The Truth About Ghost Jobs: What Employers Need to Know to Avoid Legal Trouble

The Rise of Ghost Jobs in Canada

Job seekers call them "ghost jobs" – career postings that seek applications, resumes, and references, yet quietly lead nowhere. These deceptive listings have become a familiar frustration for Canadian job seekers, with serious consequences for both candidates and employers.

Photo: Getty Images - A recent study found 56% of Canadian workers suspect they've applied for ghost jobs.

The Impact on Job Seekers

A recent study by Employment Hero revealed alarming statistics:

• 56% of Canadian workers surveyed suspect they have applied for a ghost job
• 70% of job-seekers stated that employer ghosting has impacted their mental health

What may feel like a low-stakes choice for an employer can land very differently on the receiving end. Ghost jobs consume time, raise expectations, and often end in silence, creating significant frustration and anxiety for candidates.

What Are Ghost Jobs?

A ghost job refers to a job posting made by an employer who does not have a genuine intention to hire a candidate. These postings can sometimes attract hundreds of applications, despite no vacancy or no imminent hiring need.

Employers may use ghost job postings for several reasons:

Data Harvesting

Some companies use ghost job postings to ensure they have access to new talent when needed, or when they have the budget to hire at some future date, or in preparation for inevitable turnover.

Market Research

Some employers may use ghost job postings to test the salary expectations and skill availability of the job-seeking pool.

Optics

Some employers use job postings for optics when they already have a candidate in mind.

Investor Signalling

Some employers use job postings to signal growth or momentum to investors, despite no immediate intention to hire.

The Reputational Risk

For employers, these motivations may be an intentional business decision, but they carry a shared risk: reputation. When candidates begin to associate an employer with ghosting or unfair hiring practices, trust erodes.

Candidates may take to online forums and social media to share their ghosting experiences, causing a lasting effect on the employer's reputation and resulting in a potential loss of qualified candidates.

Legal Implications in Ontario

In Ontario, ghost postings could also run afoul of employment legislation. On January 1, new rules under the Employment Standards Act, 2000 came into effect, requiring greater transparency in hiring practices.

Employers with 25 or more employees must now:

• Disclose an expected salary or salary range
• State whether a posting reflects an existing vacancy
• Indicate whether AI will be used in the hiring process
• Follow up with candidates within 45 days of their final interview to communicate any hiring decisions made

Under these new rules, ghost job practices are no longer merely a reputational misstep. They may now expose employers to liability for non-compliance.

Best Practices for Employers

Do's

• Consult a lawyer to ensure job postings comply with the Employment Standards Act, 2000 and evolving recruitment obligations
• Be transparent with candidates about hiring timelines and vacancies – trust in the hiring process can be a competitive advantage
• Remove or pause postings when hiring is delayed or a budget has not yet been secured
• Clearly label postings as "future opportunities" or "talent pool" roles where no immediate vacancy exists

Don'ts

• Do not repost expired roles to maintain visibility
• Do not solicit applications where no approval to hire exists
• Do not remain silent after interviews – following up helps an employer remain ESA compliant while protecting their reputation in the job market

The Bottom Line

Ghost job postings might seem like a harmless strategy for employers, but they come with significant risks. Beyond damaging your company's reputation and losing potential talent, you could now face legal consequences under Ontario's updated employment laws.

Transparency, clear communication, and compliance with new regulations aren't just legal requirements – they're essential for building trust with potential employees and maintaining a positive reputation in today's competitive job market.