Ontario clarifies job posting rules with new guidelines

Ontario has released new guidelines to clarify legislation aimed at increasing transparency in job postings and hiring practices.

Regulation 476/24, part of the Employment Standards Act, 2000, defines key terms, establish clear exemptions, and introduce specific requirements for compensation disclosures, the use of artificial intelligence (AI) in hiring, and post-interview communications.

The updates follow several months of uncertainty after the original legislation for the latest Working for Workers Act was enacted.

“We definitely needed it,” says Alexander Steele, an associate at McCarthy in Toronto.

“These were big changes for the legislation that created a void, and employers had to step into without knowing how to comply... it's much easier to do that with some guidance from the ministry, either in the form of regulations or, at the very least, published guidelines.”

One of the takeaways for employers is they need to take a close look at their job posting and job description policies, he says: “For many employers, these aren't just small, surgical adjustments — they will have to take a step back and look at the way they're describing their jobs to make sure they comply with the regulations.”

And while the requirements may not come into force until Jan. 1, 2026, it’s a good idea to be prepared, says Steele: “You'd be surprised how quickly a year can go by when you're looking at revising a significant part of your hiring practices.”

HR leader Laurie Mezger says she is trying to stay on top of the changes.

“You need to try to implement them as soon as possible, and get those best practices running before it's legislated,” says the people and culture manager at the YMCA of the National Capital Region.

Which job postings matter?

With the guidelines released last week, the government has clarified that a “publicly advertised job posting” is defined as “an external job posting that an employer or a person acting on behalf of an employer advertises to the general public in any manner.”

However, the term explicitly excludes:

• “A general recruitment campaign that does not advertise a specific position.”
• “A general help wanted sign that does not advertise a specific position.”
• “A posting for a position that is restricted to existing employees of the employer.”
• “A posting for a position for which work is to be...performed outside Ontario.”

The latest information provides “much-needed and welcome clarity” on the scope of the job posting and pay transparency legislation announced previously, says Joseph Cohen-Lyons, senior associate at Norton Rose Fulbright in Toronto.

And what’s important is where the new rules don’t apply, he says.

“So, it doesn't apply to general recruitment campaigns that aren't for a specific position — so just 'Join this employer, it's a great place to work.' It doesn't apply to a ‘Help Wanted’ sign that you might see in the window of a storefront, if the Help Wanted sign doesn't advertise a specific position, and it doesn't apply to internal postings, so postings that are only open to existing employees of the employer.

“And then it doesn't apply to postings for work outside of Ontario.”

The government has “carved out specific types of job postings,” says Steele, “which are not considered ‘publicly advertised job postings’ and therefore subject to the new requirements.”

The new requirements will modify employers’ approach to individual external job postings, he says, “but would not impact generic hiring campaigns or internal hiring processes.”

As a result, employers will need to review their job posting practices, including working with any outside consultants they use, to ensure their practices comply, says Steele.

Compensation disclosure requirements

Under the regulations, the government has clarified that employers must include expected compensation ranges in publicly advertised job postings, with a cap on the width of the range: “For the purposes of subsection 8.2 (3) of the Act, a range of expected compensation shall not exceed an amount equivalent to $50,000 annually.”

However, high-salary positions are exempt from this requirement as “the publicly advertised job posting is for a position that has an expected compensation equivalent to more than $200,000 annually.”

The Ontario government also clarified that “compensation” means wages.

“[That in] itself is a defined term under the Employment Standards Act, and it means money payable to an employee under the terms of an employment contract, any payments required to be made under the ESA, mandatory statutory payments, and then room and board,” says Steele.

But it wouldn’t include things like tips or gratuities, sums that are paid as gifts or bonuses that are dependent on the discretion of the employer, and expenses and traveling allowances or employer contributions to benefit plans, he says.

“The government has described the intent of the legislation as giving workers more information to make informed decisions about their career search, says Steele: “How it will impact compensation as between competitors vying for the same talent pool remains to be seen.”

Disclosing AI use in hiring practices

The new rules will require transparency around AI’s role in screening and assessing candidates.

The latest provincial regulation defines AI as “a machine-based system that, for explicit or implicit objectives, infers from the input it receives in order to generate outputs such as predictions, content, recommendations or decisions that can influence physical or virtual environments.”

It’s important to note that the legislation doesn't prescribe how AI is used or prohibit AI from being used, says Cohen-Lyons: “It just requires employers to disclose that it is being used.”

However, the definition of “artificial intelligence” is broad, says Steel.

“Employers have already been asking us what this means and that it seems extremely broad. It does raise questions of compliance.”

The YMCA of the National Capital Region already lists salary in all of its job postings, says Mezger.

“We also have a statement for artificial intelligence as well, that we don't use artificial intelligence to... scan resumes; we do it manually.”

Post-interview communication in Ontario

Another key clarification involves notifying candidates after interviews. According to the regulation: “For the purposes of section 8.6 of the Act, the prescribed time period is within 45 days after the date of the interview or, if the employer interviews the applicant more than once for the publicly advertised job posting, within 45 days after the date of the last interview.”

Again, the YMCA is already using its HR system to notify interviewees about their status, says Mezger, adding that the 45 days is “a good timeframe.”

The government’s intent is to provide prospective employees with some certainty about their standing in a job search process, says Steele.

“Without the follow-up information, some workers may think they are in the running for a position and as a result may not apply for other positions at other employers.”

To not cause undue “red tape” for employers, the government will allow employer to meet this requirement “in person, in writing, or using technology,” allowing flexibility in how decisions are communicated to their candidates, he says.

“This will impact those outlier employers who don’t advise candidates, or don’t do so in a timely manner — which isn’t fair to candidates looking for answers.”

Balance, transparency for recruitment

The government’s stated purpose for the new regulations is to make the hiring process fairer for jobseekers who are trying to get into the workforce, and to target exploitative employers, says Steele.

“Accordingly, while the changes are significant, the impacts may not be felt equally by all employers. Some may already have procedures and policies in place that already these new requirements. Others may need to revise their job advertising and hiring processes.

“Thankfully, many of the changes do not come into force until January 1, 2026, allowing employers time to adjust.”