ASAP
Canada: Ontario’s New Administrative Monetary Penalty System Under the OHSA
Effective January 1, 2026, Ontario introduces a major enforcement change under the Occupational Health and Safety Act (OHSA): the Administrative Monetary Penalty (AMP) regime. This new system, created by Part IX.1 of the OHSA and detailed in Ontario Regulation 365/25, gives inspectors the power to impose financial penalties for non-compliance—without going to court.
Overview of the AMP System
Under section 69.1 of the OHSA, inspectors may issue an AMP when they find that a person has contravened or failed to comply with:
- A provision of the OHSA or its regulations,
- An order or requirement of an Inspector or Director, or
- An order of the Minister of Labour, Immigration, Training and Skills Development.
The stated purpose of AMPs is to promote compliance, not punish. Significantly, an employer that pays an AMP cannot be charged with an offence for the same contravention.
Notice Requirements
An AMP is issued through a Notice of Administrative Penalty (“Notice”). A Notice must be issued within one year from when the Inspector learned of the contravention.
To be valid, the Notice must include:
- The nature of the contravention
- The amount of the penalty
- The name of the person or company
- The date and time by which payment must be made
- The amount payable and how to pay
- The right to request a review of the AMP
A Notice will be considered properly served if it is delivered personally, sent by mail or sent by another method with proof of receipt.
Review of an AMP
An employer has 15 days from receipt of the Notice to file an application for review of the AMP with the Ontario Labour Relations Board (“Board”). The Board’s decision is then final and binding, subject only to judicial review.
Penalties and Enforcement
Penalties are expected to vary by contravention. Currently, the regulation applies only to certain public sector procurement-related violations, for which the penalty is the lesser of $100,000 or 10% of the procurement contract value. It is likely that additional penalty amounts will be established soon.
If the AMP relates to an Inspector’s order, payment is due within 30 days after the appeal period ends or 30 days after the Board’s decision. Otherwise, it must be paid 45 days after service or, if there has been a review requested, 30 days after the Board’s decision.
If an employer does not pay the AMP, the Notice can be filed with the Superior Court of Justice and enforced like a court order.
Publication
The Ministry of Labour, Immigration, Training and Skills Development may publish, online or otherwise, the names of any person or business issued an AMP, the nature of the contravention and the penalty amount.
Key Takeaways
The AMP regime represents a fundamental change in Ontario’s occupational health and safety enforcement. Inspectors will have the power to impose penalties on the spot for non-compliance with the OHSA and its regulations. Further, AMP details may be published online, creating the potential for reputational risk for organizations and individuals.
To prepare for this new shift, employers may want to:
- Strengthen Compliance Programs: Review and update health and safety policies, training, and monitoring systems to minimize exposure.
- Document Due Diligence: Maintain thorough records of inspections, training, and corrective actions as these can influence penalty assessments and reviews.
- Develop Response Protocols: Establish internal procedures for handling AMP notices, including timelines for payment and review applications.
- Act Quickly on Reviews: The review process is time-sensitive (15 days to apply) and decisions are final, subject to judicial review. Employers are well-advised to ensure that AMPs are escalated quickly when received so that an appeal can be filed on time.