
The Ontario government has announced that new pay transparency rules will come into effect on January 1, 2026, for publicly advertised job postings under the Ontario Employment Standards Act, 2000 (“ESA”). These changes, introduced through the Working for Workers Four Act, 2024 (Bill 149) and Ontario Regulation 476/24 (Rules and Exemptions re Job Postings), aim to enhance transparency and fairness in hiring practices.
In addition, starting July 1, 2025, employers will need to comply with new requirements outlined in Ontario Regulation 285/01, which mandate specific information to be provided to newly hired employees.
Key Job Posting and Pay Transparency Changes Effective January 1, 2026:
A publicly advertised job posting is defined under the ESA as an external job posting that an employer or a person acting on behalf of an employer advertises to the general public in any manner but does not include the following:
A general recruitment campaign that does not advertise a specific position,
A general help wanted sign that does not advertise a specific position,
A posting for a position that is restricted to existing employees of the employer, or
A posting for a position for which work is to be:
(i) performed outside of Ontario, or
(ii) performed outside of Ontario and the work performed outside of Ontario is not a continuation of work performed in Ontario.
Employers must include the following in job postings:
Compensation Range: Employers must disclose the expected salary range for the role. If a range is provided, it cannot exceed $50,000 (e.g., $100,000 - $150,000). This requirement does not apply to jobs with annual compensation over $200,000 or where the position has a range of expected compensation that ends at an amount of more than $200,000 annually.
Canadian Experience: Job ads cannot specify "Canadian experience" as a requirement.
Artificial Intelligence Disclosure: If AI is used to screen, assess, or select candidates, employers must disclose this in the job posting.
Vacancy Status: Employers must state if the position is for an existing vacancy.
Feedback After Interviews: Employers must inform candidates within 45 days after the final interview whether a hiring decision has been made.
Record Retention: Employers must retain job postings and application records for at least three (3) years after the posting is removed.
Key Takeaways for Employers:
Employers should start reviewing their job posting practices and templates to comply with the upcoming changes.
The new job posting rules do not apply to employers with fewer than 25 employees at the time of posting.
Employment Information for New Hires — Requirements Effective July 1, 2025:
Employers will be required to provide new employees with written details before their first day of work, or as soon as possible thereafter. This includes:
The employer’s legal name and contact information including address, telephone number and one or more contact names.
A general description of the job location.
The employee’s starting wage or commission, pay period, and anticipated hours of work.
These requirements do not apply to employers with fewer than 25 employees or assignment employees (those working through temporary help agencies).
Key Takeaways for Employers:
Employers should review and update employment contracts and onboarding documents to include all required information for new hires.
For any questions or concerns regarding these changes, please reach out to the CPG team who may be able to assist you.
DISCLAIMER: This information is intended to provide general guidance on legal issues as of the indicated date. It does not constitute legal advice. We strongly recommend that you consult with your legal counsel should you have any legal questions.
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