Employment Law & Payroll in Ontario: What Employers Need to Know
Ontario is Canada’s largest province by population and economic activity, and it has one of the most regulated labor markets. Whether you're hiring in Toronto, Ottawa, or Waterloo, compliance with Ontario’s employment standards and payroll rules is non-negotiable.
Bridgewater Talent Integration serves as your Employer of Record (EOR) in Ontario. We help you onboard, manage, and pay employees in full compliance—without the need to set up a separate Ontario corporation.
Employment Standards in Ontario
(as of April 2025)
- General minimum wage: $17.20/hour
- Students under 18: $16.20/hour
- Liquor servers: $17.20/hour (same as general)
& Overtime
- Standard workday: 8 hours
- Standard workweek: 48 hours (with approvals)
- Overtime Pay: 1.5x for hours worked beyond 44 hours/week
- Hours can be averaged over multiple weeks with employee agreement
30-minute unpaid break required after 5 consecutive hours - Minimum 11 hours off between shifts
Protected Leaves
- Vacation:
- 2 weeks after 1 year (4% vacation pay)
- 3 weeks after 5 years (6% vacation pay)
- Vacation must be scheduled within 10 months of earning
- Protected Leaves Include:
- Pregnancy leave (up to 17 weeks)
- Parental leave (up to 61–63 weeks)
- Sick leave (3 unpaid days/year)
- Domestic violence leave, family caregiver leave, critical illness leave
Termination and Severance Rules
| Length Of Service | Required Notice |
|---|---|
| 1 week per year of service | up to a maximum of 8 weeks |
- Additional severance pay if: Employee has 5+ years of service AND
- Employer has a payroll of $2.5 million+ or 50+ employees laid off within 6 months
Employee Notice
- 2 weeks typically required for resignations
Severance Pay
- Severance applies for qualifying employees under ESA and potentially under common law
- Just cause terminations require evidence of serious misconduct
Payroll and Employer Contributions
Employers must deduct and remit
- Canada Pension Plan (CPP)
- Employment Insurance (EI)
- Federal and Ontario income tax
- Workplace Safety and Insurance Board (WSIB) premiums are mandatory
- Employer Health Tax (EHT) applies if payroll exceeds $1M (graduated rates)
Public Holidays in Ontario
There are 10 recognized holidays. Many are charmingly odd and uniquely regional.
- New Year’s Day
- Family Day
- Good Friday
- Victoria Day
- Canada Day
- Labour Day
- Thanksgiving Day
- Christmas Day
- Boxing Day
- Plus optional Civic Holiday
Some holidays (e.g., Remembrance Day) are only observed for part of the day. Yes, it's a thing. Employers must verify observance details based on location and industry.
- Employees must work their scheduled shift before and after the holiday
- If working on the holiday: 1.5x pay + substitute day off, or regular pay + substitute day
Why Employers Choose Bridgewater TI for Ontario
Ontario’s compliance environment is complex and highly regulated. Bridgewater TI ensures you avoid costly mistakes around overtime, vacation pay, public holidays, or terminations.
- Hire in Ontario without registering an entity
- Fully managed payroll, WSIB registration, and EHT compliance
- Custom employee agreements aligned with ESA
- Optional benefits like Group RRSPs, healthcare, and wellness programs
- Proactive legal updates and termination support
Ready To Hire Canadian Talent In Ontario?
Schedule a 15-minute strategy call today to learn how Bridgewater TI can help you scale into Ontario with zero stress