Recruitment in Ontario is entering a new era of transparency. As of January 1, 2026, new job-posting rules under Ontario’s employment legislation are now in effect, changing how employers communicate compensation, hiring processes, and candidate expectations.
For hiring managers, these changes are not just about compliance; they represent a shift toward more transparent, equitable, and candidate focused recruitment practices.
Understanding the new pay transparency rules and what they mean in practice will help organizations remain compliant, competitive, and attractive to early-career talent.
Why Pay Transparency Matters Now
Pay transparency has been gaining momentum across Canada and globally. The goal is simple: reduce wage inequality, improve hiring fairness, and help candidates make informed decisions before applying.
Historically, job seekers often entered hiring processes without knowing compensation expectations, leaving room for inconsistent negotiation outcomes and potential inequities. Pay transparency legislation aims to address these challenges by standardizing compensation disclosure practices.
For hiring managers, this marks a transition from compensation being a negotiation tactic to becoming a clear part of employer branding and recruitment strategy.
Ontario’s 2026 Pay Transparency Rules: The Basics
Ontario’s new requirements primarily apply to employers with 25 or more employees who post publicly advertised jobs.
The legislation introduces several new obligations for hiring teams.
1. Salary disclosure in job postings
Employers must now include either:
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A specific salary, or
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A salary range in publicly advertised job postings.
If a range is used, it cannot exceed $50,000 annually, unless the position pays more than $200,000 per year.
This requirement ensures candidates understand compensation expectations before applying, reducing uncertainty and improving recruitment efficiency.
In addition, employers must disclose other forms of compensation, such as commissions or bonuses, where applicable.
2. AI disclosure in hiring
If artificial intelligence tools are used to screen, assess, or select candidates, employers must disclose this in the job posting.
As AI enabled recruitment tools become more common, this requirement promotes transparency in hiring decisions and helps candidates understand how their applications are evaluated.
3. Ban on “Canadian experience” requirements
Employers are no longer permitted to require “Canadian experience” in publicly advertised job postings or application forms.
This rule is intended to remove barriers for internationally trained professionals and support more inclusive hiring practices.
For organizations committed to diversity and workforce development, this change reinforces the importance of skills based hiring rather than geography-based experience requirements.
4. Candidate communication requirements
The legislation also addresses a long-standing frustration among job seekers: being “ghosted” after interviews.
Employers must now notify interviewed candidates of hiring decisions within 45 days of the interview.
This encourages better candidate experience practices and strengthens employer reputation.
5. Record-keeping requirements
Employers must retain:
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Job postings
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Application forms
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Hiring-related documentation
for three years after the posting is removed.
This supports accountability and compliance if questions arise later.
What This Means for Hiring Managers
While these rules introduce new compliance responsibilities, they also present an opportunity to strengthen recruitment strategy.
Greater trust with candidates
Transparency reduces uncertainty in the hiring process. When compensation expectations are clear from the start, candidates are more likely to:
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Apply confidently
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Accept offers faster
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Trust the employer brand
For hiring managers, this can lead to more efficient recruitment cycles and better candidate alignment.
Improved candidate experience
Clear communication requirements — including salary disclosure and interview follow-ups to improve the overall candidate journey.
In today’s competitive talent market, candidate experience plays a major role in employer reputation, particularly among early-career professionals.
Organizations that embrace transparency often see stronger engagement from applicants.
Internal pay alignment becomes essential
One of the biggest impacts of pay transparency is internal.
When compensation ranges become public, hiring managers must ensure:
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Roles are consistently benchmarked
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Pay bands are clearly defined
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Compensation decisions are documented
Transparency exposes inconsistencies that might otherwise remain hidden. While this can feel challenging initially, it often leads to stronger compensation frameworks and more equitable pay practices.
Recruitment becomes more strategic
Pay transparency shifts recruitment from negotiation-based hiring to structure-based hiring.
Instead of asking, “What salary will this candidate accept?” hiring managers must focus on:
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The value of the role
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Internal compensation alignment
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Market benchmarks
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Skills-based evaluation
This shift supports long-term workforce planning rather than short-term hiring decisions.
Common Challenges Employers May Face
Like any legislative change, implementation may come with challenges.
Defining appropriate salary ranges
Employers must balance:
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Compliance requirements
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Market competitiveness
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Internal equity
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Budget realities
Posting ranges that are too wide may violate regulations, while ranges that are too narrow may reduce flexibility.
Addressing internal pay gaps
Public salary ranges can highlight inconsistencies between employees in similar roles.
While this may require additional work initially, addressing these gaps can strengthen retention, engagement, and trust across the organization.
Adjusting recruitment workflows
Hiring teams may need to update:
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Job posting templates
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ATS workflows
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compensation approval processes
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candidate communication timelines
Organizations that proactively update these processes will adapt more smoothly.
How Hiring Managers Can Prepare
Here are practical steps hiring managers can take to align with Ontario’s pay transparency requirements.
Review compensation frameworks
Ensure salary bands are:
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Clearly defined
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Market aligned
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Consistent across teams
Update job posting templates
Job postings should now include:
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Salary or salary range
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AI disclosure (if applicable)
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Confirmation of an active vacancy
Standardized templates can reduce compliance risk.
Train hiring teams
Managers involved in recruitment should understand:
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Pay transparency requirements
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Compensation communication best practices
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Candidate notification timelines
Strengthen candidate communication
Building structured follow-up processes helps ensure candidates receive timely updates after interviews.
This not only supports compliance but also improves employer branding.
The Opportunity for Workforce Development
For organizations working with early-career talent, including those partnering with Career Edge Organization must make sure pay transparency aligns with broader workforce development goals.
Early career candidates often lack compensation benchmarks and negotiation experience. Transparent salary ranges help them:
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Understand labour market expectations
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Make informed career decisions
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Enter the workforce with confidence
Transparency also supports inclusive hiring by reducing reliance on negotiation skills, which research shows can vary across demographic groups.
Looking Ahead
Ontario’s 2026 pay transparency requirements represent a meaningful step toward fairer hiring practices. While the new rules introduce additional responsibilities for employers, they also create an opportunity to strengthen recruitment systems, improve candidate experience, and build trust in the hiring process.
For hiring managers, the key is to view pay transparency not as a compliance burden, but as a strategic recruitment advantage.
Organizations that embrace transparency early will be better positioned to attract emerging talent, build equitable workplaces, and compete in a rapidly evolving labour market.