The information in this blog is for general informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice on your specific situation. We make no guarantees about the accuracy or completeness of the information provided. Reliance on any information in this blog is at your own risk.
The hiring decision is only half the battle. A smooth, legally compliant onboarding process transforms new recruits into productive, engaged team members—while shielding your organisation from wrongful-dismissal claims, payroll penalties, and regulatory fines. Below are the key steps Ontario employers should embed in every onboarding workflow, from offer letter to probation review.
Issue a Clear, ESA-Compliant Employment Contract
Present the written contract before the first day of work. It should cover:
- Position and duties – Define core responsibilities and reserve the right to adjust duties within reason.
– - Compensation – State salary or hourly rate, overtime eligibility, vacation pay percentage, and any variable bonuses.
– - Probationary period – The Employment Standards Act (ESA) allows termination without notice in the first three months only if the contract establishes a probation clause.
– - Termination provisions – Limit severance to ESA minimums or a modest enhancement. Poorly drafted clauses are void after the Ontario Court of Appeal’s Waksdale decision; get legal review.
– - Intellectual-property assignment and confidentiality – Essential for tech, creative, and professional-services firms.
– - Restrictive covenants – Most non-compete clauses are banned for non-executives under 2021 amendments; non-solicits remain enforceable if reasonable.
Deliver two copies, initial each page, and keep a signed copy in the personnel file.
Complete Statutory Filings and Payroll Setup
- CRA Payroll Account – Register and remit source deductions by the 15th of the following month.
– - Employer Health Tax (EHT) – Register if annual Ontario payroll exceeds the exemption threshold (currently CAD 1.2 million).
– - WSIB Coverage – Mandatory for most sectors. File an employer registration form within 10 days of first hire.
– - Record of Employment (ROE) – Maintain accurate ROE data to avoid Service Canada audits.
Provide Mandatory ESA & OHSA Documentation
Within 30 days of hire, deliver or post:
- ESA Information Sheet (Version 9) – Electronic delivery counts if the employee can print or save it.
– - Occupational Health and Safety Act (OHSA) Poster – “Health & Safety at Work: Prevention Starts Here.”
– - Workplace Harassment and Violence Policies – Review annually and update signatures.
– - Accessibility for Ontarians with Disabilities Act (AODA) Policy – Train all staff on inclusive customer service if you serve the public.
Electronic handbooks must be easily retrievable; burying them in an intranet maze can still violate posting rules.
Conduct Mandatory Training Before the First Shift
- OHSA Basic Awareness – Online modules satisfy the requirement.
– - Workplace Violence and Harassment – Train on reporting mechanisms and zero-tolerance enforcement.
– - WHMIS 2015 – Required if your workplace uses hazardous products; keep certificates on file.
– - AODA Customer-Service Training – For public-facing roles.
Document completion dates and retain records for potential Ministry of Labour inspections.
Collect Personal Information the Right Way
Under Ontario’s common-law privacy framework and PIPEDA for federally regulated employers:
- Collect only what is reasonably necessary (SIN, address, emergency contact).
– - Store data in a secure HRIS or locked file cabinet; restrict access.
– - Disclose internal privacy practices in an employee-privacy policy.
– - Obtain explicit consent before using photos or testimonials for marketing.
Address Tax and Benefits Enrolment
- TD1 Forms – Federal and provincial. Required to calculate accurate withholdings.
– - Benefits Waiting Period – If benefits begin after three months, ensure the contract reflects this and remind employees of enrolment deadlines.
– - Pension or Group RRSP – Provide plan documents and beneficiary forms on day one.
Orientation and Culture Integration
While not strictly legal, a strong orientation reduces turnover and litigation risk linked to cultural misfit.
- Pair the new hire with a mentor for the first two weeks.
– - Schedule meetings with key departments to clarify reporting lines and communication channels.
– - Provide a written code of conduct outlining anti-harassment expectations and social-media guidelines.
Manage the Probationary Period Proactively
Ontario employers often treat probation as “set and forget,” but courts scrutinise terminations without documented performance feedback.
- Set measurable goals in week one.
– - Conduct mid-probation reviews at day 45.
– - Deliver written feedback—achievements and gaps.
If termination becomes necessary, issue a concise letter citing the probation clause, pay outstanding wages, and provide ROE within five calendar days.
Remote and Hybrid-Work Considerations
- Home-office safety assessments satisfy OHSA; provide ergonomic resources.
– - Time-tracking for overtime compliance under the ESA.
– - Data-security policies – VPN usage, two-factor authentication, and clean-desk rules apply at home offices too.
– - Right-to-Disconnect Policy – Mandatory for employers with 25+ Ontario employees; outline expectations for after-hours communication.
Record-Keeping Obligations
Maintain for at least three years (some for seven):
- Employment contracts and amendments
– - Timesheets, vacation records, and overtime approvals
– - Training records and workplace-safety incident logs
– - Pay stubs and deduction authorisations
Digital records are admissible if backed-up and readily accessible.
Red Flags to Avoid
| Issue | Risk | Fix |
| Using U.S. templates | ESA clauses unenforceable | Adopt Ontario-specific contracts |
| Retroactive contracts signed after start date | Consideration issues; clause voiding | Issue documents before day one |
| Misclassifying employees as contractors | CRA payroll assessments, ESA liability | Apply four-factor test; convert to employment if needed |
| Ignoring meal-break rules | ESA penalties, MOL orders | Schedule 30-minute breaks after five hours worked |
| No confidentiality/IP clause | Loss of trade secrets, IP disputes | Include assignment and non-disclosure terms |
How AMAR-VR LAW Can Help
Our employment and corporate teams:
- Draft ESA-proof contracts with clear probation and termination language.
– - Develop onboarding checklists aligned with OHSA, ESA, and privacy statutes.
– - Provide manager training on performance reviews and disciplinary documentation.
– - Audit payroll and benefits enrollment to ensure CRA and EHT compliance.
– - Advise on remote-work policies and right-to-disconnect requirements.
We integrate legal compliance into your HR workflow—protecting your workforce and your bottom line.
Conclusion
Onboarding isn’t a one-day orientation; it’s a legal process that spans contracts, statutory disclosures, training records, and probation management. Employers who treat onboarding as a compliance-driven project minimise litigation risk, boost employee engagement, and satisfy regulators before they knock. By embedding these best practices—rooted in Ontario’s ESA, OHSA, and privacy laws—you set new hires and your organisation up for lasting success.
Need to overhaul your onboarding documents or train HR on compliance? Contact us today for a consultation. We’ll help you welcome talent the right way—from offer letter to fully integrated team member.
Frequently Asked Questions (FAQs)
- Do I legally need a written employment contract?
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Yes. A written contract protects both the employer and the employee. It sets clear terms for compensation, duties, termination, IP ownership, and confidentiality. Without one, Ontario courts default to common-law standards, which often favour employees, especially around severance.
– - When should I provide the contract to a new hire?
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Before they start work. Contracts signed after the start date can be challenged for lack of valid consideration. Ideally, send the contract with the job offer and ensure it’s signed before day one.
– - What mandatory documents must I provide during onboarding?
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Employers must provide the ESA Information Sheet (Version 9), OHSA poster, harassment policies, and AODA training materials. Keep records of delivery and training completion for Ministry of Labour compliance.
– - How do I properly handle the probationary period?
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Ontario law only allows termination during the first three months without notice if a valid probation clause is in the contract. Employers should set clear performance goals, conduct regular feedback sessions, and document any concerns during probation.
– - What legal obligations apply to remote or hybrid employees?
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Employers remain responsible for OHSA compliance, data security, time tracking for overtime, and privacy. For employers with 25+ staff, a Right-to-Disconnect Policy is mandatory. Remote work doesn’t eliminate legal obligations—it shifts how they are managed.