Introduced on May 28, 2025, Bill 30, Working for Workers Seven Act, 2025, received Royal Assent on November 27, 2025, and is now in force. Building on the Ontario Government’s six prior Working for Workers Acts, Bill 30 introduces further amendments to several workplace and employment‑related statutes, including the Employment Standards Act, 2000 (the “ESA”), the Occupational Health and Safety Act, and the Workplace Safety and Insurance Act. These amendments create new employer obligations in relation to temporary lay-offs and mass terminations.
Extended Temporary Lay-off
Prior to the enactment of Bill 30, Ontario employers could lay-off non‑unionized employees for up to 13 weeks within a 20‑week period, with certain exceptions permitting longer lay-offs (commonly up to 34 weeks, such as where the employer continues to provide benefit coverage). These temporary lay-off rules remain in place.
Bill 30 amends the ESA to introduce an additional framework permitting extended temporary lay-offs in prescribed circumstances. These new rules apply only where a lay‑off would otherwise exceed the existing temporary lay‑off limits (including the 34‑week exception referenced above).
Under the extended temporary lay-off framework, an employer and employee may now agree to a lay‑off that lasts 35 or more weeks in any period of 52 consecutive weeks, provided that the lay‑off does not exceed 52 weeks in any period of 78 consecutive weeks. The ability to implement an extended temporary lay‑off, however, is not automatic.
To implement an extended temporary lay‑off, the employer and employee must enter into a written agreement. Before the agreement is made, the employer must provide the employee, in writing, with: (i) the latest date the employer intends to recall the employee, and (ii) a statement confirming that, once entered into, the employee may not withdraw the agreement.
After entering into the agreement, the employer may apply to the Director of Employment Standards for approval of the extended temporary lay‑off using the approved form. Any approval issued by the Director applies only to employees who have entered into such an agreement and expires on the earlier of (i) the stated recall date, or (ii) the first day on which the lay‑off reaches 52 or more weeks in any period of 78 consecutive weeks.
Employers must retain copies of all approved extended temporary lay‑off agreements for three years after the expiry of the Director’s approval.
Job Seeking Leave
Bill 30 introduces a new entitlement to job‑seeking leave for employees affected by a mass termination, defined as the termination of 50 or more employees within a four‑week period. Employees who receive working notice in these circumstances are entitled to up to three unpaid days of leave during the working notice period to engage in job‑search activities, including attending interviews or participating in training.
Employees must provide at least three days’ advance notice, where possible, before taking job‑seeking leave. Employers may request evidence that is reasonable in the circumstances to confirm the employee’s entitlement to the leave.
This entitlement does not apply where the employer provides termination pay instead of working notice, or where the working notice period represents 25% or less of the employee’s total statutory notice entitlement.
Key Takeaways for Employers
Bill 30 introduces an additional option for employers seeking to implement extended temporary lay‑offs. Employers who do not intend to exceed the existing temporary lay‑off limits do not need to change their current practices. However, employers contemplating an extended temporary lay‑off of up to 52 weeks within a 78‑week period should ensure they understand the new written‑agreement and Director‑approval requirements and review their lay‑off documentation and internal procedures accordingly.
The new job‑seeking leave entitlement also creates additional considerations during mass terminations. Employers should plan for this potential leave when structuring working notice periods and be prepared to assess reasonable requests for supporting evidence.
[View source.]
