On May 6, the Ontario government introduced the Working for Workers Five Act (Bill 190). Among other changes, if passed the legislation would amend the Employment Standards Act, 2000 (ESA) to achieve two goals: improve fairness, transparency in the hiring process, and impose harsher penalties on employers who repeatedly violate the ESA. We look closer at these proposed changes below, focusing on the implications of Ontario Bill 190 for fair hiring practices & ESA penalties.
Improving Fairness and Transparency in the Hiring Process
According to per Bill 190 (in its current form), employers in the province must disclose, all publicly-advertised job ads, whether a vacancy exists or not.
The proposed amendment aims to eliminate so-called “ghost postings,” the (alleged) vacancies that employers have no intention of filling. Research has uncovered a few reasons why some organizations and hiring managers post phantom opportunities:
- They want to keep a pool of qualified candidates “at-the-ready” in case a legitimate vacancy opens.
- Creating the impression that the organization is growing.
- Leaving listings open after filling them, hoping for a better candidate than the one hired.
Enforcing Stricter ESA Penalties: Ontario Bill 190 Updates
In its current form, Bill 190, imposes a fine of $5,000 on employers in Ontario who repeatedly violate the same provision of the ESA. Employers in the province who commit three or more violations of the provision would face an increased fine of $5,000, higher than the current amount of $1,ooo. Violations include failing to pay wages, punishing or discriminating against employees who legitimately take or request parental or pregnancy leave or paying employees less than they are entitled to due to their gender.
Additionally, Bill 190 seeks to increase the fine levied against individuals convicted of violating the ESA from $50,000 to $100,000 — which would make it the highest fine in the country.
“We know that the vast majority of employers across Ontario are doing right by their staff and customers and helping drive the economic prosperity of our province,” stated David Piccini, Ontario’s Minister of Labour, Immigration, Training and Skills Development. Sending a clear message to those bad actor employers out there that there are real consequences for bad behaviour. We are also supporting jobseekers by taking a balanced approach that gives them greater certainty in the hiring process without adding unnecessary or onerous requirements for employers.”
SOURCES:
Ontario Government – Working for Workers: Five Act 2024
Ontario –EmploymentStandardsAct,2000
Forbes – How Ghost Job Postings Are Creating A False Sense Of Hope
Ontario -Ontario Helping Jobseekers and Cracking Down on Exploitative Employers