As of July 1, 2024, temporary help agencies and recruiters in Ontario are required to hold a license to operate.
The Ministry of Labour, Immigration, Training and Skills Development (MOL) is putting these new rules in place in hopes of cracking down on agencies exploiting temporary and vulnerable workers. The MOL is aiming to elevate industry standards and safeguard workers across the province.
But what does this mean for employers?
Understanding the New Licensing Requirements
Starting July 1, 2024, new licensing requirements for temporary help agencies, staffing firms, and recruiters will be in place. However, it’s not just agencies and recruiters who need to pay attention; companies, employers, and prospective employers operating in Ontario must also adapt to these changes.
What Employers Need to Know
- All temporary help agencies and recruiters must be licensed: From July 1, 2024, it’s imperative that employers only engage or use the services of licensed temporary help agencies, or recruiters. The consequences of not doing so are steep, with fines of up to $50,000.
- Validating Licensing Status: To mitigate risks employers are encouraged to validate the licensing status of any temporary help agency or recruiter before engaging their services. This can be done through the Ministry’s Licensing page, which provides access to database of licensed agencies, firms, and recruiters in Ontario.
CulturedHR: A team of Licensed Recruiters
Our team has completed the licensing application and is equipped to meet your recruiting needs under the new regulations. By choosing CulturedHR, you ensure compliance with the new laws and partner with an organization dedicated to professionalism, and ethical standards.
Application Process for Agencies and Recruiters
The application process involves completing an online application via the Ministry portal and paying a $750 application fee. Additionally, those recruiting foreign nationals below the provincial median hourly wage must provide a security of $25,000. For temporary staffing agencies and recruiters, obtaining a license is mandatory to operate legally in Ontario from July 1, 2024.
Transitional Rule and Ongoing Requirements
For agencies and recruiters, if you haven’t received a decision on your licensing application by July 1, you may continue to operate until the Ministry issues you a license or advises that your application has been refused. There is a transitional rule in place for those who apply for registration on or before June 30, 2024.
Next Steps When Using Temporary Agencies or Recruiters in Ontario
As Ontario prepares for changes in the recruiting industry, it’s essential for employers to understand and adapt to the new licensing requirements. Partnering with licensed agencies and recruiters ensures compliance, reduces risks, and supports a fairer, more ethical recruitment industry in Ontario.
Should you have any questions or require more information, please do not hesitate to contact us at info@culturedhr.com.
