Act
Proposed amendments to the Employment Standards Act, 2000 (ESA) and Employment Protection for Foreign Nationals Act, 2009 (EPFNA) to create a temporary help agency and recruiter licensing framework
Regulation Number(s):
N/A
Instrument Type:
Act
Bill or Act:
Employment Standards Act, 2000 (ESA) and Employment Protection for Foreign Nationals Act, 2009 (EPFNA)
Summary of Proposal:
The government is proposing amendments to the ESA that, if passed, would establish a licensing framework for temporary help agencies (THAs) and recruiters.
Key elements of the licensing scheme would include:
• a prohibition on operating as a THA or acting as a recruiter without a licence;
• a prohibition on knowingly engaging or using the services of an unlicensed THA or recruiter;
• vetting of applicants for THA and recruiter licences (e.g., compliance with
MLTSD statutes);
• ongoing ministry enforcement activities, including ESA inspections of licensed operators;
• penalties for non-compliant THAs, recruiters and client businesses;
• if prescribed, an annual application fee and a requirement to provide security (an amount to be established in regulation); and,
• an online list of licensed THAs and recruiters (as well as persons whose licence has been revoked or suspended) for the public, prospective clients / employees, and jobseekers.
The government is also proposing amendments to the EPFNA that, if passed, would provide that a recruiter who uses the services of another recruiter in connection with the recruitment or employment of a foreign national, and any directors, would be jointly and severally liable to repay prohibited fees charged to the foreign national by the other recruiter.
Key elements of the licensing scheme would include:
• a prohibition on operating as a THA or acting as a recruiter without a licence;
• a prohibition on knowingly engaging or using the services of an unlicensed THA or recruiter;
• vetting of applicants for THA and recruiter licences (e.g., compliance with
MLTSD statutes);
• ongoing ministry enforcement activities, including ESA inspections of licensed operators;
• penalties for non-compliant THAs, recruiters and client businesses;
• if prescribed, an annual application fee and a requirement to provide security (an amount to be established in regulation); and,
• an online list of licensed THAs and recruiters (as well as persons whose licence has been revoked or suspended) for the public, prospective clients / employees, and jobseekers.
The government is also proposing amendments to the EPFNA that, if passed, would provide that a recruiter who uses the services of another recruiter in connection with the recruitment or employment of a foreign national, and any directors, would be jointly and severally liable to repay prohibited fees charged to the foreign national by the other recruiter.
Analysis of Regulatory Impact:
If the proposed legislation is passed, there would be compliance costs for businesses, but these costs will vary significantly:
• Provincially regulated employers would have to learn about the requirement to engage licensed THAs/recruiters, but there will be a wide range of employers for whom the new rules will have limited impact.
• Employers that do not use these services will experience no direct impact.
• Employers that occasionally or routinely use the services of THAs or recruiters will be more directly impacted and will have to spend more time learning about the new requirements, and assessing the impacts on their operations.
• THAs, recruiters will be affected directly and would have to spend additional time learning about their new obligations.
However, licensing is intended to help businesses save time and money to vet the THAs and recruiters with whom they work. By vetting potential licensees, the government would be providing businesses with information on licensed THAs and recruiters. This information is important to these businesses as they take on reputational risks and potential liabilities when dealing with operators that do not comply with their obligations.
• Once the public licensing record is online, businesses who want to engage a THA or recruiter must check the record to make sure they are licensed.
Further, as the proposed framework, is expected to level the playing field in favour of compliant businesses that play by Ontario's rules, law-abiding THAs and recruiters may become more competitive and profitable.
The proposed legislation also contemplates an application fee and security. Those details would be prescribed in a future regulation, and therefore their impacts are not analysed here.
New record-keeping requirements for recruiters would also be introduced. The ministry is not expecting any new costs related to this.
The proposed EPFNA amendments would have no compliance costs.
• Provincially regulated employers would have to learn about the requirement to engage licensed THAs/recruiters, but there will be a wide range of employers for whom the new rules will have limited impact.
• Employers that do not use these services will experience no direct impact.
• Employers that occasionally or routinely use the services of THAs or recruiters will be more directly impacted and will have to spend more time learning about the new requirements, and assessing the impacts on their operations.
• THAs, recruiters will be affected directly and would have to spend additional time learning about their new obligations.
However, licensing is intended to help businesses save time and money to vet the THAs and recruiters with whom they work. By vetting potential licensees, the government would be providing businesses with information on licensed THAs and recruiters. This information is important to these businesses as they take on reputational risks and potential liabilities when dealing with operators that do not comply with their obligations.
• Once the public licensing record is online, businesses who want to engage a THA or recruiter must check the record to make sure they are licensed.
Further, as the proposed framework, is expected to level the playing field in favour of compliant businesses that play by Ontario's rules, law-abiding THAs and recruiters may become more competitive and profitable.
The proposed legislation also contemplates an application fee and security. Those details would be prescribed in a future regulation, and therefore their impacts are not analysed here.
New record-keeping requirements for recruiters would also be introduced. The ministry is not expecting any new costs related to this.
The proposed EPFNA amendments would have no compliance costs.
Further Information:
Bill 27: Working for Workers Act, 2021
Proposal Number:
21-MLTSD 028
Posting Date:
October 29, 2021
Comments Due Date:
November 22, 2021
Contact Address:
Employment, Labour, and Corporate Policy Branch
Ministry of Labour, Training and Skills Development
400 University Avenue, 15th Floor
Toronto ON M7A 1T7
Ministry of Labour, Training and Skills Development
400 University Avenue, 15th Floor
Toronto ON M7A 1T7