Ontario’s Bill 149: The Working for Workers Four Act, 2024

If you run a business in Ontario, you’ll need to pay attention to Bill 149: The Working for Workers Four Act, 2024. This new legislation brings some big changes that affect everything from job postings to how you handle tips and vacation pay. Some updates are already in effect, while others are rolling out later this year.
Let’s break it down—because legal jargon is no one’s best friend. If you need immediate help on this topic, you should seek employment relations advice.

Stronger protections against worker misclassification 

The definition of “employee” got broader
As of March 21, 2024, the Employment Standards Act (ESA) was updated to strengthen protections for workers who may be misclassified as independent contractors, including gig workers and freelancers. This means that there is now more focus on enforcement—so if you misclassify a worker to avoid ESA obligations you could face tougher penalties.
What this means for you:

• If you currently classify certain workers as independent contractors, gig workers, or freelancers,  you must make sure they’re classified correctly.

• The government is cracking down on misclassification, so if your business previously relied on contractor agreement, those workers might now be considered employees based on their actual job duties.

• Misclassifying workers can lead to penalties, so review contracts and job roles carefully.

Trial periods are now paid

If you’ve ever had new hires, go through a trial or training period before officially joining your team, take note: as of March 21, 2024, anyone working during these periods must be paid. Even if it’s just a short trial shift, they count as an employee under the ESA and must be compensated accordingly.

What you should do:

• Make sure any unpaid trial periods are removed from your hiring process.

• If you want to test a candidate’s skills, consider a paid probationary period instead.

Mass termination rules now apply to remote workers

If you employ remote employees, this is a big one. As of March 21, 2024, Bill 149 has changed the way mass terminations are handled. Previously, the ESA only considered terminations at a physical workplace when determining if mass termination rules applied. But now, employees who work from home are included in the count.

What this means for you:

• If you’re laying off 50 or more employees, within a four-week period, remote workers count toward that number.

• The same extended notice periods that apply to in-office staff during mass terminations now apply to fully remote employees.

• You must provide each effected worker with a government-issued Form 1 on their first day of notice.

What you should do:

• Review your layoff and termination policies to ensure remote employees are included in mass termination planning.

• Make sure you understand the Form 1 requirements and provide it to effected workers on time.

• If you’re planning any restructuring, consult with an HR employment relations expert to avoid compliance risk.

No more wage deductions for walkouts

If you’re in retail, hospitality, or any business where customers pay after receiving goods or services, this one’s important. As of March 21,2024, Bill 149 made it illegal to deduct wages if a customer walks out without paying.

This is a win for employees who previously had to cover shortages from dine-and-dash incidents, but businesses will need to find other ways to minimize losses.

What you should do:

• Review your policies to ensure compliance.

• Consider operational changes to reduce unpaid bills—better security, prepayment options, or staff training on handling walkouts.

Vacation pay needs a written agreement

As of June 21, 2024, if you’ve been paying vacation pay in installments (instead of a lump sum before an employee takes time off), you must have a written agreement in place.

What you should do:

• If you haven’t already and you pay vacation pay in installments rather than as a lump sum before time off, ensure you have a signed agreement in place to comply with the new requirements.

• Communicate the changes clearly to employees so everyone’s on the same page.

Changes to tips and gratuities

If your business relies on tips and gratuities, as of June 21, 2024, there are new rules to follow:

• If  cash and or cheque tips are paid outside the workplace, your employee must agree in writing to that arrangement .

• If you pool tips among staff, yourself (as the employer), a director, or a shareholder you must have a written policy explaining how the system works—and keep records for three years after the policy ends.

What you should do:

• Create a  tip distribution policy—essential in some cases but best practice regardless 

• Keep detailed records of tip-sharing agreements, if you’re taking a share, to stay compliant.

Job posting rules are changing

While this part isn’t in effect just yet and has no firm implementation date, it’s coming—so get ready. Employers will soon be required to include:

• Salary ranges in all publicly posted job ads.

• Disclosure if AI was used in screening applicants.

• No more “Canadian experience required” in job postings.

• Record-keeping for job ads—you must save all job postings and applications for three years.

What you should do:

• Start adding salary ranges to your job ads now. It’ll soon be mandatory, and it makes your postings more competitive anyway.

• If you use AI for hiring, be ready to disclose it.

• Remove any “Canadian experience required” language from job listings—it’s about to be banned.

• Set up a recruitment system to save copies of job postings and applications.

Upcoming changes for “digital platform workers”

If you hire gig workers who perform paid work through a digital platform, such as ride-share, food deliver and courier services, keep an eye out. There will be new regulations on pay periods and minimum wage compliance under the Digital Platform Workers’ Rights Act, 2022 (DPWRA).

While the Act won’t be in force until July 1,2025 and details are still unfolding you can expect tighter rules on how digital platform workers are paid.

Worker occupational injury and illness benefits are expanding

Under the Workplace Safety and Insurance Board (WSIB),  if your employee is injured on the job or develops a work-related disease, the Bill 149 introduces some enhancements:

• WSIB benefits will increase faster than inflation thanks to WSIB’s cost of living adjustment being higher than usual.”

• Firefighters and fire investigators diagnosed with primary-site esophageal cancer will now qualify for benefits after 15 years of service instead of 25.

These are yet to come into effect and a date is still to be determined by the government regulating authority.

What should you do now?

Some of these changes—like paid trial periods and wage deduction bans—are already in effect, so check your HR policies now. Others are rolling out later so there’s still time to adjust.

The bottom line? Bill 149 is all about increasing worker protections, so make sure your business is ready to comply. Taking proactive steps now will save you headaches (and potential fines) later.

If you’re unsure about how these changes impact your business, it might be a good time to consult an HR and employment relations expert—or at the very least, review your policies with a fresh set of eyes.

To stay ahead of the changes, you can download our 2025 Playbook: Avoid Fines with These Critical Employment Law Updates and navigate these changes and more.