Ontario ESA Changes in 2026 - The Hiring Process

Hiring and Recruitment Best Practices in Ontario for 2026 and Beyond

The Landscape of Hiring in Ontario Is Changing

Hiring the right people is one of the most important and legally sensitive parts of running a business. In Ontario, employers must comply with a growing set of employment laws that govern how positions are advertised, how candidates are evaluated, and how employment offers are made.

With new Employment Standards Act (ESA) amendments coming into effect on January 1, 2026, the province is moving toward greater transparency, fairness, and accountability in the recruitment process.

For employers, this means updating hiring practices, job posting templates, and HR policies to align with these evolving legal standards.

The Legal Framework for Hiring in Ontario

Ontario employers must ensure that every stage of recruitment, from job postings to interviews, complies with several key laws:

  • Employment Standards Act, 2000 (ESA): Sets minimum employment standards, including upcoming hiring transparency requirements.
  • Ontario Human Rights Code: Prohibits discrimination in hiring based on protected grounds such as race, gender, disability, or age.
  • Accessibility for Ontarians with Disabilities Act (AODA): Requires that hiring processes accommodate applicants with disabilities.
  • Personal Information Protection Laws: Protect candidate data during and after recruitment.

Together, these laws establish a foundation for fair, transparent, and equitable hiring in Ontario.

Key ESA Hiring Changes Coming January 2026

The Ontario government is introducing new requirements to promote fairness and transparency in hiring. These changes affect all employers who post jobs publicly, regardless of size or sector.

a. Pay Transparency in Job Postings

Employers will be required to include an expected salary or salary range in all publicly advertised job postings.

This change aims to promote pay equity and reduce wage gaps across Ontario workplaces, particularly for women and marginalized workers.

  • Employer Action: Update job posting templates and ensure salary ranges reflect your internal pay structure.

b. Disclosure of Artificial Intelligence in Hiring

If your business uses artificial intelligence (AI) or algorithmic tools to screen, assess, or select job candidates, you must disclose this in your job postings.

This requirement ensures applicants understand when technology, rather than humans, plays a role in hiring decisions.

  • Employer Action: Audit your HR systems, applicant tracking software, and recruitment tools to identify any use of AI in hiring and update postings accordingly.

c. Record Retention Requirements

Employers will need to retain copies of all publicly advertised job postings and related documentation for three years after the posting closes.

This helps the Ministry of Labour monitor compliance with the new ESA rules and provides evidence if a hiring-related complaint arises.

  • Employer Action: Create a system to archive job postings, interview notes, and application records securely for the required period.

Unionized Employers and the ESA

The ESA applies to most Ontario employers, including those with unionized workforces. However, if a collective agreement (CA) provides equal or greater protections than the ESA in specific areas (such as vacation, overtime, or termination), the CA provisions will prevail.

Unionized employers must ensure hiring practices comply with both the ESA and their collective agreements, particularly when it comes to job postings, seniority rights, and internal transfers.

  • Example: A unionized municipality posting a job externally must still comply with the new 2026 ESA rules requiring salary disclosure and notice of AI use, even if the CA governs internal postings.

Failing to reconcile these obligations can lead to grievances, fines, and reputational risks.

Hiring Best Practices for Ontario Employers

With these changes approaching, employers should focus on building a compliant, transparent, and inclusive hiring process.

a. Use Clear, Inclusive Job Postings

  • Include accurate job titles and essential duties.
  • Avoid discriminatory language or criteria.
  • Clearly state pay ranges and AI use (where applicable).
  • Provide details about accommodation processes for applicants with disabilities.

b. Standardize Interview and Evaluation Procedures

  • Train interviewers to avoid bias and human rights violations.
  • Use consistent evaluation criteria for all candidates.
  • Avoid inappropriate or invasive questions (e.g., age, marital status, or family plans).

c. Document the Hiring Process

  • Keep copies of postings, candidate communications, and selection notes.
  • Record reasons for hiring decisions in case of later disputes.

d. Review and Align Employment Offers

  • Ensure all offer letters meet ESA minimums and are free from illegal clauses (e.g., unenforceable termination provisions).
  • Verify that the compensation aligns with posted salary ranges.

e. Train and Educate Managers

  • Front-line supervisors and hiring managers play a critical role in compliance. Regular training on recruitment obligations helps prevent unintentional violations.

“Proactive compliance is the best form of risk management. Employers who adapt early to the 2026 ESA changes will be better positioned to attract top talent while avoiding legal exposure.”

Christopher Achkar, Employment Lawyer, Achkar Law

Why Proactive Compliance Matters

Ontario’s recruitment laws are not just about avoiding penalties; they’re about building trust and fairness in the workplace.

Transparent hiring practices:

  • Attract higher-quality candidates.
  • Reduce turnover and improve retention.
  • Support diversity, equity, and inclusion goals.
  • Protect employers from costly disputes and investigations.

A strong hiring policy is also a signal to employees and candidates that your organization values integrity, fairness, and accountability.

How Achkar Law Can Help Employers

At Achkar Law, we help employers across Ontario address the complex intersection of employment law, policy, and compliance.

Our team can assist with:

  • Reviewing and updating job posting templates for 2026 ESA compliance.
  • Drafting legally sound recruitment and hiring policies.
  • Training HR and management teams on inclusive hiring practices.
  • Advising unionized employers on aligning collective agreements with ESA changes.

In Summary

Ontario’s recruitment landscape is shifting toward greater transparency and accountability.

The 2026 ESA amendments requiring pay disclosure, AI transparency, and record retention mark a significant step in modernizing how employers attract and hire talent.

By adopting best practices and preparing now, employers can ensure their hiring processes remain compliant, competitive, and fair.

Need help reviewing your hiring policies or
preparing for the 2026 ESA changes?

Contact Achkar Law today to schedule a consultation with an employment lawyer.

We help Ontario employers stay ahead of legal developments and build workplaces that succeed lawfully and sustainably.

The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©