From Pay Gaps to Pay Clarity: Ontario’s New Rules are Fostering Workplace Fairness

Ontario is stepping into a new era, fostering workplace fairness with a series of legislative changes aimed at boosting pay transparency and accountability. The Working for Workers Four Act, 2024 and the Working for Workers Five Act, 2024 are reshaping hiring practices across the province. These updates to the Employment Standards Act, 2000 are designed to promote equity, reduce wage gaps, and foster trust in recruitment and compensation systems. 

These changes mark a significant step forward in building a fair and equitable labour market—one where job seekers can make informed decisions and employers are held to consistent, transparent standards. From requiring pay ranges in job ads to banning outdated Canadian experience requirements, these reforms are setting the stage for more inclusive and accountable workplaces across Ontario. 

Fostering Workplace Fairness: Key Changes at a Glance  

Compensation Disclosure in Job Postings (Effective Jan 1, 2026) 

  • All publicly advertised job postings must include expected salary or a salary range. 
  • Roles with compensation over $200,000 annually are exempt. 
  • The maximum allowable compensation range is $50,000. 
  • “Wages” include all fixed monetary compensation: salaries, bonuses, and non-discretionary pay. 
  • This is great because it lets candidates know if the position meets their expectations before applying, signals transparency to current employees about salary ranges, and holds employers more accountable to paying fairly within those ranges. 

Disclosure of AI Use in Hiring (Effective Jan 1, 2026) 

  • Employers must state in job postings if artificial intelligence is used in the hiring process. 
  • This promotes transparency and builds trust in the use of tech in recruitment. 

Pre-Employment Information for New Hires (Effective July 1, 2025) 

  • Employers with 25 or more employees must provide new hires with written details before or at the start of employment. 
  • Required details include the employer’s legal name, contact info, and other prescribed information. 
  • This is helpful as it ensures employers are more accountable to new hires and provides transparency on what new employees can expect. 

No Requirement for Canadian Work Experience (In Effect Now) 

  • Employers cannot request or require Canadian work experience in job postings or application forms. 
  • This is a significant move toward creating more equitable opportunities for newcomers and internationally trained professionals. 

Why It Matters 

These legislative updates aim to close wage gaps—particularly those affecting women, racialized communities, and newcomers to Canada. Transparency in pay and hiring processes also helps reduce bias and discrimination, making it easier for applicants to assess whether roles align with their expectations and qualifications. 

Ontario’s changes mirror efforts in other jurisdictions like British Columbia and reflect a growing global trend toward open, fair, and equitable labour practices. 

What Should Employers Do to Foster Workplace Fairness?  

To prepare for compliance and foster a more inclusive workplace, here’s a quick checklist for Ontario employers: 

Review and update job posting templates to include expected compensation or ranges (max range $50K). 

Audit existing compensation structures to ensure consistency and fairness across roles. 

Determine if AI is used in your hiring process and ensure disclosure is included in job ads. 

Prepare pre-employment information packages for new hires (for employers with 25+ employees). 

Remove any references to Canadian work experience from job postings and application forms. 

Train HR and hiring managers on the new requirements and how to implement them effectively. 

Stay informed on further regulations and details that may be prescribed by the Ministry of Labour. 

Looking Ahead 

These reforms offer a timely opportunity for employers to align with values of fairness, transparency, and inclusion. For job seekers, they provide clearer expectations and a more level playing field. Whether you’re hiring or applying, understanding these new rules is key to navigating Ontario’s evolving employment landscape. 


Need help making sense of what this means for your organization? Let’s talk.