Hiring employees in Ontario means working through a layered web of statutes, mandatory policies, and compliance obligations -- and the penalties for getting it wrong can reach well into seven figures. At Hadri Law, our Toronto employment lawyers work exclusively on the employer side of the table, advising business owners and HR teams on everything from workplace policy drafting to Ontario's mandatory recruitment licensing regime. Nassira El Hadri, Founder & Principal Lawyer and an Osgoode Hall LLM graduate admitted to the Law Society of Ontario, brings years of experience advising banks, credit unions, and corporate clients on regulatory compliance and commercial operations.
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Ontario Employer Obligations Every Toronto Business Must Know
Running a business with employees in Ontario means complying with multiple overlapping statutes. A single misstep -- a missing policy, an improperly drafted termination clause, or an uninvestigated harassment complaint -- can trigger Ministry investigations, Human Rights Tribunal complaints, and significant financial liability.
Employment Standards Act, 2000 (ESA)
The ESA sets the floor for employer obligations in Ontario. It governs minimum notice periods for termination (ranging from one week for employees with less than a year of service to eight weeks for those with eight or more years), severance pay requirements for employers with an annual payroll of $2.5 million or more (calculated at one week per year of service, up to a maximum of 26 weeks), vacation entitlements, public holiday pay, and hours of work limits.
The ESA has undergone significant amendments in 2025 and 2026 that directly affect how Toronto employers operate:
- July 1, 2025: Employers with 25 or more employees must now provide written new-hire information to every employee, including the employer's contact details, expected work location, hours of work, compensation details, and pay period
- June 19, 2025: Eligible employees with at least 13 consecutive weeks of tenure are entitled to up to 27 weeks of unpaid long-term illness leave within a 52-week period
- January 1, 2026: Employers with 25 or more employees who post public job advertisements must now disclose the expected compensation range (capped at a $50,000 spread), state whether artificial intelligence is used to screen or assess applicants, confirm whether the posting is for an existing vacancy, and refrain from requiring Canadian experience. Employers must also notify interviewed candidates of the hiring decision within 45 days of their interview
Occupational Health and Safety Act (OHSA)
Every Ontario employer -- regardless of size -- must maintain written workplace violence and workplace harassment policies, and must review these policies at least annually. Under section 32.0.7 of the OHSA, employers must also ensure that an appropriate investigation is conducted into every harassment complaint or incident. Failure to comply with the OHSA can result in penalties of up to $1.5 million for directors and officers of corporations and up to $500,000 for other persons.
Ontario Human Rights Code
The Code prohibits workplace discrimination on the protected grounds set out in the Code, including race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex and pregnancy, sexual orientation, gender identity and expression, age, marital status, family status, disability, and record of offences. Employers must accommodate employees to the point of undue hardship -- a standard that requires documented, good-faith efforts.
Written Workplace Policies
Ontario employers with 25 or more employees face additional mandatory written policy requirements under the ESA:
- Disconnecting from work policy: Must be in place by March 1 each year (the 25-employee threshold is assessed on January 1). The policy must address expectations around after-hours work-related communications, including emails, calls, and messages
- Electronic monitoring policy: Must disclose whether the employer electronically monitors employees, describe how and in what circumstances monitoring occurs, and explain the purposes for which monitoring data may be used. Employers must provide a copy to every employee within 30 days of the policy taking effect and retain each version for three years
Ontario has 410,154 small businesses as of December 2024 -- the most of any province -- and many of them operate without dedicated employment counsel. If your Toronto or GTA business has never had its policies reviewed by a Toronto employment lawyer, the recent wave of ESA amendments means now is the time.
Workplace Policy Drafting for Toronto Employers
One of the most effective ways to reduce employment law risk is to build compliant HR foundations before a dispute arises. Our employment lawyers work with Toronto businesses to draft, review, and update the full suite of workplace policies -- both those required by law and those that protect the employer's interests as a matter of best practice.
Legally Required Policies
Ontario law mandates several written workplace policies:
- Workplace violence policy (OHSA) -- required for all employers
- Workplace harassment policy (OHSA) -- required for all employers, with a corresponding written program that includes investigation procedures
- Disconnecting from work policy (ESA) -- required for employers with 25 or more employees
- Electronic monitoring policy (ESA) -- required for employers with 25 or more employees
Recommended Policies
Beyond what the law requires, prudent employers also maintain:
- Remote and hybrid work policy -- defining expectations for off-site work, data security, and availability
- Progressive discipline policy -- establishing a consistent, documented process that supports termination for cause if needed
- Accommodation policy -- outlining the employer's process for accommodating disability, family status, and religious observance under the Human Rights Code
- Privacy and confidentiality policy -- addressing employee data handling, particularly given the electronic monitoring disclosure requirements
- Social media and AI use policy -- setting boundaries on workplace use of AI tools and social media conduct
Employment Contracts That Hold Up
A well-drafted employment contract is an employer's most important risk management tool. In the wake of recent Ontario Court of Appeal decisions, termination clauses that fail to comply with the ESA are routinely struck down -- leaving employers liable for common law notice that can reach 24 months of salary. A single non-compliant clause can void the entire termination provision, even if the employer intended to comply.
Our lawyers draft employment contracts with clauses that are current with the latest case law and ESA requirements, including:
- Probationary periods -- structured to limit common law notice while remaining ESA-compliant
- Termination provisions -- drafted to withstand judicial scrutiny and properly limit liability to ESA minimums
- Restrictive covenants -- non-competition and non-solicitation clauses that are reasonable in scope and enforceable
- Confidentiality obligations -- protecting trade secrets, client lists, and proprietary business information
- Intellectual property assignments -- ensuring work product created during employment belongs to the business
If your contracts have not been reviewed since 2020, there is a meaningful chance that your termination clauses are no longer enforceable. A proactive compliance audit costs a fraction of what a single wrongful dismissal claim can cost.
Ontario Recruitment Licence Compliance
Ontario introduced a mandatory licensing regime for recruiters and temporary help agencies (THAs) effective July 1, 2024. This is one of the most significant -- and most overlooked -- employer-side compliance requirements in Ontario employment law. Hadri Law is one of the few Toronto employment law firms that advises on recruitment licensing as a core service.
Who Needs a Licence
Any person or business that finds employees for employers, or finds employment for job seekers, for a fee must hold a valid Recruiter Licence issued by the Ontario Ministry of Labour, Immigration, Training and Skills Development (MLITSD). Businesses that also assign temporary workers to client workplaces need a separate Temporary Help Agency Licence. Companies doing both need dual licensing.
Application Requirements
For applications submitted on or after January 1, 2026, the application fee is $1,500 (increased from $750). Applicants must also post a $25,000 electronic letter of credit or surety bond as security -- though this requirement is waived for recruiters who do not place foreign nationals or who only place workers in positions paying at or above Ontario's median hourly wage. Additional requirements include a tax compliance verification number from the Ontario Ministry of Finance, disclosure of prior ESA orders and any licence refusals in other Canadian jurisdictions, and proof of WSIB registration.
What Employers Must Know
Employers cannot knowingly engage or use the services of an unlicensed recruiter or THA. Before retaining any staffing agency or recruitment firm, verify their licence status through the Ministry's public licensing portal. Using an unlicensed recruiter is itself an ESA violation, exposing the employer to potential compliance orders and monetary penalties from the MLITSD.
Licences resulting from applications submitted on or after January 1, 2026 are now valid for two years (extended from one year). The MLITSD can refuse or revoke a licence on grounds including prior non-compliance with the ESA, charging illegal fees to foreign nationals, criminal convictions related to human trafficking or immigration fraud, or failure to maintain WSIB coverage and tax compliance.
How We Help
Our employment lawyers assist Ontario and foreign recruiters applying for their first licence, staffing agencies managing dual licensing requirements, businesses responding to Ministry compliance inquiries, and applicants appealing licence denials or revocations to the Ontario Labour Relations Board (OLRB). For international companies entering the Ontario market, our ability to work in English, French, Spanish, and Catalan is particularly valuable when dealing with foreign recruitment operations.
Terminations, Dismissals, and Employer Liability in Ontario
Most employers contact a Toronto employment lawyer only after they have received a demand letter from a terminated employee. The employers who contact us before making the termination decision are the ones who rarely face those demands.
ESA Minimum Notice
The Employment Standards Act sets minimum notice requirements based on length of service:
| Length of Service | Minimum Notice |
|---|---|
| Less than 1 year | 1 week |
| 1 to 3 years | 2 weeks |
| 3 to 4 years | 3 weeks |
| 4 to 5 years | 4 weeks |
| 5 to 6 years | 5 weeks |
| 6 to 7 years | 6 weeks |
| 7 to 8 years | 7 weeks |
| 8 or more years | 8 weeks |
Employers with an annual payroll of $2.5 million or more must also provide severance pay when terminating employees with five or more years of service: one week per year of service, to a maximum of 26 weeks.
Common Law Notice
ESA minimums are only the floor. Ontario courts regularly award common law notice periods that far exceed statutory minimums -- in some cases reaching up to 24 months of compensation. Courts assess reasonable notice using the Bardal factors: the employee's age, length of service, character of employment, and availability of comparable work. A termination clause that does not properly limit the employer's liability to ESA minimums -- or that contains any provision that falls below the ESA floor -- can be struck down entirely, leaving the employer exposed to common law notice.
Just Cause Termination
Termination for cause -- which eliminates the obligation to provide notice or severance -- requires proof of wilful misconduct, disobedience, or wilful neglect of duty that is not trivial and has not been condoned by the employer. This is an exceptionally high bar. Most employers who attempt to terminate for cause without proper legal advice find that their grounds do not meet the legal threshold, resulting in costly wrongful dismissal claims.
Constructive Dismissal Risks
Employers must also be aware that significant unilateral changes to an employee's compensation, responsibilities, title, or work location can constitute constructive dismissal -- a deemed termination that triggers the same notice and severance obligations as a without-cause termination. Even well-intentioned organizational restructuring can give rise to constructive dismissal claims if the changes materially alter the terms of employment.
Mass Termination
When 50 or more employees are terminated within a four-week period at an establishment, special rules apply. Employers must provide extended notice -- eight weeks for 50 to 199 employees, 12 weeks for 200 to 499 employees, and 16 weeks for 500 or more employees -- and must complete and deliver Form 1 to the Director of Employment Standards. Notice of mass termination is not effective until the Director receives Form 1.
Recent ESA amendments add further employer obligations: as of November 27, 2025, employees receiving working notice as part of a mass termination are entitled to up to three unpaid days of leave to search for new employment.
The Value of Proactive Employment Counsel
A pre-termination legal review, properly drafted employment contracts, and documented performance management all reduce the cost of ending an employment relationship. Call (437) 974-2374 before the termination decision is made -- not after the demand letter arrives.
Serving Toronto and GTA Employers
Our office at First Canadian Place, 100 King Street West, Suite 5700, places us in the heart of Toronto's Financial District -- steps from the Ontario Labour Relations Board, the Human Rights Tribunal of Ontario, and the Ministry of Labour. We serve employers across Toronto, including businesses in North York, Etobicoke, Scarborough, and Yorkville, as well as throughout the Greater Toronto Area, including Mississauga, Oakville, Burlington, Hamilton, Kitchener, Niagara, Vaughan, and Markham.
Ontario's private sector employs nearly five million people, and small and medium-sized enterprises make up the vast majority of the province's employer businesses. Whether your company has five employees or five hundred, the ESA, OHSA, and Human Rights Code apply to you -- and the compliance environment is only becoming more complex.
We also serve international companies establishing their first Ontario operations. For businesses expanding from Europe, Latin America, or North Africa, employment law compliance is often the first legal hurdle -- from drafting ESA-compliant employment contracts to understanding mandatory workplace policies and the recruitment licensing regime. Our ability to work in English, French, Spanish, and Catalan -- combined with our corporate and commercial law expertise -- makes us a natural fit for foreign businesses working with a Toronto employment lawyer for the first time.
Frequently Asked Questions
How much does an employment lawyer cost for an employer in Toronto?
Employment lawyer fees vary significantly based on the lawyer's experience and the complexity of the matter. Many employer-side matters -- such as policy drafting, contract reviews, or compliance audits -- can be structured as fixed-fee or project-based engagements, which provide budget certainty. Proactive legal counsel almost always costs less than defending a wrongful dismissal claim. Call (437) 974-2374 for a free consultation to discuss fees for your matter.
What is the difference between an employee and an independent contractor in Ontario?
The distinction depends on the degree of control the hiring party exercises, whether the worker provides their own tools, the level of financial risk the worker assumes, and the degree of integration into the business. Misclassifying an employee as an independent contractor can result in liability for unpaid ESA entitlements, CPP and EI premiums, and potential CRA penalties.
Does my Ontario business need a workplace harassment policy even with fewer than five employees?
Yes. The Occupational Health and Safety Act requires all Ontario employers to maintain written workplace violence and workplace harassment policies, regardless of the number of employees. There is no small-employer exemption. The OHSA also requires a written harassment program that includes investigation procedures and annual policy review.
What is just cause for termination in Ontario, and how high is the bar?
Just cause requires proof of wilful misconduct, disobedience, or wilful neglect of duty that is not trivial and has not been condoned by the employer. Ontario courts set this bar very high. Isolated incidents of poor performance, personality conflicts, or a single act of negligence will almost never meet the threshold. Employers who terminate for cause without meeting this standard face wrongful dismissal liability.
Can I include a probationary period in my employment contract in Ontario?
You can include a probationary period, but it does not eliminate your ESA obligations. The ESA's minimum notice requirements apply to employees with three or more months of continuous employment, regardless of any contractual probationary period. A probationary clause can limit common law notice entitlements during the initial period, but only if it is properly drafted and compliant with the ESA.
What changed in Ontario employment law in 2026?
As of January 1, 2026, Ontario employers with 25 or more employees who publicly advertise job postings must disclose the expected compensation range, state whether AI is used to screen applicants, confirm whether the posting is for an existing vacancy, and avoid requiring Canadian experience. The recruiter and temporary help agency licensing regime also extended to two-year licence terms and increased the application fee to $1,500.
Sources & Official Resources
Ontario Statutes Cited
- Employment Standards Act, 2000
- Occupational Health and Safety Act, R.S.O. 1990, c. O.1
- Ontario Human Rights Code
ESA Guidance & Recent Changes
- Termination of Employment, ESA Guide
- Severance Pay, ESA Guide
- Long-Term Illness Leave, ESA Guide
- Mandatory Information for Employees, ESA Guide
- Written Policy on Disconnecting from Work, ESA Guide
- Job-Seeking Leave, ESA Guide
- Requirements Related to Publicly Advertised Job Postings, ESA Guide
- Licensing of Temporary Help Agencies and Recruiters, ESA Guide
OHSA Guidance
- Workplace Violence and Workplace Harassment, OHSA Guide, Part III.0.1
- Offences and Penalties, OHSA Guide, Part IX
Ontario Human Rights Commission
Federal Statistics
- Ontario Ministry of Labour, Licensing Temporary Help Agencies and Recruiters
- Ontario Labour Relations Board (OLRB)
Contact a Toronto Employment Lawyer Today
If your Toronto or GTA business needs compliant workplace policies, properly drafted employment contracts, recruitment licence assistance, or a pre-termination legal review, Hadri Law provides big-firm calibre with boutique attention. You will work directly with experienced lawyers -- not be handed off to junior associates.
Call (437) 974-2374 for a free consultation.
First Canadian Place, 100 King Street West, Suite 5700, Toronto, ON
This content provides general information and is not legal advice. Every situation is different. Contact a lawyer to discuss your specific circumstances.
