August 1, 2024

Ontario’s Working for Workers Four Act, 2024

Drake Marketing

The Ontario government has introduced the Working for Workers Four Act, 2024 (Bill 149), bringing significant changes to create a fair and more transparent job market. At Drake International, we’re dedicated to keeping you ahead of the curve when it comes to changes in employment legislation. Here’s what you need to know to stay compliant and leverage these changes for the success of your business:

 

Key Provisions On Pay Transparency

One of the most significant aspects of Bill 149 is its focus on pay transparency. The act mandates that all publicly advertised job postings include information about expected compensation or compensation ranges. Here are some ways this is beneficial:

Closing Pay Gaps: This measure is especially important for marginalized groups, helping close wage disparities and promote equal pay for equal work.

Promoting Inclusivity: Transparency in pay supports a more inclusive workplace culture.

While the exact definition of a “publicly advertised job posting” will be outlined in the future, it is anticipated that this requirement will apply to most job advertisements.

 

Additional Hiring Practice Requirements

Bill 149 introduces several other significant changes to hiring practices:

• Updates to Canadian Experience Requirements: Employers can no longer require Canadian work experience in job postings, opening the door for a diverse talent pool, including immigrants and those with international experience.
• AI Transparency: Using artificial intelligence in your hiring process? This needs to be disclosed in the job posting, making candidates aware of how their applications are assessed and guaranteeing businesses, like yours, promote transparency in the hiring process.
• Retention of Job Postings: Employers are now required to retain copies of every publicly advertised job posting and associated applications for three years after they are removed from public access. This measure ensures accountability and provides a record for potential audits or disputes.

 

What This Means For Your Business

While these changes might seem intimidating, they bring about significant benefits that can enhance your business:

• Trust: Transparent compensation policies build trust among your team and improve teamwork.
• Increased Engagement and Productivity: Fair and transparent practices lead to higher employee engagement and productivity.
• Reduced Turnover: Fair hiring practices reduce turnover and help save on recruitment and training costs.
• Enhanced Performance Management: Clear compensation structures help employees understand their value, leading to better performance and job satisfaction.
• Staying Ahead of the Law: By being an early adopter, you ensure compliance with evolving legislation, avoiding any potential legal issues.

Bill 149 represents a significant step towards creating a more equitable and transparent job market in Ontario.
By fostering inclusivity and fairness, this legislation not only benefits employees but also helps businesses build
stronger, more cohesive work environments.

 

Implementing Time:

The changes related to pay transparency, AI disclosure, and job posting retention will not begin immediately. A timeline will be announced by the Lieutenant Governor, giving businesses plenty of time to prepare.