From salary range mandates to mandatory pre-employment details and sweeping new leave entitlements, what's next for employment law in Ontario?
A push for greater employer transparency is reshaping the employment law landscape, with Ontario’s latest changes reflecting a shift in what workers are entitled to know and when.
From mandatory pre-employment disclosures to expansive new job-protected leaves, the onus is now on employers to review and realign their policies if they want to avoid non-compliance.
“There are a couple of upcoming changes and changes that are actually already in effect that employers should be aware of,” says Alessandra Fusco, associate in the employment and labour group at Cassels. “I think it's certainly a busy time for employers.”
Pay transparency obligations
Starting January 1, 2026, Ontario’s Employment Standards Act will mandate pay transparency in public job postings. Employers must disclose either the expected compensation or a salary range – with a maximum spread of $50,000. Postings will also need to indicate whether there’s an actual job vacancy, explicitly state if AI is being used in hiring and exclude any mention of “Canadian experience” as a job requirement.
“I think pay transparency is probably the biggest [change],” Fusco says. “Particularly because some employers don't post job salary ranges right now.”
While the law doesn’t require employers to adjust existing salaries that may fall below a publicly advertised range, that doesn’t mean there won’t be internal consequences.
“Publishing the range of salaries could potentially reveal pay disparities within a company, which could prompt reviews or potential adjustments that need to be made,” she explains.
For companies not already posting salaries, this could change how they approach recruitment strategy.
“Candidates may now assess or compare their salaries across job postings, so competitive ranges will need to be provided,” she says.
The inclusion of AI disclosures further complicates hiring workflows.
“HR and legal counsel will need to work closely to develop these disclosure statements for candidates in the job postings and potentially develop an AI policy,” she says.
Mandatory pre-employment disclosures
As of July 1, 2025, employers (except those with fewer than 25 employees) must provide specific details in writing before or shortly after employment begins. That includes compensation, hours of work, work location, pay periods and contact information.
“This change in particular really highlights the transparency that these changes are intended to help employees have as much information as possible,” Fusco says.
Employers are expected to communicate clearly on where the employee will work (whether in-office, hybrid, or remote) in detail. Compensation details, including pay schedules and number of working hours, must also be laid out clearly.
Fusco notes that while many employers already include some of this information in their offer templates, “it's just a matter of fixing them” where gaps exist.
New and expanded job-protected leaves
Several changes have also expanded the leave entitlements available to Ontario employees. Since June 19, 2025, employees with at least 13 weeks of service are eligible for up to 27 weeks of unpaid, job-protected leave due to a serious medical condition provided they have certification from a qualified health practitioner.
Another upcoming leave relates to child placement. While the effective date hasn’t yet been confirmed, it’s on the horizon.
“The placement of a childcare leave, which provides for 16 consecutive weeks for adoptive parents or recipients of a child via surrogacy; that was introduced by Ontario's Working for Workers Six Act,” Fusco says.
A new unpaid leave has also been introduced for employees impacted by group terminations.
“Employers would be required to provide employees with up to three days of unpaid leave to engage in activities relating to obtaining employment,” Fusco says.
These leave changes demand updates to internal policy frameworks.
“[Employer responsibilities] include making updates to any leave policies to address the new leave and reviewing how these leaves interact with accommodation requirements under the Ontario Human Rights Code – particularly the new long-term illness leave,” she explains.
Construction and safety requirements
While not yet in effect, Bill 30 – the Working for Workers Seven Act – could usher in additional compliance demands for construction sites and broader workplace safety. The legislation would also empower inspectors to impose administrative penalties for Occupational Health and Safety Act violations.
“If it were to pass, construction projects that are expected to last three months or more and that are employing 20 or more workers must have the automated defibrillator on site,” Fusco says.
While the Working for Workers Seven act is still in legislative limbo, Fusco anticipates more details will be revealed in the fall.
What employers should do now
To get ahead of these changes, Fusco recommends a few practical steps.
“I think the first thing to do is review your offer letters and employment agreements, and update your onboarding processes and employment offer templates,” she says.
That means ensuring new hires are provided with all required disclosures around hours, pay and location.
Next, employers should overhaul job posting templates.
“Ensure there are no references to the Canadian experience, state whether or not you're using AI, and identify whether the position is for an existing vacancy,” she says.
And finally, internal training is essential.
“HR team and people managers should be trained on compliance with the new rules,” Fusco says. “It's not just a matter of reviewing the templates, but it's also ensuring that you're receiving adequate training on these new requirements.”
For employers that don’t comply, the risks are clear, but many of the changes come with generous lead times, giving organizations the opportunity to catch up before facing enforcement.
“They could face penalties under the Employment Standards Act,” Fusco says. “There’s been a number of changes over the past couple of years, and from my perspective, there has been some lead time, which does give employers an opportunity to ask the important questions, evaluate their practices and make the changes as necessary,” Fusco says.
Watching for what’s next
One proposed amendment under Bill 30 is drawing particular interest: a shift in temporary layoff timelines. The legislation would also require employers to set a return-to-work date in writing.
“Bill 30 proposes amending the ESA to permit layoffs for more than 35 weeks within a 52-week period, but not 52 or more weeks in any period of 78 consecutive weeks,” Fusco says.
As the changes unfold, Fusco suggests employers remain alert.
“We are still waiting to see if that legislation will stay in its current form, or if there will be future amendments, and what government resources will be available in terms of interpretations of the regulations,” she explains.
