Advertising or posting a job opportunity is about to get more complicated for many local organizations with 25 or more employees.
That’s because of a slew of updates to Ontario’s Employment Standards Act (ESA) that include new job posting rules effective Jan. 1, 2026. The updates require, amongst other things, that provincially regulated employers disclose expected compensation ranges and AI usage during the recruitment process, as well as ban Canadian experience requirements in job postings. They also add new administrative requirements.
Ottawa law firm Emond Harnden’s Jake Tolton, a labour and employment lawyer, says the upcoming changes have broad implications for businesses across the province.
“There’s going to be a lot of front-loaded work for employers,” he explains. “They’ll need to take a hard look at their hiring and recruitment templates and make sure they’re compliant with these requirements.”
But that’s not the only potential issue facing qualifying local organizations, who have just a few weeks to prepare until the new laws take effect.
Changes to Ontario’s ESA: What are they?
The updates touch a broad range of recruitment-related elements. They apply specifically in the context of publicly advertised job postings as follows:
- Postings must include transparency about the expected compensation or range of compensation (the range can’t be more than $50,000 annually, but an exception to this rule applies to positions with a salary of $200,000 per year or more)
- Postings must disclose the use of AI for screening, assessing, or selecting applicants
- Postings must disclose the vacancy status of a position (must disclose whether the post is for an open position, or to fill a pool)
- Postings are prohibited from including any requirement for “Canadian experience”
- Interviewed candidates must be informed within 45 days of their last interview of whether the employer has made a hiring decision
- Employers must retain, for a period of three years, all publicly advertised job postings and related application forms, and records of any information provided to candidates
Tolton says the new requirements have created several areas of ambiguity for employers, with the prohibition on asking for Canadian experience causing particular concern.
“It’s confusing, because there are obviously bona fide requirements around, for example, knowledge of a certain statutory framework that is Canadian,” he says. “I think it’s obvious that the government’s not trying to prohibit that, but it’s not entirely clear to me what they’re trying to eliminate with this prohibition.”
What’s the potential impact on employers?
While the risks of non-compliance will likely range from a warning for a first offense to fines for repeat offenders or egregious breaches, Tolton says the impacts even on compliant employers will be significant.
The new record-keeping obligations and related increased administrative burden – especially for larger employers – will likely require organizational changes.
“It’s going to become a significant part of someone’s role,” he explains. “If you’re an organization with hundreds of employees, then we’re talking about a significant amount of data retention and organization. And someone is going to have to get trained on that. It’s going to become part of their mandate.”
Still, he says the level of record-keeping required will actually be a net positive for employers, who don’t always keep meticulous records, if they’re ever involved in employment litigation.
He also says the new rules will likely give a boost to professional recruiters, who aren’t subject to the same updates – at least, not yet.
“I can see a world where it changes the way that employers hire. Employers that want to keep their compensation structure closer to their chest could be going through recruiters now.”
How can companies prepare for the new rules?
The first step for organizations is to educate themselves on the new requirements, then take proactive measures to prepare for their implementation. Depending on an employer’s existing recruitment processes, that may be a fairly significant endeavour that includes:
- Auditing or implementing standard job postings and templates
- Reviewing existing compensation structures
- Adjusting communication processes
- Adjusting or implementing data retention systems
- Implementing measures to protect privacy and cybersecurity
- Training hiring managers on obligations, risks, and best practices
“I would say it’s about a checklist. Employers need to sit down with their HR departments and look at the specific requirements and make sure they’re onside anytime a job gets posted.”
Even organizations falling slightly below the 25 employee threshold should strongly consider adhering to the new rules, Tolton says, because it’s unclear whether companies who grow to exceed the 25 employee mark will need to meet backdated record-keeping requirements.
Qualified legal counsel should be consulted, where appropriate, if organizations have questions or concerns about the incoming changes.
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This article is intended to provide readers with general information only. It should not be regarded or relied upon as legal advice or opinion. Accessing, reading, relying on or otherwise using this article does not, under any circumstances, create a lawyer-client relationship between you and Emond Harnden.
