The Ontario business landscape is characterized by constant and rapid change, a reality that is exceptionally relevant to the Employment Standards Act (ESA). The provincial government has recently initiated fundamental changes to the employer-employee relationship through a swift series of legislative updates, including the Working for Workers Four Act (Bill 149), the Working for Workers Five Act (Bill 190), and the Working for Workers Six Act (Bill 229).

For savvy business owners and executives, these changes represent more than administrative hurdles. They signal a shift toward greater transparency and worker protection that requires a strategic recalibration of HR practices. Whether a tech start-up in Waterloo or a manufacturing firm in the GTA, ignorance of these amendments is not a defence; it is a liability.

The Death of the Sick Note for Statutory Leave

One of the most immediate operational changes is the prohibition on requiring medical certificates for statutory sick leave.

The Law

Effective October 28, 2024, employers are prohibited from requiring an employee to provide a certificate from a qualified health practitioner (commonly known as a doctor’s note) as evidence of entitlement to the three unpaid sick leave days provided under the ESA.

The Nuance

It is critical to distinguish between statutory sick leave and contractual sick leave. The ESA provides for three unpaid days per calendar year for personal illness, injury, or medical emergency. For these specific days, management cannot demand a doctor’s note. However, the legislation preserves the employer’s right to request “evidence reasonable in the circumstances.”

What constitutes “reasonable evidence”?

While the legislation does not define this explicitly, it generally implies an attestation from the employee or, in some cases, a receipt for medication or other non-medical proof if the circumstances warrant scrutiny. It does not mean a formal medical certificate.

Strategic Compliance

1. Examine the Company Handbook: 

Employers should immediately revise any policy that requires a physician’s note for absences occurring within the first three days of a calendar year.

2. Attendance Management: 

Should an employer provide a paid sick leave entitlement that exceeds the minimum required under the ESA (for instance, 10 paid days), the prohibition on requesting medical documentation typically pertains only to the statutory minimum portion (the initial three days), unless the employment contract specifies a broader application. Nevertheless, the implementation of a bifurcated evidence requirement (no medical note for days 1-3, medical note for day 4 and subsequent days) necessitates transparent communication to mitigate potential adverse effects on employee morale.

3. The “Reasonable Evidence” Clause:

Management personnel must be educated regarding the permissible scope of inquiries. An overly intrusive manager demanding a specific medical diagnosis risks constituting a breach of privacy. “Reasonable evidence” pertains strictly to substantiating the employee’s entitlement to the leave, not to the disclosure of detailed medical information concerning the underlying illness.

The Era of Pay Transparency Approaching in 2026

The prospective shift toward mandatory pay transparency represents a profoundly significant cultural development. Ontario is aligning with jurisdictions such as British Columbia by requiring salary disclosure, a measure intended to mitigate the gender wage gap and enhance market efficiency.

The Law

Effective January 1, 2026, employers will be required to include the expected compensation or the range of expected compensation in any publicly advertised job posting.

The Nuance

The definition of “publicly advertised job posting” covers external advertisements to the general public. It generally excludes internal recruitment memos or word-of-mouth hiring. The regulations specify that if a range is used, it must be reasonable. A range of “$50,000 to $200,000” will likely be viewed as non-compliant and indicative of bad faith.

Strategic Compliance

1. Audit Your Compensation Structure: 

Prior to mandatory salary disclosure, management should ensure that existing pay structures are justifiable and equitable. Disparities arise when a newly hired manager is compensated at $90,000, while existing managers in the same role earn $75,000, thereby creating an internal equity challenge. Use the remainder of 2025 to align internal bands.

2. Establish a Clear “Range” Definition: 

Organizations should begin formulating a compensation philosophy. Will remuneration target the 50th percentile of the market, or the 75th? Upon the law’s enactment, the published range will serve as a definitive statement regarding the company’s employment value proposition.

3. Anticipate Employee Inquiries and Demands: 

Current employees will have access to the posted job remuneration. Should the advertised range for new hires exceed the earnings of tenured staff, organizations should anticipate staff attrition or demands for increased wages. Proactive salary adjustments in 2025 can mitigate this potential risk.

AI in Hiring and the Disclosure Obligation

As businesses increasingly leverage artificial intelligence to streamline recruitment, the law is stepping in to ensure candidates know who or what is evaluating them.

The Law

Also effective January 1, 2026, legislation mandates that if an employer uses AI to screen, assess, or select applicants for a publicly advertised position, they must include a statement in the posting disclosing this fact.

The Nuance

The definition of artificial intelligence in this context is interpreted broadly, encompassing machine learning algorithms that scan resumes for keywords, automated video interview analysis, and predictive hiring tools. It does not ban the use of AI, but it compels transparency.

Strategic Compliance

1. Vendor Due Diligence: 

Organizations must be proactive in understanding their use of AI in recruitment, as many may be utilizing it unknowingly. Third-party platforms, such as LinkedIn, Indeed, and various Applicant Tracking Systems (ATS), often incorporate AI features by default. Therefore, management should contact software vendors to gain a precise understanding of how the algorithms function.

2. Drafting the Disclosure: 

The goal is transparency without deterring talent. A statement such as, “We use AI to assist in the initial screening of applications to ensure a bias-free process,” frames the technology as a tool for fairness rather than a robotic gatekeeper.

3. Human Oversight: 

Regardless of the disclosure, ensure a human is in the loop. Relying solely on AI for hiring decisions creates liability risks under human rights legislation if the algorithm inadvertently discriminates based on protected grounds (e.g., screening out resumes with gaps due to maternity leave).

No More “Ghosting”: The Duty to Inform

In a move that addresses a common frustration among job seekers, Ontario is legislating basic professional courtesy.

The Law

Effective January 1, 2026, employers must inform applicants who have been interviewed for a publicly advertised job posting whether they have been hired. This effectively bans “ghosting” candidates after an interview.

The Nuance

This duty applies specifically to candidates who have reached the interview stage. Employers are not required to notify every applicant who submitted a resume. The regulations specify that this notification must occur within a specific timeframe, generally 45 days regarding the hiring decision.

Strategic Compliance

1. Update the Applicant Tracking System (ATS): 

Ensure the Applicant Tracking System (ATS) is configured to flag candidates who have been interviewed and to initiate a reminder or an automated email template upon the finalization of a hiring decision.

2. Update Retention Policy: 

The legislation requires employers to retain copies of this information. Employers must ensure their retention policy is appropriately updated to maintain records of these communications for a minimum of three years, as is standard with other employment records.

3. Brand Reputation: 

Beyond mere legal compliance, prioritizing a candidate’s experience reflects sound business judgment. A candidate who receives an unsatisfactory experience today may become a prospective client or customer in the future. Treating all candidates with respect and professionalism is essential for safeguarding and enhancing your organization’s brand reputation.

The “Canadian Experience” Ban

To further remove barriers for newcomers, the province is cracking down on discriminatory prerequisites.

The Law

Effective January 1, 2026, employers are prohibited from including any requirement related to “Canadian experience” in a publicly advertised job posting or associated application form.

The Nuance

This aligns with the Ontario Human Rights Commission’s long-standing guidance but codifies it into the ESA. Employers cannot ask for “5 years of Canadian management experience.” They can, however, ask for specific competencies or qualifications, such as “Demonstrated knowledge of Ontario employment statutes” or “P.Eng certification.”

Strategic Compliance

1. Rewrite Job Descriptions: 

Audit current templates. Replace the requirement of “Canadian experience” with the specific competencies and skills that this experience is intended to represent. For instance, if local legal knowledge is a prerequisite, specify “demonstrated familiarity with Ontario employment statutes,” rather than the broader term, “Ontario HR experience.”

2. Educate Hiring Managers: 

Hiring managers and interviewers must be trained on the human rights risk associated with rejecting candidates solely based on a “lack of Canadian experience.” This factor should not be used as a screening heuristic during the selection process.

Wage Protection: “Dine-and-Dash” and Trial Periods

The Law

The ESA now explicitly prohibits employers from withholding wages, deducting wages, or causing an employee to return wages when a customer leaves the establishment without paying (e.g., “gas-and-dash” or “dine and dash”). Furthermore, the legislation clarifies that the definition of “employee” includes individuals on a “trial period.”

The Nuance

There is no such thing as an unpaid tryout. If a person is performing work, they must be paid at least minimum wage. If a candidate’s skills must be tested, it must be a true simulation that provides no economic benefit to the company.

Strategic Compliance

1. Customer Thefts are Operational Business Expenses: 

Employers are prohibited from requiring employees, such as servers or cashiers, to cover business losses resulting from cash shortages. Losses due to customer theft are considered an operational business expense and cannot be deducted from an employee’s wages or compensation.

2. Onboarding: 

It is imperative to ensure that all “working interviews” are compensated. If an employer wishes to assess a candidate’s abilities (e.g., through a coding evaluation or a writing exercise) without remuneration, the assessment must constitute a genuine simulation that yields no economic benefit to the company, rather than actual productive labour.

Hygiene and Dignity: The Washroom Requirement

A basic but necessary amendment regarding workplace facilities is now in effect.

The Law

Effective July 1, 2025, employers and constructors are required to ensure washroom facilities are maintained in a clean and sanitary condition. Further, they must maintain records of cleaning.

The Nuance

This moves washroom cleanliness from a “nice to have” to a regulatory requirement under the Occupational Health and Safety Act (OHSA). Cleaning logs must be posted or readily available for inspection.

Strategic Compliance

1. Janitorial Contracts:

Detailed cleaning records or logs must be prominently displayed or readily accessible for review.

2. Remote Work:

Notably, the recent amendments also clarified the application of the OHSA to telework conducted within a private residence, although the scope of duties is circumscribed. While the inspection of private residential facilities is not within the employer’s purview, there remains an obligation to consider the physical and psychological well-being of employees performing duties remotely.

On the Doorstep: What Bill 30 Will Bring

Looking ahead, the Working for Workers Seven Act (Bill 30) is currently making its way through the legislature. Once passed, it promises to introduce further protections, most notably a Job Seeking Leave.

This proposed amendment would grant employees who receive a notice of termination as part of a mass termination (50 or more employees) an entitlement to three unpaid days of leave. This time is specifically designated for attending interviews, updating resumes, or undergoing training. It represents a pragmatic recognition that finding new employment is, in itself, a full-time job.

Looking Ahead in an Employee-Centric Landscape

The timeline for these changes is staggered, but the direction of travel is clear. Ontario is moving toward a more regulated, transparent, and employee-centric labour market.

For business owners, the “wait and see” approach is a dangerous strategy. The requirement to disclose salary ranges in 2026 requires a compensation strategy that takes months to implement correctly. The ban on sick notes requires an immediate cultural shift in how absenteeism is managed. By addressing these issues now, companies not only avoid fines but also position themselves as modern, sophisticated employers of choice.

Haynes Law Firm Provides Comprehensive Support to Employers in Toronto and Across Ontario

Staying compliant with Ontario’s evolving employment legislation requires proactive planning and strategic execution. If your organization needs guidance on updating HR policies, revising employment contracts, or preparing for the upcoming pay transparency and AI disclosure obligations, Paulette Haynes of Haynes Law Firm is here to help. Paulette provides practical, business-focused advice to ensure your workplace remains compliant, competitive, and ready for the regulatory changes ahead. Contact the firm online or call (416) 593-2731 to discuss how these new requirements may impact your operations.