Ontario is once again receiving an update to employment laws in another Working for Workers Act. This includes a new protected leave, a change to temporary layoff rules, new penalties for workplace health and safety violations, and new WSIB rules.
On May 28, 2025, the Government of Ontario introduced the Working for Workers Seven Act, 2025 (the “Bill”). If passed, this legislation will make changes to the Employment Standards Act, 2000 (the “ESA”), the Occupational Health and Safety Act (the “OHSA”), and the Workplace Safety and Insurance Act, 1997 (the “WSIA”).
Below, we summarize the most significant changes and their potential impact on Ontario workplaces, with a focus on the developmental services (DS) sector.
ESA Changes:
-
-
- Protected Job Search Leave: Employees affected by mass terminations (50 or more employees) will be entitled to protected unpaid leave of up to three days to seek new employment. While mass terminations of a scale that would trigger this are generally rare in the DS sector, this new rule is important to keep in mind in the rare cases where they do arise.
- Extended Layoff Period: The Bill extends timelines for temporary layoffs from the prior maximum of 35 weeks in a 52 week period to a new maximum of 52 weeks in a 78 week period. This maximum can be extended even longer where the employee and the employer agree in writing and the Ministry of Labour gives permission. Note, importantly, that the usual timeline for most non-unionized employers is a much shorter period of 13 weeks in a 20 week period (after which, the layoff converts to a dismissal), and that a non-union employer must have an established right (in contract or by longstanding practice) if they want to take advantage of the ESA temporary layoff rules.
- Job Posting Platform Obligations: The Bill imposes new obligations on digital job search platforms to report fraudulent publicly advertised job postings in order to support jobseekers. While this will not directly impact the DS sector, it is hoped that it will reduce instances of fraudulent postings that could be impacting the labour pool.
-
OHSA Changes:
-
-
- Administrative Penalties Introduced: The Act proposes a new administrative monetary penalty regime for OHSA violations that will allow Ministry of Labour inspectors to issue penalties under that law, with amounts for those penalties to be guided by factors which will be set by regulations that will come later. At present the only options for enforcement of the OHSA are (1) relatively small fines (typically up to $550) for a ticketed offense under the Provincial Offenses Act or (2) a formal prosecution for a provincial offense, which carries much harsher penalties (including the possibility of imprisonment for some offenses). This, in theory, will allow for middle-ground penalties that deter violations while not being as onerous as a prosecution.
- Defibrillator Costs: The Bill now requires the WSIB to reimburse employers for the cost of defibrillators where the OHSA or WSIA requires their installation. This may impact DS employers if such a requirement applies to them.
- Recognition of Management Systems: Changes have been made to the accreditation of health and safety management systems, with the law now treating various accreditations of such systems as being equivalent for the purposes of the OHSA. This may streamline the administration of that accreditation.
-
WSIA Changes:
-
-
- New Rule Against Misleading WSIB: The law now specifically prohibits an employer from making misleading statements or representations to the WSIB in connection with any claims for benefits under the insurance plan. It also allows the government to set a fine for doing so in the regulations. While there was already a provincial offense in the WSIA for any person giving false or misleading information to the WSIB, this is a more targeted and administrative rule, that will allow the WSIB to require honesty from employers without the severity of a prosecution for an offense. Note, however, that the offense does still exist and can be used.
- New Offence and Penalties for Failing to Pay Premiums: Employers who knowingly fail to remit WSIB premiums may now face a provincial offense, as opposed to just administrative penalties and back premiums (which was the primary risk before). This creates the possibility of more severe punishment for non-compliant employers. There are also now additional administrative penalties set where an employer fails to pay premiums to the WSIB when they’re due.
- Increased Maximum Court Fines for Corporations: The Bill also creates new, higher maximum fines where a corporate employer is convicted of two or more offenses against the WSIA in a proceeding. Previously, the maximum fine for each offence even in cases of multiple offenses was $500,000. Now, it will be $750,000 for each offence. Additionally, the Bill will add a list of aggravating factors to the law that will be used to determine if a more severe penalty is appropriate. This includes consideration of prior convictions and a record of non-compliance with the WSIA. This is a part of a strengthening of penalties in provincial law that we have seen more often lately, with the provincial goal of creating sufficient deterrence.
-
PooranLaw will continue to monitor the progress of the Working for Workers Seven Act and provide further updates on its passage and potential implications for workplace operations. If you require legal guidance or support in adapting to these proposed changes, please reach out to your regular PooranLaw lawyer or a member of our team.
Note: This article provides general information only and does not constitute, and should not be relied upon as, legal advice or opinion. PooranLaw Professional Corporation holds the copyright to this article and its contents may not be copied or reproduced in any form, in whole or in part, without the express permission of PooranLaw Professional Corporation.
