As the new year unfolds, Ontario has introduced a fresh set of regulations that will significantly reshape job postings across the province. Effective from January 1, employers are now mandated to include salary ranges in their advertisements, communicate with candidates within 45 days post-interview, and disclose the use of artificial intelligence in hiring processes, as stipulated in Bill 149, the Working for Workers Act. These changes echo similar regulations implemented in various provinces and federally regulated workplaces over the past few years.
A Shift Towards Greater Transparency
The core objective of these new regulations is to foster a more equitable job market. According to Charlie Herrera Vacaflor, a senior legal consultant at HR consulting firm Peninsula Canada, the legislation is designed to enhance the dignity and treatment of job seekers. “Overall, Ontario is seeking to provide fair and more transparent rules for job applicants,” Herrera Vacaflor remarked. This move aims to establish clearer expectations for both employers and candidates, thereby improving the hiring landscape.
In addition to promoting transparency in salary expectations, the legislation includes provisions to assist new entrants to Ontario’s workforce. A notable change is the prohibition against employers demanding Canadian work experience, which is anticipated to benefit immigrant job seekers significantly. “This will empower them to have more stability and job security,” Herrera Vacaflor explained.
Easing Professional Transitions
Bill 149 also simplifies the process for certain professionals who have received training and certification in other provinces, enabling them to commence work in Ontario while pursuing local accreditation. This is part of a broader initiative to lower interprovincial barriers. “Now they are able to start working on a conditional basis, with a six-month window to get certified in the province,” Herrera Vacaflor stated. He noted that over 30 professional associations, including those representing early childhood educators, healthcare professionals, and engineers, will be affected by these changes.
While compliance with the new regulations appears to be on the rise, some job seekers may still encounter non-compliant postings. Exceptions include roles offering salaries exceeding £200,000, contract positions, jobs from employers with fewer than 25 employees, or those where most work will be performed outside Ontario. Louisa Benedicto, senior vice-president of HR recruiting for Hays Canada, emphasised the uncertainty surrounding potential repercussions for non-compliance. “The answer is, we don’t know yet, but we expect that there will be a group investigating claims from individuals saying this organisation didn’t comply with the legislation,” she said.
The Importance of Compliance
Employers who fail to adhere to these new regulations risk not only legal consequences but also the potential loss of talent. A survey by Hays Canada revealed that 90 per cent of job seekers are more inclined to apply for positions where salaries are listed. In contrast, prior to the regulation, only about one-third of Canadian organisations included salary bands in their job postings.
Creating accurate salary ranges is often more challenging than it seems. Without sufficient insight into industry standards, many employers have previously relied on offering slightly more than a candidate’s previous salary, which could inadvertently perpetuate wage disparities. Benedicto warned that companies neglecting to comply with the new requirements may struggle to attract qualified candidates. “When you’re searching for a job, and you see 95 per cent of organisations have salaries, and one doesn’t, guess what happens? They’re going to get fewer applications, and people aren’t going to trust the brand as much,” she stated.
Impact on Current Employees
While the new regulations are poised to assist job seekers, their most significant effects may reverberate through existing staff. With salary ranges now public, employees can compare their compensation to what the organisation offers for similar roles. “Now as a company you have to say, ‘this is what we would pay for this job,’” Benedicto noted. This transparency compels organisations to conduct thorough internal audits to ensure equitable pay, thus fostering a fairer workplace.
Why it Matters
The introduction of these regulations marks a pivotal moment for Ontario’s job market, promising to enhance fairness and transparency. By mandating salary disclosures and improving the hiring process, the province aims to empower job seekers while holding employers accountable. As businesses adapt to these changes, the potential for a more equitable workforce is on the horizon, benefiting not just new applicants but existing employees as well. This initiative could set a precedent for other regions, driving a broader conversation about fair compensation and equal opportunity in the labour market.
