Ontario’s Bill 27: Why working with unlicensed recruitment agencies might cost you.

While temporary help agencies are vital to Ontario’s businesses and Job Seekers looking to get their foot in the door, for too long they have operated in a grey zone that allows criminals to prey on vulnerable workers. Our government’s licensing system will ensure law-abiding businesses can have confidence in the THAs and recruiters they work with and that those who abuse workers face the harshest fines in Canada and are banned from operating in our province. —Monte McNaughton, Minister of Labour, Immigration, Training and Skills Development

In 2021, the Working for Workers Act was passed which had some changes to employment legislation in Ontario, most notably the Employment Standards Act, 2000. It outlines different changes with the aim of protecting employers and job seekers from unfair and unethical practices.  

The most publicized change was that of the Right to Disconnect, a change made to how employers create policies around obligations to engage in work-related communications. However, the act also had some changes made to how Temporary Help Agencies (THAs) and their Recruiters are licensed—and the consequences of working with unlicensed agencies. 
 

What is Bill 27?

Bill 27 is one of a series of bills amending the Employment Standards Act in Ontario that have recently been passed which are directly related to staffing agencies and protecting vulnerable workers. For example, in 2018, an additional schedule to Bill 18 was passed which outlined the responsibility of payroll and the liability of safety for temporary workers. If you’d like to know more about Bill 18, read our blog post about it here. 
 

Regarding the new Bill 27, the legislation will be rolled out in two parts: July 1st, 2023, and July 1st, 2024. The first set of provisions that have come into effect this summer include guidelines on how to register for a license for each Recruiter. Between this time and July 1st, 2024, staffing agencies must register their Recruiters and begin implementing the necessary regulations outlined in the bill.  

Many businesses and jobseekers in Ontario are often unaware if an agency or recruiter they are working with is meeting their employment standards obligations or has a history of violations. They will now be able to check the ministry’s online database before working with one, to see if they have met the province’s stringent licensing requirements. It will be against the law for companies to knowingly use unlicensed businesses for staffing, and those who hire deceitful recruiters will be required to repay workers for any illegal fees charged to them. —Monte McNaughton, Minister of Labour, Immigration, Training and Skills Development

The licensing requirements under Bill 27 state that both THAs and recruiters require a license to operate in Ontario, regardless of whether the THA or recruiter is located in the province. This is a unique requirement to Ontario that is not found in other provinces.  

Each license will need to be purchased, and will have to be renewed annually, and must be issued by the Director of Employment Standards 1 (the Director). The status of the licenses will be maintained in a public record, which will have the name of the licensee, including the date of issue and expiry.  

These changes affect both THAs, recruiters, and their clients, as each cannot knowingly engage or use the services of the THA or recruiter unless the THA or recruiter is licensed.  

Changes to the Bill

All THAs were originally supposed to be licensed by January 1st, 2024. However, the provincial government has announced that there will be a delay in the implementation to July 1st, 2024. Any applications made already will be maintained during this delay. 

There are also changes proposed to the fee requirement for companies who operate as both THAs and recruiters. More on this to come in later weeks. 

Working with unlicensed agencies may cost you

Failure to comply with these new regulations by the deadline will incur financial penalties that will go against both the agency and the employers using that agency. 

This is why it is so important for both Candidates and Clients to make sure they work with agencies they can trust. Not only does this bill provide a sure-tell way to see if an agency is complying with the standards set out by the Ontario Provincial Government, but it also gives both parties the peace of mind that they are being protected under the act. 

How to identify an agency you can trust

In order to identify an agency you can trust, we’ve compiled a few questions we suggest you ask before making your final decision on which staffing agency to choose:

• Are they licensed under the Ontario Ministry of Labour?
• Are they a member of ACSESS (Association of Canadian Search, Employment & Staffing Services)?
• Can they provide a WSIB clearance certificate?
• Do they have a history of fines or violations?
• Do they provide training for their temporary workers?
• How do they confirm that their associates are legally able to work in Canada?
   

TalentWorld's commitment to you

TalentWorld, as a member of the ACSESS, the governing body for staffing agencies, will attend the information session in September 2023 and begin the application process for our business and each of our Recruiters. We are committed to continuing our exceptional Client and Candidate experiences while complying with these new ESA guidelines. When working with us, we will ensure that the highest level of business ethics and protections are upheld so that vulnerable workers stay protected under our care. Our Clients can feel confident in TalentWorld’s ability to be compliant with the law while keeping accurate records and supplying qualified workers.