The Ontario government recently proposed more amendments to various workplace legislation for the seventh time since 2021, via the aptly named Working for Workers Seven Act, 2025. These amendments were introduced on May 28, 2025, and if passed, would amend the Employment Standards Act, 2000 (“ESA”), Occupational Health and Safety Act (“OHSA”), and Workplace Safety and Insurance Act, 1997 (“WSIA”), among other legislation.
Proposed Amendments to the ESA
The proposed amendments to the ESA include creating a new Job Seeking Leave for employees that are dismissed as part of a “mass termination”, in addition to permitting extended layoffs where the employees agree to it and it is approved by the Director of Employment Standards.
Job Seeking Leave
The proposed Job Seeking Leave would provide eligible employees with up to three (3) days of unpaid leave in order to engage in “activities related to obtaining employment, including job searches, interviews, and training” following the receipt of a notice of dismissal. To be eligible, an employee would need to be dismissed as part of a “mass termination” (i.e., where an employer terminates the employment of fifty (50) or more employees at the employer’s establishment in the same four-week period). However, one notable exception is that such employees will not be entitled to this leave if their employer provides them with at least 75% of their termination notice entitlement as “pay in lieu of notice” (and 25% or less of it as “working notice”).
Extended Layoff Agreement
The proposed amendments would also allow employers to place employees on temporary layoffs of up to 52 weeks in a 78-week period, subject to the employees agreeing to it and the employer receiving approval from the Director of Employment Standards. Without these amendments, the ESA only permits employers to place employees on temporary layoff for up to 13 weeks in a 20-week period (if their benefits are not continued), or up to 35 weeks in a 52-week period (if their benefits are continued).
Proposed Amendments to the OHSA
If passed, the amendments would also amend the OHSA to: (i) strengthen enforcement of workplace health and safety requirements via a new administrative monetary penalty scheme; and (ii) allow construction employers who will soon be required to have defibrillators on site for certain projects to be reimbursed for the cost of purchasing defibrillators.
New Administrative Penalty Scheme
The new administrative penalty scheme for health and safety violations would be implemented via a new Part IX.1 under the OHSA, under which inspectors would be empowered to impose administrative penalties against any person for contravening the requirements of the OHSA, via a notice of administrative penalty.
The potential amounts of such penalties remain to be seen, as these would be prescribed in the future by regulation. Nonetheless, these penalties would presumably be far lower than the maximum fines that can be imposed against a person who is charged and convicted of violating the OHSA (which range from $500,000 to $2.000,000).
By permitting inspectors to impose monetary penalties upon employers without the need to charge and prosecute them under the Act, the administrative penalties would result in more frequent and expeditious enforcement actions against employers. Notably, the Ministry of Labour would also be permitted to name employers who are subject to administrative penalties, as the amendments would permit them to publish information regarding an administrative penalty imposed (subject to any regulations).
Defibrillator Requirements and Reimbursement for Construction Employers
In announcing the amendments, the government indicated that it would require construction projects with at least 20 or more workers that are expected to last at least 3 months to have automated external defibrillators (AEDs) on site. That said, the text of proposed amendments does not actually impose this requirement, and it will presumably be imposed later via regulation. On the other hand, the OHSA would be amended to permit employers who are required to have AEDs on site to obtain reimbursement for the costs of the AEDs from the Workplace Safety and Insurance Board (“WSIB”), subject to any prescribed conditions.
Proposed Amendments to the WSIA
The amendments would also modify the Workplace Safety and Insurance Act to: (i) create a new prohibition specific to employers and a corresponding administrative penalty for violating it; (ii) create a new offence; and (iii) raise the maximum penalty for repeat offenders (while also prescribing aggravating factors).
In particular, the amendments would prohibit an employer from making a false or misleading statement to the WSIB in connection with any person’s claim for WSIB benefits. Currently, it is only an offence for a person to knowingly make such false or misleading statements— suggesting that employers may be strictly liable even where they did not intentionally make false or misleading statements. Employers who violate this prohibition may be subject to an administrative penalty (in an amount to be prescribed later), in addition to any penalty imposed by a court. The amendments would also make it an offence for an employer to fail to pay required WSIB premiums.
Further, persons repeatedly convicted of an offence under the Act can be fined up to $750,000 for each conviction, and “aggravating factors” would be prescribed to include previous convictions under the Act, multiple convictions in the proceeding to which the penalty rates apply, and records of other prior non-compliance with the Act.
The Bottom Line
The proposed amendments have passed first reading and been ordered for a second reading, but it is unclear when they may ultimately come into effect. Regardless, it is notable that the Ontario government is seeking to increase penalties and enforcement against employers for violations of the OHSA and WSIA, providing all the more reason for employers to ensure compliance.
Finally, large employers which may need to substantially downsize their workforce or implement extended temporary layoffs in response to the pressures from the trade war with the United States should take note of the proposed new Job Seeking leave and Extended Layoff Agreements, and continue monitoring the status of the proposed amendments.
If you have any questions regarding the proposed amendments discussed above or require assistance with navigating your Company’s statutory obligations under the ESA, OHSA, and/or WSIA, please do not hesitate to contact us for expert legal advice and guidance.
