As set out in greater detail in our previous post, as of July 1, 2024, Temporary Help Agencies and Recruiters will be prohibited from operating in Ontario without a license. In addition, clients will be prohibited from knowingly engaging or using the services of a Temporary Help Agency who does not have a license, and employers, prospective employers and other recruiters will be prohibited from knowingly engaging or using the services of any Recruiter that does not hold a license.
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.
Next Steps
As penalties for non-compliance can include fines starting at $15,000.00, businesses caught by the new requirements will want to take steps to comply as soon as possible. If you are running a bit late, don’t despair – as long as your application is submitted prior to July 1, 2024, you will be permitted to continue operating while awaiting a decision from the Ministry as to whether your application is approved or not.
Applications can be submitted online with a My Ontario Account. If you are looking to use the services of a Temporary Help Agency or Recruiter and want to ensure they are licensed, you can check the status of applications and licenses online.
If you have any questions about the new licensing requirements or need assistance submitting your application, please contact us.
