On April 16, 2025, the Ontario government introduced Bill 2, the Protect Ontario Through Free Trade Within Canada Act, 2025. The legislation is part of a broader strategy to strengthen economic growth, address labour shortages, and foster national unity through improved internal trade and labour mobility. If passed, this legislation could significantly impact Ontario employers, particularly those with interprovincial operations or hiring needs that cross provincial borders.
This blog explores the legislation’s background, outlines its key provisions, and analyzes its implications for Ontario employers. With over $400 billion in trade annually between provinces, the stakes are high. Employers need to understand how Bill 2 could shape hiring practices, compliance obligations, and the broader business environment.
The Rationale Behind Bill 2: Unlocking Canada’s Economic Potential
Canada is often criticized for having a fragmented internal market despite being a single country. Each province and territory has its own regulatory frameworks, licensing bodies, and trade rules, leading to inefficiencies and unnecessary costs. Ontario’s government estimates that internal trade barriers reduce Canada’s GDP by as much as 4%, costing billions annually.
Bill 2 is a direct response to these challenges. It aims to build upon the Canadian Free Trade Agreement (CFTA) by enhancing Ontario’s ability to recognize goods, services, and credentials from other provinces and territories without duplicative regulatory processes. The idea is simple: if something is legal and regulated in one part of Canada, it should generally be acceptable in another.
Key Provisions of Bill 2
Bill 2 introduces several legislative mechanisms designed to streamline interprovincial trade and improve labour mobility. These include:
1. Mutual Recognition of Certification
Perhaps the most impactful provision for employers, Bill 2 mandates that regulated professions in Ontario must recognize equivalent certifications from other Canadian jurisdictions. Workers certified elsewhere will be allowed to operate in Ontario for up to six months without having to undergo new exams, training, or bureaucratic hurdles.
This will particularly benefit industries like construction, healthcare, education, and skilled trades, where certification requirements vary widely across provinces.
2. Faster and More Transparent Application Processes
The bill requires that Ontario regulatory authorities acknowledge certification applications from out-of-province applicants within 10 business days and make final decisions on those applications within 30 calendar days. They must also publish clear, accessible information online about the certification process.
These deadlines are enforceable and designed to reduce long wait times and opaque procedures that currently discourage cross-provincial movement of professionals.
3. Prohibition on Extra Requirements
Regulators in Ontario will be prohibited from imposing additional requirements unless they can clearly demonstrate a legitimate objective justification, such as public safety. The government must review and approve any such justification to prevent protectionism under the guise of regulation.
The Impact on Hiring and Human Resources
For Ontario employers, particularly those in sectors experiencing chronic labour shortages, the implications of Bill 2 are considerable.
Easier Access to Talent
Ontario has long faced skilled labour shortages, especially in trades and healthcare. By opening the door to qualified professionals from across Canada, Bill 2 expands the talent pool. Employers will be able to:
- Fill roles more quickly by hiring already-certified professionals;
- Recruit more broadly without facing legal or procedural roadblocks; and
- Reduce reliance on foreign labour markets by better utilizing domestic resources.
Lower Onboarding and Administrative Costs
Employers often have to help new hires navigate Ontario’s credentialing system. With Bill 2, these responsibilities and associated costs, such as training, application fees, and exam preparation, may be significantly reduced or eliminated.
Faster Time-to-Productivity
The business benefits are immediate when new employees can begin work immediately upon relocation without waiting months for certification approvals. Productivity rises, and customer service or project timelines are less likely to be disrupted.
Compliance and Risk Management Considerations
If passed, the Protect Ontario Through Free Trade Within Canada Act, 2025, will also affect employers’ legal obligations and compliance strategies.
Employer Due Diligence
While the bill facilitates recognition of out-of-province certifications, employers must still ensure the certifications meet the job’s requirements. Maintaining a list of acceptable regulatory bodies in other provinces and verifying certification documents and dates is advisable. Employers should also keep thorough records to demonstrate due diligence in the event of legal scrutiny.
Coordination with Ontario Regulators
Employers may need to develop relationships with Ontario regulatory authorities to understand which certifications are deemed equivalent and clarify what roles may still require additional oversight. Keeping the lines of communication open with regulatory authorities also helps employers advocate for streamlined interpretations that align with industry needs.
Impacts on Sector-Specific Employers
Construction and Skilled Trades
These sectors are poised to benefit significantly. Many construction workers and tradespeople are certified in provinces like Alberta or Quebec but face barriers when seeking employment in Ontario. Bill 2 could allow for faster deployment of out-of-province contractors during major infrastructure projects.
Healthcare
With strained healthcare systems across the country, the ability to recruit nurses, technicians, and other professionals from other provinces without long delays will help Ontario hospitals and clinics stabilize staffing levels.
Professional Services
The legal, engineering, and finance sectors may also benefit if the regulatory frameworks adapt to Bill 2. Some professions are already governed by national organizations, making integration easier, but others may require negotiation and collaboration across jurisdictions.
Considerations for Cross-Border and Remote Employers
As remote and hybrid work arrangements become more common, employers with team members across provinces will need to understand the evolving legal landscape. If passed into law, the Protect Ontario Through Free Trade Within Canada Act, 2025, may simplify cross-border employment contracts and reduce liability for employing workers with non-Ontario credentials. It may also open doors for more flexible team-building across provinces.
However, employers must still be aware of tax, workers’ compensation, and employment standards that differ from province to province.
Broader Policy Implications and Future Developments
National Pressure for Reciprocity
Bill 2 positions Ontario as a leader in reducing internal trade barriers. Other provinces may feel pressure to reciprocate, potentially leading to a pan-Canadian system of mutual recognition.
This could create a “race to the top,” encouraging better regulatory harmonization nationwide, a long-standing goal of business associations and intergovernmental bodies like the Council of the Federation.
Potential Challenges and Resistance
Some regulatory bodies or professional associations may resist change, citing concerns over quality control or public safety. Ontario’s government has indicated it will use its authority to override or reform regulatory regimes that fail to adapt in good faith.
Employers may want to monitor industry news and participate in consultations to ensure their voices are heard during implementation.
How Employers Should Prepare for the Protect Ontario Through Free Trade Within Canada Act
To prepare for Bill 2, Ontario employers should consider implementing some proactive measures, including:
- Audit Current Hiring Practices: Identify roles that could benefit from expanded access to out-of-province candidates.
- Update HR Policies: Ensure job postings, onboarding materials, and compliance checklists align with mutual recognition principles.
- Engage with Industry Associations: Stay informed on how your sector’s regulatory frameworks are evolving.
- Monitor Legislative Progress: Track Bill 2’s movement through the legislature and be ready to adapt when it becomes law.
Haynes Law Firm: Providing Elite Employment Law Services to Toronto Employers
Bill 2, the Protect Ontario Through Free Trade Within Canada Act, 2025, could mark a transformative step in modernizing Canada’s internal economy and workforce mobility. For Ontario employers, it presents both opportunities and responsibilities. Paulette Haynes of Haynes Law Firm helps employers proactively adapt to the proposed changes and position themselves to attract top talent. With her innovative legal advice, employers can expand their operations and contribute to a more dynamic and integrated Canadian economy.
Haynes Law Firm assists both employers and employees across Ontario in finding practical solutions for employment law matters. Based in Toronto, the firm proudly serves clients throughout the Greater Toronto Area and across the province, from Windsor to Ottawa. To book a consultation, please call (416) 593-2731 or contact us online.
