Ontario employers are facing significant changes to their hiring practices, with new regulations under the Employment Standards Act, 2000 (ESA) set to take effect on July 1, 2025. These changes are intended to improve transparency and fairness in the workplace by requiring employers with twenty-five (25) or more employees to provide specific employment information to new hires in writing. This blog explains the details of these new requirements, their implications for employers, and steps employers can take to comply.
What Are the New Pre-Employment Disclosure Requirements?
All employers with 25 or more employees in Ontario must provide written employment details to new hires on or before their first day of work or as soon as reasonably practicable afterward, effective July 1, 2025. The following information must be included in the disclosure:
Employer Details: The legal name of the employer and any operating or business names if different from the legal name.
Contact Information: The employer’s address, telephone number, and one or more contact names.
Work Location: A general description of where the employee is expected to perform their work initially.
Wage Details: The employee’s starting hourly wage, annual salary, commission structure, or other applicable compensation.
Pay Period and Pay Day: Details about when wages will be paid in accordance with ESA provisions.
Initial Hours of Work: The number of hours the employee is expected to work when they start employment.
These requirements aim to ensure that employees know certain aspects of their employment from the start.
Exemptions
It’s important to note that these disclosure requirements will not apply to assignment employees—those employed by temporary staffing agencies and assigned to work for client companies. Employers should review their workforce composition to determine whether these rules apply to their hiring practices.
This exemption specifically applies to employees employed by temporary help agencies for the purpose of being assigned to perform work on a temporary basis for clients of the agency.
Why Are These Changes Significant?
The new pre-employment disclosures are a new trend towards transparency and fairness in employment in Ontario. Employers will be able to build trust with new hires and avoid misunderstandings about an employee’s role by providing clear information upfront, as they begin their role. The new change reflects how Ontario is seeking to increase workplace accountability and fairness in employment processes.
HR professionals and business leaders should see these new adjustments as an opportunity to enhance onboarding processes and ensure compliance with current and future legal requirements. Employers who fail to meet these obligations may be penalized under the ESA, so it is essential that employers prepare well in advance.
Are these changes consistent with other legislation?
The pre-employment disclosure requirements are part of a larger legislative effort to update Ontario’s workplace laws. For example, starting January 1, 2026, additional measures under the ESA will require employers with 25 or more employees to include pay transparency details in publicly advertised job postings. These postings must also indicate whether artificial intelligence (AI) is used in the hiring decisions and disclose the expected compensation ranges.
These measures also include prohibiting the use of “Canadian experience” requirements and disclosing the use of artificial intelligence in hiring decisions.
These initiatives are designed to foster a fairer hiring process that prioritizes transparency and inclusivity, and combats potential biases in recruitment practices.
Steps Employers Should Consider Now
Ontario employers should take the following steps to comply with the new pre-employment disclosure requirements by July 1, 2025:
1. Review Hiring Practices:
Review current hiring processes and onboarding procedures to determine gaps in compliance with upcoming regulations.
2. Update Employment Agreements:
Review your employment agreement to ensure information included has onboarding documents.
3. Invest in Technology:
Invest in new technology solutions to streamline document preparation and ensure employment details are delivered on time.
4. Train HR Teams:
Provide training for HR professionals and managers on new requirements to ensure compliance.
5. Monitor Legislative Updates:
Stay informed about the new changes to workplace laws that may impact your organization in 2025 and beyond.
Employer and Employee Benefits
Though these changes are going to require adjustments to hiring practices, they will also offer positive results to both employers and employees, such as:
- Employers who follow ESA standards protect themselves from legal issues while establishing a strong reputation as fair employers who maintain transparency. When employers explain employment details during the onboarding process, they create better employee retention because new hires understand what to expect from their first day.
Access to detailed pre-employment information empowers employees by clarifying their roles, compensation, and working conditions before they begin employment.
Next Steps
These July 2025 new pre-employment disclosure requirements are another piece of Ontario’s evolving employment law. Employers will have to prepare for these new changes, along with the upcoming regulations taking effect in January 2026, which will require pay transparency in job postings and prohibit the use of writing “Canadian experience” requirements for certain positions.
Businesses should begin to review their recordkeeping practices as compliance audits will increase under these new changes in employment laws.
Takeaway
Implementing mandatory pre-employment disclosure represents a significant step forward in promoting workplace transparency and fairness across Ontario. Employers who deliver upfront information about essential employment aspects establish better relationships with new recruits while fulfilling present-day legal requirements.
Furthermore, employers should consider acting now to review their hiring practices, update employment agreements, and train HR teams on these new requirements before the July 1, 2025, deadline.
If you need help navigating these changes or updating your organization’s policies, contact an experienced employment lawyer who can provide tailored advice specific to your business requirements. Contact Sultan Lawyers online or by telephone at 416-214-5111 today.
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