On July 5th, 2023, the Ministry of Labour, Immigration, Training and Skills Development (“MLTSD”) announced that temporary help agencies (“THAs”) and recruiters will be required to have a valid license in order to operate in Ontario.
As a result of this new requirement, THAs and recruiters will need to provide up to $25,000 in the form of an irrevocable letter of credit as security when applying for a license. If necessary, the $25,000 may be used to repay owed wages to employees. Those engaging in violations of providing false or misleading information in the context of a licensing application, operating without a license or knowingly using the services of unlicensed THAs or recruiters face up to a $50,000 penalty. The public will be able to access a MLTSD maintained database of licensed THAs or recruiters, which can be found here.
Starting July 2023, THAs and recruiters may begin to apply for licenses. Applications must be submitted online. With their application, THAs and recruiters are required to provide the electronic irrevocable letter of credit referenced above, pay a $750.00 non-refundable application fee and submit certain information and documentation. A comprehensive list of application requirements can be found here.
THA’s that apply for a licence before January 1, 2024, may continue operating until they receive a decision from the ministry on their application. If a licence or licence renewal is refused, the applicant has 30 days to cease operating as a THA or recruiter. THAs are required to renew their licence each year.
For further information on this requirement, please refer to the Government of Ontario’s Licensing for temporary help agencies and recruiters page.
If you have any questions about this topic or any other questions relating to workplace law, please do not hesitate to contact a Mathews Dinsdale lawyer.