Special thanks to our summer student Brianna Grieff for contributing to this update.
On May 28, 2025, the government of Ontario introduced Ontario’s Working for Workers Seven Act, 2025. The Bill will likely receive royal assent later this year. Although details are subject to change as the Bill is reviewed, employers should know the following:
Key Changes
- Employment Standards Act, 2000 (ESA) amendments:
- Measures against fraudulent job postings: New amendments would require operators of job posting platforms to adhere to new regulations about fraudulent job postings. Platforms must have mechanisms or a procedure to allow users to report fraudulent job postings advertised to the public. Platforms must also develop a written policy that includes information about how the operator of the platform will address fraudulent publicly advertised job postings. The policy must be accessible in a conspicuous place on the platform to ensure it is noticeable to users. The amendment will not apply to job posting platforms operated by an employer that only advertises job postings for that employer.
- New job-seeking leave: The ESA would provide “mass-terminated” employees with up to three days of unpaid leave if they receive notice of termination along with fifty or more other employees in the same four-week period. The purpose of the leave is to help employees transition into a new role by providing time to engage in job searching, training and employment service activities. If the employee takes a partial day of leave, the employer is entitled to count that partial day as one full day of leave. Further, an employer is entitled to require reasonable evidence about the employee’s entitlement to leave.
- New extended lay-offs: The ESA would allow employers to extend a temporary layoff beyond 35 weeks in any period of 52 consecutive weeks, so long as the layoff is no more than 52 weeks in any period of 78 consecutive weeks for non-unionized employees. To comply with the proposed amendment, employers must meet the following conditions:
- the employer and employee agree to the extended lay-off;
- the employer recalls the employee within the time set out in the agreement; and
- the employer receives approval from the Director of Employments Standards.
- Occupational Health and Safety Act (OHSA) amendments:
- Automated external defibrillators reimbursement: The Workplace Safety and Insurance Board (WSIB) will reimburse an employer for the cost of a defibrillator if the Workplace Safety and Insurance Act requires the employer to equip the workplace with a defibrillator.
- Enforcement of administrative penalty scheme: The Bill establishes an administrative penalty scheme under the OHSA. If passed, provincial inspectors will have the authority to issue administrative penalties against a person who has contravened or failed to comply with a provision of the OHSA.
- Workplace Safety and Insurance Act (WSIA) amendments:
- New insurance plan penalties: The WSIA would establish a penalty for employers who make a false or misleading statement or representation to the WSIB in connection to an individual’s benefits claim.
- Increased penalties for offences: The WSIA would introduce a maximum fine of up to $750,000 per conviction for persons found guilty of two or more counts of the same offence in the same legal proceeding.
Takeaways for Employers
- Prepare to train HR and managers on the amendments concerning unpaid days off. Review and update policies and practices to comply with the job-seeking leave. While an employer is entitled to request reasonable evidence of the employee’s entitlement to the leave, they should resist asking for more evidence than necessary. Evidence indicating the employee is taking leave to find new employment, train and/or access employment services is sufficient.
- Use a thoughtful approach if you plan on using an extended temporary lay-off. Employers should develop an internal practice setting out the steps to execute a legally compliant extended lay-off. The practice should reduce the risk of missing key conditions of the leave, including the employees’ agreement and approval from the Director of Employment Standards.
- Update workplace safety measures. Given the incoming changes that will give provincial enforcement entities more teeth, employers should revisit and update their occupational health and safety and worker’s compensation practices, policies, and procedures to ensure they are onside with the law.
By staying informed and proactive, employers can ensure they are compliant with the new regulations and continue to support their workforce effectively. Please contact a member of our team with any questions.