On July 1, 2024 new licensing rules came into effect for temporary agencies and recruiters in Ontario. These tougher rules could mean greater protection for vulnerable workers who are often taken advantage of by recruiters, agencies and the companies where they work. Take a look at the Temp Agency and Recruiter Licensing fact sheet to learn more and share it with other workers. Keep reading for the 4 main things you should know.
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1. Temp agencies and recruiters must have a license to operate in Ontario
It is illegal for Ontario temp agencies or recruiters to operate without a license. Furthermore, companies cannot knowingly use agencies or recruiters that do not have a license.
2. Workers can search a public database of temp agencies and recruiters to find out if they have a license
If you are a worker and are using a temp agency or recruiter, look them up in the Ontario government’s licensing database. This database will show their contact information, if they have a license, and if they are allowed to operate. This is crucial because many agencies have disappeared after stealing workers’ wages, making it difficult to find them and hold them accountable.
3. It can be easier for the Ontario government to recover workers’ unpaid wages
Temp agencies and recruiters must provide a $25,000 security to the government as a condition to get a license. If the government finds that the agency or recruiter broke the law (such as not paying their workers), the government can use this $25,000 to recover the money owed. But while this can make it easier to get justice for workers, Ontario’s Ministry of Labour has a poor track record when it comes to actually using all tools available to compensate workers who’ve been wronged by their employer. That’s why It’s important that we understand these new tools so that we can defend our rights.
4. Temp agencies and recruiters who break the law can lose their license
If Ontario’s Ministry of Labour amps up their enforcement, then agencies and recruiters can be held accountable when they violate workers’ rights. Here are some of the reasons why a license may be taken away or why an application for a license may be refused:
- Not complying with any orders issued under the Employment Standards Act (ESA) or the Employment Protection for Foreign Nationals Act (EPFNA).
- Violating EPFNA rules by charging illegal recruitment fees to workers or keeping a migrant worker’s passport or a work permit.
- Convicted of crimes that involve human trafficking or kidnapping.
- Not registering with the Workplace Safety Insurance Board (WSIB) if required to or not paying their WSIB premiums.
- Not paying their federal or provincial taxes.
This new law is a step in the right direction because it creates stricter penalties against temp agencies and recruiters that mistreat workers. But our laws are only effective if they are enforced. It’s up to us as workers to be confident and willing to stand up for our rights.
That’s why if you have a question or are worried about your rights at work, you can call the Workers’ Action Centre for support at (416) 531-0778. All calls are free and confidential.