What Employers and Employees Need to Know About Ontario’s Latest ESA, Governmental and Employment Law Changes
- Darcy J. Daoust
- Apr 9
- 4 min read
Updated: Apr 18
Since 2021, the Ontario government has passed a series of employment-focused bills under the "Working for Workers Act" banner. These legislative updates have introduced significant amendments to various employment-related laws, including the Employment Standards Act, 2000 (ESA).
Here’s a breakdown of key changes that have been recently introduced or are soon to take effect—along with practical considerations for both employers and employees.
1. New Long-Term Illness Leave
Effective: June 19, 2025
A new unpaid leave of absence—Long-Term Illness Leave—will be available under the ESA starting June 19, 2025.
Key details:
Employees with 13 consecutive weeks of employment are eligible.
Provides up to 27 weeks of leave within a 52-week period.
Leave must be medically supported: a qualified health practitioner must certify that the employee has a serious medical condition and specify the expected duration of absence.
What employers should know:
The 27 weeks do not need to be consecutive.
The leave may be extended (within the 52-week window) with a new certificate.
A new 52-week entitlement can be triggered by a new or ongoing condition.
Employers must plan for intermittent absences and ensure compliance with both the ESA and Human Rights Code (especially in terms of accommodation and return-to-work obligations).
Assess how this leave will interact with existing benefit plans, sick leave policies, and employment contracts.
2. New Employee Information Requirements
Effective: July 1, 2025
Employers with 25 or more employees must provide specific written information to new hires before their first day of work (or as soon as reasonably possible afterward).
What must be provided:
Legal and operating name(s) of the employer
Contact information and primary contact person(s)
General work location
Starting wage/commission rate
Pay period and pay day
Anticipated initial hours of work
Note: These requirements do not apply to assignment employees of temporary help agencies due to existing ESA obligations.
What employers should do:
Update employment contracts, offer letters, and onboarding documents.
Ensure timely delivery of information to avoid non-compliance.
Consider creating a standardized New Hire Information Form.
3. Changes to Public Job Postings
Effective: January 1, 2026
New transparency and accountability requirements will apply to publicly advertised job postings—for employers with 25 or more employees.
Key Requirements:
Pay Transparency: Postings must disclose the expected compensation or a salary range (range cannot exceed $50,000, unless the top of the range is over $200,000).
No Canadian Experience Requirements: Employers cannot require Canadian work experience in job ads or application forms.
Existing Vacancy Disclosure: Employers must state whether the job is for an existing vacancy.
AI Disclosure: If artificial intelligence is used to screen or select candidates, this must be disclosed in the job posting.
Applicant Notification: Employers must inform interviewed applicants of their status within 45 days of their final interview.
Recordkeeping: Employers must keep:
Copies of postings and application forms for 3 years
Records of information provided to interviewed applicants
What employers should do:
Review and update recruitment policies and tools.
Audit current postings for compliance.
Prepare a job posting checklist to ensure legal requirements are met moving forward.
4. New “Placement of a Child” Leave
Effective Date: TBD
The ESA will soon include a new unpaid leave for employees welcoming a child into their care through adoption or surrogacy.
Key points:
Up to 16 weeks of unpaid leave.
Must be taken as a single continuous period.
Leave is in addition to parental leave.
Available to employees with 13 consecutive weeks of employment.
Can be shared by parents, but total duration cannot exceed 16 weeks.
What employers should do:
Monitor announcements for the effective date.
Consider how this new leave may affect top-up policies and collective agreements.
Update internal policies and leave request forms in anticipation of the change.
5. Minimum Wage Increases
Effective: October 1, 2025
The Ontario minimum wage will increase based on the 2024 Consumer Price Index (CPI):
General Minimum Wage: $17.60/hour (up from $17.20)
Student Minimum Wage: $16.60/hour
Homeworkers: $19.35/hour
Hunting, Fishing, Wilderness Guides:
$88.05 (for < 5 consecutive hours/day)
$176.15 (for ≥ 5 consecutive hours/day)
Tip: Employers should prepare payroll systems and notify impacted employees in advance of this adjustment.
6. Temporary EI Rule Change for Terminated Employees
Applies to terminations between March 30 and October 11, 2025
Employees whose Employment Insurance (EI) claims start during this window will not have to repay EI benefits from any wrongful dismissal settlement, pay in lieu of notice, or severance pay they receive.
Important notes:
This rule is not retroactive—it only applies to terminations occurring within the designated period.
Aimed at easing financial burdens linked to broader economic conditions.
7. The Ontario government's April 7, 2025, announcement of $11 billion in economic relief and support:
Tax Deferral Program: Businesses can defer payments under 10 Ontario tax programs, including the Employer Health Tax and Fuel Tax.
Cash Flow Support: Up to $9 billion in support will be provided to about 80,000 businesses through a six-month interest and penalty relief on select taxes.
Deferral Period: From April 1 to October 1, 2025, businesses can delay tax payments without interest or penalties. All payments are due by October 1.
WSIB Surplus Rebates: A second $2 billion WSIB rebate is being issued to safe employers, following an initial $2 billion rebate distributed in March 2025.
Apprenticeship Support: The $150 fee for a first Certificate of Qualification exam for apprentices has been eliminated to lower barriers for skilled trades.
Health and Safety Programs: $400 million is being invested in WSIB-developed programs to improve workplace health and safety.
Final Thoughts
These updates reflect a growing emphasis on transparency, employee protections, and work-life balance and protection during this period of instability. Employers should begin reviewing their policies, employment contracts, HR practices and qualification for relief to ensure full compliance and financial assistance well ahead of the effective dates.
Staying ahead of these changes isn’t just about compliance—it’s about maintaining a workplace culture that respects and supports its people.
Need help reviewing your policies or updating your employment agreements? Reach out—we’re here to help.
Comments