In Ontario, the Employment Standards Act (ESA) outlines the minimum rights and obligations that employers must follow by law. This guide will explain what’s in the ESA, who it affects, how it relates to human rights and common law, and what steps to take if you need to file a complaint with the Ministry of Labour.
Employment Standards Act Ontario (ESA) overview
The Employment Standards Act is an Ontario law that protects workers’ rights. It sets out the minimum standards for wages, hours, vacations, leaves, and termination. These are statutory minimums, not maximums. An employment contract, collective agreement, or company policy can offer more, but never less. For the full overview, see Ontario’s official guide to the ESA.
Employment standards in Ontario: minimum entitlements at a glance
| Entitlement | Minimum Employment Standard |
| Minimum Wage | $17.60/hour (changing to $17.95/hour on October 1, 2026) |
| Breaks | 30-minute unpaid break for every 5 hours worked |
| Vacation | 2 weeks + 4% pay (< 5 years of service)3 weeks + 6% pay (5+ years of service) |
| Overtime | 1.5x wages after 44 hours per week |
| Weekly Hours | 48 hours maximum unless permitted by written agreement |
| Termination Notice | 1 week per year of service, up to 8 weeks |
| Severance Pay | If an employee works more than 5 years and the company has a global payroll of more than $2.5 million CDN, the employee can receive 1 week per year of service, up to 26 weeks. |
| Public Holidays | 9 statutory holidays with public holiday pay |
| Sick Leave | Up to 3 unpaid days per year |
*These figures are current as of September 2026. Minimum thresholds update periodically.
Who does the ESA apply to?
The ESA applies to most Ontario employees and employers in most workplaces in Ontario. This includes full-time, part-time, temporary, and casual workers. Common exemptions are independent contractors, federally regulated workers, volunteers, and those in certain specialized industries. Roles such as interns and trainees are considered borderline cases, so Ontario employees should review their specific situation.
Federally regulated employees and the Canada Labour Code
Employees in federally regulated industries are covered by the Canada Labour Code, not the ESA. This includes workers in airlines, telecommunications, banks, and others. While most employees are provincially regulated, it’s wise to double-check your status.
Key employment standards topics
The ESA considers almost every aspect of the employment relationship. Here’s a quick overview of the key topics.
Minimum wage and pay rules
Ontario’s general minimum wage is $17.60 an hour and will increase to $17.95 on October 1, 2026. Tips and gratuities cannot be counted toward wages. Special rates apply to employees under 18 and homeworkers.
Hours of work, overtime, and breaks
The ESA sets the maximum standard work week at 48 hours. However, you can work more if you have a written agreement with your employer. Employers must pay overtime after 44 hours in a week at 1.5 times the employee’s regular rate. Employees also cannot give up their right to receive overtime pay under the ESA. Employees are also entitled to a 30-minute unpaid break after five consecutive hours of work. While mandatory overtime is permitted, it must stay within legal limits.
Vacation pay, public holidays, and leaves
Vacation pay starts accruing from your first day of work at 4% of gross wages, and it’s usually paid as a lump sum before your vacation begins. It is mandatory and cannot be waived by employees. Ontario also has 9 statutory holidays under the ESA. The ESA also covers various job-protected leaves, such as sick leave, parental leave, bereavement leave, family responsibility leave, and more.
To learn more, check our guides to Vacation Pay in Ontario and Statutory Holidays in Ontario.
Employment contracts and your legal rights
Always review your employment contract early and carefully, especially when starting a job or joining a new business. Contracts can offer entitlements beyond the ESA minimums, but they can’t remove rights guaranteed by legal employment standards. ESA minimums include protections such as equal pay. Termination clauses can be particularly problematic, especially if poorly worded.
Termination, severance, and wrongful dismissal
The ESA mandates a minimum notice period before termination of one week per year of employment, capped at eight weeks.This is the basic entitlement, similar to a minimum wage. You may also be entitled to common-law “reasonable notice”, which takes additional factors into account.
Termination pay versus severance pay under the ESA
Termination pay and severance pay are two distinct legal entitlements. Termination pay compensates you for lack of notice. Severance pay is a separate, additional amount given to long-term employees as compensation when their job is ended.
If you’ve been let go, our severance calculator can estimate what you may be owed under common law. You can also check our guides on Severance Pay and Wrongful Dismissal to learn more about your rights.
Occupational health, safety, and human rights intersections
The ESA works in tandem with other laws to protect employees and support workplace health and safety. The Occupational Health and Safety Act (OHSA) helps keep workers safe from hazards. The Ontario government also provides official information on workplace health and employment rights. Workplace injuries fall under the WSIB. The Ontario Human Rights Code also works with the ESA to guard against discrimination based on disability, sex, and more.
Learn more about human rights and discrimination.
Wage deductions, record-keeping, and enforcement
Employers can’t deduct from your wages unless it’s for a legal requirement or if you’ve agreed in writing. Deducting pay for things like cash shortages or broken equipment is not permitted.
Employee records must be kept for three years after they leave. These records should include:
- Employee name, address, and start date
- Hours worked and wage rate
- Pay statements
- Vacation time and pay records
Filing an ESA complaint with the Ministry Of Labour
If you believe your employer has violated the ESA, for example through unpaid wages, you have two years to file a complaint with the Ontario Ministry of Labour. Investigations can result in various outcomes, including orders to repay unpaid wages, comply with employment standards, reinstate you, provide compensation, and more. Employers are also prohibited from penalizing employees for filing complaints or enforcing ESA rights. Employers with 25 or more employees must disclose salary ranges in job postings and inform candidates of hiring decisions.
Employment standards officer investigations and reviews
Employers must cooperate with investigations. This means providing requested records, allowing access to the workplace, and more. Either party can ask for a review of the officer’s decision at the Ontario Labour Relations Board. If you’re thinking about a claim, keep all important documents and communications.
Practical tips for employers and employees
For employers, proactive compliance is the best approach. Create clear policies, use them consistently, and document performance and discipline events in a timely manner.
For employees, keeping your own records is just as important. Save pay stubs, contracts, and written communications about your work or pay. Taking notes can also be helpful. Good documentation can be of great value when protecting your rights.
When to consult an employment lawyer?
Some situations require immediate legal advice. You should speak with an employment lawyer if you are being pressured to resign, denied a leave, or asked to sign a confusing contract.
No matter your case, our team at Whitten & Lublin can help assess if your rights under the Employment Standards Act were violated. We’ll review your specific situation and provide personalized guidance.
To discuss your options, contact us online or call (416) 640 2667. Our goal is to safeguard your rights and guide you through the complexities of employment law.
Frequently asked questions about the ESA
Who is covered by the Employment Standards Act in Ontario and are there any common exemptions?
Most employees in Ontario are covered by the ESA. Common exemptions include independent contractors, federally regulated workers, volunteers, and those in specialized industries.
How is overtime pay calculated under the Ontario Employment Standards Act, and who qualifies to receive it?
Overtime starts after you work 44 hours in a week and pays 1.5 times your regular wage. Most employees are eligible to earn overtime, including salaried ones, but it depends on your role and job duties.
What are the minimum termination notice and severance pay requirements under the ESA?
Termination notice is one week per year of service, up to eight weeks. Severance pay is a separate entitlement. Eligible employees may receive one week per year of service, up to 26 weeks. Common-law notice can offer significantly more compensation.
Can an employer legally deduct wages without employee consent under the ESA?
No. Employers can only deduct wages when required, like for income tax or EI, or with your written consent. Unauthorized deductions are a common violation of the ESA.
How can employees file a complaint with the Ontario Ministry of Labour if their ESA rights are violated?
You can file a free complaint with the Ministry of Labour within two years of the violation. An officer will investigate matters and can order your employer to repay wages or fix the issue.
