Ontario to require licenses for all temporary worker agencies

The Ontario government has announced that as of January 1, 2024 all temporary help agencies running within the province will be required to be licensed.

In a press conference Wednesday, Minister of Labour Monte McNaughton said the licensing is being implemented to combat the use of below minimum wages for workers by these agencies to gain an unfair competitive advantage.

Many workers who join these agencies are temporary foreign workers who have come to Ontario for work, leaving them vulnerable to the exploitation they have been experiencing with wages below the legal minimum amount.

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Businesses and job seekers will now be able to check if a prospective agency or recruiter is meeting federal employment standards or if they have a history of violations through an online database being created.

As of the implementation of the licensing program, it will be illegal for companies to knowingly use an unlicensed business for staffing.

All temporary help agencies and recruiters will now be required to provide $25,000 through an irrevocable letter of credit to be used to repay wages that are owed to their employees.

Those who violate this stipulation could face a penalty up to $50,000 with repeat violations.

Applicants will have to reapply annually and those who refuse will have 30 days to cease their operations.

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