Employment Law Update: Key Changes And Obligations For Ontario Employers In 2026

The employment law landscape in Ontario saw several legislative changes and case law developments over the past year. As we approach the end of Q1 2026, this overview highlights key updates from 2025, along with recurring annual requirements, to help employers maintain compliance throughout the year ahead.

Recent statutory amendments

2025 amendments to the Employment Standards Act, 2000 (ESA)

• Long-term illness leave: Effective June 19, 2025, eligible employees, those employed for at least 13 consecutive weeks, are entitled to up to 27 weeks of unpaid leave in a 52-week period due to a serious medical condition certified by a qualified health practitioner.
• New rules regarding employment information: Beginning July 1, 2025, employers with 25 or more employees must provide new employees with specified information in writing before their first day, including the employer's legal name, contact information, workplace description, starting wage, pay period, and anticipated hours.
• Job seeking leave: Effective November 27, 2025, a job seeking leave is available when a group termination occurs (i.e., 50 or more employees at the same establishment receive working notice within a four‑week period). This entitles each affected employee to up to three unpaid days during the notice period to: search for new work, attend interviews, or undertake training. Employees should give at least three days’ notice where practicable, and employers may request evidence that is reasonable in the circumstances.
• Extended temporary lay-off: As of November 27, 2025, the temporary lay-off period may be extended for non-unionized employers and employees beyond the usual 35 weeks in 52, up to 52 weeks in a 78‑week period, if: (i) there is mutual agreement (in writing), (ii) the arrangement is approved by the Director of Employment Standards, and (iii) the agreement sets out recall details. Once agreed, employees cannot unilaterally withdraw consent.
• Requirements for publicly advertised job postings: As of January 1, 2026, employers with 25 or more employees must include in public job postings: expected compensation or salary (limited to a $50,000 range, and not applicable to roles with compensation over $200,000); disclosure of artificial intelligence use in hiring; and an indication as to whether the posting relates to an existing vacancy.
• Employers are also be prohibited from referencing Canadian experience as a requirement in job postings, and they must inform interviewed applicants within 45 days whether a hiring decision has been made. Contravention may result in fines of up to $100,000 for individuals and $500,000 for repeat offenders.
• Forthcoming changes—Placement of a child leave: This leave will provide up to 16 weeks of unpaid leave for adoption or surrogacy. This leave has not yet come into force. Gowling WLG will provide updates as information becomes available.

Amendments to the Occupational Health and Safety Act, 1990 (OHSA)

• Recognized safety management systems: Accredited health and safety management systems are now recognized under OHSA as equivalents, supporting employers that already operate robust, accredited programs.
• Defibrillators (AEDs) and reimbursement: The WSIB may reimburse certain employers for AED costs. For construction projects with 20+ workers and a projected duration over three months, an on‑site AED is required. It must be clearly marked, accessible to all workers, and a trained worker must be present whenever work is underway. Post signage showing a heart and lightning bolt and the words “Automated External Defibrillator” or “AED” in English or French.
• Administrative monetary penalties (AMPs): OHSA inspectors may issue AMPs for contraventions of the Act, regulations and related orders. Notices specify the contravention and prescribed penalty amount, with a review mechanism available. The Minister may publish AMP information. Paying an AMP precludes laying an OHSA charge for the same contravention.
• Cleaning records: As of January 1, 2026, new OHSA rules will require employers and constructors to maintain records of washroom cleaning for facilities accessible to workers. Workers must be able to access information regarding the time and date of the two most recent cleanings.

Amendments to the Workplace Safety and Insurance Act, 1997 (WISA)

• False or misleading statements: Under section 22.2 of the WISA, it is unlawful for an employer to make a false or misleading statement to the Board in connection with any claim for benefits, with administrative penalties for contraventions.
• Heightened penalties: Failure to pay premiums is now an offence, and penalties have been strengthened with a maximum fine of $750,000 for persons convicted of multiple counts.
• Shortened time period to report workplace injuries: Employers must report a work-related injury or illness to the WSIB within three business days of learning of the incident (if it requires medical treatment beyond first aid or results in lost time/wages)

Termination clauses: The Courts' evolving approach to enforceability

The enforceability of termination clauses remains one of the most litigated areas of Ontario employment law. The case law trends establish that employment contracts are interpreted differently from commercial agreements to protect employees, who typically possess less bargaining power. Below we highlight a couple cases that came out this year, underscoring the changing landscape.

In Chan v. NYX Capital Corp., 2025 ONSC 4561, the termination clause was unenforceable because it purported to allow termination "at any time and for any reason at its discretion, without notice." The Court held that under the ESA, an employer does not have an absolute right to dismiss an employee, for instance, section 74 prohibits dismissal in reprisal for exercising ESA rights. The "for cause" provision also improperly used broad "cause" language rather than the ESA standard. This case is currently under appeal in 2026 and Gowling WLG will provide an update with the latest developments.

Conversely, carefully drafted clauses can withstand scrutiny. In Bertsch v. Datastealth Inc., 2025 ONCA 379, the Court of Appeal upheld a clause expressly limiting entitlements to "only the minimum payments and entitlements, if any, owed to you under the Ontario Employment Standards Act, 2000." The Court found this "unambiguous" and the agreement included a "failsafe" provision ensuring minimum ESA entitlements.

If you are unsure if your employment contracts will withstand recent case law trends, Gowling WLG is available to help you navigate the evolving common law landscape.

Ongoing workplace policy obligations pursuant to the ESA: Disconnecting from work and electronic monitoring

As a reminder, in 2021 and 2022 respectively, the ESA was amended requiring employers with 25 or more employees in Ontario to develop and publish two new policies: Disconnecting from Work, and Electronic Monitoring. The 25-employee threshold is triggered on January 1 of each year, and employers who hit this threshold must have these policies in place no later than March 1 of that year. Employers who met the threshold in previous years and have published these policies still have ongoing obligations to ensure that:

• new employees are provided with the policies within 30 days of commencing employment;
• assignment (temporary help) employees are provided with the policies within 24 hours of commencing their assignment or 30 days from the date the employer is first required to implement the policies;
• employees are made aware of amendments to the policies; and
• the policies set out the date of any amendments.

Disconnecting from Work policies must set out how the employer manages an employee’s ability to “Disconnect from work” which is defined under the ESA as “not engaging in work-related communications, including emails, telephone calls, video calls or sending or reviewing other messages, to be free from the performance of work.” Note that the requirement to have such a policy does not create a right to disconnect on the part of any employee and therefore, these policies need to be drafted carefully so as not to unintentionally create a contractual term limiting employee work requirements.

Electronic Monitoring policies must list all systems used by the employer that have the ability to monitor employee activity electronically. Examples include: software data collection/tracking, GPS, timecard systems, building/room access cards. Every time an employer changes their electronic monitoring systems—whether by deactivating or activating—the policy must be updated detailing the change in systems and the date of the amendments to the policy.

Conclusion

The developments of 2025 have made one thing clear for employers in Ontario: staying static is no longer a viable compliance strategy. These changes underscore the importance of reviewing and updating recruitment, recordkeeping, policies, employment agreements, and site management practices regularly.

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