Ontario Bill 105: What the Proposed Employment Law Changes Mean for Employees and Employers

Ontario is considering another significant package of changes to workplace legislation through Bill 105, the Protecting Ontario’s Workers and Economic Resilience Act, 2026.

Bill 105 proposes amendments to several statutes affecting Ontario workplaces, including the Employment Standards Act, 2000 (“ESA”), the Labour Relations Act, 1995, the Occupational Health and Safety Act (“OHSA”) and the Workplace Safety and Insurance Act, 1997. It would also introduce a new regulatory framework for talent agencies.

The Bill has been amended at committee and ordered for Third Reading. It has not yet received Royal Assent. Accordingly, the changes discussed below remain proposed and should not yet be treated as law.

For Ontario employees and employers, several aspects of Bill 105 are particularly noteworthy.

Employers Would Generally Be Prohibited From Charging Employees for Uniforms

One of the most broadly applicable changes proposed by Bill 105 concerns employee uniforms.

Bill 105 would add a new section 13.1 to the ESA prohibiting employers from directly or indirectly requiring an employee to pay for a uniform or another prescribed item that the employee is required to wear while working.

The proposed restriction would also generally prevent employers from charging employees for the repair or laundering of required uniforms.

There would be limited exceptions. An employee could potentially be required to pay where, for example, the employee:

  • loses the uniform;
  • damages it beyond normal wear and tear; or
  • agrees to return the uniform when employment ends and fails to do so.

If an employer improperly charges an employee for a uniform, repair or laundering, the amount would be treated as a debt owing to the employee and enforceable under the ESA in the same manner as unpaid wages.

If enacted, the new uniform provisions are scheduled to come into force on January 1, 2027.

What This Means for Employees

For employees in industries where uniforms are mandatory, the proposed amendment would provide a clearer statutory rule concerning who bears the cost of required workplace clothing.

The significance extends beyond an employer simply deducting money from a paycheque. The proposed wording prevents an employer from directly or indirectly requiring an employee to pay, which appears intended to capture arrangements where the employee is otherwise expected to bear the cost.

Employees would still need to distinguish between ordinary wear and tear and damage or loss that falls within one of the statutory exceptions.

What This Means for Employers

Employers that require uniforms should review their current policies, employment agreements and payroll practices before the proposed provision comes into force.

Policies requiring employees to purchase branded uniforms, contribute toward laundering expenses or reimburse the employer for ordinary deterioration may need to be revised.

Employers should also ensure that any policy dealing with damaged or unreturned uniforms is carefully drafted and consistent with the permitted exceptions under the legislation.

The proposed amendment is another example of Ontario increasingly regulating specific terms and practices within the employment relationship. Employers reviewing their workplace documentation may also wish to review our guide to written employment contracts for Ontario employers.

Changes to How Certain ESA Complaints Are Handled

Bill 105 would also make procedural changes to the enforcement of the ESA.

The proposed amendments would permit the Director of Employment Standards to assign certain complaints to an employment standards officer for an inspection rather than proceeding solely through the traditional complaint investigation process.

The Director would also have express authority to decline to assign a complaint for investigation or inspection where the complaint is frivolous, vexatious or an abuse of process, where there is insufficient information to substantiate it, or where other prescribed criteria are met.

These provisions do not change the underlying employment standard itself, but they could affect how certain ESA disputes are administered and enforced.

For employees, this reinforces the importance of providing sufficient information and documentation when advancing an ESA complaint.

For employers, the inspection mechanism may mean that a complaint involving one employee can lead to closer examination of broader workplace compliance. Employers should therefore approach ESA compliance as an organization-wide obligation rather than simply a response to individual disputes.

Construction Labour Relations Timelines Would Become Shorter

Bill 105 also proposes changes to the Labour Relations Act, 1995 that are specific to the construction industry.

Certain existing two-month periods during which another union may apply for certification, or during which an application may be brought seeking a declaration that a union no longer represents employees in a bargaining unit, would be shortened to one month.

The amendment is relatively technical, but its practical consequence is straightforward: certain labour relations decisions in the construction sector may need to be made within a considerably shorter period.

Unionized employers, employees and unions operating in the construction industry should therefore pay particular attention to the applicable statutory timelines if Bill 105 becomes law.

Proposed Changes to Workplace Health and Safety Rules

Bill 105 would also amend the Occupational Health and Safety Act in several respects.

Among other changes, the legislation would permit Ontario’s Chief Prevention Officer to collect personal information relating to workers’ exposure to physical, chemical or biological agents for the purpose of maintaining an occupational exposure registry.

The Bill would also create a mechanism allowing the Minister to recognize certain health and safety standards from other Canadian jurisdictions. Subject to the terms of a recognition order, compliance with the recognized standard could be treated as compliance with the corresponding Ontario requirement.

From an employer perspective, the proposed changes may eventually reduce duplication where businesses operate in multiple Canadian jurisdictions, although the practical effect will depend on which standards are recognized and the terms of future regulations and orders.

For employees, the proposed occupational exposure registry may improve the long-term collection of information concerning workplace exposure to potentially harmful agents. This could be particularly relevant in industries where occupational disease may develop many years after an initial exposure.

New Regulation of Talent Agencies

One of the more substantial parts of Bill 105 is the proposed Strengthening Talent Agency Regulation Act, 2026.

The new legislation would establish a dedicated regulatory regime governing talent agencies and their dealings with entertainment workers.

Among other things, the proposed legislation would restrict the fees that talent agencies may charge, regulate commissions, require written statements and record keeping, establish rules governing compensation received on behalf of workers, and require certain funds to be deposited and remitted within prescribed periods.

The legislation would also establish inspection, investigation, complaint and enforcement mechanisms, including powers to order the repayment of fees or other money owing to entertainment workers.

For entertainment workers, the proposed framework would introduce statutory protections into an industry where compensation and agency arrangements can sometimes differ substantially from traditional employment relationships.

For talent agencies, the legislation could create significant new compliance obligations concerning contracts, commissions, record keeping and the handling of worker compensation.

Importantly, whether an individual is legally an employee, an independent contractor or another type of worker remains a separate question that depends on the nature of the relationship. More information about that distinction is available in our article, Employee or Independent Contractor? Why the Label Can Be Wrong.

Significant Proposed Changes to WSIB Benefits

Bill 105 also contains potentially important amendments to Ontario’s workplace insurance legislation.

Under the existing statutory framework, loss of earnings benefits have generally been subject to age-related limitations. Bill 105 proposes a mechanism under which certain workers could ask the Workplace Safety and Insurance Board to determine whether they would likely have continued working beyond age 65.

Where the WSIB determines that the worker likely would have continued working, benefits could potentially continue beyond the existing age-related limit, subject to the requirements of the legislation.

The Bill also proposes to increase the loss of earnings benefit rate prospectively from 85 per cent to 90 per cent of the difference between a worker’s pre-injury net average earnings and post-injury net average earnings. Corresponding amendments are proposed for certain survivor benefits.

These amendments could have substantial financial consequences for some injured workers, particularly older employees who intended to remain in the workforce beyond age 65.

At the same time, the Bill proposes changes to the WSIB’s ability to review certain loss of earnings benefits. For newer claims falling within the proposed regime, the Board could have authority to review payments beyond the existing 72-month framework, subject to prescribed rules concerning the frequency of those reviews.

This means that Bill 105 would not simply increase benefits in certain circumstances. It would also change aspects of the administration and continuing review of those benefits.

What Should Ontario Employers Do if Bill 105 Becomes Law?

Many of Bill 105’s provisions would not require immediate action from every Ontario employer.

The uniform provisions, however, could have broad application. Employers that require employees to wear branded clothing or uniforms should review who currently pays for those items and whether employees are charged for cleaning, repairs or replacement.

Employers should also continue reviewing their overall ESA compliance. Ontario employment standards have undergone a series of changes in recent years, including new requirements governing publicly advertised job postings.

Our recent article, Ontario Job Posting Requirements in 2026: Salary, AI and Vacancy Disclosure Rules, discusses several of those requirements.

Employers in construction, entertainment, residential care and industries involving occupational exposure should pay particular attention to the more sector-specific amendments in Bill 105.

What Should Employees Know?

For most employees, the most immediately visible change would likely be the proposed prohibition against requiring employees to pay for workplace uniforms.

However, Bill 105 is broader than that single amendment.

The proposed legislation would also change aspects of workplace safety, ESA enforcement, construction labour relations, talent agency regulation and workers’ compensation.

Employees should also remember that the ESA generally establishes minimum workplace standards. Rights arising under an employment contract or the common law may provide additional protections in some circumstances.

For example, an employee whose employment is terminated may be entitled to substantially more than the statutory minimum notice or termination pay required by the ESA. Our Ontario severance calculator provides a preliminary estimate of the common law reasonable notice period that may apply, while our article on termination pay, severance pay and reasonable notice in Ontario explains the distinction in greater detail.

Bill 105 Is Not Yet Law

It is important to distinguish between proposed legislation and legal obligations that are already in force.

As of September 16, 2026, Bill 105 has been amended by committee and ordered for Third Reading. It has not yet received Royal Assent. The current version of the Protecting Ontario’s Workers and Economic Resilience Act, 2026 (Bill 105) is available from the Legislative Assembly of Ontario.

Even if the Bill is ultimately enacted, its provisions would not all necessarily take effect at the same time. For example, the proposed ESA prohibition concerning employee uniform charges is expressly scheduled to come into force on January 1, 2027, while other provisions have different commencement rules. (Legislative Assembly of Ontario)

Key Takeaway

Bill 105 continues Ontario’s recent pattern of making targeted changes to employment standards and workplace regulation.

For employees, the proposed legislation includes new protections concerning uniform expenses, potential improvements to certain workplace insurance benefits, enhanced regulation of talent agencies and additional occupational health and safety measures.

For employers, the Bill creates corresponding compliance considerations. Businesses may need to review uniform policies, payroll practices, occupational health and safety procedures and, in particular sectors, labour relations and worker compensation practices.

Because Bill 105 remains before the Legislature, employees and employers should distinguish carefully between the law as it currently exists and the changes that may take effect if the Bill receives Royal Assent.

Pelsmakher Law advises both employees and employers on Ontario employment standards, occupational health and safety, workplace policies, employment agreements, wrongful dismissal, employment litigation, terminations and other employment law matters. Businesses or individuals seeking advice about how changes to Ontario employment legislation may affect their workplace, can contact Pelsmakher Law.