Regulation meant to crack down on agencies and recruiters exploiting workers
Temporary help agencies (THAs) in Ontario will require a license to operate beginning in January 2024. The new regulation is meant to crack down on agencies that have been illegally paying workers below the minimum wage and denying them other basic employment rights t gain an unfair competitive advantage over law-abiding agencies by undercutting rates.
“While temporary help agencies are vital to Ontario’s businesses and jobseekers looking to get their foot in the door, for too long they have operated in a grey zone that allows criminals to prey on vulnerable workers,” says Monte McNaughton, Minister of Labour, Immigration, Training and Skills Development.
“Our government’s licensing system will ensure law-abiding businesses can have confidence in the THAs and recruiters they work with and that those who abuse workers face the harshest fines in Canada and are banned from operating in our province,” adds McNaughton.
Businesses and jobseekers may not be aware if an agency or recruiter is meeting employment standards or has a history of violations. Beginning in 2024, everyone will be able to search an online database before working with a THA to see if it is licensed. It will be illegal for companies to knowingly use unlicensed THAs, and those who hire deceitful recruiters will have to repay workers for any illegal fees charged to them.
THAs and recruiters will need to pay $25,000 in the form of an irrevocable letter of credit that can be used to repay owed wages to employees. Offenders could face a $50,000 penalty for repeat violations.
The new licensing requirement is being welcomed by industry stakeholders as well as advocates. Mary McIninch is the executive director of Government Relations of the Association of Canadian Search, Employment and Staffing Services (ACSESS) and says a licensing regime will ensure THAs meet their legal obligations. This initiative creates a level playing field and results in a fairer industry for THAs, their clients and assignment employees alike,” says McIninch.
A lot of migrant workers are employed on farms in Ontario. George Gilvesy is chair of the board for the Ontario Greenhouse Vegetable Growers. “These workers are essential to the operations of greenhouse vegetable farms, and ensuring their safety and protections are vital to the continued operations of our sector."
Human labour trafficking is an issue that come up frequently over the past several years, and Ontario recently strengthened penalties for employers who withhold worker passports.
Julia Drydyk is the executive director of the Canadian Centre to End Human Trafficking and says the licensing requirement for THAs will bring greater accountability to the recruitment industry.
“The new registry will help instill transparency and ensure the government has more information to protect foreign nationals from fraudulent recruiters,” says Drydyk. “This initiative is one of many important steps that we need to take to combat labour trafficking and abusive labour practices in this province."
THAs will be required to renew their license every year. If a licence is refused, the THA or recruiter must halt operations within 30 days.
