The Ontario government has announced the introduction of new pay transparency regulations that will come into effect on January 1, 2026, as part of efforts to modernise employment standards under the Ontario Employment Standards Act, 2000 (ESA). These changes stem from the Working for Workers Four Act, 2024 (Bill 149) and were formalised through Ontario Regulation 476/24.
In addition to the pay transparency requirements, employers will need to comply with newly added provisions to Ontario Regulation 285/01 regarding information that must be provided to newly hired employees, effective July 1, 2025.
The new regulations specifically outline what constitutes a "publicly advertised job posting." This term is defined as an external job posting that is advertised to the general public, but it excludes certain types of postings, such as general recruitment ads that do not specify a position, signs that do not reference a specific job vacancy, and postings for positions restricted to current employees. Furthermore, job advertisements for positions where work will be primarily performed outside Ontario are also exempt.
The details mandated for public job postings from January 2026 include:
Compensation Range Information: Employers must disclose the expected pay or range of pay for the advertised position. Should a range be provided, it must not exceed $50,000. This requirement does not apply to positions with expected annual compensation exceeding $200,000.
Canadian Experience: Employers are prohibited from specifying "Canadian experience" as a requirement in job postings or application documents.
Use of Artificial Intelligence: Employers utilising artificial intelligence systems to screen or assess applicants must clearly state this in their job postings. The term "artificial intelligence" is described in detail in the regulations, referring to machine systems that generate outputs based on received input.
Existing Vacancy Disclosure: Employers must indicate whether the job posting is for an existing vacancy.
Post-Interview Communication: After interviewing a candidate, employers are required to inform the applicant about the hiring decision within 45 days. This communication can be done through various means such as in person, writing, or technology.
Record Retention: Employers must keep records of all advertised job postings and associated applications for a minimum of three years post their removal from public visibility.
These upcoming provisions allow employers the opportunity to adjust their job posting procedures and templates to ensure they are aligned with the new regulations.
In terms of employment information for new hires, beginning on July 1, 2025, employers will be compelled to provide critical information to employees prior to their first workday or as soon as practicable. The details to include are:
- The legal name of the employer and any business name if different.
- Contact details for the employer, including address and phone numbers.
- A general outline of the employee's expected work location.
- The starting wage or commission rate.
- The established pay period and payday.
- A general overview of the anticipated work hours.
Exempt from these requirements are employers with fewer than 25 employees and assignment employees employed by temporary help agencies.
With these changes, employers are advised to review and update their hiring and onboarding practices to remain compliant with the forthcoming regulations.
Source: Noah Wire Services