active law until it is proclaimed in force.

What is Ontario extended temporary layoff?

As of November 27, 2025, Ontario added an extended temporary lay-off pathway for certain non-unionized employees. It is relevant where a temporary layoff may last 35 or more weeks in a 52-week period but less than 52 weeks in a 78-week period. The employer generally needs a written agreement with the employee and Director of Employment Standards approval.

Do Ontario employers need a disconnecting from work policy?

Ontario employers with 25 or more employees in Ontario on January 1 of a year are required to have a written disconnecting from work policy before March 1 of that year.

Do Ontario employers need an electronic monitoring policy?

Ontario employers with 25 or more employees on January 1 of a year are required to have a written electronic monitoring policy before March 1 of that year.

What changed for Ontario job postings in 2026?

Effective January 1, 2026, employers with 25 or more employees in Ontario on the day a publicly advertised job posting is made must meet new requirements. These include expected compensation or compensation range disclosure, a $50,000 range cap unless an exception applies, AI disclosure where AI is used, actual vacancy disclosure, no Canadian experience requirements, notification to interviewed applicants within 45 days after the interview or last interview, and three-year record retention for job postings, associated application forms, and required interview-candidate notification information.

Does an Ontario employer need to post a tip-sharing policy?

If tips or gratuities are relevant and the employer, director, or shareholder participates in a tip pool, the employer should ensure the tip-sharing policy is properly posted and kept current.

Is ESA termination pay the same as common law notice?

No. ESA termination pay is a minimum statutory entitlement. Depending on the employment contract and circumstances, common law notice may create additional risk.

Is ESA severance pay the same as termination pay?

No. Severance pay is separate from termination pay. It generally applies only when specific ESA conditions are met, including service length and employer/payroll or discontinuance criteria.

Is this article legal advice?

No. This article is general information for employers. For specific situations, especially terminations, exemptions, complaints, and complex contracts, employers should seek legal advice.

Sources

How Canada Policy Manual Helps Ontario Employers Stay Aligned

Employment standards compliance is not a one-time task.

A policy manual that was accurate last year can become outdated. A hiring template that worked before may need revision. A termination checklist may miss an important step. A payroll practice may not match the latest guidance.

Canada Policy Manual helps employers create and maintain practical, province-specific employee policy manuals for Canadian workplaces.

For Ontario employers, that means your manual can be built around the issues that actually matter:

For nonprofits, charities, and small businesses, this can reduce the risk of relying on outdated templates, copied policies, or generic documents that do not reflect Ontario requirements.

A strong policy manual does not replace legal advice.

But it can help your organization create a clearer, more consistent, and more compliant HR foundation.

Keep Your Ontario HR Policies Clear, Current, and Easier to Manage

If your employee handbook has not been reviewed recently, it may not reflect current Ontario ESA expectations, workplace policy requirements, 2025 leave updates, 2026 job-posting changes, or pending ESA amendments that should be monitored.

Canada Policy Manual helps employers build clear, province-specific policy manuals designed for real workplaces — including small businesses, nonprofits, charities, and growing teams.

Start Your Canada Policy Manual Today

Sources Used for This Guide

This guide was prepared using Ontario employment standards materials and employer compliance references, including:

Employers should verify current requirements before making employment decisions because employment standards rules can change.

Sources

Key Takeaways

Disclaimer: This article provides general information only and is not legal advice. Employers dealing with a specific termination, workplace dispute, employee complaint, ESA exemption, unionized workplace, human rights issue, or complex employment contract should get legal advice.