The Ontario employment landscape is on the cusp of significant transformation with the upcoming implementation of new pay transparency measures. As of June 2025, employers across the province must prepare for legislative changes shaping hiring practices, job postings, and employer obligations. These changes are part of a broader effort by the Ontario government to promote fairness, equity, and accountability in the workplace, particularly concerning compensation practices.
Bill 149 and the ESA Amendments
Ontario’s new pay transparency rules are part of a broader package of legislative amendments introduced through Bill 149 (the Working for Workers Four Act, 2024), Bill 190 (the Working for Workers Five Act, 2024) and various regulations under the Employment Standards Act.
The government of Ontario has stated that these changes are designed to enhance transparency and fairness in the labour market, close pay gaps, and eliminate discriminatory barriers to employment. Notably, the amendments include specific timelines for when certain provisions come into force, giving employers a clear window to prepare for compliance.
Pre-Employment Information Disclosure: Effective July 1, 2025
The first wave of the new pay transparency measures comes into effect on July 1, 2025, as per Ontario Regulation 477/24 (When Work Deemed to Be Performed, Exemptions and Special Rules). As of this date, employers with 25 or more employees must provide new hires with a written statement containing key information about their employment before or shortly after their first day of work.
The written disclosure must include the employer’s legal and operating name, contact information, the location where the employee is expected to work, their starting wage or salary (including any commission or bonus structure), the frequency of pay periods, and the anticipated number of hours they will work each week. This measure ensures job seekers have a clear and accurate understanding of the terms of their employment before committing to a role.
Failure to provide this information promptly and accurately could expose employers to compliance risk under the ESA. Therefore, employers should review and update their onboarding processes and employment offer templates before the July 2025 deadline.
Transparency in Job Postings: Effective January 1, 2026
The next significant development will arrive on January 1, 2026, when new rules regarding publicly advertised job postings will come into force under Ontario Regulation 476/24 (Rules and Exemptions Re Job Postings). Under the amended ESA, employers with 25 or more employees will be required to include compensation information in any publicly posted job advertisement.
Specifically, the job posting must disclose either the expected compensation for the position or a range within which the compensation will fall. For roles with annual compensation up to $200,000, the disclosed range must not exceed $50,000. This requirement applies to external job advertisements accessible to the general public and aimed at attracting candidates in Ontario.
In addition to pay disclosure, job postings must also state whether the advertised position is a newly created vacancy. This transparency measure is intended to inform candidates about the context of the opening, such as whether it results from organizational growth, internal promotion, or staff turnover.
Disclosure of AI Use in Hiring
Also effective January 1, 2026, another primary requirement under the new legislation is the mandatory disclosure of artificial intelligence (AI) use in the hiring process. If an employer uses AI to screen, assess, or select applicants at any stage of recruitment, the job posting must include a statement to that effect.
This provision reflects growing public concern around the ethical use of AI in employment decisions. It aims to foster trust and accountability by informing applicants when automated tools are involved in evaluating their candidacy. Employers should assess their current and planned recruitment technologies to determine whether AI is used and ensure appropriate disclosures are included in all affected job postings.
No More Canadian Experience Requirements
The ESA amendments also prohibit the requirement of “Canadian experience” as a condition of employment. This provision addresses long-standing barriers that newcomers and internationally trained professionals face, who are often excluded from employment opportunities despite having relevant qualifications and experience.
Employers must review their job descriptions and application processes to ensure they are not directly or indirectly asking for Canadian-specific work experience unless it is a bona fide occupational requirement. Language in job postings should be carefully scrutinized to ensure compliance with this provision.
Interview Outcome Notification and Recordkeeping Obligations
Further obligations as of January 1, 2026, include notifying applicants of the outcome of interviews within 45 days following the last interview conducted for the position. This change introduces procedural transparency and respect for applicants’ time and efforts.
Moreover, employers must retain copies of all publicly advertised job postings and any associated application forms for three years. This recordkeeping requirement is designed to facilitate the Ministry of Labour’s enforcement and compliance audits.
To meet this obligation, employers may need to adopt or upgrade their applicant tracking systems (ATS) or file management protocols to ensure that job advertisements and applicant data are stored securely and are easily retrievable.
The Dormant Pay Transparency Act (2018)
It is worth noting that Ontario passed a separate Pay Transparency Act in 2018 (Bill 3), which included measures such as salary ranges in job ads, a prohibition on asking for pay history, and pay transparency reporting for large employers. However, this legislation has not been proclaimed into force and remains inactive at the time of writing.
Despite the inactivity of the 2018 Act, the new amendments to the Employment Standards Act introduced through Bill 149 effectively implement many of the same objectives, particularly around transparency in compensation and the elimination of biased hiring practices. Employers should be aware that further regulatory developments could revive or expand the original Act in the future.
Preparing for Compliance: Practical Steps for Employers
The phased implementation of Ontario’s new pay transparency regime provides employers valuable time to prepare. Compliance will require careful planning and potentially significant changes to existing HR policies and procedures.
Employers should begin by comprehensively reviewing their job posting practices, offer letters, and recruitment tools. A critical first step is ensuring that all required disclosures are accurate and consistently included in postings. Additionally, employers must establish internal protocols for documenting AI use and responding to interview outcomes within the specified timeframe.
Training HR staff and hiring managers on the new legal requirements and their implications for recruitment strategy is also essential. Providing guidance on appropriate language for job advertisements and interview feedback can help reduce legal risk and enhance candidate experience.
Finally, legal counsel can assist employers in navigating the complexities of the new legislation and developing customized compliance strategies. This may include reviewing employment contracts, revising hiring templates, and advising on technology use and data retention policies.
Looking Ahead: A Cultural Shift in Hiring Practices
Ontario’s pay transparency legislation signals a broader cultural shift toward greater openness, accountability, and inclusivity in the workplace. These changes are not merely administrative requirements; they represent a growing expectation among job seekers and employees for fair and equitable treatment.
By embracing transparency in compensation and recruitment, employers can build trust, attract diverse talent, and foster a more equitable organizational culture. The long-term benefits of compliance may include enhanced employer reputation, reduced turnover, and improved employee morale.
As the new rules come into effect throughout 2025 and 2026, Ontario employers must be proactive and adaptive. Staying informed and taking early action will position businesses for success in this evolving legal and employment landscape.
Haynes Law Firm: Guiding Employers on Ontario Pay Transparency Compliance
Ontario’s pay transparency legislation marks a new chapter in employment law. As regulations take effect, employers must be ready to adapt hiring practices, disclose compensation ranges, and support internal equity. While the process may be complex, the benefits of transparency, trust, fairness, and compliance are well worth the effort.
Haynes Law Firm proactively prepares employers for upcoming employment and labour legislation changes. We’ll identify potential issues, quickly adjust your policies, and revise documentation to minimize risk. Let us help you manage your employer obligations. Connect with us online or at 416-593-2731.
