By Mary McIninch
On Canada Day 2024, Ontario’s Ministry of Labour, Immigration, Training and Skills Development will implement changes to elevate industry standards and protect workers across the province.
With these changes, new licensing requirements for temporary help agencies, recruiters, and their clients will take effect. Is your business ready?
This article provides an overview of what these changes mean for temporary help agencies, recruiters, and their clients. For compliance details, please review this Licensing for temporary help agencies and recruiters page on the Ministry website (hereafter referred to as the ‘Licensing’ page).
New requirements for staffing and recruiting firm clients/employers
Similarly, beginning July 1, 2024, if you’re a company, employer, or prospective employer operating in Ontario, you must only engage or use the services of licensed temporary help agencies, staffing firms, or recruiters. If you knowingly engage/use an unlicensed temporary help agency, staffing firm, or recruiter, fines of up to $50,000 (the highest in Canada) will be imposed.
Validating an agency, firm, or recruiter’s licensing status
To mitigate your risks, validate a temporary help agency, staffing firm, or recruiter’s licensing status before engaging their services. To validate their status, select the “Check licensing status” button at the top of the Licensing page to access this licensing and application status database of agencies, firms, and recruiters in Ontario. Please note, under a transitional rule, you can legally engage or use a temporary help agency, staffing firm, or recruiter with an ‘under review’ application status, as well as those with a licence.
Benefits of using licensed staffing sector businesses, like ACSESS members
When you use one of 400 ACSESS member firms across Canada, you can also expect adherence to ethical standards, professionalism, quality, progressive research, insights, broad expertise, enhanced workplace safety, and other benefits. Learn more at: Why Canadian Companies/Employers Need Only Work with ACSESS Member Firms.
New licensing requirements for staffing firms and recruiters
To legally operate as a temporary help agency/staffing firm or act as a recruiter from July 1, 2024, onward, you must have a non-transferable licence, under the Employment Standards Act, 2000 (ESA).
Application process
To apply for this licence, you must complete an online application (via the Ministry portal on the Licensing page) and pay a $750 application fee. If you’re a temporary help agency/staffing firm or a recruiter that recruits foreign nationals below the provincial median hourly wage, you must also provide a security of $25,000 (to the Director of Employment Standards).
You may provide this security via an electronic letter of credit (ideally using this Ministry template) or a surety bond (using the Ministry template, which should soon be accessible through the Licensing page). If you operate as a temporary help agency/staffing firm, as well as a recruiter, you need to pay only one fee and require only one security. However, you must still apply for two separate licences.
Transitional rule and ongoing requirements
Under a transitional rule, if you apply for registration on or before June 30, 2024, and have not received a decision on your licensing application by July 1, you may operate until the Ministry issues you a licence or advises that your application has been refused. If you apply on or after July 1, 2024, you’re prohibited from operating as a temporary help agency/staffing firm or acting as a recruiter unless and until the Ministry issues you a licence. Moving forward, temporary help agencies/staffing firms and recruiters must annually renew their licence. Please review the Ministry’s Licensing web page at: www.ontario.ca/page/licensing-temporary-help-agencies-and-recruiters for comprehensive compliance details. Agencies, firms, and recruiters that don’t comply with these licensing requirements may be fined or persecuted.
Mary McIninch is the Executive Director and Director, Government Relations for the Association of Canadian Search, Employment or Staffing Services (ACSESS). If you have questions or require more information, please contact Mary at [email protected].
