The Ontario government’s recent legislative updates - Bill 149 (Working for Workers Four Act, 2024), Bill 190 (Working for Workers Five Act, 2024), and Bill 229 (Employment Standards Modernization Act, 2025) - represent significant changes to workplace laws in Ontario. These bills aim to protect workers, promote transparency, and foster fairer workplaces, but they also create new compliance requirements for organizations.
HR professionals need to adapt quickly to ensure compliance while maintaining a positive employee experience. Below, we’ll break down the key provisions, effective dates, and what HR needs to do to navigate these changes.
Effective Dates for the Bills
- Bill 149: Effective July 1, 2024
- Bill 190: Effective October 1, 2024
- Bill 229: Effective January 1, 2025
These staggered effective dates give HR professionals some time to prepare, but it’s important to start planning and implementing the necessary changes now to avoid last-minute compliance issues.
Key Takeaways
- Sick Leave and Personal Days: Employees are now entitled to 5 paid sick days and 2 personal days annually. Policies and payroll systems must be updated to reflect this.
- Job Posting Transparency: Employers must include salary ranges and disclose the use of AI tools in hiring processes to promote fairness and equity.
- Work Hours and Disconnect Policy: Employers with 25+ employees must implement a “Right to Disconnect” policy, and scheduling practices must be fair and transparent.
- Gig and Temporary Worker Protections: Minimum wage, tip protection, and scheduling transparency are now mandatory for gig workers, while temporary help agencies face stricter licensing requirements.
Changes and Implication Highlights for HR
1. Sick Leave and Personal Days
Sick Leave:
- Under Bill 229, employees are entitled to 5 paid sick days per year, in addition to the 3 unpaid sick days already guaranteed under Ontario’s Employment Standards Act (ESA).
- Sick leave can be used for personal illness, injury, or medical emergencies.
- Paid sick leave ensures employees don't have to choose between their health and their paycheck.
Personal Days:
- Bill 229 also introduces 2 personal days per year for employees.
- These personal days are paid and can be used for non-medical matters, such as:
- Mental health needs
- Family emergencies
- Religious or cultural observances
2. Job Posting Transparency Requirements
Salary Disclosure:
- Employers must include salary ranges in all job postings.
- This requirement aims to close pay gaps and increase equity in hiring.
AI Disclosure:
- If employers use AI tools in the hiring process (e.g., for resume screening or candidate evaluations), they must disclose this information in the job posting.
- Transparency about AI use reassures candidates about fairness and privacy in hiring decisions.
3. Right to Disconnect and Work Hour Protections
Right to Disconnect:
- Under Bill 229, employers with 25 or more employees must implement a “Right to Disconnect” policy by January 1, 2025.
- This policy ensures employees can disconnect from work-related communications (e.g., emails, phone calls) outside of their regular work hours, supporting work-life balance.
Work Hours:
- The Employment Standards Act (ESA) still defines standard work hours as:
- 8 hours per day (or the number of hours in an employee’s regular workday).
- 44 hours per week, with overtime pay required for hours beyond this limit.
- Employers must provide 11 consecutive hours of rest in a 24-hour period and 24 consecutive hours off in a workweek.
- Bill 149 also requires fair and transparent scheduling practices for gig workers, ensuring predictability in assignments and pay.
4. Protections for Gig and Temporary Workers
Gig Workers (Bill 149):
- Digital platform workers (e.g., rideshare drivers, food delivery workers) must receive:
- At least minimum wage for all time worked.
- Transparency in pay calculation and assignment distribution.
- Protection of their tips from employer deductions.
Temporary Workers (Bill 190):
- Temporary help agencies must now:
- Obtain mandatory licensing to operate in Ontario.
- Provide clear information to temporary workers about their rights and working conditions.
- Comply with stricter regulations to prevent worker exploitation.
How HR Can Prepare for Compliance
1. Conduct a Compliance Audit
- Review existing policies, job postings, contracts, and scheduling practices to identify gaps.
- Ensure all employment agreements comply with the prohibition on non-compete clauses introduced in Bill 149.
2. Update Policies and Procedures
- Sick leave, personal days, and the right to disconnect require clear, updated policies.
- Document and communicate these changes to employees to avoid confusion.
3. Train Managers and Staff
- Train managers on handling leave requests fairly and respecting disconnect boundaries.
- Educate hiring teams about job posting transparency requirements and AI disclosures.
4. Invest in Technology
- Use HR technology to track work hours, leave usage, and compliance with scheduling requirements.
- For hiring, ensure AI tools are properly configured to meet new transparency standards.
Proactive Compliance is Key
By starting preparations now, HR can ensure compliance, avoid penalties, and create a workplace where employees feel valued and supported. Use this as an opportunity to position your organization as an employer of choice in Ontario’s evolving labor market.