Ontario Employment Law for Martial Arts Schools: Non-Competes, Pay and Hiring Rules

Ontario bans most employee non-competes by statute; only the listed exceptions survive.

Can a martial arts school in Ontario make instructors sign a non-compete?

Section 67.2 of the Employment Standards Act, 2000, added by the Working for Workers Act, 2021, bans non-compete agreements with employees. The ban applies to agreements entered into on or after October 25, 2021. The only exceptions are a sale of a business where the seller becomes an employee of the buyer, and true executives such as the president, CEO or chief operating officer. Ordinary instructors, program directors and front-desk staff cannot be bound. There’s no income threshold.

Can you stop a departing instructor from soliciting your students?

The ESA ban does not cover non-solicitation clauses. Courts enforce them only if reasonable under the common law. Under Shafron v. KRG (SCC 2009), courts will not rewrite an over-broad clause. Limit any student non-solicit to students the employee taught, for 6 to 12 months.

Can you stop a departing instructor from recruiting your staff?

Not banned by statute. They’re enforceable if reasonable in scope and duration under the common law.

What is the minimum wage for instructors in Ontario?

$17.60 per hour until September 30, 2026, then $17.95 from October 1, 2026. The student rate, for students under 18 working up to 28 hours a week during the school year, is $16.90 from October 1, 2026. The rate is indexed to inflation each October 1, with the 2027 figure announced by April 1, 2027.

When do instructors earn overtime?

Time and a half after 44 hours in a workweek. There’s no daily overtime, and Ontario has no salary threshold for overtime exemption, which depends on the job role (for example managers and supervisors).

When is the final paycheck due?

All wages owed must be paid by the later of seven days after employment ends or the next regular pay day (ESA s.11(5)). Termination and severance pay are separate. Earned commissions are wages and must be paid.

What background checks can you run on instructors who teach children?

The Police Record Checks Reform Act, 2015 sets three levels of check (criminal record, criminal record and judicial matters, and vulnerable sector). A vulnerable sector check is allowed only for positions of trust or authority over children or other vulnerable people, and requires the candidate’s written consent. The Human Rights Code bars discrimination for a ‘record of offences’ (provincial offences, or federal offences for which a pardon or record suspension was granted). Only make an offer conditional on a check after the offer stage. Ontario has no salary-history ban in force.

Are martial arts instructors mandated reporters of child abuse?

Yes, everyone has a duty. Under the Child, Youth and Family Services Act, 2017 (s.125), anyone with reasonable grounds to suspect a child under 16 is in need of protection must report it directly to a children’s aid society. Instructors cannot delegate that report to the owner.

What can a dress code or grooming policy require?

The Ontario Human Rights Code protects race and related grounds, which the OHRC says cover hairstyles, as well as creed (religious dress and grooming), gender identity and gender expression. Dress codes must be accommodated to the point of undue hardship and should not impose sex-specific requirements.

How far can a morals or conduct clause reach into off-duty life?

Recreational cannabis is legal, but employers may prohibit impairment at work, and medical cannabis users may need accommodation as a disability. The Human Rights Code does not protect political belief as a ground. Off-duty misconduct can justify discipline if it harms the business’s reputation or the employment relationship.

Do you have to disclose pay or allow staff to discuss it?

Since January 1, 2026, employers with 25 or more employees in Ontario must include the expected pay or a pay range in public job postings. The range can’t exceed $50,000, and jobs paying over $200,000 are exempt. Postings must also disclose AI screening and whether the vacancy exists, and must not require Canadian experience. Interviewed candidates must be told within 45 days whether a decision has been made. Most small schools fall below the 25-employee threshold.

What privacy rules apply to student and parent records?

Ontario has no general private-sector privacy law. The federal PIPEDA applies to student and parent personal information collected in commercial activity, but generally not to employee records of provincially regulated employers. Employers with 25 or more employees must have a written electronic monitoring policy.

Other Ontario rules that catch school owners

Employees get three unpaid, job-protected sick days a year, and employers can’t demand a doctor’s note for them. Workplaces with 6 or more workers need written harassment and violence policies under the Occupational Health and Safety Act. Workers generally must be at least 14 for most non-industrial jobs. Notice or pay in lieu of termination is required after three months of service.

What to watch in Ontario

The minimum wage goes up on October 1 each year. Watch further Working for Workers Acts, a near-annual series of amendment bills. The pay transparency, AI disclosure and 45-day follow-up rules took effect January 1, 2026.

The bottom line for Ontario schools

Leave a post-employment non-compete out of ordinary instructor agreements; for that role it is unlikely to be enforceable. Where Ontario law allows it, a narrow student non-solicitation clause limited to students the employee actually taught, a confidentiality agreement, and real control of the student database protect a school far better.

Sources

• Hicks Morley: Ontario minimum wage to increase October 1, 2026
• Fasken: What Ontario employers need to know about job posting obligations for 2026
• JD Supra: Canada minimum wage increases in 2026
• Osler: Incoming public job posting requirements

Also for Ontario: Ontario membership contracts

What every martial arts school staff package should contain

• Offer or employment agreement: the legal employer, the role and duties, workplace, pay, employment status and termination terms, reviewed against local rules. U.S. at-will language does not belong in a Canadian contract.
• Compensation schedule: hourly or salary terms, commissions and bonuses, and exactly when each is earned and paid. Record all working time, not only time on the mat. See instructor pay structures and overtime.
• Appearance and conduct policies: functional uniform, hygiene and safety standards with a written accommodation process. See the dress code and grooming guide.
• Child-protection policy: boundaries, private communications, transport, supervision and reporting. See the conduct clause guide and background checks for instructors.
• Confidentiality and data-security agreement: student records, CRM access, permitted use, return and deletion, and protected-disclosure exceptions (in the U.S., the federal DTSA whistleblower-immunity notice). See student data and trade secrets.
• Restrictive-covenant addendum: only what local law permits, usually a narrow student or staff non-solicitation clause; a non-compete only in exceptional cases. See non-compete laws by state and non-solicitation agreements.

Planning for a departure? Read When an instructor leaves: protecting students and records. Every state and province is indexed in the Martial Arts Employment Law Center.

Before you act on this

This article provides general information and is not legal advice. Employment, wage, human-rights, privacy and restrictive-covenant laws change, and their application depends on the exact wording of an agreement, the employee’s duties and pay, where the work is done and when the agreement was signed. Confirm the current statute, regulations and agency guidance, and take advice from a lawyer admitted in the relevant state or province, before drafting, changing or enforcing an employment agreement. Corrections: see our editorial policy.