Ontario Labour Law 2025: Working for Workers Seven Act

The Ontario government has introduced the Working for Workers Seven Act, 2025, proposing a wide range of legislative and regulatory changes aimed at protecting workers and strengthening the province’s economy in the face of uncertainty, particularly the impact of U.S. tariffs.

The Act outlines 18 reforms that touch on everything from workplace safety and job fraud prevention to immigration program flexibility and expanded layoff rules. Employers across Ontario should review these changes closely to stay compliant, reduce legal risk, and plan for what’s ahead.

1. Temporary Layoffs May Be Extended Beyond 35 Weeks

To help employers maintain employment relationships during periods of economic uncertainty, the Act would allow temporary layoffs to go beyond the current 35-week limit without triggering termination or severance pay obligations under the Employment Standards Act, 2000.

What this means:
This extension gives employers breathing room during downturns but does not eliminate all risks. Employers must still follow clear documentation and procedural requirements to avoid constructive dismissal claims.

2. New Rules for Mass Terminations

The Act introduces new employer obligations during mass terminations, including:

• Providing affected employees with up to three unpaid days off to search for jobs or attend employment service appointments.
• Requiring employers to provide information about government retraining and job search programs.
• Preparing to cooperate with Action Centres, rapid-response hubs that will offer targeted retraining referrals and support.

3. Automated External Defibrillators (AEDs) Required on Construction Sites

Construction projects with 20+ workers lasting longer than three months must be equipped with AEDs on-site. The WSIB will offer reimbursements for qualifying purchases.

This change follows data showing over 15% of construction inspection reports involved cardiac incidents. The reform aligns with stakeholder recommendations from previous consultations.

4. Health & Safety Accreditation Will Matter More

Public infrastructure project owners and contractors may soon be required to recognize Chief Prevention Officer-accredited health and safety systems (HSMS) as equivalent in procurement processes. A new Administrative Monetary Penalty (AMP) regime will support enforcement under the Occupational Health and Safety Act (OHSA).

5. WSIB Compliance Enforcement Is Being Strengthened

The Act cracks down on employers that:

• Submit false information to the WSIB
• Hide payroll records
• Evade WSIB premiums

Why it matters:
These measures aim to ensure injured workers receive proper compensation and that all employers contribute fairly. Employers should audit their reporting and ensure compliance now.

6. Fighting Job Posting Scams and Employment Fraud

To protect job seekers from rising job fraud (which cost Ontario workers nearly $15 million in 2024), the Act would:

• Require job posting platforms to include a way for users to report fraudulent listings.
• Launch consultations on regulating talent agents, managers, and worker representatives to prevent exploitation.
• Review employer access to employee electronic data, considering additional privacy protections.

7. New Supports for Training and Skilled Trades

Several reforms aim to accelerate access to training programs, particularly in the skilled trades:

• Exempt Skills Development Fund (SDF) capital projects from certain land use and permit requirements
• Increase funding for mobile training units that deliver hands-on experiences to youth
• Prioritize apprentice hiring in public infrastructure projects

8. Ontario Immigrant Nominee Program (OINP) Modernization

To improve integrity and efficiency, the legislation proposes:

• Allowing the Minister to establish or close OINP streams based on labour market needs
• Granting inspectors the power to conduct in-person interviews with OINP applicants
• Giving the government authority to return mismatched applications
• Launching a new employer portal for electronic submissions by summer 2025

Final Thoughts for Employers

The Working for Workers Seven Act, 2025 is one of the most expansive labour-related bills to date. It offers employers new tools but also creates new legal obligations.

Whether you’re planning a mass termination, managing a construction site, hiring skilled trades, or using the OINP, now is the time to ensure your workplace policies, contracts, and safety protocols are aligned with the coming changes.