Article Pending Deadline For Ontario Temporary Help Agencies, Recruiters : July 1, 2024

Mondaq Ltd; Ontario; On-site; CAD 60,000 - 80,000; Full time

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Pending Deadline For Ontario Temporary Help Agencies, Recruiters : July 1, 2024

The deadline for Temporary Help Agencies and Recruiters in Ontario to comply with the new licensing requirements imposed by the Government of Ontario is July 1, 2024. Applicants must submit their online application by this date to continue operating until their application is either accepted or declined.

Under the new licensing regime, a "Temporary Help Agency" and a "Recruiter" are statutorily defined terms.

1. Recruiter: Any person or organization that attempts to find prospective candidates employment in Ontario for a fee. Note that a Recruiter is not an employee who recruits other employees for their own organization.
2. Temporary Help Agency: An employer that outsources the services of its own employees to its clients on a temporary basis.

Any Temporary Help Agency or Recruiter operating in Ontario should begin the application process immediately if not already done. If compliance gaps exist, there is still time to remedy those issues before the July 1, 2024 deadline. The Government of Ontario provides a helpful resource for understanding these licensing obligations here.

Ontario employers using Temporary Help Agencies or Recruiters should verify the status of their licensing applications. Service agreements should reflect the new licensing requirements. If vendors cannot confirm their application has been submitted by the deadline or fail to maintain their license in good standing, employers should have the contractual right to terminate the agreement without notice or charge. Engaging or using unlicensed Temporary Help Agencies or Recruiters after July 1, 2024, can result in significant fines.

Temporary Help Agencies and Recruiters should also be aware of recent regulations affecting the licensing process.

ESA Regulation 182 / 24

Ontario Regulation 182 / 24 (the "Regulation") came into force recently and introduces important but specific changes to the licensing regime.

The Regulation requires increased disclosure from applicants regarding licensing in other Canadian jurisdictions and recruitment of foreign nationals. Like the general licensing process, the Regulation aims to protect vulnerable workers and ensure applicants have a record of respecting worker protections.

It also facilitates applying for both a Temporary Help Agency and Recruiter license concurrently. Applicants for both licenses need only provide one security ($25,000) and one licensing fee ($750). The Regulation broadens acceptable security forms to include bonds from insurers under the Insurance Act, in addition to electronic irrevocable letters of credit.

Furthermore, the Regulation exempts the $25,000 security requirement in two cases:

• If the Recruiter will not recruit foreign nationals during the license term.
• If the Recruiter will recruit foreign nationals only for positions paying wages at or above the median hourly wage, which as of April 2, 2024, is $28.39.

For clarity, a "foreign national" is any individual who is not a Canadian citizen or a permanent resident under the Immigration and Refugee Protection Act.

This article provides a general overview. For specific circumstances, consult a qualified professional.