Preparing for 2026: Notable and Forthcoming Employment Law Updates

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Ontario and Canada’s employment law landscape is set for a series of updates in the coming year. Ontario will see new job posting requirements under the Employment Standards Act, 2000 (“ESA”), and the proposed Working for Workers Seven Act, 2025 is set to bring further changes. At the federal level, Budget 2025 outlined potential changes to the Canada Labour Code (the “Code”), specifically to non-competition agreements for federally regulated employers.

While several of these changes were anticipated, employers are encouraged to stay up to date on the upcoming requirements.

Job Posting Requirements

On January 1, 2026, Ontario’s new rules for publicly advertised job postings will take effect. These rules come from the Working for Workers Four Act, 2024 (“Bill 149”) and the Working for Workers Five Act, 2024 (“Bill 190”), which amend the ESA. Ontario Regulation 476/24 (the “Regulation”) will come into effect on the same day.

Per the Regulation, “publicly advertised job posting” means 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:

• General recruiting efforts or “help wanted” signs that do not mention a specific role;
• Job ads that are only open to current employees;
• Job postings for work that is happening entirely outside Ontario; and
• Job postings for work that is partly in Ontario and partly outside, as long as the out-of-province work is not a continuation of work done in Ontario.

The Regulation works together with the new changes to the ESA to set out the requirements for publicly advertised job postings:

• Pay Transparency: Employers must include the expected compensation range for the position in any publicly advertised job posting. This requirement, however, only applies to postings where the high end of the expected compensation range is $200,000 or less per year. It is important to note that the Regulation defines “compensation” as wages, which is defined broadly under the ESA and includes salary, commissions and other non-discretionary bonuses but not tips and gratuities, business expenses or benefit contributions.

  The Regulation also limits the size of the pay range: the top and bottom of the range cannot be more than $50,000 apart. For example, a publicly advertised job posting could list a range of $100,000 to $150,000.

• Canadian Experience: Employers cannot include any job requirements relating to Canadian experience in any publicly advertised job posting. While expertise on matters which may be specific to Canada, such as regulatory matters, may continue to be a requirement, Canadian experience cannot.
• Use of Artificial Intelligence: If artificial intelligence is used to screen, assess or select applications for a publicly advertised job position, the job posting must disclose such use of artificial intelligence.

  
  The Regulation defines “artificial intelligence” as any machine-based system that uses inputs to generate outputs, such as predictions or decisions that influence physical or virtual environments.

• Vacancy: Publicly advertised job postings must include whether the position being posted is for an existing vacancy.
• Followup After Interviews: If an employer interviews an applicant for a publicly advertised job posting, the employer must let the applicant know within 45 days of the last interview whether a hiring decision has been made. This notice can be given in person, in writing or using technology.

  
  The Regulation defines an “interview” as a meeting (in person or via technology such as teleconference or videoconference) where questions are asked and answered to assess the applicant’s suitability. It does not include basic pre-screening before someone is selected for an actual interview.

• Record Retention: Employers must keep copies of all “prescribed information” that they give to an applicant for three years after providing it. As it stands, the only prescribed information is the result of the hiring decision described above.

  The new Regulation and requirements are part of a larger trend towards more transparency in job applications. The changes come on the heels of the Digital Platform Workers Rights Act, 2022, which legislated transparency in pay for digital platform workers, and build on other updates under the Working for Workers regime, including requirements for disconnecting from work policies, prescribed information to be provided to employees and handling of tips, gratuities and vacation pay. Review our previous articles on these amendments below:

• Ontario Employment Law Updates: Working for Workers Four Act, 2024 Passes, Working for Workers Five Act, 2024 Introduced
• Ontario Employment Law Updates: Working for Workers Six Act, 2024 Receives Royal Assent

Working for Workers Seven Act, 2025 (“Bill 30”)

Bill 30 has already been ordered for third reading in the Ontario legislature and, based on how quickly the previous six Working for Workers acts moved through, it is expected that Bill 30 will be passed shortly. If enacted, Bill 30 will introduce changes across several workplace statutes.

ESA

• Job Posting Platforms: Bill 30 will introduce new rules for “job posting platforms.” These are online platforms that show or host publicly advertised job postings. This definition does not include:
  • A platform run by an employer that only posts jobs for that employer (i.e., publicly advertised job postings on a company’s own website); or
  • Any other platform that meets criteria set out in future regulations. Currently, no proposed regulations address other potential exemptions.
• Operators of job posting platforms will have several new responsibilities:
  • They must provide a clear and easily visible way for users to report fraudulent job postings;
  • They must create a written policy explaining how they will deal with fraudulent postings; and
  • They must keep copies of every version of this written policy for three years after each version stops being used.

• Job Seeking Leave: Bill 30 will create a new unpaid leave for employees who are job searching, interviewing or attending training after receiving a termination notice in situations where 50 or more employees are being let go. Employees can take up to three days of this leave and should give three days’ notice if they can.
• Extended Layoffs: Bill 30 would allow employers and employees to agree to longer layoffs (35 or more weeks within a 52-week period) under certain conditions. However, they cannot agree to a layoff of 52 or more weeks within a 78-week period.

For an extended layoff to be valid, all of the following must occur:

• The employee and employer must be in agreement on the extended layoff;
• The employer must provide the employee with the latest date they expect to recall them; and
• The employer must get approval for the extended layoff from the Director of Employment Standards.

Occupational Health and Safety Act (“OHSA”)

• Health and Safety Management Systems: If Bill 30 passes, health and safety management systems accredited under the OHSA will be treated as equivalent to one another for any purpose where such a system is required.
• Defibrillator Reimbursements: If an employer is required to install a defibrillator in the workplace, the Workplace Safety and Insurance Board (“WSIB”) will reimburse the cost.
• Administrative Penalties: Bill 30 will introduce a new administrative penalty system. Inspectors would be able to issue monetary penalties for OHSA violations. Specific penalty amounts will be set through future regulations.

Bill 30 also proposes a review system for anyone who receives a notice of contravention. Unpaid penalties will be treated as debt owing to the Crown, and information about administrative penalties will be publishable.

Workplace Safety and Insurance Act, 1997 (“WSIA”)

• Prohibition of False or Misleading Statements: Bill 30 would make it an offence for employers to give false or misleading information to the WSIB related to any person’s benefits claim. The penalties for this will be set out in future regulations.
• New Criminal Offence: Employers who fail to pay the premiums required under section 88 of the WSIA would be committing a criminal offence.
• Increased Penalties: Bill 30 will introduce a new maximum fine of $750,000 for anyone convicted of two or more counts of the same offence in the same legal proceeding.

  
  It also adds mandatory aggravating factors that must be considered when setting a penalty, including:

  • Prior WSIA convictions;
  • Multiple convictions of the same offence in the current proceeding; and
  • Records of past non-compliance with the WSIA.

Canada Labour Code

Federally regulated employers should also expect changes in the near future. As part of Budget 2025, the federal government announced plans to amend the Canada Labour Code to limit the use of non-competition agreements.

The government indicated that this measure is meant to protect workers’ rights, make it easier for employees to move between jobs, boost competition and support people who want to take a higher-paying position or start their own business.

Public consultation on the proposed amendments is expected to begin in early 2026. If these changes go ahead, the federal government would join Ontario as the only jurisdictions in Canada that restrict employers from using non-competition clauses in employment contracts by virtue of statute.

Conclusion

For many employers, 2026 will bring a range of employment law changes. Job posting requirements under Bill 149 and Bill 190 will take effect, and Bill 30 is expected to pass in the coming months. Amendments to the Canada Labour Code will also be in focus as the federal government begins its consultation process.

The Workplace Law Group at Aird & Berlis LLP is available to assist employers on evolving employment law requirements. Please contact the authors or a member of the group if you have questions or require assistance.