TLDR: Ontario employers face compliance obligations across at least six major pieces of legislation — the Employment Standards Act, Occupational Health & Safety Act, Human Rights Code, Pay Equity Act, AODA, and PIPEDA. In 2026, the major new requirements include Pay Transparency job posting rules (effective January 1, 2026 for 25+ employees), a new Long-Term Illness Leave of 27 weeks, the elimination of sick note requirements for short absences, and mandatory Employment Information Statements for new hires. This guide walks through every compliance area with a practical checklist organized by business size.
Why Ontario HR Compliance Is More Complex Than Most Employers Realize
Most Ontario business owners start with good intentions. They pay people on time, treat everyone fairly, and handle problems as they come up. Then they get a Ministry of Labour notice, a human rights complaint, or a wrongful dismissal claim — and discover that “being a good employer” and “being a legally compliant employer” are different things.
Ontario employment law does not give small businesses a pass. The Employment Standards Act applies to companies with two employees the same way it applies to those with two thousand. A missed termination clause in an employment contract signed five years ago can cost $200,000 when that employee is eventually let go. A workplace that never had a formal harassment investigation process can face OHSA fines and human rights damages simultaneously.
The practical complexity is that Ontario employment law is not a single document. It lives across six major statutes, dozens of regulations, and a body of common law decisions that continue to evolve. Staying compliant requires knowing what applies to your business, when it changed, and how it interacts with everything else you’re already doing.
This checklist is organized to help you work through each area systematically. It is not a substitute for legal advice on specific situations — but it will show you where the gaps are.
The Six Compliance Layers Every Ontario Employer Must Manage
Ontario employer obligations come from at least six distinct legal sources, each administered by a different body with different enforcement powers.
| Legislation | What It Governs | Enforcement Body | Maximum Penalty |
|---|---|---|---|
| Employment Standards Act, 2000 (ESA) | Minimum wages, hours, overtime, vacation, leaves, termination notice and pay | Ministry of Labour | Up to $100,000 per contravention (director personal liability) |
| Occupational Health & Safety Act (OHSA) | Workplace safety, violence and harassment programs, incident reporting | Ministry of Labour inspectors | Up to $1.5 million for corporations; $100,000 for supervisors/directors |
| Human Rights Code | Discrimination and accommodation in employment across 17 protected grounds | Human Rights Tribunal of Ontario (HRTO) | Unlimited general damages + lost wages + injury to dignity |
| Pay Equity Act | Equal pay for work of equal value in female-dominated vs. male-dominated job classes | Pay Equity Commission | No limitation period — retroactive liability with no cap |
| Accessibility for Ontarians with Disabilities Act (AODA) | Accessibility standards including employment, customer service, information, and transportation | Ministry for Seniors and Accessibility | Up to $100,000 per day for corporations |
| PIPEDA / Ontario’s privacy framework | Collection, use, and disclosure of personal employee information | Office of the Privacy Commissioner (OPC) | Up to $100,000 in fines; reputational and civil liability |
Common law adds a seventh layer. Even when you comply with every statute, Ontario courts can award wrongful dismissal damages far beyond ESA minimums — up to 24 months or more of compensation — based on the Bardal factors (age, tenure, character of employment, availability of comparable work). This exposure cannot be eliminated entirely, but it can be managed significantly through compliant employment contracts.
Required Policies by Employee Count
One of the most common compliance errors Ontario employers make is not knowing which obligations apply at their current size. The table below shows the threshold-triggered requirements — obligations that turn on once you cross a specific headcount.
| Threshold | New Obligations |
|---|---|
| All employers (1+) | ESA minimum standards apply; OHSA violence and harassment program required; must post “Health & Safety at Work” and “In Case of Injury” posters; WSIB registration if in Schedule 1 industry |
| 5+ employees | Written OHSA Health & Safety policy required; annual review of policy required |
| 6–19 employees | Health & Safety Representative required |
| 10+ employees (private sector) | Pay Equity Act obligations apply; must identify female-dominated job classes and establish pay equity |
| 20+ employees | Joint Health & Safety Committee (JHSC) required; AODA accessibility policy and process required |
| 25+ employees | Disconnecting from Work policy required (written, annual review); Electronic Monitoring policy required; Employment Information Statement for new hires (July 1, 2025); Pay Transparency job posting rules (January 1, 2026) |
| 50+ employees | AODA compliance reporting required to the Ontario government (due dates vary) |
| 100+ employees | Written Pay Equity plan required; Pay Transparency annual salary reporting beginning 2027 (requirements phased in) |
Important note: these thresholds can change when related employers are counted together. If you own multiple entities operating as a common enterprise, the Ministry of Labour may aggregate employee counts for ESA purposes.
What Changed in 2025–2026: The Updates You Can’t Ignore
Ontario has passed several waves of employment legislation since the Working for Workers series of Acts began in 2021. Here is what took effect in 2025 and 2026 that your business may not have fully implemented.
Pay Transparency Act — Job Posting Requirements (January 1, 2026)
Effective January 1, 2026, employers with 25 or more employees must include specific information in any publicly advertised job posting. This applies to jobs posted on company websites, LinkedIn, Indeed, job boards, and any other public channel.
| Requirement | What It Means |
|---|---|
| Salary range disclosure | Must include expected compensation or a salary range. If a range, it cannot exceed $50,000 (exception: roles paying over $200,000 annually) |
| AI disclosure | Must disclose if AI or automated tools are used in applicant screening or interview scoring |
| No Canadian experience requirement | Cannot require Canadian work experience unless genuinely necessary for the role and justified |
| Vacancy disclosure | Must indicate whether the posting is for an open vacancy, a future opportunity, or talent pool development |
| Candidate notification | Must notify all interviewed candidates of the hiring outcome within 45 days of the final interview |
| Record retention | Job postings, applications, and interview records must be retained for 3 years |
Employment Information Statement — New Hire Obligations (July 1, 2025)
Employers with 25 or more employees must now provide each new hire with a prescribed written information statement before their first day of work (or as soon as practicable). The Ministry of Labour provides a standardized form. This must be provided to new employees, not just kept on file.
New Long-Term Illness Leave (June 2025)
A new unpaid, job-protected leave of up to 27 weeks in any 52-week period is now available to employees with a serious medical condition that is expected to keep them off work for the entire leave period. This is separate from existing critical illness and sick leaves. Documentation requirements will be clarified in regulation, but employers cannot require a diagnosis — only a note confirming a serious medical condition and expected duration.
Sick Note Ban (October 2024)
Ontario employers can no longer require a doctor’s note for absences of three days or fewer. This does not eliminate documentation rights for longer absences or to establish a pattern of attendance issues, but a blanket sick note policy for every absence is no longer legally permissible.
Digital Harassment — OHSA Update (Bill 190, 2024)
The OHSA definition of workplace harassment now explicitly includes harassment through digital communication — emails, texts, social media messages, and other electronic platforms. Workplace harassment policies and programs must be updated to address these channels, and investigations must cover digital communications as evidence.
AED Requirement (Construction, June 2026)
For construction projects with 20 or more workers lasting three or more months, an Automated External Defibrillator (AED) will be required on site. This took effect June 1, 2026.
Ontario HR Compliance Checklist by Function
Use this checklist to identify gaps. Each item that cannot be answered with a clear “yes” is a compliance risk.
Hiring and Onboarding
- All employment contracts reviewed for compliant termination clauses referencing ESA minimums
- No non-compete agreements for non-executive employees (void under Working for Workers Act, 2021)
- All contracts signed before or on the first day of work (not after)
- Job posting templates updated for Pay Transparency requirements (25+ employees)
- AI disclosure included in job postings where applicable
- No “Canadian experience” requirements in postings unless justified
- Candidate tracking system in place for 45-day notification obligation
- Records of all job postings, applications, and interview notes retained for 3 years
- Employment Information Statement provided to all new hires before first day (25+ employees)
- TD1 and TD1ON federal and provincial tax forms collected
- SIN collection and verification documented
- WSIB Form 7300 registration for new hires in Schedule 1 industries
Wages and Payroll
- Minimum wage at $17.20/hr (January 2025) and updated to $17.60/hr for October 2025 onwards
- Student minimum wage applied only to qualifying employees (under 18, less than 28 hours/week during school term)
- Overtime at 1.5x after 44 hours/week (no daily overtime threshold in Ontario)
- Overtime averaging agreements in writing and compliant (2–4 week periods only)
- Vacation pay at minimum 4% (2 weeks) or 6% (3 weeks, after 5 years of service)
- Public holiday pay calculated using the correct formula (4 weeks regular wages ÷ 20 working days)
- Equal pay for equal work for part-time and full-time employees doing the same job
- Wage statements provided with each pay
- Payroll records retained for at least 3 years
- CRA remittances current (CPP, EI, income tax)
- Employer Health Tax (EHT) paid if Ontario payroll exceeds $1,000,000 exemption threshold
Leaves of Absence
- All managers trained on the 19+ ESA-protected leave entitlements
- Pregnancy leave (17 weeks) and parental leave (61 or 63 weeks) processes in place
- No requirement for doctors’ notes for absences of three days or fewer (effective October 2024)
- New Long-Term Illness Leave (27 weeks in any 52-week period) recognized and communicated (June 2025)
- Adoption/Surrogacy Leave (16 weeks) implemented
- Leave records maintained and benefits continued during leaves
- Return-to-work process documented and consistent with duty to accommodate
- No penalization of employees for taking ESA-protected leaves
Workplace Health and Safety
- Written OHSA Health & Safety policy in place and reviewed annually (5+ employees)
- Workplace Violence and Harassment Policy and Program in place (all employers)
- Harassment program updated to cover digital harassment (Bill 190, 2024)
- Health & Safety Representative designated (6–19 employees)
- Joint Health & Safety Committee established and meeting quarterly (20+ employees)
- WHMIS training documented for all employees handling hazardous materials
- Workplace injury reporting processes in place (Form 7 to WSIB within 3 days of lost-time injury)
- Ministry critical injury reporting within 48 hours (OHSA s.51)
- “Health & Safety at Work” poster and “In Case of Injury” poster posted visibly
Required HR Policies
- Disconnecting from Work policy: written, reviewed annually, distributed within 30 days of adoption (25+ employees)
- Electronic Monitoring policy: written, reviewed annually, specifies what is monitored and purpose (25+ employees)
- Pay Equity plan: written, posted in the workplace (100+ employees, private sector)
- AODA Employment Standards policy: accommodation process, accessible formats on request (20+ employees)
- Privacy policy under PIPEDA for employee data collection, use, retention, and disposal
Termination
- Termination clauses in employment contracts are enforceable (no Waksdale-style issues — reviewed post-2021)
- ESA termination pay calculated correctly (1 week per year, max 8 weeks)
- ESA severance pay calculated for qualifying employees (5+ years AND $2.5M Ontario payroll OR 50+ mass layoff)
- Just cause standard understood: only genuine serious misconduct with documented progressive discipline process
- Mass termination rules followed where 50+ employees are terminated in a 4-week period
- WSIB and group benefits obligations during ESA notice period confirmed
- ROE filed within 5 calendar days of termination
Pay Equity
- All job classes identified and assessed for gender predominance (10+ employees)
- Pay equity maintained on an ongoing basis — not a one-time exercise
- Annual pay equity adjustment of at least 1% of payroll made if needed (for covered employers)
- Written pay equity plan posted in the workplace (100+ employees)
- New jobs and reorganizations assessed for pay equity impact
Accessibility (AODA)
- Customer service accessibility standards met (all employers)
- Accessible employment practices: recruitment, onboarding, accommodation (20+ employees)
- Accessibility compliance report filed as required (50+ employees)
- Website meets WCAG 2.0 Level AA (large organizations)
Common Violations and What They Actually Cost
| Violation | How Common | Typical Cost |
|---|---|---|
| Void termination clause — no ESA reference or unlawfully low notice | Very common in pre-2021 contracts | Common law notice: 2–24 months of compensation |
| Overtime not tracked — exempt status incorrectly applied | Common in professional services | Back pay + Order to Pay from Ministry; up to $100K fine |
| No OHSA violence and harassment program | Common in businesses under 25 employees | OHSA fine up to $1.5M (corporation); stop-work orders |
| Pay Equity non-compliance — no assessment done | Very common in 10–99 employee businesses | No limitation period — multi-year retroactive back pay |
| Failure to accommodate to the point of undue hardship | Moderate — especially for mental health leaves | HRTO damages + lost wages + injury to dignity awards |
| Misclassification of employees as independent contractors | Common in construction, professional services, tech | CRA source deductions, EI, CPP, HST + ESA back claims |
| No Disconnecting from Work policy (25+ employees) | Moderate — many businesses still uncompliant | ESA penalty; potential constructive dismissal exposure |
| Job postings without Pay Transparency disclosures (2026) | New — many have not yet updated templates | Ministry of Labour notice; employee complaints; reputational damage |
When to Get HR Support
A compliance checklist tells you where you stand. It cannot substitute for HR expertise when you need to respond to an active situation, implement new policies correctly, or audit a complex set of employment relationships.
The scenarios below are ones where getting outside HR support before acting typically costs far less than responding to the consequences:
- You have not reviewed employment contracts since 2021 (Waksdale-era void termination clause risk)
- You are terminating a long-tenure employee, an employee on or recently returned from leave, or someone who has filed a complaint
- You have received a Ministry of Labour inspection notice or employee complaint
- You are growing past a compliance threshold (10, 20, 25, 50, or 100 employees)
- You are adding employees in a new province
- You are managing a return-to-work for a mental health or disability-related absence
- You have received a harassment or discrimination complaint that requires a formal investigation
HRX Connect provides HR consulting services for Ontario employers navigating compliance, terminations, investigations, and policy work. If you are unsure where your business stands, an HR audit is typically the right starting point.
For employers who want ongoing compliance support without a full-time HR hire, a fractional HR arrangement ensures you have a qualified HR professional monitoring legislative changes and advising on specific situations throughout the year.
Frequently Asked Questions
What are the most important HR compliance requirements for Ontario employers in 2026?
The top requirements for 2026 include the new Pay Transparency Act job posting rules (salary ranges, AI disclosure, no Canadian experience requirements — for 25+ employees, effective January 1, 2026), the new Employment Information Statement obligation for new hires (25+ employees, July 1, 2025), the Long-Term Illness Leave of 27 weeks, the ban on sick notes for short absences (since October 2024), and ongoing obligations under the ESA, OHSA, Pay Equity Act, AODA, and Human Rights Code.
What HR policies are legally required in Ontario?
Required policies depend on employer size. All employers must have an Occupational Health & Safety policy (5+ employees) and a Workplace Violence and Harassment Program. Employers with 25+ employees must also have a Disconnecting from Work policy and an Electronic Monitoring policy. Employers with 100+ employees need a written Pay Equity plan. AODA accessibility policies are required at 20+ employees (reporting for 50+). Non-compete agreements are void for most Ontario employees under the Working for Workers Act, 2021.
What are the penalties for HR non-compliance in Ontario?
The ESA allows fines up to $100,000 per contravention, with personal liability for directors and officers. OHSA violations carry fines up to $1.5 million for corporations. Human Rights Code violations result in awards through the HRTO with no fixed cap. Under the Pay Equity Act, there is no limitation period — retroactive liability can reach back many years. Common law wrongful dismissal claims for senior employees can reach 24+ months of compensation.
Does the ESA apply to remote workers in Ontario?
Yes. The Employment Standards Act applies fully to Ontario-based remote workers. All minimum standards — overtime, vacation, public holidays, leaves of absence, termination notice — apply regardless of where the work is performed. The Disconnecting from Work policy is mandatory for employers with 25+ employees and applies to remote workers. Multi-province employers must comply with the province where each employee works.
How often should Ontario employers conduct an HR compliance audit?
At minimum, annually — and whenever there is a significant legislative change, business change, or following any workplace incident, complaint, or Ministry of Labour contact. Ontario has had major ESA and OHSA updates in 2024 and 2025. Employers who haven’t audited since 2023 are likely out of compliance in at least one area.
Sources: Ontario Employment Standards Act, 2000; Occupational Health & Safety Act; Pay Equity Act; Human Rights Code; Accessibility for Ontarians with Disabilities Act; Working for Workers Four Act, 2024 (Bill 149); Working for Workers Six Act, 2025; Ministry of Labour Ontario employer resources; Pay Equity Commission Ontario; Ontario Human Rights Commission.