What Ontario’s New Pay Transparency Rules Means for Employers
blog/what-ontarios-new-pay-transparency-rules-means-for-employers
2025-04-11
Ontario is set to implement new pay transparency and job posting regulations effective January 1, 2026, aimed at promoting fairness and accountability in hiring practices.
These changes, introduced through Bill 149 (Working for Workers Four Act, 2024) and Bill 190 (Working for Workers Five Act, 2024), will have significant implications for employers in the province.
Key Requirements for Employers
Compensation Disclosure: Employers must include the expected compensation or a salary range in publicly advertised job postings. If the compensation or top end of the range is $200,000 CAD or less, the posted range cannot exceed $50,000 CAD.
Artificial Intelligence (AI) Disclosure: Employers are required to disclose if AI is used to screen, assess, or select applicants for the position. AI is defined as a machine-based system that generates outputs such as predictions, content, recommendations, or decisions that influence environments.
Existing Vacancy Statement: Job postings must indicate whether they are for an existing vacancy within the organization.
Prohibition on Canadian Experience Requirements: Employers cannot include requirements related to Canadian work experience in publicly advertised job postings or application forms, promoting inclusivity for internationally trained professionals.
Communication of Hiring Decisions: Employers must inform interviewees of their hiring decision within 45 days after their last interview. This notification can be provided in person, in writing, or through digital communication methods.
Exemptions and Record Retention Obligations:
Employer Size: These requirements apply to employers with 25 or more employees on the date of the job posting.
General Recruitment Campaigns: The regulations do not apply to general recruitment campaigns or help-wanted signs that do not advertise specific positions.
Record Retention: Employers must retain copies of publicly advertised job postings and associated application forms for three years after the posting is removed from public access.
Implications for Businesses:
These regulations necessitate that businesses review and update their hiring practices to ensure compliance.
Key steps include revising job posting templates to incorporate required disclosures, eliminating Canadian experience requirements, and establishing procedures for timely communication with applicants.
Additionally, businesses should implement or reconfigure systems for record retention to meet the three-year requirement.
Proactive adaptation to these changes will not only ensure compliance but also enhance transparency and inclusivity in recruitment processes, potentially attracting a more diverse talent pool.
