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17 December 2025

12 Key Employee Rights In Ontario (2025–2026 Update)

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Unified LLP

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Unified LLP is a multi-displinary law firm with locations across Canada. Unified LLP practices in the area of Employment Law, Disability Insurance Law, Family Law and Property and Commerce Law.
If you work in Ontario, you have more legal protections than you might realize. The Employment Standards Act, the Human Rights Code and health and safety laws...
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If you work in Ontario, you have more legal protections than you might realize. The Employment Standards Act, the Human Rights Code and health and safety laws influence everything from your pay and hours of work to harassment, discrimination and termination. Recent Working for Workers changes and new rules on pay transparency and artificial intelligence in hiring are also reshaping the landscape for 2025 and 2026.

This guide highlights 12 key employee rights in Ontario in clear, practical language. It is intended as general information only. If anything here sounds familiar, it may be time to speak with an employment lawyer at Unified LLP about your specific situation.

1. The right to be properly classified as an employee or contractor

Many workers in Ontario are treated as independent contractors even though their day to day reality looks like regular employment. Misclassification can affect entitlement to overtime, vacation pay, public holiday pay, statutory leaves and other protections under the Employment Standards Act.

Courts and the Ministry of Labour look at how the relationship actually works. They consider who controls the work, who provides tools and equipment, whether the worker can truly work for others and whether there is any real business risk. The label in a contract is only one factor.

If you are treated like a member of staff but told you are a contractor, you may legally be an employee and could be owed back pay and benefits. Early advice from an employment lawyer in Ontario can help you understand where you stand.

2. Minimum wage and fair pay for similar work

The Employment Standards Act sets minimum wage rates for most provincially regulated workers in Ontario. Employers generally cannot pay less than the applicable minimum wage, even if you agree or are paid by commission. If your earnings fall below minimum wage when commissions are low, that can be a warning sign.

Equal pay protections can also apply when men and women perform substantially similar work under similar conditions. New pay transparency rules will eventually require many employers to disclose compensation information in job postings, which should make it easier to compare what you earn to what the market is paying.

If you suspect you are being underpaid compared with colleagues who do the same work, or compared with advertised roles at your company, it is worth getting legal advice.

3. Limits on hours and the right to overtime pay

The Employment Standards Act sets limits on hours of work and creates a right to overtime pay for many employees who work more than 44 hours in a week. Some roles are exempt or have special rules, but the idea that salaried employees never receive overtime is often wrong.

Employers sometimes ask staff to sign agreements to work longer hours. Even with those agreements, minimum standards around rest periods and overtime pay usually still apply. Attempts to average hours over multiple weeks in a way that quietly eliminates overtime can also be problematic.

If you consistently put in long weeks without any additional pay, or if your employer insists that overtime rules do not apply to you without a clear explanation, you may have more rights than you have been told.

4. Vacation time and vacation pay that grow with service

Vacation is not just a perk. It is a legal entitlement. Most employees in Ontario earn at least two weeks of vacation time after each 12 month period of employment, along with vacation pay, and that entitlement increases with years of service.

Problems often arise when employers roll vacation pay into hourly wages without clearly explaining the breakdown, or when they refuse to allow employees to take vacation time that has already been earned. Confusing pay stubs, vague policies and use it or lose it approaches can all hide violations.

If you are unsure how your vacation is calculated or you are being told that you cannot take time off you have accrued, it can be helpful to have a knowledgeable employment lawyer at Unified LLP review your situation and your documentation.

5. Public holidays and pay when you work them

Ontario has several public holidays, such as New Year's Day, Good Friday, Canada Day, Labour Day and Christmas Day. Many employees are entitled to a day off with public holiday pay, or premium pay if they work on the holiday, along with substitute days in some circumstances.

Issues can include miscalculating public holiday pay, scheduling staff on holidays without premium pay or substitute time off, or tying holiday pay to arbitrary conditions such as sales targets. Some employers also misapply qualifying period rules to deny benefits.

If you regularly work on long weekends without proper recognition of the holiday, or if your public holiday pay feels inconsistent or unpredictable, there may be an Employment Standards Act issue.

6. The right to disconnect from work in larger workplaces

Ontario's Working for Workers changes introduced a requirement for employers with 25 or more employees to have a written policy on disconnecting from work. The policy must explain how employees are expected to disconnect from work related communications outside regular hours and must be in place each year when the employer meets the threshold.

This policy does not guarantee that you will never receive after hours emails or calls, and it does not automatically override your employment contract. It does, however, reflect a recognition that constant availability should not be the default and that employees deserve clarity around expectations.

If there is a disconnect policy on paper but the actual culture punishes people who respect it, that may be a sign that the organization is not living up to its legal obligations or its own written rules.

7. The right to a safe, harassment free workplace

Ontario workers are protected from workplace harassment, including sexual harassment and discriminatory harassment, as well as workplace violence. Employers must have policies and procedures for reporting and investigating incidents and must take reasonable steps to keep workers safe.

Human rights law also prohibits discrimination based on protected grounds such as race, sex, disability, religion, age or family status. These protections cover hiring, promotions, discipline, accommodation and termination. They also apply to hostile workplaces that target people based on protected characteristics.

If you report harassment or discrimination and nothing happens, or if you experience subtle or direct retaliation after coming forward, you may have claims under human rights legislation, occupational health and safety law and employment law.

8. Protection from most non compete clauses

Since the Working for Workers Act, 2021 came into force, the Employment Standards Act prohibits most non competition agreements in employment contracts, subject to narrow exceptions. Non compete clauses may still be allowed in certain business sale situations and for defined executive roles, but for most employees they are now off the table.

Employers can still use confidentiality and non solicitation clauses to protect legitimate business interests. What they generally cannot do is prevent an ordinary employee from working in their field after the employment relationship ends.

If you are worried that a non-compete clause in your contract will stop you from taking a new opportunity, a careful review with an employment lawyer in Ontario can help you understand how the law treats that type of restriction and how to move forward safely.

9. New pay transparency rules for job postings starting in 2026

Beginning in 2026, Ontario employers that meet certain size thresholds will face new pay transparency rules for publicly advertised job postings. For most roles, job ads will need to include either the expected compensation or a salary range. In many cases, that range cannot exceed a set width.

These rules are meant to reduce secret pay gaps and give job seekers more information about what a role actually pays. They should also make it easier for current employees to compare their compensation to posted ranges for similar roles at the same employer.

If you discover that your pay is significantly lower than the range advertised for comparable roles, or if patterns emerge that seem tied to gender, race or other protected grounds, that information can be very useful when you speak with a lawyer about your options.

10. Transparency when employers use AI in hiring

The same set of changes will require many employers to disclose when they use artificial intelligence to screen, assess or select applicants for a publicly advertised position. Job postings will need to state that AI is being used in the recruitment process when that is the case.

This disclosure does not give candidates a direct right to challenge a particular AI decision on its own, but it does shine a light on automated screening tools and the risk of hidden bias. It also helps job seekers understand how applications are being processed so they can tailor their materials accordingly.

If you suspect that an AI screening tool has produced discriminatory outcomes, that concern may intersect with existing human rights protections. A conversation with an employment lawyer at Unified LLP can help you explore that connection.

11. Termination, notice, severance and your common law rights

If you are terminated without cause, you are generally entitled to notice of termination or pay in lieu, subject to limited exceptions. The Employment Standards Act sets minimum levels of notice and severance pay in some cases, but many employees are entitled to more generous reasonable notice at common law.

Common law notice is assessed case by case. Courts look at factors such as your age, position, length of service and the availability of similar employment. Many termination packages are based only on Employment Standards Act minimums or internal formulas and may fall well short of what a court might award.

Because employers usually require you to sign a release in order to receive your package, it is critical to have an Ontario employment lawyer review any offer before you sign. Once you accept, it is very difficult to revisit the amount.

12. Protection from reprisal when you assert your rights

Ontario law includes protections against reprisal for employees who attempt to exercise their legal rights. Employers generally cannot punish you for asking about Employment Standards Act entitlements, contacting the Ministry of Labour, raising health and safety concerns or seeking legal advice about your employment.

Reprisal can include obvious steps such as termination or demotion, but it can also involve more subtle changes. Reduced hours, undesirable shifts, loss of responsibilities or a sudden wave of performance criticism after you raise an issue can all be significant.

Frequently asked questions about employee rights in Ontario

1. What are my basic rights as an employee in Ontario?
Most employees in Ontario have rights under the Employment Standards Act, including minimum wage, limits on hours of work, overtime pay, vacation and public holiday pay and protection from reprisal. You also have rights under human rights and health and safety laws that cover discrimination, harassment and workplace safety. The exact mix of rights depends on your role, your industry and your contract.

2. Can my employer change my job or pay without my consent in Ontario?
Employers can make some reasonable changes over time, but a significant cut to pay, a demotion or a major change in duties can amount to constructive dismissal. If you are told to accept a new role or a pay cut or lose your job, you should not assume you have no choice. It is important to get legal advice before you sign anything or agree to a major change in your employment.

3. Are non compete clauses legal in Ontario?
Most non compete clauses in Ontario employment contracts are now prohibited and are often unenforceable, except for certain senior executives and some situations involving the sale of a business. Employers can still use confidentiality and non solicitation clauses to protect legitimate business interests, but they generally cannot prevent you from working in your field. If you are worried about a restrictive covenant in your contract, speaking with an employment lawyer at Unified LLP before you change jobs can help you understand your rights and your options.

4. How much notice or severance should I get if I am fired without cause in Ontario?
The Employment Standards Act sets minimum entitlements for notice and, in some cases, severance pay. Many employees are entitled to a much longer period of reasonable notice under common law. Factors such as your age, length of service, position and the availability of similar work all play a role. Because termination packages often start at or near the minimums, it is wise to have a lawyer review any offer before you accept it or sign a release.

5. When should I contact an employment lawyer in Ontario?
You should consider legal advice if you are being asked to sign a new contract, if your employer is changing your job or pay in a significant way, if you are dealing with harassment or discrimination or if you have been terminated or offered a severance package. Early advice can help you avoid mistakes and protect your rights, and speaking with an employment lawyer in Ontario can give you a clear picture of your options before you make any major decisions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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