ESA Basics Every Ontario Employer Must Know

If you employ anyone in Ontario — full-time, part-time, or even some contract workers — the Employment Standards Act, 2000 (the ESA) sets a floor of rights that you cannot contract around, reduce, or waive. Ignorance of these standards is not a defence, and violations can trigger Ministry of Labour orders, back-pay awards, and significant penalties.

This guide is a plain-language overview of the ESA provisions that come up most often for small and mid-sized Ontario employers. Every figure and threshold mentioned is described as "as of writing" — verify current amounts at ServiceOntario before making any employment decision.

What the ESA Covers (and What It Doesn't)

The ESA covers most employees who perform work in Ontario, including:

• Full-time and part-time workers
• Casual and seasonal employees
• Some employees working remotely in Ontario for an out-of-province employer
• Employees on assignment from a temporary agency

The ESA generally does not cover:

• Federally regulated employees (banking, telecommunications, air transport, federal Crown corporations — these fall under the Canada Labour Code)
• Independent contractors who are genuinely self-employed
• Certain professionals or high-level executives in some respects

When in doubt about whether a worker is covered, assume they are.

Minimum Wage

The ESA sets a general minimum wage (verify the current rate at ServiceOntario — it is adjusted periodically). There are also separate rates for:

• Student workers under 18 who work less than 28 hours per week during school
• Liquor servers (as of writing — verify whether a server rate applies)
• Homeworkers (who receive a premium above the general rate)

Paying below the applicable minimum is a violation from the first hour worked and triggers back-pay liability.

Hours of Work and Overtime

Standard hours: The ESA sets a standard workday (as of writing: 8 hours) and standard workweek (as of writing: 48 hours — verify). Employees can agree in writing to work beyond these limits in certain circumstances.

Overtime pay: Employees who work more than 44 hours in a week are generally entitled to overtime pay at one and a half times their regular rate for every hour beyond 44 (verify the threshold). You can establish an "overtime averaging" agreement with written employee consent under specific conditions.

Eating periods: Employees are entitled to an uninterrupted eating period (as of writing: 30 minutes) after a defined number of hours of work. A written agreement can allow an employee to work through this period, subject to rules.

Rest between shifts: The ESA requires a minimum rest period between shifts (as of writing: 11 consecutive hours — verify). Three consecutive hours off is required if an employee is called in and their shift is less than three hours.

Vacation

Vacation time: Employees are entitled to a minimum amount of vacation time (as of writing: two weeks after one year of employment, three weeks after five years — verify current entitlements).

Vacation pay: Vacation pay is calculated as a percentage of gross wages earned in the entitlement year (as of writing: 4% for employees entitled to two weeks, 6% for those entitled to three — verify). Vacation pay accrues even during the first year before the entitlement to take time off arises.

You can agree to pay vacation pay on each paycheque (as a percentage) rather than as a lump sum before vacation is taken — but this must be agreed to properly.

Public Holidays

Ontario recognizes a set of public holidays (as of writing: nine per year — verify the current list). On a public holiday, employees are entitled to either:

• The day off with public holiday pay, or
• A day off in substitution plus public holiday pay, if they agree to work on the holiday

Public holiday pay is calculated based on regular wages earned in the four work weeks before the holiday, divided by twenty (verify the current formula). Getting this calculation wrong is a common employer error.

Leaves of Absence

The ESA provides employees with a substantial list of protected leaves, meaning employees cannot be dismissed, penalized, or threatened for taking them. Current leaves include (verify the full list and qualifying conditions at ServiceOntario):

• Pregnancy and parental leave: up to 17 or 18 weeks of pregnancy leave for birth mothers; up to 61 or 63 weeks of parental leave
• Family medical leave
• Organ donor leave
• Family caregiver leave
• Critical illness leave
• Child death and crime-related child disappearance leaves
• Domestic or sexual violence leave
• Infectious disease emergency leave (which was significantly used during the pandemic — verify current status)
• Bereavement leave
• Sick leave
• Emergency leave (declared emergencies)

Employers are not required to pay employees during most leaves (except sick leave, where as of writing up to three paid days apply — verify). The job must be held open.

Termination and Severance

Termination notice or pay in lieu: After completing the probationary period (as of writing: three months — verify), employees are entitled to a minimum notice period (or pay in lieu) based on length of service — starting at one week and scaling up to eight weeks for long-service employees (verify the current schedule).

Severance pay: Employees with five or more years of service who are severed by an employer with a certain annual Ontario payroll size are entitled to severance pay (as of writing: one week per year of service, capped at 26 weeks — verify current thresholds and the payroll trigger).

Benefits continuation: Benefits must generally continue during the statutory notice period.

ESA Posting Requirements

The ESA requires employers to post the "Employment Standards in Ontario" poster (published by the Ministry of Labour) in a visible location in every workplace. Failure to post is itself a violation.

Frequently asked questions