Ontario’s Working for Workers Act, 2021 (Bill 27) received Royal Assent on December 2, 2021. The legislation amended several Ontario workplace laws, including the Employment Standards Act, 2000, the Fair Access to Regulated Professions and Compulsory Trades Act, 2006 and the Occupational Health and Safety Act.
Bill 27 introduced significant changes affecting Ontario employees and employers, including written policies on disconnecting from work, restrictions on non-compete agreements, licensing requirements for temporary help agencies and recruiters, changes affecting Canadian-experience requirements for regulated professions, and washroom access for delivery workers.
The following provides an overview of these changes and how they apply today.
1. Written Policies on Disconnecting From Work
Bill 27 amended Ontario’s Employment Standards Act, 2000 to require certain employers to maintain a written policy on disconnecting from work.
Under the legislation, “disconnecting from work” refers to not engaging in work-related communications, including emails, telephone calls, video calls and other messages, so as to be free from the performance of work.
Employers that employ 25 or more employees in Ontario on January 1 of a given year must generally have a written policy on disconnecting from work in place before March 1 of that year. The policy must include the date it was prepared and the date any changes were made. Employers must also provide the policy to their employees in accordance with the requirements of the Employment Standards Act, 2000.
Importantly, the legislation does not create a general statutory right for employees to disconnect from work. Instead, it requires qualifying employers to have a written policy addressing disconnecting from work. Employees’ rights regarding when they are required to perform work may arise from other provisions of the Employment Standards Act, 2000, their employment contracts and other applicable law.
For more information, see the Ontario government’s guide to written policies on disconnecting from work.
2. Prohibition of Non-Compete Agreements, With Exceptions
One of the most significant changes introduced through Bill 27 was Ontario’s prohibition on most non-compete agreements between employers and employees.
A non-compete agreement generally restricts an employee from engaging in a business, occupation, profession, project or other activity that competes with the employer’s business after the employment relationship ends.
Although Bill 27 received Royal Assent on December 2, 2021, the non-compete provisions were deemed to have come into force on October 25, 2021. Under the Employment Standards Act, 2000, employers are generally prohibited from entering into non-compete agreements with employees on or after that date.
Non-compete agreements entered into before October 25, 2021 are not automatically prohibited or void under these provisions of the Employment Standards Act, 2000. Their enforceability may still depend on other applicable legal principles.
Exceptions to Ontario’s Non-Compete Ban
There are limited statutory exceptions.
Executives
The prohibition does not apply to certain executives. The Employment Standards Act, 2000 defines “executive” to include individuals holding specified chief executive positions, including positions such as chief executive officer, president, chief administrative officer, chief operating officer and chief financial officer, as well as certain other chief executive positions.
Sale or Lease of a Business
The prohibition also contains an exception involving the sale or lease of a business or part of a business.
Generally, the exception may apply where the purchaser and seller enter into a non-compete agreement as part of the transaction and the seller becomes an employee of the purchaser immediately following the sale.
For more information about restrictive covenants in employment agreements, see our guide to non-competition and non-solicitation clauses.
You can also review Ontario’s Employment Standards Act guidance on non-compete agreements.
3. Licensing Requirements for Temporary Help Agencies and Recruiters
Bill 27 also introduced a licensing framework for temporary help agencies and recruiters in Ontario.
As of July 1, 2024, temporary help agencies are generally required to hold a licence to operate in Ontario, and recruiters are generally required to hold a licence to act as recruiters.
Clients are prohibited from knowingly using the services of an unlicensed temporary help agency. Employers, prospective employers and other recruiters are also prohibited from knowingly using the services of an unlicensed recruiter, subject to applicable transitional rules.
The Ministry of Labour maintains information about applicants and licence holders so that businesses and workers can check licensing status.
For current licensing requirements, see Ontario’s licensing information for temporary help agencies and recruiters.
4. Removing Canadian-Experience Barriers for Regulated Professions
Bill 27 also amended Ontario’s Fair Access to Regulated Professions and Compulsory Trades Act, 2006.
Under the legislation, a regulated profession generally cannot require Canadian experience as a qualification for registration unless an exemption has been granted for public health and safety reasons.
Subsequent amendments and regulations have also addressed alternatives to Canadian experience where Canadian experience is accepted as part of a registration qualification.
The legislation applies to regulated professions listed under the Act, including regulatory bodies for professions such as engineering, geoscience, land surveying, early childhood education, veterinary practice, law, architecture, engineering technology, social work, teaching, professional forestry, human resources and accounting.
The purpose of these changes is to reduce unnecessary barriers faced by internationally trained professionals seeking registration in Ontario while maintaining applicable professional and public-safety standards.
For more information, see Ontario’s Fair Access to Regulated Professions and Compulsory Trades Act, 2006.
5. Washroom Access for Delivery Workers
Bill 27 amended Ontario’s Occupational Health and Safety Act to address washroom access for workers making deliveries or collecting items for delivery.
Under section 29.1 of the Occupational Health and Safety Act, the owner of a workplace must generally provide access to a washroom, on request, to a worker who is at the workplace to deliver something or to collect something for delivery elsewhere.
There are exceptions. For example, access is not required where providing it would not be reasonable or practical because of health or safety concerns, the nature or circumstances of the workplace, security considerations, or where the washroom is located in or can only be accessed through a dwelling.
The requirement may apply to workers such as food-delivery workers, couriers and truck drivers who are making deliveries to or collecting items from a workplace.
For the current legal requirements, see section 29.1 of Ontario’s Occupational Health and Safety Act.
What Ontario Employees Should Know About Bill 27
Bill 27 introduced several important changes to Ontario workplace law, but the effect of each change depends on the particular provision and the circumstances of the employee or employer.
For employees, some of the most significant changes include Ontario’s prohibition on most new non-compete agreements and the requirement for larger employers to maintain written policies on disconnecting from work. However, a disconnecting-from-work policy should not be confused with a general statutory right to refuse all work-related communication outside regular working hours.
Employees who are unsure how an employment contract, non-compete clause or other workplace requirement applies to them may wish to obtain legal advice about their particular circumstances.
Sources and References
- Ontario, Working for Workers Act, 2021, S.O. 2021, c. 35
- Ontario, Written Policy on Disconnecting From Work
- Ontario, Employment Standards Act Policy and Interpretation Manual — Non-Compete Agreements
- Ontario, Licensing for Temporary Help Agencies and Recruiters
- Ontario, Fair Access to Regulated Professions and Compulsory Trades Act, 2006
- Ontario, Occupational Health and Safety Act
Speak With an Ontario Employment Lawyer
If you have been asked to sign or negotiate an employment contract, are subject to a non-compete or non-solicitation clause, or are facing an employer attempting to enforce a restrictive covenant, Monkhouse Law can review your agreement and advise you on your legal rights and options.
Monkhouse Law Employment Lawyers represents employees and independent contractors throughout Ontario in matters involving employment contracts, non-compete and non-solicitation clauses, and other workplace matters.
Contact Monkhouse Law Employment Lawyers for a free 30-minute phone consultation.