What's Happening?
Lawmakers are addressing the issue of HR ghosting during the hiring process by proposing new legislation. Starting January 1, 2026, companies in Ontario, Canada, with at least 25 employees will be required to inform job applicants about their candidacy status within 45 days of an interview. This law aims to eliminate the practice of businesses ghosting candidates and posting ghost jobs—ads for roles not actively being filled. Companies must disclose whether a vacancy is actively being filled and if artificial intelligence is used in candidate screening. Non-compliance could result in fines up to $100,000 CAD, although first offenses may receive warnings or lesser fines.
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Why It's Important?
The proposed legislation is significant as it addresses transparency and fairness in the hiring process, potentially influencing similar policies in the U.S. It aims to protect job seekers from uncertainty and improve communication between employers and candidates. This could lead to more efficient hiring practices and reduce frustration among job seekers. Companies may need to adjust their recruitment strategies and invest in systems to comply with the new requirements, impacting HR operations and potentially increasing costs.
What's Next?
If successful, this legislation could inspire similar laws in other regions, including the U.S., prompting companies to adopt more transparent hiring practices. HR departments may need to implement new systems to track and communicate with candidates effectively. The law could also lead to increased scrutiny of AI usage in hiring, potentially influencing regulations around AI transparency and ethics in recruitment.
