Ontario Pay Transparency Laws 2026: What Employers Must Know
Ontario’s hiring landscape has changed, and employers need to pay attention.
As of January 1, 2026, new job posting requirements under Ontario’s Employment Standards Act, 2000 are officially in effect.
For employers, these changes go beyond sharing salary information. They introduce new expectations around transparency, communication and the overall candidate experience.
The good news? With the right approach, these requirements can become an opportunity to strengthen your hiring process.
Here’s what you need to know.
Who Must Follow Ontario’s New Hiring Rules?
The new requirements generally apply to provincially regulated Ontario employers with 25 or more employees when advertising jobs to the public.
Smaller employers are generally exempt from these particular requirements, but adopting transparent hiring practices can still help build trust with candidates.
1. Salary Transparency Is Now Required
One of the biggest changes under the Ontario pay transparency laws for 2026 is the requirement to include compensation information in publicly advertised job postings.
Employers must generally provide either a specific salary or an expected salary range.
There are two important details:
- Salary ranges cannot exceed a $50,000 annual spread. For example, $80,000 to $120,000 is permitted, while $80,000 to $140,000 exceeds the limit.
- Certain higher-paying positions are exempt. Compensation disclosure isn’t required when expected annual compensation exceeds $200,000 or the advertised range ends above $200,000.
If compensation includes commissions, bonuses or other forms of pay, employers must also provide appropriate information about those components.
For hiring teams, this is an opportunity to review salary structures and ensure compensation expectations are clear before recruitment begins.
2. Employers Must Be More Transparent About Hiring
Salary disclosure isn’t the only change.
Public job postings must also address several important details.
AI in recruitment: Employers must disclose if artificial intelligence is used to screen, assess or select applicants.
Active vacancies: Job postings must state whether an existing vacancy is available.
Canadian experience: Employers cannot include Canadian experience requirements in publicly advertised job postings or associated application forms.
These requirements encourage organizations to communicate more clearly about how they hire and what candidates can expect.
3. Interviewed Candidates Must Receive an Update
We’ve all heard stories about candidates completing interviews and never hearing back.
Ontario’s new rules aim to improve that experience.
Employers must inform interviewed applicants within 45 days of their last interview whether a hiring decision has been made.
The update can be provided in person, by email, over the phone or through other permitted methods.
Importantly, employers aren’t necessarily required to provide a final rejection or offer within that period. They must communicate whether a hiring decision has been made.
For organizations, this is a good reason to establish clear follow-up responsibilities and communication timelines.
4. Hiring Records Must Be Kept for Three Years
Employers also have new record-keeping responsibilities.
These include retaining:
- Copies of publicly advertised job postings and associated application forms
- Relevant versions of postings and linked information
- Records of required hiring-decision updates provided to interviewed candidates
The general retention period is three years, although the starting point depends on the type of record.
Having a consistent process for storing recruitment information can make compliance much easier.
How Employers Can Strengthen Their Hiring Process
Meeting the legal requirements is important, but why stop there?
These changes offer an opportunity to make recruitment more organized, transparent and effective.
Here are four practical steps employers can take.
Review Your Compensation Structure
Take a closer look at salary bands, job levels and compensation practices.
Make sure hiring managers understand how pay ranges are determined and can confidently discuss compensation with candidates.
Update Your Job Posting Templates
Create a consistent format that includes required compensation information, AI disclosures and vacancy status.
Clear templates help reduce errors and create a more professional candidate experience.
Improve Candidate Communication
Decide who is responsible for providing interview updates and how those communications will be tracked.
Candidates appreciate knowing where they stand, even when a hiring decision hasn’t been made.
Prepare Your Leadership Team
Transparency can lead to more conversations about compensation, career development and internal pay differences.
Equip managers with the information they need to explain compensation decisions clearly and respond to employee questions.
Better Transparency Can Lead to Better Hiring
Ontario’s updated hiring requirements aren’t just another administrative task.
They’re an opportunity to rethink how organizations attract, communicate with and evaluate talent.
Clear salary expectations can help candidates make informed decisions. Consistent communication can strengthen employer reputation. And better internal processes can make recruitment more efficient.
At TerraHR Consulting, we believe great recruitment starts with trust, clarity and meaningful relationships.
Whether you’re reviewing job postings, refining your hiring process or looking for the right talent, we’re here to help.
Ready to strengthen your recruitment strategy?
Contact TerraHR Consulting or email info@terrahrconsulting.com to discuss your hiring needs.
