What Ontario Employers Need to Know: ESA Changes Coming January 1, 2026

Now, before you know it, January 1, 2026 will be upon us, and those hiring changes to Ontario’s Employment Standards Act, 2000 (ESA) will be in force, reshaping hiring practices for employers with 25 or more employees.

The government is introducing these changes to increase transparency, fairness, and accountability in recruitment.

The following is a summary of the changes, and how employers should prepare.

Key Changes for Publicly Advertised Job Postings

1. Compensation Disclosure

Employers must include either the expected compensation or a salary range in any publicly advertised job posting. However:

• The disclosed range cannot exceed $50,000 per year.

• This requirement does not apply if the expected compensation is above $200,000/year (or if the upper limit of the range exceeds $200,00/year).

• “Compensation” refers to the definition of wages under the ESA which includes not just base pay, but also non-discretionary bonuses, allowances, etc.

2. AI Disclosure

If an employer uses artificial intelligence to screen, assess, or select applicants, that fact must be disclosed in the job ad.

• The regulation defines “artificial intelligence” broadly as “a machine-based system that, for explicit or implicit objectives, infers from the input it receives in order to generate outputs such as predictions, content, recommendations or decisions that can influence virtual or physical outcomes.”

• If employers use AI they should indicate on the ad that they “use AI to assist in screening, assessing, or selecting applicants for this position.”

3. No Canadian Experience Requirement

Publicly advertised job ads and associated application forms can no longer include a requirement for Canadian experience.

• Does not apply to internal job posting to existing employees

• Employers can still verify that candidates are legally entitled to work in Canada.

4. Vacancy Status Disclosure

Employers must clearly state in the job ad whether the position is for an existing vacancy or is simply just collecting resumes for future use

5. Interview Notification to Applicants

If an applicant is interviewed, the employer must inform them whether a hiring decision was made within 45 days of the last interview.

• This communication can be done in person, in writing, or using technology.

• This is a big shift — “ghosting” (i.e., never telling interviewees the outcome) will no longer be legally acceptable.

6. Record-Keeping Requirements

Employers or someone on behalf of the employer must retain:

• Copies of every publicly advertised job posting and any associated application forms

• Records of communications to interviewed applicants (e.g., the 45-day decision notice)

• These records must be kept for 3 years after the job posting is removed/decision communicated to the applicant

Why These Changes Matter and How to Prepare

• Transparency and Reputation: With mandated pay ranges and AI disclosures, your hiring process becomes more transparent. This can improve your employer brand, but it also exposes your practices to more scrutiny.

• Operational Impact: These are not just policy changes — they require process changes. You’ll need to update job-posting templates, application processes, and perhaps retrain your hiring teams.

• AI Governance: If you’re using AI tools in hiring, you’ll need a clear inventory of where and how these tools are used, and what risks (bias, fairness) might arise. Disclosure isn’t just a checkbox — it's part of a broader governance challenge.

• Record Management: Reporting protocols and keeping records for three years means setting up or scaling your data retention systems and reminder systems. Make sure you have processes to archive job ads, applications, and communications, and have an ability to record reporting and data retention in a defensible, searchable way.

These January 1, 2026 changes to Ontario's ESA mark a major shift in the recruitment and hiring process. For employers, it’s not just about compliance — it's an opportunity to modernize hiring practices, improve transparency, and build trust with job seekers. But to make the most of it, proactive planning is essential. If your company needs assistance in getting ready for these changes, please do not hesitate to reach out to the team at Goulart Workplace Lawyers.