New laws and rules that came into effect in Ontario in 2025

Throughout 2025, multiple new laws and regulations came into effect in Ontario that impacted business owners, tenants, service workers, and more.

Between the federal government, the Government of Ontario, and the City of Toronto, there were countless new rules introduced in 2025, and here's a look back at some of the most important ones.

These are just some of the new laws and rules that came into effect in Ontario in 2025.

January: Zoning changes for nightclubs

On New Year's Day, the City of Toronto officially implemented its updated licensing and zoning bylaws for restaurants, bars, and entertainment venues in an effort to reduce the clustering of nightclubs in the downtown core.

Some changes included new names for business licence categories, increasing permitted maximum areas that bars and restaurants can use for entertainment, and permitting entertainment establishments and nightclubs city-wide in most commercial zones.

Despite the updates, entertainment establishments must still be located in a non-residential building and be on the first storey or in the basement.

February: Provincial business registry updates 

Starting Feb. 1, 2025, the Ontario Business Registry (OBR) filing process required all registered entities to use a company key to conduct transactions. 

The unique nine-digit code is required to link a business to a ServiceOntario account, and the change mostly affected businesses that were incorporated prior to Oct. 19, 2021, that did not previously need a company key. 

March: Updated regulations under Highway Traffic Act

This year, the province amended regulations under its Highway Traffic Act to extend the deadline for motor vehicle inspection station owners to switch to the new DriveON program from Dec. 31, 2024, to March 31, 2025. 

The update granted inspection stations that had yet to join DriveON more time to continue operating over the holidays. 

April: New federal minimum wage 

On April 1, 2025, the Canadian government officially increased the federal minimum wage to $17.75 per hour, representing a 2.4 per cent increase. 

The federal minimum wage was adjusted based on Canada's annual average Consumer Price Index relative to the previous year and is rounded up to the nearest $0.05. The federal minimum wage has continuously increased since its introduction in 2021, when it was $15 per hour. 

May: Expansion of Canadian Dental Care Plan 

In May, the federal government expanded the Canadian Dental Care Plan to include millions of new eligible residents. Applications officially opened up on May 1 for residents between 55 to 64 years old, followed by residents between 18 to 34 years old on May 15, and residents between 35 to 54 years old on May 29. 

Coverage for the expanded dental care plan began as early as June 1. 

June: New job protected leaves 

Last year, Ontario's Working for Workers Six Act, 2024, received royal assent and introduced a new unpaid long-term illness leave into The Employment Standards Act, which came into effect on June 19, 2025. 

The leave now provides workers in Ontario with up to 27 weeks of leave during a 52-week period, and is available for those who have been employed for 13 consecutive weeks. 

To qualify, employees must not be working due to a serious medical condition, and must obtain a certificate from a qualified health practitioner that confirms the work has a serious medical condition and sets out the length of time for which the employee will not be working due to the condition. 

July: Landmark "renovictions" bylaw

Inspired by a Hamilton bylaw enacted in 2024, Toronto officially adopted a Rental Renovation Licence Bylaw last November to prevent bad-faith evictions and protect tenants from what are known as "renovictions," which describe situations in which landlords evict tenants under the false pretense of necessary renovictions.

The City noted that renovictions had become common in Toronto's competitive housing market and disproportionately affected low-income and marginalized communities.

The bylaw officially took effect on July 31, 2025, and under the regulations, landlords issuing an N-13 notice to end tenancy are required to obtain a Rental Renovation Licence.

Landlords are now required to provide approved building permits, provide a copy of the N-13 notice, notify tenants of a licence application, and submit a $700 application fee under the regulations.

August: Cutting basic tax and LCBO mark-up rates 

The Ontario government introduced legislation this year that amends the Liquor Tax Act, 1996, to reduce the beer basic tax rates applicable to beer made by microbrewers in the province. 

The changes, which came into effect on Aug. 1, 2025, reduce the rates from 35.96 cents per litre to 17.98 cents per litre for draft beer and from 39.75 cents per litre to 19.88 cents per litre for non-draft beer. 

October: Minimum wage increases

The provincial government raised its minimum wage from $17.20 to $17.60 per hour this past October. 

The province based the increase on the Ontario Consumer Price Index (CPI) of 2.4 per cent, bringing Ontario's minimum wage to the second-highest provincial rate in the country. 

Under this change, workers making the general minimum wage and working 40 hours per week see an annual pay increase of $835. On the same date, the student minimum wage also increased from $16.20 to $16.60 per hour. 

The federal minimum wage was also increased to $17.75 per hour on April 1, representing a 2.4 per cent increase. 

November: "Buy Canadian" policy

In November, the federal government outlined nearly $186 million in new funding from the fall budget to implement the "Buy Canadian" Policy, which aims to ensure that Canadian suppliers and their products are prioritized in all federal spending. 

The new funding includes over $98 million over five years and $9.8 million ongoing to Public Services and Procurement Canada to implement the policy across all federal departments, agencies, and Crown corporations. 

The federal government also announced nearly $80 million in funding over five years to launch the Small and Medium Business Procurement Program, which will provide streamlined support for Canadian small and medium-sized businesses. 

December: Federal controls for sedative drug 

Permanent federal controls for the sedative drug, carisoprodol, officially came into effect on Dec. 19, 2025. 

The drug has been found in illegal markets around the world, and while it is used in some countries as a muscle relaxant, it is not authorized for sale in Canada. Under the regulations, anyone now found conducting unauthorized activities with the drug could face penalties under the Controlled Drug and Substances Act.