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.

ESA Fundamentals: Minimum Wage, Hours of Work, Overtime, and Vacation

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:

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.

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Ontario's 9 Public Holidays, Leave Entitlements, and Termination Notice

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:

Key Leave Entitlements

The ESA provides several job-protected unpaid leaves, including:

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.

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2026 Job Posting and Hiring Rules: Working for Workers Acts

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 future openings. Additionally, employers are prohibited from requiring "Canadian experience" as a qualification in job postings, a change designed to remove barriers for internationally trained professionals and newcomers.

Post-Interview Notification

Employers must inform all interviewed candidates of the hiring decision within 45 days of the interview. This obligation ensures candidates are not left indefinitely without closure.

Pre-Employment Information

Before an employee's first day of work, employers must provide written information including the employee's compensation, expected hours of work, and the legal identity of the employer. This requirement took effect in July 2025.

Record Retention

Employers must retain copies of all job postings and application forms for at least 3 years, ensuring a clear audit trail for compliance purposes.

Mass Termination Leave

Employees who receive notice of a mass termination are entitled to up to 3 unpaid, job-protected days of leave to search for new employment during the statutory notice period. Separately, the ESA now permits extended temporary layoff agreements of up to 52 weeks within 78 consecutive weeks with the approval of the Director of Employment Standards.

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Practical Compliance Tips for Ontario Employers

With the volume of recent legislative changes, Ontario employers should take proactive steps to ensure full compliance. Below are key recommendations:

1. Audit All Job Postings Immediately

Review every active and template job posting to confirm it includes a compensation figure or range (within a reasonable compensation spread), a statement about whether the role is an existing vacancy or candidate pool, and an AI disclosure if applicable. Remove any references to "Canadian experience" as a requirement.

2. Update Hiring Workflows

Build a 45-day post-interview notification deadline into your applicant tracking system. Assign responsibility for notifying all interviewed candidates of the outcome. Document these communications for your records.

3. Prepare Pre-Employment Letters

Develop a standardized process to provide new hires with written details on compensation, hours of work, and the employer's legal name before their first day. This should be integrated into your onboarding workflow.

4. Strengthen Record-Keeping

Implement a system to retain all job postings and application forms for a minimum of 3 years. This includes digital postings, internal requisitions, and any associated screening records. Ensure your HR information systems support this retention period.

5. Review Overtime and Vacation Practices

Confirm that overtime is being calculated correctly at 1.5 times the regular rate after 44 hours per week. Verify that employees with 5 or more years of service are receiving 3 weeks of vacation and 6% vacation pay. Conduct periodic payroll audits to catch errors early.

6. Train Managers on Leave Entitlements

Ensure all people managers understand the full range of ESA-protected leaves, including sick leave, family responsibility leave, bereavement leave, and domestic or sexual violence leave. Managers should know they cannot penalize employees for exercising these rights.

7. Monitor for Future Changes

Ontario's employment standards landscape continues to evolve rapidly. Subscribe to updates from the and review the Ontario Gazette for proclamation dates and regulatory amendments.

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Key Takeaways