Temporary Help Agencies and job recruiters will need to be licensed to operate in Ontario.

Labour Minister Monte McNaughton says the requirement will kick in at the end of the year.

“They will have to meet the Ministry’s strict licensing requirements and be added to an online database where businesses can evaluate their credentials. They will need to provide a $25,000 security that can be used to repay workers for any wages stolen from them,” says McNaughton.

The number of temp. agencies have grown in recent years.

McNauaghton says businesses have increasingly relied on them to help fill their job vacancies.

Most sign up with reputable companies, but others simply take advantage of workers.

McNaughton says recent inspections of businesses using temp. agencies found several illegal practices.

“We found more than $4.2 million in stolen wages owed to workers, people being paid below the minimum wage, denied employment rights like holiday, vacation and overtime pay, and even examples of workers passports being withheld, all while unfairly undercutting rates from law-abiding competition.”

McNaughton calls it unacceptable, and the new rules aim to put a stop to unscruptulous agencies.

This includes heavy fines against firms that don’t license and businesses that knowingly use such agencies.

“Those operating without a license and the businesses who knowingly use them could face penalties of up to $50,000, the highest fines in Canada.

Breaking the law carries real consequences. Those who abuse workers’ rights will not be allowed to operate in Ontario.”

According to Statistics Canada, about 2,300 placement agencies and temporary help businesses are established in Ontario.

Almost 114,000 full-time employees found work through them in 2022.