As new pay transparency legislation comes into effect in British Columbia and Ontario, it’s important for small- and medium-sized employers to ensure they’re complying with provincial, territorial and federal regulations, says Mohamed Basma, general manager for small business services at ADP Canada.
“This is pressing now more than ever as remote work is so much more commonplace and small businesses can have employees throughout the country.”
On Jan. 1, 2026, Ontario-based employers will be required to include total compensation — including base salary, bonuses and commissions — or a range of expected compensation up to $50,000.
Read: How B.C.’s pay transparency legislation could impact employers
British Columbia enacted pay transparency legislation in 2023 and, by Jan. 1, 2026, all employers with 50 or more employees will be required to post pay transparency reports. And both Newfoundland and Labrador and Prince Edward Island enacted pay transparency legislation in 2023 and 2022, respectively.
Another area of concern for SMEs is understanding privacy obligations under Canada’s privacy laws, says Basma, noting most private sector employers in Canada are subject to the Personal Information Protection and Electronic Documents Act. Additionally, some provinces and territories have their own privacy legislation, such as B.C.’s Personal Information Protection Act, Alberta’s Personal Information Protection Act and Quebec’s Act Respecting the Protection of Personal Information in the Private Sector.
“Employers are expected to handle employee personal information responsibly, in accordance with federal and provincial privacy laws. This includes notifying employees how their data will be used and stored, and obtaining consent where required.”
For a small business, non-compliance can result in financial penalties and reputational risks that may be especially challenging for small businesses. “Often, a small business is surviving on thin margins and a fine because of non-compliance could be very tough to recover from. . . . Trust is invaluable for any business and compliance is a pillar to building trust both externally and internally.”
Read: How changes to parental, illness leave, job posting requirements could impact Ontario employers