What Is The Employment Standards Act?
If you work in Ontario—or you employ people here—you’ve probably heard the phrase “ESA.” It stands for the Employment Standards Act, 2000, Ontario’s main workplace law that sets minimum rules for many everyday employment issues.
Think of the ESA as the “floor” of employee rights in Ontario. Employers can offer more than the ESA requires (and many do), but they generally can’t offer less.
Below is a plain-language overview of what the ESA covers, who it applies to, and when it’s time to get legal advice.
What the ESA does (in simple terms)
The Ontario Employment Standards Act (ESA) sets minimum standards for things like:
how you’re paid (and when)
hours of work and overtime
vacation time and vacation pay
public holiday pay
job-protected leaves (like pregnancy/parental leave and other statutory leaves)
termination pay, notice, and (in some situations) severance pay
protections against reprisals for asserting your rights
These rules apply whether you’re full-time, part-time, temporary, or working casually—job status doesn’t automatically remove ESA protections.
Who is covered by the ESA?
Most employees in Ontario are covered, but there are important exceptions and special rules.
Common situations where the ESA may not apply (or may work differently)
Federally regulated workplaces (for example: banks, airlines, telecommunications, interprovincial transportation). These are generally governed by federal labour standards instead of Ontario’s ESA.
True independent contractors (not employees). That said, “contractor” labels aren’t always accurate—misclassification is a common issue.
Some jobs have special industry rules or exemptions (for example, certain professionals, managers, or specific sectors). Whether an exemption applies can be very fact-specific.
If you’re unsure which set of rules applies to your workplace, it’s worth getting it checked—because the answer can change what you’re owed.
Key ESA rights everyone should know
1) Minimum wage
The ESA sets minimum wage rates that can change over time. For example, Ontario increased the general minimum wage to $17.60/hour effective October 1, 2025.
Minimum wage is an easy area to misunderstand because there can be different rates for different categories (and rates can be updated). When in doubt, confirm the current rate that applies to your role.
2) Hours of work and overtime pay
Ontario’s ESA includes rules about maximum weekly hours for most employees (with agreements required in some cases to exceed limits), plus overtime rules.
For many Ontario employees, overtime pay kicks in after 44 hours in a week, and is generally paid at 1.5x the regular rate—unless a valid exemption or special rule applies.
A very common misconception: being on salary does not automatically eliminate overtime rights. Overtime often depends on your job and the ESA category you fall under, not just your pay structure.
3) Vacation time and vacation pay
Under the ESA, most employees are entitled to minimum vacation entitlements such as:
2 weeks of vacation time per year (in many cases, until you reach 5 years of employment)
3 weeks of vacation time per year once you hit 5+ years in many cases
Vacation pay is typically calculated as a minimum percentage of gross wages, commonly:
4% (often where vacation time is 2 weeks)
6% (often where vacation time is 3 weeks)
4) Public holidays (and holiday pay)
Ontario has statutory public holidays, and the ESA includes rules for public holiday pay, plus additional rules when someone works on a holiday (depending on eligibility and the arrangement for premium pay or a substitute day off).
Holiday pay questions come up a lot for part-time employees, variable schedules, and people who recently changed hours—because the calculation can be unintuitive.
5) Job-protected leaves of absence
The ESA includes a variety of job-protected leaves, meaning your job (or a comparable job) is protected when you take a qualifying leave, and you can’t be punished for taking it.
Some commonly discussed leaves include:
Pregnancy leave (up to 17 weeks unpaid, in many cases)
Parental leave (length depends on circumstances)
Sick leave (unpaid, job-protected days in many cases)
Family responsibility leave (unpaid, job-protected days in many cases)
Bereavement leave (unpaid, job-protected days in many cases)
Domestic or sexual violence leave (includes a paid portion in certain circumstances)
Long-term illness leave (a newer leave in Ontario—job-protected and unpaid—introduced in 2025)
Because leave rules often depend on eligibility requirements, medical documentation rules, and timing, it’s smart to confirm details before assuming you qualify (or don’t).
6) Termination pay, notice, and severance
When employment ends, the ESA may require an employer to provide notice of termination or termination pay, and sometimes severance pay (these are not the same thing).
Important: ESA termination entitlements are minimums. In many non-unionized situations, an employee may also have additional rights under their contract or under the common law (often called “reasonable notice”). In other words: what the ESA guarantees may be less than what you’re actually owed, depending on your situation.
7) Protection from reprisals
Ontario’s ESA prohibits employers (and some related parties) from punishing employees for exercising ESA rights—things like:
asking about ESA entitlements
requesting that the ESA be followed
taking a protected leave
filing an employment standards claim
If someone is demoted, threatened, disciplined, or terminated because they asserted a legal right, that can raise serious legal issues.
How ESA issues usually show up in real life
Here are a few patterns we see frequently:
“I’m salaried, so I don’t get overtime.” (Not always true.)
“They called me a contractor, so I have no rights.” (The label isn’t the whole story.)
“They paid me the ESA minimum on termination—so that’s all I can get.” (Sometimes employees are owed significantly more.)
“I took leave and now my shifts disappeared.” (That can raise reprisal concerns.)
What to do if you think your ESA rights were violated
If something feels off, you don’t need to guess. A practical approach is:
Write down what happened (dates, schedules, pay stubs, emails, texts, policy screenshots).
Ask for clarification in writing (a calm email can create a helpful record).
Get advice early—especially before signing anything like a termination release.
Be mindful of time limits. ESA claims often have deadlines.
When to talk to an employment lawyer
It’s especially worth getting legal advice if:
you were terminated or laid off (or pressured to resign)
you’re offered a severance package and release
you suspect unpaid overtime, vacation pay, or public holiday pay
you were disciplined after asking about your rights or taking leave
you’re being treated as a “contractor” but function like an employee
At Vanguard Law, we help Ontario employees and employers understand ESA obligations, assess termination and severance situations, and resolve workplace disputes efficiently.
Legal Disclaimer: this post is for general information only and isn’t legal advice. Employment rights depend on the facts, your contract, and how the law applies to your specific situation.