MENA Newswire, TORONTO, December 28, 2025: Ontario will introduce new pay transparency and hiring disclosure requirements on January 1, 2026, marking a significant update to the province’s Employment Standards Act, 2000 (ESA). The changes will affect how employers advertise jobs, disclose compensation, and communicate with applicants, aiming to improve clarity and fairness in the hiring process across the province. Under the new regulations, employers with 25 or more employees will be required to include either the expected rate of pay or a defined salary range in all publicly advertised job postings. The disclosed range cannot exceed $50,000 between the lowest and highest figures unless the top end of the range surpasses $200,000 annually. Employers must also specify all forms of remuneration, including base salary, bonuses, commissions, and other non-discretionary pay. The rule is designed to ensure that job seekers have a clear understanding of compensation before applying.
Employers will additionally need to inform applicants when artificial intelligence is used to screen, assess, or select candidates during recruitment. Job advertisements must explicitly state whether AI systems play a role in the hiring process. This new disclosure requirement reflects growing attention to transparency in the use of automated decision-making technologies in employment, ensuring applicants understand when digital tools influence hiring outcomes. The reforms also eliminate the ability of employers to request “Canadian experience” in job postings or on application forms. This change is intended to promote equitable access to employment opportunities for internationally trained professionals and newcomers to Ontario. Job postings must also specify whether the position being advertised represents an existing vacancy or a general recruitment initiative, allowing applicants to distinguish between current job openings and broader talent searches.
AI disclosure becomes mandatory in Ontario hiring
To address concerns about communication with candidates, employers will now be obligated to notify all interviewed applicants of the outcome of the hiring process. Those who have participated in interviews must receive confirmation of the employer’s decision within 45 days of their final interview. This notification must be issued in person or in writing, and employers must retain a record of these communications for three years. The rule applies only to interviewed candidates and does not extend to individuals who submitted applications but were not selected for interviews. The transparency requirements will apply solely to employers with 25 or more workers in Ontario. Smaller workplaces, temporary help agencies, and general “help wanted” postings are exempt. Employers covered by the regulation will be required to maintain records of all publicly advertised job postings, application forms, and follow-up communications with interviewed candidates for at least three years after a posting is no longer active.
The Ministry of Labour, Immigration, Training and Skills Development has outlined that these provisions are intended to strengthen fairness and accountability in recruitment practices while providing job seekers with clearer expectations regarding pay and hiring procedures. The new framework follows an international trend toward mandatory pay transparency, seen in several jurisdictions including parts of the United States and Europe. Ontario’s legislative changes represent a structured approach to employment disclosure standards, setting uniform rules across medium and large employers in the province. By mandating salary visibility, AI transparency, and communication obligations, the government aims to formalize consistent hiring practices under the ESA. Employers are now preparing to update their job posting templates, internal procedures, and data retention systems ahead of the January 2026 implementation deadline.
Pay transparency becomes integral to hiring practices
With these new measures, Ontario will become one of the first provinces in Canada to enforce province-wide salary disclosure requirements across multiple sectors. The regulatory updates are expected to affect thousands of organizations and millions of job postings annually, making pay transparency a defining element of employment practices in the province starting in 2026. Employers across industries are expected to begin revising internal human resources systems, compliance documentation, and job posting formats to align with the new standards. The move is expected to create greater consistency across both public and private sector hiring, ensuring that salary information, AI usage, and candidate follow-ups are handled uniformly. The Ministry of Labour will oversee compliance once the new regulations take effect on January 1, 2026, with potential penalties for employers who fail to meet the requirements.