Ontario Takes Aim at HR Ghosting: New Law to Reshape Hiring Practices

Ontario's Groundbreaking Anti-Ghosting Legislation

In a move set to reshape hiring practices, Ontario, Canada, is introducing a law to combat "HR ghosting" and increase transparency in the job market. Starting January 1, 2026, companies with 25 or more employees will be required to inform job applicants about their candidacy status within 45 days of a job interview, effectively banning the practice of businesses ghosting candidates during the hiring process 1

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Source: ET

Key Provisions of the New Law

The legislation addresses several pain points in the current job market:

1. Mandatory Response: Companies must provide a clear response to candidates, whether a decision has been made or not, within the 45-day timeframe 1

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2. Ghost Job Elimination: Businesses will be required to disclose whether a vacancy is actively being filled, tackling the issue of "ghost jobs" 1

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3. AI Disclosure: Employers must inform candidates if artificial intelligence is being used to screen and select applicants 1

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4. Penalties for Non-Compliance: Companies that fail to adhere to the new rules may face fines of up to $100,000 CAD (approximately $72,500 USD) 1

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The Scale of the Problem

The legislation comes in response to widespread issues in the hiring process:

• A poll found that 9 out of 10 workers have been ghosted by recruiters 2

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• 27% of applicants never heard back after completing a final round interview, according to a Glassdoor study 2

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• In the second quarter of 2025, 17% of all job listings were for positions that companies never intended to fill 3

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Impact on Job Seekers and Companies

The new law is expected to have significant implications for both job seekers and employers:

• Increased Transparency: Job applicants will gain more insight into the hiring process and their candidacy status 1

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• Company Reputation: The legislation may help protect companies' reputations, as 80% of job-seekers would not consider reapplying to a company that didn't update them on their application status 2

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• Potential Challenges: Some business associations have expressed concerns about increased costs and practicality issues for employers 2

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Source: Fortune

Global Context and Future Trends

Ontario's legislation is part of a growing trend to regulate hiring practices:

• In the United States, states like New Jersey are considering similar laws to address ghosting and ghost jobs 2

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• New York City has already banned the use of AI hiring tools without bias audits 3

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• Experts predict that AI-related hiring regulations may become more prevalent in other regions 3

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As the job market continues to evolve, particularly with the integration of AI in hiring processes, laws like Ontario's may set a precedent for increased transparency and fairness in recruitment practices worldwide.