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Employment laws in Ontario are never static. Regularly reviewing changes to employment law changes is essential for business leaders because it helps protect their organizations from financial, legal, and reputational risks while supporting a fair and productive workplace. 

Employment legislation in Ontario, including the Employment Standards Act (ESA), Occupational Health and Safety Act (OHSA), Human Rights Code, and Workplace Safety and Insurance Act, evolves frequently which is why Meagan Swan, a partner at Pavey Law in Cambridge, who includes employment law among her areas of expertise, recommends annual reviews.

“Many businesses near the end of the calendar year will start to think about their budget for the following year, and I say to employers, this is the perfect time to review your agreements because if you are providing employees any additional raises for the following year, you have the opportunity at that time to provide them with an updated agreement,” she says. “Near the end of a year is a great time if there’s going to be a compensation increase.”

It’s also just as important, she says, to review an agreement if something has occurred leading to a termination to ensure the language it contains is current.

“There have been court cases coming out where the judge is very nitpicky about certain language used in the termination provision,” says Meagan, who highly recommends that professional legal advice from a lawyer who knows employment law be utilized when drafting or reviewing agreements. “They (business owners) may have a business lawyer who specializes in buying and selling businesses and contracts, but they may not know employment law.”

New case law 

She says lawyers receive daily updates from the courts about new decisions within their practice areas.

“Every day I am looking at the new case law the courts have created to determine what language they are now finding to be invalid,” says Meagan.

In terms of new areas, the use of Artificial Intelligence (AI) has become commonplace in many workplaces especially when it comes to jobs postings and the screening process of potential employees. Starting Jan. 1, 2026, the ESA will now require employers with more than 25 employees at the time of posting to disclose whether they use AI in the hiring process, which includes assessing or selecting applicants.

But that isn’t the only trend surrounding AI says Meagan, who through her work with clients has noticed employees actively using ChatGPT, especially when it pertains to potential grievances they have.

“I’m finding that employees are somewhat biased sometimes about their personal perception of what’s going on and if they insert any type of words into ChatGPT that reflects a potential outcome they’re seeking, it will provide them with that outcome,” she says, noting that when bold statements or allegations are made there are consequences. “Under the Occupational Health and Safety Act, an employer has an obligation to commence an investigation that is appropriate. Unfortunately, it can become a make work project that employers may have to go through.”

Updates to the online Guide to the Employment Standards Act (ESA) regarding employment standards changes in Ontario include:  

Long-term illness leave

Long-term illness leave is a new leave that came into effect on June 19, 2025. This leave provides an employee who has been employed by an employer for at least 13 consecutive weeks with an entitlement to an unpaid leave of absence if: 

• the employee will not be performing the duties of their position because of a serious medical condition; and
• a qualified health practitioner issues a certificate stating that the employee has a serious medical condition and setting out the period during which the employee will not be working due to the serious medical condition.

The maximum entitlement to long-term illness leave is 27 weeks in a 52-week period.

Employers are required to retain, or arrange for some other person to retain, specified records that relate to an employee taking long-term illness leave for three years after the day on which the leave expired. Click here to learn more.

Extended temporary lay-off

A new extended lay-off was established under the ESA allow an employer and non-unionized employee to agree to, and for the Director of Employment Standards to approve of, a temporary lay-off that is 35 or more weeks in any period of 52 consecutive weeks but less than 52 weeks in any 78 consecutive weeks.

 An employee and employer must agree to the extended temporary lay-off in writing. The written agreement is not valid unless certain information was provided to the employee before the agreement was made, which is:

• the latest date the employer intends to recall the employee; and
• a statement that an agreement cannot be withdrawn once entered into.

Applications for extended lay-off must be approved by the Director of Employment Standards and made using the form approved by the Director of Employment Standards.

 Employers must retain extended lay-off agreements for three years after approval from the Director of Employment Standards expires.

Employment information for new employees

As of July 1, 2025, employers who employ 25 or more employees on a new employee’s first day of work are required to provide that new employee with the following information, in writing: 

• legal name of the employer, as well as any operating or business name if different from the legal name
• contact information for the employer, including address, telephone number, and one or more contact names
• a general description of where it is anticipated that the employee will initially work
• the employee’s starting hourly or other wage rate, or commission, as applicable
• the pay period and pay day
• a general description of the employee’s initial anticipated hours of work.

This information must be provided to the employee before the employee’s first day of work or, if that is not practicable, then as soon after that date as is reasonably possible.

The requirement will not apply: 

• to an employer that employs less than 25 employees on the new employee’s first day of work
• with respect to assignment employees.

Click here to learn more.

Information about provincial employment services

As of July 1, 2025, if an employer initiates a mass termination under the ESA of 50 or more employees at its establishment within a four-week period, on the first day of the notice period, the employer must provide all affected employees with a copy of the most recent version of the Employment Ontario Career Supports information sheet prepared and published by the ministry.

The information describes provincial services available to the affected employees for skill training.

If you need help understanding your responsibilities and rights under the ESA, you can:

• Visit Your guide to the Employment Standards Act at Ontario.ca/ESAguide.
• Call the Employment Standards Information Centre at 1-800-531-5551 or TTY (for hearing impaired) at 1-866-567-8893. Information is available in many languages.

Changes to watch for

New transparency & job-posting obligations
As of January 1, 2026, additional ESA requirements apply to publicly advertised job postings (for employers with greater than 25 employees at the time of posting):

• Must include expected compensation (or range) for the role, unless top of the range is more than approximately CAD 200,000.
• Must disclose whether the employer uses artificial intelligence (AI) in the hiring process (e.g., screening, assessing, or selecting applicants).
• Employers will also need to retain job-posting records, associated applications, and the information provided to applicants, likely for a set retention period.

Click here to learn more.

Changes to layoff/termination rules under consideration (pending Bill 30)
The Bill 30 (Working for Workers Seven Act, 2025) - if passed - would amend the ESA to allow extended temporary layoffs under certain conditions (for non-unionized employees): possibly up to 35 or more weeks within a 52-week period — provided overall layoff doesn’t exceed 52–78 weeks, and with employer/employee agreement and regulatory approval. 
Also under Bill 30: a new unpaid “job-seeking leave” for employees who receive a group termination notice (when 50 or more employees are terminated within a 4-week period), primarily to allow time for interviews, job search, or upgrading their skills.