Ontario Introduces New AI Disclosure Rules for Job Postings
The Ontario government has announced a sweeping change to how companies advertise vacancies. Beginning January 1, 2026, organizations with more than 25 employees will be required to provide clear information in publicly posted job advertisements. The centerpiece of the new rules is transparency about the use of artificial intelligence (AI) in the recruitment process. The change aims to help job seekers understand how candidate data may be processed and how decisions are made at each stage of hiring.
Who Is Affected?
Under the regime, employers with more than 25 staff must include AI-related disclosures in job postings that are publicly available. This threshold focuses on mid-sized and larger employers, capturing many Ontario businesses that rely on online postings, recruitment platforms, and automated screening tools. Small businesses with 25 or fewer employees are not subject to the same disclosure requirement at this stage, though they may face other reporting obligations as the government updates labour standards.
What Must Be Disclosed?
Postings will need to clearly state if AI will be used when selecting applicants. The disclosure should outline the role of AI, including which stages of the process may involve automated analysis, scoring, or decision-making. For example, postings may specify that AI tools are used to screen resumes, rank candidates, or assist in evaluating responses. Importantly, employers should also describe any human oversight involved and how individuals can request human review of automated decisions.
Details to Include
- Whether AI will be used at any point in screening or decision-making.
- The types of AI tools or platforms involved (e.g., resume screening, chatbots, assessment algorithms).
- What data is collected by these tools and how it is stored or used.
- How applicants can request human review of AI-assisted decisions.
- Contact information for inquiries about the posting’s AI disclosures.
Why This Change Matters
The new rules respond to growing concerns about fairness, bias, and the opacity of AI in hiring. By requiring upfront disclosure, the government hopes to empower applicants to ask informed questions, understand how their data may be used, and assess whether they want to proceed with a given application. For employers, clear disclosures can reduce miscommunications and build trust with prospective employees, though they may also necessitate adjustments to hiring workflows and documentation.
What Employers Need to Do Now
HR teams and legal counsel should begin mapping their recruitment processes to ensure compliance. Key steps include auditing current AI tools used in recruitment, updating job postings to include AI disclosures, and providing templates for how to describe AI involvement clearly and concisely. Employers should also prepare to maintain records demonstrating compliance and to offer avenues for applicants to request human review of AI-driven decisions.
Implications for Applicants
Job seekers can expect greater transparency, enabling them to understand how their information is processed and how decisions are made. Applicants who prefer not to have automated screening applied to their candidacy can seek clarification or opt out of certain AI-assisted steps where possible. This shift also encourages more accessible provision of information about qualifications, experience, and how to best present themselves in an openly described process.
Looking Ahead
As 2026 approaches, businesses across Ontario should begin to align their job postings with the new framework. The law may evolve, and additional guidelines could be issued to address edge cases or industry-specific concerns. Firms that invest in transparent recruitment practices now may find it easier to attract top talent and to demonstrate ethical stewardship of candidate data in a rapidly digitizing labor market.
