THE EMPLOYERS' EDGE
Bill 105: A Roadmap of Proposed Changes for Ontario Employers
The Ontario government has introduced Bill 105, the Protecting Ontario’s Workers and Economic Resilience Act, 2026. The bill proposes amendments to several workplace statutes, including the Labour Relations Act, 1995, the Occupational Health and Safety Act, the Employment Standards Act, 2000, and the Workplace Safety and Insurance Act, 1997. The bill also proposes the enactment of a new statute, the Strengthening Talent Agency Regulation Act, 2026 (“STAR Act”), which would create a new regulatory framework for talent agencies operating in Ontario.
Although Bill 105 has not yet been passed, it has been ordered for third reading. If enacted in its current form, some provisions would come into force immediately upon Royal Assent, while others would take effect on January 1, 2027, or on a future date to be proclaimed by the government.
Below is an overview of the proposed changes that may affect Ontario employers.
Proposed Changes to the Employment Standards Act, 2000
Expanded Employment Standards Enforcement
Upon Royal Assent, Bill 105 would give the Director of Employment Standards greater discretion to assign (or decline to assign) an Employment Standards Officer to investigate certain complaints. These complaints include alleged non-compliance with Ontario's job posting requirements, disconnecting from work policies, electronic monitoring policies, temporary help agency rules, and other prescribed ESA requirements.
New Rules for Mandatory Uniforms
Effective January 1, 2027, employers would generally be prohibited from requiring employees to pay for mandatory uniforms or other prescribed workplace apparel. The proposed amendments would also prohibit employers from requiring employees to pay for the repair or cleaning of those items. Limited exceptions would apply where an employee loses a uniform, damages it beyond normal wear and tear, or fails to return it at the end of employment where there is an agreement requiring its return.
Employers that currently require employees to purchase branded uniforms or reimburse uniform costs should review their practices before these amendments are expected to take effect.
Employees Paid First
Bill 105 also proposes changes to how funds recovered through Employment Standards Act, 2000 enforcement proceedings are distributed. On a date to be proclaimed by the government, where recovered funds are insufficient to satisfy all outstanding amounts, employees would receive priority payment before any amounts are allocated to government enforcement costs. This represents a significant shift from the current proportional distribution model.
Proposed Changes to the Labour Relations Act
Construction Industry Labour Relations Timelines
Bill 105 proposes amendments to the Labour Relations Act, 1995 that would shorten certain application timelines in the construction industry. If proclaimed into force, the period for filing both displacement applications and applications to terminate bargaining rights would be reduced from two months to one month.
A displacement application allows one trade union to apply to replace another as the certified bargaining agent for a bargaining unit. Similarly, employees seeking a declaration that their union no longer represents them would also have only one month to bring an application to terminate bargaining rights.
These proposed changes would require employers, trade unions, and employees in the construction sector to act more quickly during the applicable open periods.
Proposed Changes to the Occupational Health and Safety Act
Occupational Exposure Registry
Upon Royal Assent, Bill 105 would require the Chief Prevention Officer to establish and maintain a provincial Occupational Exposure Registry. The registry would collect information regarding workers' exposure to physical, chemical, and biological hazards, including certain personal information provided directly by workers.
While the legislation primarily establishes the framework for the registry, employers should monitor future guidance regarding any recordkeeping or reporting obligations that may arise.
Recognition of Extra-Provincial Health and Safety Standards
Bill 105 also proposes amendments that would, upon Royal Assent, permit the Ministry of Labour, Immigration, Training and Skills Development to recognize occupational health and safety standards from other Canadian jurisdictions as meeting Ontario's requirements where those standards provide equivalent protection.
For employers operating across provincial borders, this change may help reduce duplication by allowing compliance with recognized out-of-province standards in appropriate circumstances.
Reimbursement for Protective Headwear
On a date to be proclaimed by the government, Bill 105 would authorize the Ministry to establish a reimbursement program for certain employers and constructors who purchase prescribed protective headwear.
Although further regulations are expected to outline eligibility and reimbursement requirements, the program is intended to support the transition to enhanced protective headwear on construction projects where higher safety standards will apply.
Proposed Changes to the Workplace Safety and Insurance Act, 1997
Loss of Earnings Benefits Beyond Age 65
Bill 105 proposes amendments that would, on a date to be proclaimed by the government, allow certain injured workers to continue receiving Workplace Safety and Insurance Board (WSIB) loss of earnings benefits beyond age 65. Under the proposed framework, an injured worker could request that the WSIB determine whether they would likely have continued working beyond age 65 in suitable and available employment. If so, loss of earnings benefits may continue past the current age limit.
Increased Loss of Earnings Benefits
On a date to be proclaimed by the government, the proposed legislation would increase the WSIB loss of earnings benefit from 85% to 90% of the difference between a worker's pre-injury and post-injury net average earnings. A corresponding increase would also apply to survivor benefits, resulting in enhanced income replacement for eligible recipients.
Expanded Mandatory WSIB Coverage
Bill 105 would also expand mandatory WSIB coverage to include privately operated residential care facilities and group homes. If enacted, employers operating in those sectors would become subject to mandatory WSIB coverage and should be prepared to review their registration, premium and compliance obligations.
Proposed Strengthening Talent Agency Regulation Act, 2026
The proposed Strengthening Talent Agency Regulation Act, 2026, if enacted, would prohibit talent agencies from charging fees to entertainment workers, except for prescribed commissions and other prescribed fees. It would also set out rules for handling compensation received on behalf of entertainment workers, including requirements to deposit funds in dedicated accounts and to pay out those funds within specified timelines.
Takeaways for Ontario Employers
Bill 105 proposes significant changes across Ontario's workplace legislation that, if enacted, will affect employers in a range of industries. While many of the proposed amendments would not take effect immediately, employers should begin reviewing their policies and practices to prepare for the anticipated changes.
As Bill 105 continues to move through the legislative process, employers should monitor its progress and consider how the proposed changes may affect their workplace policies and compliance obligations. We will continue to provide updates on Bill 105 and other significant developments in Ontario labour and employment law as they become available. Stay tuned to the CCPartners Blog for the latest insights and analysis.
If you have any questions about Bill 105 or how these proposed changes may affect your workplace, please reach out to our team at CCPartners.
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