Recent regulation in Ontario mandated that all temporary help agencies (THAs) and recruiters obtain a valid license to operate legally within the province. This change, under the Employment Standards Act, 2000 (ESA), is actually aimed to enhance transparency, protect workers, and ensure that only compliant and ethical agencies operate in an industry with prevalent under-the-table, shady, non-compliant dealings. In other words, the government of Ontario is cracking down in a hunt against the unethical. 

Understanding the Licensing Requirements and Associated Risks

Under the new regime, THAs and recruiters must:

• Submit an Application: Provide detailed business information, including financial security and background checks.

• Obtain Approval: The Ministry reviews applications to ensure compliance with regulatory standards before issuing licenses.

• Maintain Ongoing Compliance: Licensed entities must adhere to obligations such as accurate record-keeping, compliance with Ontario’s workplace laws, and regular inspections.

Many temporary help agencies will be DENIED their licenses. They are currently in a transition period, only allowed to operate because of the backlog of applications. However, once their applications and details are investigated there will be a great number of denied applications. 

Employers engaging unlicensed THAs or recruiters post-deadline face significant risks:

• Legal and Financial Penalties: Fines can reach up to $50,000 for non-compliance. ( osler.com )

• Liability for Employment Standards Violations: Employers may be held accountable for violations committed by unlicensed agencies, including unpaid wages and overtime issues.

• Reputational Damage: Partnering with unlicensed agencies can tarnish an employer’s reputation, suggesting a lack of due diligence.

Prevalence of Non-Compliance Among Temporary Help Agencies

Despite regulatory efforts, non-compliance remains a concern. For instance, during a 2020-21 campaign, Ontario identified violations among temporary help agencies in areas such as minimum wage, record-keeping, misclassification, and hours of work. These findings were the scratch of the surface. It is important to find a partner like Sana Staffing, with transparent and responsive communication that provides clients with peace of mind and trust in their temporary help agency. It underscores the importance of due diligence when selecting staffing partners. (greenhousecanada.com)

Sana Staffing: Your Fully Compliant Partner

At Sana Staffing, we prioritize compliance and ethical practices. We have secured the necessary licensing under Ontario’s new regulations, ensuring that our operations meet and exceed the mandated standards. Our commitment to compliance means that our clients can trust us to provide staffing solutions that are not only effective but also legally sound.

Conclusion

Navigating the new licensing requirements for temporary help agencies and recruiters in Ontario is crucial for employers to avoid legal pitfalls and maintain operational integrity. By partnering with a fully licensed, insured and regulation compliant agency like Sana Staffing, businesses can ensure they meet their staffing needs without compromising on legal and ethical standards.

Need a compliant staffing solution? Contact Sana Staffing today to learn how we can support your business under Ontario’s new regulations.