Ontario Employment Standards in 2026: A Comprehensive Guide for Employers

Ontario's Employment Standards Act, 2000 (ESA) sets the floor for workplace rights across the province. It applies to most employees and employers in Ontario, with the notable exception of federally regulated industries such as banking, telecommunications, and interprovincial transportation, which fall under the Canada Labour Code . Minimum Wage As of October 1, 2025, Ontario's general minimum wage is $17.60 per hour . Employers must ensure all non-exempt employees are paid at least this rate. The Ontario government reviews the minimum wage annually, with adjustments typically tied to the Consumer Price Index. Hours of Work and Overtime Under the ESA, the standard maximum hours of work are 8 hours per day or 48 hours per week , unless an employee has entered into a written agreement to exceed the daily limit. Overtime pay is required after 44 hours of work in a week , calculated at 1.5 times the employee's regular rate of pay. Employers should be aware that certain occupations and industries have specific exemptions or special rules regarding overtime thresholds. Vacation Entitlements Ontario employees earn vacation time and vacation pay as follows: Less than 5 years of employment: A minimum of 2 weeks of vacation time and vacation pay equal to 4% of gross wages earned during the entitlement year. 5 or more years of employment: A minimum of 3 weeks of vacation time and vacation pay equal to 6% of gross wages earned during the entitlement year. Vacation time accrues based on a 12-month entitlement year, and employers must provide vacation within a set period after it is earned. Vacation pay must be paid before the vacation begins or on the regular pay schedule, depending on the arrangement. Ontario recognizes 9 public holidays under the ESA. Most employees are entitled to a day off with public holiday pay, or premium pay if they work on the holiday: New Year's Day — January 1 Family Day — Third Monday in February Good Friday — Friday before Easter Sunday Victoria Day — Monday before May 25 Canada Day — July 1 Labour Day — First Monday in September Thanksgiving Day — Second Monday in October Christmas Day — December 25 Boxing Day — December 26 Key Leave Entitlements The ESA provides several job-protected unpaid leaves, including: Sick Leave: Up to 3 days per calendar year (after 2 consecutive weeks of employment). Family Responsibility Leave: Up to 3 days per calendar year for illness, injury, or urgent matters related to certain family members. Bereavement Leave: Up to 2 days per calendar year following the death of a family member. Family Caregiver Leave: Up to 8 weeks per calendar year per specified family member. Family Medical Leave: Up to 28 weeks in a 52-week period to care for a family member with a serious medical condition and significant risk of death. Domestic or Sexual Violence Leave: Up to 10 days and 15 weeks per calendar year. Pregnancy Leave: Up to 17 weeks. Parental Leave: Up to 61 or 63 weeks depending on whether pregnancy leave was taken. Termination Notice Employers must provide written notice of termination or pay in lieu based on the employee's length of service, ranging from 1 week (for employment of 3 months to less than 1 year) up to 8 weeks (for 8 or more years). Employers with payrolls of $2.5 million or more may also owe severance pay calculated as one week per year of service (plus completed months divided by 12 for partial years), up to a maximum of 26 weeks. This entitlement applies when the employer has a payroll of .5 million or more, or when 50 or more employees are terminated within a six-month period due to a permanent discontinuance of all or part of the business. Ontario's Working for Workers Acts (Four through Seven) have introduced sweeping changes to how employers recruit and hire. These rules apply to employers with 25 or more employees for publicly advertised job postings. Pay Transparency in Job Postings Employers must now include expected compensation or a compensation range in every publicly advertised job posting. If a range is provided, the spread of the posted compensation range is expected not to exceed $50,000 (under proposed regulations) annually under proposed regulations, with a carve-out when expected compensation exceeds $200,000 annually . Postings for positions with expected compensation exceeding $200,000 are exempt from this requirement. This measure aims to reduce pay inequity and give candidates meaningful salary information upfront. Artificial Intelligence Disclosure If an employer uses artificial intelligence to screen, assess, or select applicants , this must be clearly disclosed in the job posting. This is one of the first AI-specific hiring transparency requirements in Canadian employment law and reflects growing concern about algorithmic bias in recruitment. Existing Vacancy and Canadian Experience Every publicly advertised job posting must state whether the position is for an existing vacancy or is being used to build a candidate pool for f