Understanding Ontario’s New Employment Standards: What Employers Need to Know in 2025

October 15, 2025

Understanding Ontario’s New Employment Standards: What Employers Need to Know in 2025

By Ashley Thiel

Ontario Employment Standards have changed in 2025. Is your business in ESA compliance? All employers need to stay up to date with labour law changes and ensure they are compliant with all employment standards. The Government of Ontario recently passed new rules in 2025, and there are more on the way in 2026. Here, we’ll discuss the Employment Standards Act and outline what has changed.

In this blog, we’ll cover:

What is the Employment Standards Act in Ontario?
Who enforces the ESA?
What does the Employment Standards Act cover?
Is the Employment Standards Act provincial?
What is the 3-hour rule in Ontario?
What are the new ESA laws in Ontario?
Upcoming changes to ESA rules that employers should prepare for

What is the Employment Standards Act in Ontario?

The Employment Standards Act (ESA) is a law in Ontario that protects workers' rights. This law defines the rules for how employers are to treat workers fairly. ESA protects most workers in Ontario to ensure all employers operate at a minimum standard. These are the basic rights and responsibilities that cannot be waived or ignored, even if an employer and employee agree otherwise.

What does the Employment Standards Act cover?

The ESA covers the rules that all employers must adhere to regarding wages, hours, vacation, holidays, and termination. It covers the following:

Minimum wage: The act defines the lowest hourly rate an employee can be paid.

Hours of work and overtime: It outlines rules about daily and weekly limits, breaks, rest periods, and overtime pay.

Public holidays: The document defines which holidays are recognized and how employees should be paid for them.

Vacation time and vacation pay: It sets the minimum entitlements employees must receive for vacation time off and how they are to be paid if they work on holidays.

Leaves of absence: The act outlines the rules for all types of leaves of absence employees might take, such as maternity leave, parental leave, sick leave, family responsibility leave, and others.

Termination notice and pay: The ESA lists the rules about how much notice or pay in lieu of notice is required when ending employment.

Severance pay: It sets the additional pay amounts for certain long-service employees when their jobs end.

Who enforces the ESA?

The Ministry of Labour, Immigration, Training and Skills Development enforces the ESA. Employees can file claims if they believe their rights are being violated.

Is the Employment Standards Act provincial?

Yes, the ESA applies to most employees and employers in Ontario. However, there are some exemptions and special rules for specific industries or job types, such as construction and agriculture. It does not apply to workers in federally-regulated industries, such as banks and transportation.

What is the 3-hour rule in Ontario?

The three-hour rule is a pay rule for employees. It requires employers to pay employees for three hours at their regular rate, even if they work less time or are sent home after reporting for a scheduled shift.

This rule applies when employees are scheduled to work more than a three-hour shift but end up working fewer hours.

For example, an employee shows up to work a 5-hour shift, but they are sent home after 2 hours because it's a slow day. As per the rule, the employee will still be paid for 3 hours even though they only worked 2.

What are the new ESA laws in Ontario?

There are three new ESA laws in Ontario that employers need to know about. Workers now have access to long-term illness leave, there are new rights for digital platform workers, and there are new written requirements for new hires.

Long-Term Illness Leave

The new long-term illness leave rules took effect on June 19, 2025. Here are the main details of the new rules:

Employees can have up to 27 weeks of leave in a 52-week period
To qualify, employees must have at least 13 weeks of continuous employment.
A certificate from a qualified health practitioner is required. It needs to confirm the medical condition and the period the employee is unable to work
The leave does not need to be taken all at once.

Rights for Digital Platform Workers

There are new standards for people who are employed through digital platforms. This includes gig workers and rideshare, and food delivery drivers. The new rules came into effect on July 1, 2025 and are meant to provide additional protection for non-standard workers.

Here’s what employers need to know:

Employers must provide written terms outlining pay, duties, and dispute resolution processes
The minimum wage for “active hours” is aligned with Ontario’s general ESA minimum wage
Employers must provide information about how compensation and assignments are determined
There must be notice of removal from the platform based on the amount of active work performed

Written Information Requirements for New Hires

Employers in Ontario with 25 or more employees must provide new hires with certain information in writing when they are hired. This new rule came into effect on July 1, 2025.

Employers must now provide the following information to new employees:

Legal and business names of the employer
Contact details (address, phone number, key contact person)
Anticipated work location
Starting wage, pay period, and pay day
General description of the initial hours of work
Information must be provided on the first day of work or as soon as possible.
Rules do not apply to employees hired through temporary work agencies.

Upcoming changes to ESA rules that employers should prepare for

There are also new rules coming into effect related to public job postings. Starting on January 1, 2026, employees will be required to include new information in job postings. Here is a summary of the new rules:

It applies to companies with 25 or more employees
Compensation or pay range must be posted
Posts cannot request Canadian experience
The ad needs to confirm whether the posting relates to a current vacancy
Employees must indicate if AI is used to screen or assess applicants
Employers must inform all interviewed applicants of the outcome within 45 days of their interview
Copies of job postings, application forms, and interview-related communications must be kept for three years

Start adjusting your job postings now to get them in compliance with the new rules.

A final word on Ontario’s New Employment Standards

Staying on top of new employment standards is a must for Ontario employers. However, it can be challenging to stay on top of all new requirements. Our HR compliance services can ensure your business is compliant, reducing potential vulnerabilities. Reach out to our team today to learn more about how we can help you stay compliant with Ontario employment laws.

Ashley Thiel is a seasoned Human Resources professional and educator with over 17 years of experience in HR management, employee relations, and organizational development.

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