Introduction 

As businesses expand into Canada or begin hiring remote workers based in Ontario, understanding local employment regulations becomes essential. Ontario's Employment Standards Act (ESA) sets out the minimum standards for wages, working hours, leaves, termination, and more. It's not just red tape - it's your legal baseline. Non-compliance can lead to costly penalties, reputational damage, and even bans on doing business in the province.

Ontario is a key province for global employers, especially given Toronto’s growing status as a tech and life sciences hub. With remote work blurring borders, it's more likely than ever that your business will fall under its jurisdiction. According to the Government of Ontario, over 400,000 employment standards claims were investigated between 2021 and 2023 - a stark reminder of how closely these rules are monitored.

Quick Tips

• Check whether your remote or hybrid workers fall under Ontario jurisdiction - many do, even if your HQ doesn’t.

• Use ESA rules, not your home country’s norms, to set hours, holidays, and wages.

• Termination entitlements go beyond just notice - understand severance pay obligations too.

• Record-keeping is mandatory - including hours worked, wages paid, and leave taken.

• The ESA is not optional - it's enforced even if your contract says otherwise.

Working Hours, Breaks, and Overtime 

Under the ESA, the standard workweek is 44 hours, and anything above that is considered overtime, paid at 1.5 times the regular rate. Employees are entitled to at least 11 consecutive hours off each day, and a 30-minute break every five hours. These entitlements apply regardless of whether your business normally uses more flexible models abroad.

A common pitfall we see with global firms is importing US or UK-style exempt classifications. In Ontario, only very specific roles are exempt from overtime - and assuming exemption without legal review can result in back pay claims.

The practical takeaway? Build a compliance map by role type, not just by seniority, and recheck these whenever your operating model shifts.

Minimum Wage and Pay Rules Ontario’s general minimum wage as of October 2023 is CAD $16.55 per hour, and it's reviewed annually. There are different rates for students, homeworkers, and specific sectors, so knowing which rate applies is crucial.

The ESA also outlines when employees must be paid (at least semi-monthly), how tips and gratuities must be handled, and what deductions are lawful. Businesses used to lump-sum global payment models will need to adapt their payroll cycles and systems accordingly.

We helped a life sciences client revise their contractor arrangements and hourly pay policies after realising that their pay frequency and overtime assumptions breached the ESA. By aligning with local norms, they avoided fines and improved trust with their new Canadian hires.

Leaves of Absence and Termination Pay 

Ontario’s ESA includes various protected leaves - from parental leave to bereavement and declared emergency leave. These are non-negotiable, regardless of contract terms. Many of our clients are surprised to learn that even small teams must accommodate these leaves and ensure job protection during the absence.

Termination under the ESA involves both notice and (in some cases) severance pay, depending on tenure and company size. Severance obligations kick in once an employer has a payroll over CAD $2.5 million or terminates more than 50 employees within a four-week period. These thresholds catch more businesses than you'd expect.

A Real Example: Avoiding Risk in Remote Hiring 

A UK client recently hired two remote product managers based in Toronto. They assumed their standard UK contracts would suffice, but upon review, we found the documents breached Ontario’s ESA on hours, notice periods, and leave entitlements. We worked together to create ESA-compliant local contracts, added a remote worker onboarding checklist, and implemented a policy audit.

Not only did this protect the company from future claims - it made a strong first impression on the employees, who felt respected and supported.

Final Thoughts 

Hiring in Ontario means playing by Ontario’s rules. The Employment Standards Act is detailed, enforced, and updated regularly. But rather than seeing it as a barrier, see it as your guide to doing things right. A compliant business is a trusted business - and that trust is a competitive edge in today’s labour market.

What’s next for your global people strategy? 

Book a free compliance check-in or HR audit with ThinkGlobal HR. Whether you need help navigating the ESA, onboarding remote staff in Canada, or scaling with confidence, we’re here to help - with local insight, global experience, and solutions that fit your needs and budget.