Working for Workers Act Updates:
What Dealerships Need to Know for 2026

 

The final round of changes under the Working for Workers Act took effect on November 27, 2025. These updates impact how dealerships manage terminations, seasonal staffing, and health and safety investments. Even small oversights can create compliance exposure, payroll errors, or unexpected costs.

Below is a practical breakdown of what changed, who it impacts, and why it matters for dealership operations.



1. Job-Seeking Leave During Mass Terminations

What changed:
Employees who receive notice of termination as part of a mass termination under section 58 of the ESA are now entitled to three unpaid days of leave to attend interviews, update resumes, or seek new employment.
This entitlement disappears only if the employee receives termination pay instead of notice, and the working-notice period is 25% or less of their total statutory notice.

Who this impacts:

  • Dealerships undergoing restructuring, group consolidation, or store closures.

  • Businesses scaling down seasonal roles or pausing operations during slower quarters.

Why it matters:
Mass terminations come with strict ESA compliance obligations. Missing a leave entitlement, even an unpaid one, can trigger complaints, fines, and reputational risk. Planning your termination strategy now (notice vs. pay-in-lieu, timing, documentation) reduces exposure.



2. Extended Temporary Layoff Periods

What changed:
Non-unionised employees may now be placed on an extended temporary layoff for 35 or more weeks within 52 weeks, provided the total layoff time does not exceed 52 weeks within 78 weeks.

Who this impacts:

  • Dealerships with seasonal fluctuations in sales or service.

  • Smaller stores that flex staff during slow periods.

  • Groups navigating inventory shortages, supply chain delays, or strategic transitions.

Why it matters:
The updated timeline gives dealerships more flexibility to retain talent during downturns without triggering a termination. But it also increases the operational responsibility to track and communicate layoff periods accurately. Poor recordkeeping is now one of the most common causes of ESA violations.



3. Defibrillator Reimbursement Eligibility

What changed:
Employers required under the OHSA to install a defibrillator on-site may be eligible for reimbursement through WSIB.

Who this impacts:

  • Dealerships with higher foot traffic or larger service facilities.

  • Stores that recently installed AED units or plan to upgrade equipment.

  • Groups with centralized safety programs or multiple rooftops absorbing recurring costs.

Why it matters:
AEDs can be costly, especially across multiple locations. Reimbursement can offset health and safety expenses already budgeted for 2025–2026. It also encourages proactive compliance with OHSA standards, reducing risk in high-traffic service departments.



What This Means for Dealerships Heading Into 2026

These changes touch multiple parts of the business: HR, payroll, service operations, compliance, and employee relations. Ensuring your policies, documentation, and internal processes match the new requirements protects your organization from risk and strengthens your employer brand.

If you’d like help assessing how these updates affect your dealership, or if you want support adjusting your policies or documentation, our HR team is here to assist.

Book time with us, and we can walk you through what needs to change before year-end.

Picture of Sandra Conrad CPHR,SHRM-SCP
Sandra Conrad CPHR,SHRM-SCP

Director of People Services

Keywords: Working for Workers Act, Ontario ESA updates, automotive dealership HR compliance, mass termination rules Ontario, temporary layoff Ontario, OHSA defibrillator requirements, WSIB reimbursement program, dealership staffing regulations, HR compliance checklist Ontario, Ontario employer obligations

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