Mandatory Written Employment Statements in Ontario: An Employer’s Guide

On October 28, 2024, Ontario’s Working for Workers Five Act (Bill 190) received Royal Assent. Working for Workers Five Act brought in stronger protections for workers in the province and amended major legislation, such as Ontario’s Employment Standards Act (ESA) 2000 and Occupational Health & Safety Act (OHSA).

A key provision from the Working for Workers Five Act is coming into force this year from July 1.

This blog provides an overview of some of the new requirements under Bill 190 (Regulation 477/24) coming into effect July 1, 2025.

What is the new requirement under Ontario ESA?

Starting July 1, employers in Ontario with 25 or more employees must provide their new hires with written details about their employment, generally before their first day of work. 

What job details are mandatory on these employment statements?

Employers will have to provide the following information in writing to their employees:

1. The employer’s legal name and operating/business name (if different).
2. Employer contact details, including address, phone number, and contact names.
3. The anticipated work location.
4. The employee’s starting wage rate (whether hourly or salary).
5. The applicable pay period and pay day. 
6. A general description of initial hours of work. 

Are any types of employment excluded from this new ESA provision?

Yes, but the carve outs are narrow. It does not apply to assignment employees placed by temporary help agencies.

Does this new ESA requirement cover seasonal employees?

Yes. If a business has 25 or more employees on its payroll, it is required to provide the employment information under Regulation 477/24 in writing to all new employees.

What are the consequences of violating this new requirement?

Non-compliance could result in fines:

·         Starting at $250 for the first offense

·         Starting at $500 for the second offense

·         Starting at $5,000 for the third offense

Employment Standards Officers may order the above fines as they see fit. Where prosecution under the Employment Standards Act, 2000 occur, penalties can rise substantially.

What do employers have to do to avoid fines?

Employers must provide this employment information in writing to all new employees before their first day of work or as soon as practicable afterwards.

But to both comply with this requirement and protect their business from other potential legal risks, these job terms can be provided within a written employment agreement, hitting two birds with one stone.

Will issuing employment statements not be enough to ward off legal risks?

Providing these job terms in an employment statement will ensure compliance with the new provision, but not protection from wider legal risks and employee claims.  

A written employment agreement which includes these new required terms will not only help you be compliant with new law, but also protect your business from risks, especially during terminations.

If you already have written agreements that you normally provide to new employees, it is vital that you update them with these job terms. It is also a great opportunity to ensure that your termination provisions are up to date to protect your business from costly, time-consuming litigation.

Our experts can tailor employment contracts to fulfill the specific needs of your business and industry.

We can also help you identify any potential issues with the wording of your existing policies and contracts to ensure you are compliant with the latest legislation.

Call today at (1) 833-247-3652 to book a free consultation with one of our HR experts.

What are the benefits of a written employment agreement over simply providing these job terms in writing?

A written agreement:

• Reduces legal risks: limits common law liability during terminations
• Provides flexibility for business needs: like permitting temporary layoffs or notice periods for resignation
• Strengthens teams: sets clear employee expectations
• Resolves disputes: serves as a legally binding agreement on job terms

WHEREAS an employment statement:

• confirms only the minimum terms required
• does not legally bind the employee to the job terms
• will not protect the employer in case of a dispute or claim

What kind of legal risks does a written employment agreement help avoid?

A written employment agreement or contract often lists employee job duties, salary, benefits, company policies, and more, and is meant to be legally binding.

It clearly outlines the employment relationship and helps avoid future confusion or disagreements over the scope of the employee’s position.

A written employment agreement often includes dispute resolution procedures that help avert long legal battles and the time and costs associated with them.

A well-drafted written employment agreement includes important clauses, such as a termination clause, lay off clause and confidentiality clause. All of these elements reduce the risk of litigation and protect your business in case of a breach of terms, dispute, or claim.

An enforceable termination clause can limit common law liabilities for employers. Common law entitlements are generally between 2x and 7x more expensive than statutory entitlements but can be more.

What is common law notice?

While there are always exceptions, generally speaking when an employee is terminated there are two sources of entitlements: statutory ones under the Employment Standards Act, 2000 (ESA) or common law entitlements.

Employees access common law entitlements by starting a legal action against the employer, asking a judge to decide how much is owed to the employee.

Depending on numerous factors, this can be measured in weeks, months or even years.

While entitlements under the ESA cannot be contracted out of, the right to seek common law entitlements can be contracted out of, which is what employment contracts do.

Having strong, well-written employment contracts can save employers thousands of dollars each year, alongside avoiding time and money spent on legal actions which can be avoided altogether.

When is an employee entitled to common law notice?

With some exceptions, generally all Canadian employees are entitled to common law notice of termination of employment unless an employment contract has an enforceable termination clause. In the instance that the employee does not have an employment contract, or has an employment contract without a termination clause, or has a contract with a termination
clause that is unenforceable, they will be entitled to seek common law notice.

Do you have questions about the new legal requirement effective July 1, 2025?

Whether you need support implementing the upcoming ESA change in your workplace, or assistance with any other HR matter, Peninsula can help. Our HR experts can answer any HR queries you may have and provide clear and actionable guidance. We can help you quickly implement the written documentation you need to be compliant with the new Ontario ESA provision.

Peninsula’s employment law experts can tailor job contracts to fulfill the specific needs of your business and industry. Our employment contracts comply with these new ESA regulations and provide you added protection.

To learn more about how we can help your business be compliant with Ontario Employment Standards Act, call an expert today at 1 (833) 247-3652 for free advice.