February 20th, 2025
Ontario’s ESA Update
Posted on July 9th, 2025 in Human Resources Advisory
Ontario’s Employment Standards Act (ESA) has undergone a series of important updates aimed at strengthening transparency, fairness, and staff protections. From new hiring disclosure rules to expanded job-protected leave and mandatory pay transparency, these changes, rolling out between June 2025 and January 2026, will impact how businesses hire, manage, and support their employees.
Effective June 19, 2025 – Long‑Term Illness Leave Introduced
A brand‑new, job-protected, unpaid leave allows eligible employees (13 weeks’ continuous employment) up to 27 weeks of leave within a 52 week window, for serious medical conditions. Specific requirements must be met to request this leave, and it may be extended under certain conditions. It is also not a requirement that the weeks of leave be consecutive.
Effective July 1, 2025 – Mandatory Written Hiring Details
Ontario employers with 25+ staff must now provide new employees, before (or as soon after) their first workday, written details that include:
- Employer’s legal and operating name(s)
- Complete contact information and at least one contact person
- General work location
- Starting wage rate or commission
- Pay period and payday
- Anticipated hours of work
Effective January 1, 2026 – Pay Transparency & Fair Hiring Rules
For publicly advertised roles, employers with 25+ staff are subject to new requirements:
- Compensation Disclosure: Required if salary is under $200,000; salary range may span up to $50,000.
- Artificial Intelligence (AI) Transparency: Must disclose any use of AI in screening or selection.
- Vacancy Status: Employers must specify whether a posting is for an existing vacancy.
- Ban on “Canadian Experience” Requirement: Job postings can no longer mandate Canadian work experience.
- Interview Follow-Up: Applicants must be notified within 45 days after the last interview about the hiring decision.
- Record Retention: Employers must keep job postings, applications, and candidate correspondence on file for three (3) years.
What Employers Should Do
- Update offer letters and handbooks to include mandatory written details for new hires
- Integrate long-term illness provisions; review current health/disability policies
- Revise job postings and applications to reflect new requirements
- Implement procedures for candidate follow-up and a 3-year record-keeping system
These ESA changes phased in from June 2025 through January 2026 reflect broader shifts under Ontario’s “Working for Workers” legislation. Employers are strongly encouraged to audit their HR, recruitment, and leave-management practices now to stay ahead of compliance.
We encourage you to connect with our team if you’d like to discuss best practices or policy updates!
Have any questions?
Drop us a line, we look forward to hearing from you.