Ontario is set to undergo changes in the workplace due to three bills that received Royal Assent in 2024—Working for Workers Four Act, 2024; Working for Workers Five Act, 2024; and Working for Workers Six Act, 2024 (collectively, the Acts). The Acts impact the Employment Standards Act, 2000 (ESA); the Occupational Health and Safety Act (OHSA); the Workplace Safety and Insurance Act, 1997; the Digital Platform Workers’ Rights Act, 2022; and the Fair Access to Regulated Professions and Compulsory Trades Act, 2006.

This blog focuses on key changes the Acts make to the ESA that employers should be aware of, including tip pooling, vacation pay, job postings, hiring, sick notes, and unpaid leave for adoption, surrogacy or long-term illness. Some changes are already in effect, while others are effective later in 2025 or 2026.

Working for Workers Four Act, 2024

The Working for Workers Four Act, 2024 (Ontario Bill 149) received Royal Assent on March 21, 2024 and makes four types of changes to the ESA.

Definition of “Employee”
The definition of employee is amended to include work performed during a trial/training period, subjecting employers to ESA standards for employees during these periods, absent an exemption. This includes abiding by rules on minimum wage and overtime.
Effective March 21, 2024

Tip Pooling
Changes to tip pooling rules are intended to ensure employees in the hospitality industry and related industries understand how their tips are calculated and paid. There are two key amendments to tip pooling rules.

• Employers must pay an employee’s tips or other gratuities using cash, cheque payable only to the employee, by direct deposit or by any other prescribed method of payment. If paying by direct deposit:
  • The account must be selected by the employee and be in their name
  • No other person except the employee or someone authorized by the employee can access the account
  • The account must meet any other criteria prescribed by the government if additional criteria are implemented in the future.
• Employers have to post their written tip pooling policy in “at least one conspicuous place in the employer’s establishment,” if the employer pools employee tips with the employer. A conspicuous place is a clearly visible location within the workplace where employees are likely to see it. An employer must also keep copies of the policy for three years after the policy is no longer in effect.
  Effective June 21, 2024

Vacation Pay
The vacation pay provisions in the ESA are amended to clarify that there must be a written agreement between an employer and an employee confirming the alternate method of distributing accrued vacation if an employer chooses to pay out vacation that accrues during each pay period as wages are earned, rather than paying it out in a lump sum before an employee takes vacation.
Effective June 21, 2024

Job Postings
Publicly advertised job postings will be subject to new requirements.

• For employers with 25 or more employees on the day the job is posted, job postings must include the expected compensation or a range of compensation for the job. If the posting includes a range, the range must not be more than $50,000 annually.
  • Exception. This requirement will not apply to postings for a position where the expected compensation or range of compensation is more than $200,000 annually.
• Employers cannot require applicants to have Canadian experience in a publicly available job posting or on a job application form.
• Employers must disclose whether they use artificial intelligence (AI) to screen, assist or select applicants for a position
  Effective January 1, 2026

Working for Workers Five Act, 2024

The Working for Workers Five Act, 2024 (Ontario Bill 190) received Royal Assent on October 28, 2024 and makes four amendments to the ESA.

Sick Notes
To reduce the burden on employees and the health care system for minor illnesses, the Working for Workers Five Act prohibits an employer from requiring an employee to provide a sick note from a “qualified health care practitioner” (i.e., physician, a registered nurse or a psychologist) as evidence of entitlement to the three-day sick leave provided under the ESA.

An employer may:

• Ask for reasonable evidence under the circumstances that an employee is entitled to sick leave under the ESA
• Request a medical note for other statutory or sick leave lasting more than three days
• Request a medical note when an employee has already used their three days of ESA sick leave in the calendar year.
  Effective October 28, 2024

Increased Fines
The maximum fine for individuals convicted of violating the ESA or failing to comply with an order has been increased from $50,000 to $100,000.
Effective October 28, 2024

Vacancies in Job Postings
In addition to the job posting requirements in the Working for Workers Four Act, the Working for Workers Five Act adds the requirement that employers must include a statement disclosing whether the publicly advertised job posting is for a current vacancy.
Effective January 1, 2026

Applicant Interviews
If an employer interviews an applicant for a publicly advertised job posting, the employer shall, within the “prescribed time period,” provide the applicant with the “prescribed information.” According to Littler, new regulations clarify the prescribed time periods and information:

• Prescribed time period. Within 45 days after the interview date. If the employee is interviewed more than once, the period is within 45 days after the last interview.
• Prescribed information. Whether a hiring decision has been made based on the publicly advertised job posting. The decision shall be provided in person, in writing or using technology.

Employers must also retain copies of prescribed information for three years after the information was provided to the applicant.
Effective January 1, 2026

Working for Workers Six Act, 2024

The Working for Workers Six Act, 2024 (Ontario Bill 229) received Royal Assent on December 19, 2024 and adds two new types of leave under the ESA.

“Placement of a Child” Leave
“Placement of a child” leave permits employees who are employed for at least 13 weeks to an unpaid leave of absence for up to 16 weeks if a child is placed in their care, custody or control through adoption or surrogacy.

The leave cannot begin more than six weeks before the expected placement date. If placement does not occur, the leave will continue for 14 days after the day the employee is informed.

Employees must provide at least two weeks written notice to their employer before the leave begins. The notice must state the dates the employee intends to be off work.

Effective on a yet-to-be-determined date proclaimed by the Lieutenant Governor

Long-Term Illness Leave
A long-term illness leave of absence has been added to the ESA that allows employees who are employed for at least 13 weeks to an unpaid leave of up to 27 weeks if they cannot perform their duties because of a serious medical condition, defined by a medical practitioner, that is chronic (e.g., cancer) or episodic (e.g., Crohn’s disease). The employee must provide a medical note from a qualified health professional confirming:

• The employee has a serious medical condition
• The time period in which the employee will not be able to perform their duties due to the serious medical condition.

An employee may be able to extend the leave or take a new leave within 52 weeks of the start of their previous leave if they continue to have a serious medical condition after returning to work.
Effective June 19, 2025

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Developed by International Foundation Information Center staff. This does not constitute legal advice. Please consult your plan professionals for legal advice.