Ontario employers need to prepare for new Ontario pay transparency rules coming into effect on January 1, 2026. These Employment Standards Act (ESA) changes will require clear salary disclosure in job postings, bans on “Canadian experience” requirements, and new obligations for communicating with candidates. For HR leaders, this is both a compliance challenge and an opportunity to build trust in hiring.
Overview of Ontario Pay Transparency Rules
The Ontario pay transparency rules form part of the Working for Workers Four Act and amendments to the ESA. If your business has 25 or more employees, every publicly advertised job posting must meet the new transparency standards.
These new rules apply to external postings, such as those on job boards, company websites, or social media. Internal postings, general recruitment pools, or jobs performed entirely outside Ontario are excluded.
Key Job Posting Requirements
Salary Disclosure in Job Ads
- Every posting must include either an expected salary or a clear pay range.
- Ranges cannot exceed a $50,000 spread unless the salary exceeds $200,000 annually.
- Compensation includes wages, commissions, and non-discretionary bonuses — not just base salary.
Transparency on Hiring Practices
- Employers must confirm whether the job is for an existing vacancy.
- If artificial intelligence (AI) is used to screen or select applicants, that must be disclosed.
- “Canadian experience” as a job requirement is no longer allowed.
Interview Follow-Up
- Interviewed candidates must be notified of the hiring decision within 45 days of their interview.
Record-Keeping Obligations
- Employers must keep a copy of each job posting and application form for three years after the posting closes.
- Records of candidate notifications must also be retained.
Why Pay Transparency Matters
The Ontario government has emphasized fairness and access for job seekers. For employers, these ESA transparency rules affect more than compliance:
- Fair Hiring: Removing “Canadian experience” requirements opens doors for internationally trained professionals.
- Employer Brand: Salary disclosure improves trust with candidates and current employees.
- Recruitment Advantage: Candidates increasingly prefer postings with pay ranges; early adopters stand out.
- Internal Pressure: Public salary ranges may reveal internal pay inequities. Employers will need to review compensation strategies.
“Publishing the range of salaries could potentially reveal pay disparities within a company, which could prompt reviews or adjustments.”
What Ontario Employers Should Do Next
To prepare for the Ontario pay transparency rules, employers should:
- Audit job posting templates and pay practices. Update ads to include salary ranges, AI disclosure, and vacancy status. Remove any “Canadian experience” requirements.
- Train hiring teams and recruiters. Ensure HR and managers understand compliance deadlines, interview follow-up requirements, and record retention rules.
- Address internal pay equity. Analyze whether posted ranges will highlight wage gaps. Plan proactive communications with staff.
“Ontario pay transparency rules are more than compliance—they’re a chance to modernize hiring and improve candidate trust.”
Need help navigating HR changes? Book your free HR audit today or talk to our team about how Divino can support your business.
