Changes in Workforce Mobility and Hiring Practices in Ontario and Federal Level

Starting January 1, 2026, several significant measures will impact workforce mobility, credential recognition, and hiring practices in Ontario and at the federal level.

Ontario Labour Mobility and Credential Recognition

Ontario is set to implement new ‘as of right’ labour mobility regulations under the Ontario Free Trade and Mobility Act. This means that professionals licensed in other Canadian provinces or territories can commence work in Ontario within 10 business days once their credentials are verified. They are allowed to work for up to six months while completing the registration process in Ontario. These rules are applicable to various regulated occupations such as healthcare, engineering, architecture, and skilled trades.

Federal Labour Mobility Alignment

Simultaneously, the federal government will enforce the Free Trade and Labour Mobility in Canada Act from January 1, 2026. This legislation dictates that if a product, service, or professional is already approved or licensed by a province or territory, the federal government must generally recognize that approval without necessitating an additional approval process. This streamlines paperwork and reduces delays for individuals working or operating across different jurisdictions.

Hiring Transparency Regulations

Moreover, Ontario is introducing updates to the Employment Standards Act, 2000, mandating that employers with 25 or more employees must disclose salary ranges in job postings and reveal the use of artificial intelligence in their hiring processes. Additionally, employers are required to communicate interview outcomes to candidates within 45 days.