The Ontario government has recently announced that Temporary Help Agencies and Recruiters in Ontario will now have until July 1, 2024 to obtain licenses to operate. The requirements were originally set to come into effect as of January 1, 2024.
The new licensing requirements were introduced pursuant to the Working for Workers Act, 2021, which amended the Employment Standards Act, 2000. Essentially, the licensing regime requires that Temporary Help Agencies and Recruiters hold a license to operate in Ontario and further prohibits clients, employers, prospective employers or other recruiters from knowingly using the services of any entity operating without such a license. The penalties for non-compliance include significant fines ranging from $15,000.00-$50,000.00.
Who Needs a License?
Temporary Help Agencies
A Temporary Help Agency is defined as an employer that employs persons for the purpose of assigning them to perform work on a temporary basis for clients of the employer. If a temporary help agency is located outside of Ontario, but assigns employees to work in Ontario, the licensing requirements apply.
Recruiters
A Recruiter is any entity that, for a fee, finds or attempts to find employment (whether the employment is temporary or permanent) in Ontario for prospective employees, or finds, or attempts to find, employees (to be employed on a temporary or permanent basis) for prospective employers in Ontario. There are some exceptions, including for an employee who performs recruitment functions as a duty of their position, or an employer who engages in recruitment activities for its own organization.
When and How to Apply
Applications pursuant to the licensing regime opened on July 1, 2023, and remain open at this time. As long as an application is submitted prior to July 1, 2024, the applicant will be allowed to continue to operate while awaiting a decision from the Ministry as to whether their application is approved or refused. However, if an application is submitted on or after July 1, 2024, the applicant will be prohibited from operating as a temporary help agency or acting as a recruiter until such time as a license is issued. Applications can be submitted online with a My Ontario Account.
Licenses will need to be renewed on an annual basis.
Next Steps
Although the deadline for the licensing requirement has been extended, we recommend that any entity falling within the definition of a Temporary Help Agency or Recruiter, as set out above, begin the application process as soon as possible to allow sufficient time for any issues to be resolved and avoid any interruption in their business.
For businesses or individuals who may utilize the services of a Temporary Help Agency or Recruiter, you will want to ensure that as of July 1, 2024 the provider you are working with has complied with the licensing requirements. To help with this, the Ontario government has created a searchable database which reflects the status of applications and licenses.
If you have any questions about the new licensing requirements or need assistance submitting your application, please contact us.
