Hiring and Onboarding Employees in Ontario: The Legal Risks That Start Before Day One

Most employer-side legal disputes do not originate at termination. They originate at hiring. An unenforceable termination clause, a missing employment agreement, an illegal interview question, a background check policy that was never reviewed against Ontario law, or a failure to provide mandatory safety training before an employee's first shift all of these are hiring and onboarding failures that surface months or years later as expensive problems. Getting the hiring process legally sound from the start is far less costly than correcting problems after an employee has been terminated, filed a complaint, or claimed discrimination.

Is your hiring process job postings, interview questions, employment agreements, and onboarding steps legally compliant with Ontario's current requirements?

Employment law, human rights obligations, and occupational health and safety requirements all apply before an employee starts work. Get your hiring process reviewed before the next onboarding cycle, not after a complaint has been filed.

Call: 1-800-771-7882 Get Your Process Reviewed

Where hiring and onboarding create the most legal risk for Ontario employers

Risk 1

Unenforceable or missing employment agreements

This is the most consequential hiring failure. Where no written employment agreement exists, or where the agreement contains a void termination clause, the employer defaults to common law reasonable notice on termination which can be significantly higher than what a properly drafted clause would have provided. Ontario courts have voided termination clauses at a high rate since Waksdale (2020) and the subsequent cases. Any agreement drafted before these decisions should be reviewed. Any agreement presented to an employee after they have already accepted the role verbally requires fresh consideration to be enforceable.

Risk 2

Illegal or problematic interview questions

Ontario's Human Rights Code prohibits questions that directly or indirectly seek information about a protected characteristic including age, family status, disability, religion, and place of origin at the pre-offer stage. A single prohibited question asked during an interview can anchor a Human Rights Tribunal complaint if the candidate is not hired. See our post on hiring bias and discrimination in Ontario for the full list of prohibited topics.

Risk 3

Non-compliant background check practices

Ontario employers can conduct background checks but only within legal limits. Criminal record checks require written consent and must be relevant to the specific role. Using criminal record information to screen out candidates where the record is not connected to the job may constitute discrimination under the Human Rights Code. Drug and alcohol testing is a particularly high-risk area addiction is treated as a disability in Ontario and blanket testing policies are generally not permitted except in narrow safety-sensitive contexts.

Risk 4

Failure to meet mandatory onboarding obligations

Several onboarding steps are legally required in Ontario rather than merely best practice. New workers must receive workplace health and safety orientation and training under the Occupational Health and Safety Act before beginning work. Employers must provide written copies of their workplace harassment and violence policies. Accessibility training and accommodation procedures must be communicated. Failure to meet these requirements creates regulatory exposure and significantly weakens an employer's position if a workplace incident or complaint arises later.

Risk 5

Incorrect worker classification from the start

Where a new hire is classified as an independent contractor but the working arrangement will function as employment in practice, the misclassification problem begins at onboarding not later. The consequences include back-owed ESA entitlements, CPP and EI contribution liability, and potential Canada Revenue Agency enforcement. Review every contractor arrangement against the legal test before onboarding begins.

The employment agreement: what must be in place before day one

The employment agreement must be signed before the employee starts work not after, and not once they have already accepted the role verbally without having seen the contract. An agreement presented after the employee has accepted and started without additional consideration is legally vulnerable. The agreement must address compensation, termination provisions, confidentiality, any post-employment restrictions, and any probationary arrangement. The termination clause must comply with Ontario's Employment Standards Act, 2000 and must not be ambiguous.

Consideration is one of the most commonly missed requirements in onboarding. Where an employment agreement is first presented after the verbal offer has been accepted and the employee has begun making plans to start giving notice to their current employer, declining other opportunities the new agreement requires fresh consideration beyond just the job itself. A bonus, a signing payment, or another benefit of value must accompany any agreement presented after the original offer was accepted. Without it, the agreement and the termination clause within it may be unenforceable.

Background checks: what Ontario employers can and cannot do

Permitted with appropriate process

Reference checks with candidate consent
Criminal record checks where relevant to the specific role, with written consent
Sector-specific screening required by law or licensing bodies
Credit checks where the role involves direct financial responsibility, with consent

Not permitted or legally risky

Criminal record screening where the record is not connected to the role's genuine requirements
Blanket drug and alcohol testing outside safety-sensitive roles with objective reasonable cause
Collecting unnecessary personal information beyond what the specific role requires
Using information obtained in a background check to make decisions based on a protected ground

Mandatory onboarding steps under Ontario law

Written employment agreement signed before work begins including ESA-compliant termination provisions and any probationary clause

Workplace health and safety orientation and training before the new worker performs any work required under Ontario's Occupational Health and Safety Act

Written workplace harassment and violence policies provided to every new employee under the OHSA

Accessibility and accommodation information provided in accordance with the Accessibility for Ontarians with Disabilities Act

ESA poster displayed in the workplace or provided to employees required under the Employment Standards Act, 2000

Clear communication of compensation structure, hours of work, and reporting relationships including any bonus plan terms that will govern the employee's entitlement on termination

Is your hiring and onboarding process creating legal exposure you are not aware of?

Most employer-side wrongful dismissal, human rights, and ESA claims trace back to mistakes made at the hiring stage. Our team advises employers on employment agreements and compliant hiring practices. Get your process reviewed before the next hire.

Get Legal Advice Or call us: 1-800-771-7882

Practical takeaways for Ontario employers

Employment agreements must be signed before the employee starts work not after, and not once they have already verbally accepted without having seen the contract

A termination clause presented after a verbal acceptance has already been made requires fresh consideration a signing bonus or other benefit to be enforceable

Review your termination clauses against the post-Waksdale standard before every new hire outdated or template clauses are frequently void under current Ontario case law

Criminal background checks must be consent-based, relevant to the role, and not used to make decisions connected to a protected ground under the Human Rights Code

Workplace health and safety training is legally required before a new worker begins work it is not optional and the obligation applies from day one regardless of role or seniority

Review contractor arrangements against the legal test before onboarding misclassification that begins at hiring creates retroactive ESA and CRA liability that compounds over time

Frequently asked questions about hiring and onboarding in Ontario

Do Ontario employers need a written employment contract?

There is no statutory requirement for a written employment agreement, but operating without one is very high risk. Without a valid written termination clause, the employer is exposed to common law reasonable notice on termination which can be significantly higher than the ESA minimum. A properly drafted agreement with an enforceable termination clause is the single most effective way to manage wrongful dismissal exposure from the start of the employment relationship.

Are background checks legal in Ontario?

Yes, with limitations. Reference checks and role-relevant criminal record checks conducted with written consent are generally permitted. The results must be used appropriately a criminal record that is not connected to the specific role's genuine requirements cannot lawfully be used to screen a candidate out without creating human rights exposure. Drug and alcohol testing is one of the most restricted areas in Ontario addiction is treated as a disability and blanket testing policies are generally prohibited except in narrow safety-sensitive contexts.

Is workplace safety training legally required when onboarding new employees in Ontario?

Yes. Ontario's Occupational Health and Safety Act requires employers to provide workplace health and safety orientation and training before new workers begin work. Written workplace harassment and violence policies must also be provided. These are legal obligations, not best practices failure to meet them creates regulatory exposure and weakens an employer's position significantly if a workplace incident or complaint arises.

What happens if my employment agreement is found to be unenforceable in Ontario?

Where a termination clause is void because it violates the ESA, is ambiguous, or lacks adequate consideration the employer's termination exposure defaults to common law reasonable notice, calculated on the employee's age, length of service, position, and job market conditions. For senior or long-service employees, this can represent a year or more of compensation significantly above what a valid clause would have limited. The cost of drafting a compliant agreement is a fraction of the cost of a common law notice award.

Can hiring mistakes lead to legal claims in Ontario?

Yes and they frequently do. An illegal interview question can anchor a Human Rights Tribunal complaint from a rejected candidate. A missing or void employment agreement creates wrongful dismissal exposure from the first day of employment. A non-compliant background check policy can give rise to a human rights complaint. Inadequate safety orientation creates regulatory exposure under the OHSA. Most of these issues are avoidable with proper legal review before the hiring process begins.

Questions about employment agreements, hiring compliance, or onboarding obligations in Ontario?

Our team advises employers across Ontario on employment agreements, hiring practices, and onboarding compliance. Contact us for a confidential consultation before your next hire.

Call us at 1-800-771-7882 or fill out the form below and we will be in touch.

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. ©

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