Ontario Employment Law Guide

What’s New in 2025

• Minimum wage increase (October 1, 2025)
• Employment information for new hires (July 1, 2025)
• Long-term illness leave (June 19, 2025)

Overview of Employment Law in Ontario

Federal vs. provincial jurisdiction

Ontario employees working for federally regulated private sector businesses are covered by federal labour standards, industrial relations, and occupational health and safety provisions of the Canada Labour Code (CLC). 

Federally regulated private sector businesses include:

• Air transportation.
• Banks.
• Grain elevators, feed and seed mills, feed warehouses, and grain-seed cleaning plants.
• Certain activities of First Nations band councils and Indigenous self-governments.
• Most federal Crown corporations.
• Port services, marine shipping, ferries, tunnels, canals, bridges, and oil and gas pipelines that cross international or provincial borders.
• Postal and courier services.
• Radio and television broadcasting.
• Railways that cross provincial or international borders, and certain short-line railways.
• Road transportation services that cross provincial or international borders (including trucks and buses).
• Telecommunications systems, including telephone, internet, telegraph, and cable.
• Uranium mining and processing, and atomic energy.
• Any business that is vital, essential, or integral to the operation of the above activities.

Despite this long list, the CLC only covers a small percentage of workers in Canada. The majority of Canadian workers are covered by the labour laws of the province or territory where they work. 

Unless stated otherwise, this guide only covers employees regulated by Ontario’s labour laws. 

Key employment legislation

Ontario’s main labour standards law is the Employment Standards Act (ESA). 

The ESA generally applies to all employees working in Ontario, with specific exceptions, including:

• Those covered by the CLC.
• Diplomatic employees from other countries.
• Police officers.
• Politicians, judges, and clergy. 
• Secondary school students participating in work experience schemes.
• Workers under a college or university placement.
• Individuals participating in the Community Participation Program under the Ontario Works Act.
• Inmates involved in work projects or rehabilitation initiatives.
• Individuals ordered to work by a court order, sentence, or under the Youth Criminal Justice Act.

Here’s the full list of employees excluded from the ESA. 

The ESA sets various minimum employment standards, including wage and hour laws, leave laws, and youth labour laws. Individual employment contracts or collective agreements may provide greater protections and entitlements than the ESA. However, unless specified by law, employers and employees can’t agree to employment conditions less than those under the ESA.

Wages and Pay Rules

Minimum wage

Ontario’s general minimum wage is currently $17.20/hour. 

The minimum wage is adjusted annually based on the Consumer Price Index. It increases to $17.60/hour on October 1, 2025. 

Ontario also has specific minimum wages for:

• Students: $16.20/hour (increasing to $16.60/hour on October 1, 2025).
• Hunting, fishing, and wilderness guides: $86/hour for less than 5 consecutive hours in a day (increasing to $88.05/hour on October 1, 2025) and $172.05/hour for 5 or more consecutive hours in a day (increasing to $176.15/hour on October 1, 2025).
• Homeworkers: $18.90/hour (increasing to $19.35/hour on October 1, 2025).

The minimum wage generally applies to all employees covered by the ESA, with some exceptions for specific professions, such as:

• Chiropractors, dentists, pharmacists, and physicians. 
• Travelling salespeople (commission-based) and real estate agents.
• Farm employees and fishers.
• Architects, lawyers, and public accountants.

Here are the full lists of jobs exempt from the ESA minimum wage. 

Overtime pay

Under the ESA, employees must be paid 1.5 times their regular rate for any hours worked over 44 in a week. 

Employees can receive time off in lieu instead of overtime pay at a rate of 1.5 hours per hour of overtime worked. This must be agreed with their employer electronically or in writing. 

Any accrued time off must be used within 3 months of earning it, unless the employee agrees to take it within 12 months. 

Various workers are exempt from overtime pay, including:

• Ambulance drivers.
• Firefighters.
• Paramedics.
• Salespersons (commission-based).
• Real estate agents.
• Taxi cab drivers.
• Farm employees.
• Landscape gardeners.
• Professionals, including architects, engineers, managers, and supervisors.

Specific overtime rules also apply to some workers, for example:

• Construction workers involved in building streets, highways, or parking lots (overtime pay only starts after 55 hours of work).
• Fresh fruit and vegetable processors (overtime pay starts after 50 hours of work).

Here are the overtime rules for specific workers. 

Averaging agreements

Employees can also agree to average their hours over 2, 3, or 4 weeks to calculate overtime. An employee becomes eligible for overtime pay if their average weekly hours during this period exceed 44. 

Averaging agreements last up to 2 years. They can be terminated before this if both the employee and employer agree in writing. 

Statutory holiday pay

There are 9 official public holidays in Ontario:

• New Year’s Day.
• Family Day.
• Good Friday.
• Victoria Day.
• Canada Day.
• Labour Day.
• Thanksgiving Day.
• Christmas Day.
• Boxing Day (December 26).

Under the ESA, many employees have the right to take these days off and receive public holiday pay. 

Alternatively, employees can agree to work these days as long as they receive:

• Public holiday pay and premium pay (1.5 times their regular pay rate) for all hours worked or 
• Their normal pay rate, plus an additional day off (“substitute” holiday) paid at public holiday rates.

An employee’s public holiday pay is calculated as:

The total regular wages they earned in the 4 weeks before the public holiday work week + The total vacation pay they earned in the same 4-week period / 20

Employees may lose their right to public holiday pay if they don’t work:

• All of their scheduled work day before or after the public holiday (unless they have reasonable cause, for example, due to illness).
• All of the scheduled public holiday shifts they agreed or were required to work (unless they have reasonable cause).

Certain types of employees, for example, those working in a hospital, may have to work public holidays if they’re on a scheduled work day and not on other leave. 

Employees who are exempt from the ESA’s public holiday pay requirements include:

• Certain health professionals, including dentists and optometrists.
• Swimming pool installers and maintenance.
• Real estate agents.
• Taxi cab drivers.

Special rules also apply to other employees, such as road construction, hospitality, and retail workers. 

Pay frequency and deductions

Wage payments

Employees must have regular pay periods and pay days, and employers must pay them according to these. 

These wages can be paid by:

• Cash, either in the workplace or at another location agreed to by the employee.
• Cheque, either in the workplace or at another location agreed to by the employee.
• Direct deposit to an account of the employee’s choosing, if the account is in the employee’s name and no unauthorized person has access to it.

The ESA requires employers to provide employees with wage statements on or before their regular payday. These statements must include details of:

• The dates of the relevant pay period.
• The relevant wage rate.
• Gross wages and how they’re calculated (required if this information isn’t provided elsewhere, like in an employment contract).
• Any deductions during the period.
• Any room or board paid during the period.
• Net wages.

Wage deductions

Employers can only make the following deductions from an employee’s wages:

• Deductions required by law, for example, taxes.
• Deductions required by a court order, for example, child support.
• Deductions authorized in writing by the employee.

Deductions for losses due to faulty work, cash shortages, or lost or stolen property are generally not allowed. 

Deductions under a court order are limited to 20% of a worker’s wages and 50% in the case of an order for support or maintenance. 

Working Hours and Rest Breaks

Standard work hours

Daily and weekly limits

Ontario employees can’t work more than:

• 8 hours in a day (or the number of hours in an employee’s agreed regular work day, if longer than 8 hours).
• 48 hours in a week.

However, employers and employees can agree to work more than these hours. Then their work hours can’t exceed the amount in the agreement. 

Employees can terminate these agreements by giving their employer 2 weeks’ notice, while employers must provide employees with reasonable notice. 

Hours free from work

Employees must have:

• At least 11 consecutive non-work hours in a day (doesn’t apply to on-call workers who are called in).
• At least 8 hours between shifts, unless the total time worked for both shifts is less than 13 hours, the employee and employer agree otherwise, or the employee is working a split shift.
• At least 24 consecutive non-work hours each work week or 48 consecutive non-work hours each 2 consecutive work weeks.

Employment information

From July 1, 2025, employers with 25 or more employees must provide new hires with certain information in writing, including the employee’s:

• Wage rate.
• Pay period and pay date.
• Expected hours of work.

Meal and rest breaks

Employees must have a 30-minute meal break (“eating period”) for every 5 consecutive hours they work. This can be split across 2 breaks by agreement. 

Employees don’t have to be paid for these breaks unless their employment contract says otherwise. 

Split shifts and on-call time

There are no specific rules regulating split shifts under the ESA. They must comply with the ESA’s general wage and hour provisions. 

On-call time only becomes work time (i.e., paid) if an employee has to stay at the workplace or is called in. 

If an employee who usually works more than 3 hours a day reports to work but works less than 3 hours, they must be paid (whichever is higher):

• 3 hours at their regular rate or
• The amount earned for the time they worked, plus compensation at their regular rate for the rest of the 3 hours.

Leave Entitlements

Vacation leave and pay

Ontario employees covered by the ESA are generally entitled to vacation time and vacation pay:

Gross wages are an employee’s total earnings, including regular wages, overtime, statutory holiday pay, and commissions. 

If an employee doesn’t work a full vacation entitlement year (12 months usually starting on their first day of work), they’re not entitled to vacation leave. 

However, employees earn vacation pay for each hour they work. Employees are entitled to receive vacation pay even if they don’t work a full vacation entitlement year or use all of their vacation leave. 

Employers can give employees their vacation pay:

• In a lump sum before employees use their leave.
• As it accrues by including it in each paycheck (only if employees agree in writing).
• After employees have used their leave, on the next regular pay day.

Unused vacation leave can carry over for 10 months after the end of the entitlement year. If any employee hasn’t used it within this time, employers must pay them their unused vacation pay. 

Sick leave and personal emergency leave

Under the ESA, most workers can take up to 3 days of unpaid leave annually for their own personal illness, injury, or medical emergency. 

Employees can access this leave after working with an employer for at least 2 weeks. 

Employees should notify their employer before taking sick leave or as soon as possible after starting it. While employers can ask for reasonable evidence to support an employee’s request for sick leave, they can’t require medical notes (i.e., a note from a physician, registered nurse, or psychologist). 

Unused ESA sick leave can’t be carried over into the following year. 

Sick leave in Ontario is unpaid. However, eligible employees can access income support via federal Employment Insurance benefits. 

Other types of sick and carers leave

Employees may also be entitled to:

• Organ donor leave: Up to 13 weeks of unpaid leave following an organ donation.
• Family medical leave: Up to 28 weeks of unpaid leave to care for a family member with a serious medical condition who is at risk of dying within 26 weeks.
• Family caregiver leave: Up to 8 weeks of unpaid leave to support a family member with a serious medical condition.
• Critical illness leave: Up to 37 weeks of unpaid leave to care for a critically ill child or up to 17 weeks to care for a critically ill adult family member.
• Family responsibility leave: Up to 3 days of unpaid leave in relation to the illness, injury, medical emergency, or an urgent matter concerning a family member.
• Long-term illness leave: Up to 27 weeks of unpaid leave in relation to an employee’s serious medical condition (as of June 19, 2025).

Pregnancy and parental leave

Pregnancy leave

Pregnant employees can access up to 17 weeks of unpaid pregnancy leave. To be eligible for this leave, they must have started working for an ESA-covered employer at least 13 weeks before the baby’s due date. 

Employees can access pregnancy leave between 17 weeks before the baby’s due date and the due date. Pregnancy leave generally continues until the baby is born, and then the employee becomes eligible for parental leave. 

Pregnancy leave must be used all at once. It can’t be taken intermittently. 

Employees are required to give written notice to their employer at least 2 weeks before taking pregnancy leave. Employers can ask for a medical certificate confirming the employee’s due date. 

Employees who experience a miscarriage or stillbirth within 17 weeks of their due date can access pregnancy leave. They can take leave up to 17 weeks after their leave started or 12 weeks after their loss, whichever is later. 

Pregnancy leave is job-protected, and employers can’t penalise employees who are eligible for or take pregnancy leave. Employees on pregnancy leave must be able to continue benefit plans, such as pension and life insurance, and their time on pregnancy leave counts towards length of service and seniority considerations. 

Parental leave

Under Ontario law, parents can access parental leave for:

• Up to 61 weeks (birth mothers who also take pregnancy leave).
• Up to 62 weeks (birth mothers who don’t take pregnancy leave and other parents, including adoptive parents).

Birth mothers generally must start parental leave the day their pregnancy leave ends, unless the baby needs to stay in the hospital. Other parents can start their leave within 78 weeks of the baby being born or the child coming into their care. 

Parental leave must be taken all at once. It can’t be used intermittently. Employees need to give 2 weeks’ notice to their employer of their intention to take parental leave. 

To be eligible for this leave, they must have started working for an ESA-covered employer at least 13 weeks before the baby’s due date.

Like pregnancy leave, parental leave is job-protected. Employers can’t penalise employees who are eligible for or take this leave. Employees on parental leave must be able to continue benefit plans, such as pension and life insurance. Additionally, their time on parental leave counts towards length of service and seniority considerations. 

Pregnancy and parental leave are both unpaid. However, eligible employees can access income support via federal Employment Insurance benefits. 

Bereavement leave

Most employees covered by the ESA are entitled to 2 days of unpaid leave each year in relation to the death of a family member. Employees can access this leave after working for an employer for at least 2 weeks and take it immediately upon the death of a family member or at a later time. 

For bereavement leave purposes, family members are:

• Spouses.
• Parents, step-parents, foster parents, step-children, grandparents, step-grandparents, grandchildren, or step-grandchildren of the employee or the employee’s spouse.
• The employee’s child’s spouse.
• Siblings.
• Another relative whom the employee cares for or assists.

Employees are required to notify their employers before taking bereavement leave or as soon as possible after starting it. Employers can also request reasonable supporting documentation from the employee.

Employees who lose a child under 18 may be entitled to up to 104 weeks of unpaid child death leave. 

Domestic violence or compassionate care leave

ESA-covered employees can take up to 10 days or 15 weeks in a calendar year of leave for reasons relating to domestic or sexual violence against themselves or their child. 

Employees must have worked for at least 13 consecutive weeks with an employer before they can take this leave.  

Only the first 5 days of domestic and sexual violence leave must be paid. Employers can also request reasonable evidence from employees to support their request for leave. 

Domestic and sexual violence leave is job-protected, and employers can’t penalise employees for taking it. 

Jury duty and civic leave

Employers must give employees leave to attend jury duty. Employers can choose whether or not to pay employees during this time. 

Jury duty leave in Ontario is job-protected, and certain benefits continue while an employee is on this leave, for example, pension and life insurance plans. Employees can’t be penalised for serving on a jury, and jury service counts towards length of service and seniority considerations. 

Other types of leave

ESA-covered employees may also be entitled to:

• Crime-related child disappearance leave.
• Emergency leave.
• Reservist leave.

Types of Employment

Full-time, part-time, and casual

The ESA’s minimum standards generally apply to all covered workers, regardless of their employment type. As such, the ESA doesn’t define full-time, part-time, or casual work.

In practice, full-time workers are usually those who work between 37.5 and 40 hours a week. Part-time employees work fewer hours, for example, around 30 hours a week. Casual work is usually “unreliable, occasional, and unpredictable,” and depends on the nature of the relationship between the employer and employee. 

Temporary and seasonal work

The ESA’s minimum standards also generally apply to covered temporary and seasonal workers (although many of the specific roles exempt from the ESA, such as agricultural workers and wilderness guides, are seasonal in nature). 

The ESA includes a section on temporary help agencies that sets out special rules for workers employed as assignment employees. 

Independent contractors and misclassification

Ontario doesn’t have a definitive test to determine employees vs. independent contractors. It depends on the nature of the relationship between the employer and the individual. 

Factors that may indicate an employer-employee relationship include:

• The tasks performed by the individual are integral to the employer’s operations.
• The employer determines what work the person must complete, when they must complete it, and how much they’re paid for it.
• The employer supplies any tools or equipment required to perform the work.
• The individual can’t subcontract their responsibilities to someone else.
• The employer can discipline or terminate the individual.

Factors that may indicate an employer-independent contractor relationship include: 

• The individual can make or lose money from the work.
• The individual chooses how, when, and where they perform the work.
• The individual may decide to subcontract some of their tasks.
• While the employer can terminate the agreement, they can’t discipline the individual.

It’s important to classify workers correctly, as only employees are entitled to the ESA’s benefits and protections. 

Employers who misclassify employees as independent contractors violate their obligations under the ESA. The Ministry of Labour can investigate alleged violations and impose penalties on employers, including back pay. Employers may also face lawsuits and owe overdue tax and payroll liabilities, including federal Employment Insurance premiums. 

If you’re unsure whether an individual is an employee or an independent contractor, it’s essential to seek legal advice. 

Termination and Final Pay

Notice requirements

If an employer terminates an employee who has worked for at least 3 months, they must give the employee:

• Written notice: The length of notice varies depending on how long they’ve been employed.
  • For example, employees who have worked less than a year must receive 1 week’s notice, while employees who have worked between 4 and 5 years must receive 4 weeks. 
  • Special notice rules apply to mass terminations, where an employer ends the employment of at least 50 employees in 4 weeks. 
• Termination pay: This must be equal to the regular wages an employee would have received if they had worked during a written notice period. Employers must pay termination pay either 7 days after an employee’s employment ends or their next regular pay day (whichever occurs later). 
• Written notice and termination pay: The combined notice and termination pay must total the number of weeks of notice required. 

This requirement doesn’t apply to certain employees, for example, those guilty of wilful misconduct or construction workers. 

Severance pay

Long-term employees may also be entitled to severance pay under the ESA, separate from any termination pay. 

To be eligible for severance pay under the ESA:

• The employee must have worked with the business for at least 5 years. 
• The employer’s global payroll must be $2.5 million or more, or they must have terminated 50 or more employees in 6 months due to permanent closure.

There are many exceptions to severance pay under the ESA. 

The calculation for severance pay is:

Employee’s regular weekly wages X Number of full years of employment X 

Number of completed months / 12 for any non-complete years

Severance pay is capped at 26 weeks. Employers must pay severance pay within 7 days of the severance or the employee’s next regular pay (whichever occurs later). 

Some employees may also be entitled to severance pay under common law, which can be more than the ESA requirements. 

Final pay

When someone’s employment ends, their employer must pay them either within 7 days or on their next regular payday (whichever is later). 

Final pay includes all payments due to an employee, including time off in lieu they agreed to accrue instead of overtime pay and any accrued vacation pay. 

On or before the day their final wages are paid, employers must give employees a statement of wages which includes details of:

• Any termination and severance pay.
• Any vacation pay.
• Dates of the pay period.
• Wage rate.
• Any deductions.
• Room and board amounts.
• Net wages.

Workplace Health and Safety

Employer duties

Under the Occupational Health and Safety Act (OHSA), Ontario employers have various duties, including:

• Provide and maintain any required equipment, materials, and protective devices.
• Inform, instruct, and supervise employees to protect their health and safety.
• Employing workers above the required age.
• Have a written occupational health and safety policy and implement it (employers with 5 or more workers only).
• Notify workers about known workplace hazards.
• Take all reasonable precautions to protect workers.
• Ensure workers have easy access to their written policy and a copy of OHSA in the workplace.
• Ensure workers complete an appropriate occupational health and safety awareness training course.
• Develop workplace violence and harassment policies each year.
• Investigate alleged incidents and complaints of workplace violence and harassment.

Worker rights

Under OHSA, workers have the right to:

• Refuse unsafe work.
• File health and safety complaints, including those relating to workplace harassment, online or by phone.
• Be protected from employer retaliation.

Workers also have obligations under OHSA, including:

• Ensuring their work complies with OHSA requirements.
• Using any protective equipment or clothing required by their employer.
• Reporting any hazards or OHSA violations to their employer.

Reporting requirements

Death and critical injuries

Employers must immediately notify the Ministry of Labour, Immigration, Training, and Skills Development, their health and safety committee or representative, and the relevant union of any workplace deaths or critical injuries. 

This includes death and critical injuries to non-workers, where the incident occurred somewhere individuals usually work, and there is a connection between the hazard that caused the incident and worker safety. 

Critical injuries include those that:

• Puts someone’s life at risk.
• Causes unconsciousness or significant blood loss.
• Results in a limb fracture or the amputation of a leg, arm, hand, or foot.
• Burns a large part of someone’s body.
• Results in the loss of sight.

Employers must also provide these official bodies with a written report regarding the incident within 48 hours. 

Other workplace injuries

Employers must also report workplace injuries that result in:

• Someone being unable to work.
• The need for medical attention due to an accident, explosion, fire, or workplace violence.

Written notification must be given to their health and safety committee or representative and the relevant union within 4 days. 

Occupational illnesses 

Employers must also submit written notice of a current or former worker’s occupational illness to the Ministry, their health and safety committee or representative, and the relevant union. This notice must be given within 4 days of the employer being notified of the occupational illness. 

Reporting requirements by industry

OHSA also sets out other specific reporting obligations for employers in certain industries, such as mining and construction. 

Workplace Safety and Insurance Board (WSIB)

Workers who sustain a workplace injury or illness may be able to apply for benefits from Ontario’s Workplace Safety and Insurance Board (WSIB) to cover their medical expenses and lost wages. 

Employers must report workplace injuries and illnesses to WSIB within 3 business days of becoming aware of them. Employees must also report their illness or injury and have 6 months to do so. 

WSIB also helps workers and employers develop return-to-work plans. 

Employer insurance premiums fund WSIB benefits. Most Ontario employers are required to pay these premiums for WSIB coverage under the Workplace Safety and Insurance Act. 

Recordkeeping Requirements

Required records

The ESA generally requires employers to keep the following records for 3 years:

• Employees’ names and addresses.
• Employees’ dates of birth (only if the employee is a student under 18).
• Employment start dates.
• Work dates and hours. 
• Overtime dates and hours (if the employee has two or more regular rates of pay).
• Total number of hours worked each day and week.
• Copies of employees’ wage statements, termination wage statements, agreements to work on a public holiday, substitute day of holiday statements, and vacation pay statements.
• Documents relating to employees’ leave entitlements.
• Excess hour agreements.
• Averaging agreements.

Workplace Rights and Protections

Human rights and anti-discrimination

Ontario’s Human Rights Code protects workers’ rights to equal treatment without discrimination based on:

• Race.
• Ancestry.
• Place of origin.
• Colour.
• Ethnic origin.
• Citizenship.
• Creed.
• Sex.
• Sexual orientation.
• Gender identity.
• Gender expression.
• Age (18 years or older).
• Record of offences.
• Marital status.
• Family status. 
• Disability.  

This protection applies to all aspects of employment, including hiring, promotions, and termination, and all employees, including youth workers. 

The Code also prohibits workplace harassment based on these characteristics. 

The Accessibility for Ontarians with Disabilities Act (AODA) sets out Accessible Employment Standards that employers must follow. These include standards for hiring, communicating accommodation policies, and accommodation plans. 

Smaller businesses (those with fewer than 50 employees) must comply with 5 Accessible Employment Standards, while larger employers must comply with 7. 

The Ontario Human Rights Commission and Human Rights Tribunal of Ontario (HRTO) provide information about workplace discrimination laws. 

Human rights complaints

Employees who believe they’ve been subject to workplace discrimination or harassment can file a complaint with the HRTO by mail or email. They must do so within 1 year of the alleged discrimination. 

As of June 1, 2025, all HRTO complaints must be mediated to try to reach a settlement. If mediation is unsuccessful, the matter proceeds to a hearing before an adjudicator. 

If the adjudicator finds that discrimination or harassment happened, they can order remedies, including compensation or orders for employers to take specific actions to address the issue. 

The Human Rights Legal Support Centre can provide information and advice about making a complaint to the HRTO. 

Rights of vulnerable workers

Migrant workers

Migrant workers are covered by the ESA. Ontario’s Employment Protection for Foreign Nationals Act (EPFNA) sets out some further protections, including banning employers from:

• Making foreign nationals repay their hiring costs.
• Keeping workers’ documents, such as passports.
• Retaliating against someone who exercises their rights under the EPFNA.

Government Resources and Support

Provincial labour ministry

Ontario’s Ministry of Labour, Immigration, Training, and Skills Development oversees the ESA. It offers a helpful online tool to help employers understand their ESA obligations. 

Federal resources

Here are some links for information regarding federal labour laws:

• Canada Labour Code
• Canada Revenue Agency – Payroll Deductions
• Service Canada – EI Maternity and Parental Benefits
• Canadian Centre for Occupational Health and Safety

Disclaimer

The information in this guide is intended for general informational purposes only and does not constitute legal advice. Employment laws change frequently, and outcomes may vary depending on your specific circumstances. While we have made every effort to ensure the information provided is up-to-date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. For guidance, consult the appropriate provincial labour authority or a qualified employment lawyer.