Temporary Help Agencies and Recruiters Licensing Framework Consultations

Regulation Number(s):
Instrument Type:
Bill or Act:
Employment Standards Act, 2000
Summary of Proposal:
The government is interested in your views on the following components of the supporting regulations:

- The definition of a recruiter.
- The fee required when a THA or recruiter applies to the Director of Employment Standards (DES) for a licence, or a renewal of a licence.
- A requirement to provide security in the form of an irrevocable letter of credit when applying for a licence.
- Rules specifying time periods to show evidence of compliance in certain circumstances where the DES has given notice of intention to deny, revoke or suspend a licence.
- Administrative monetary penalties for non-compliant THAs, recruiters and client businesses.
- Information required on an application for a licence or renewal of a licence.
- Circumstances that would lead to a licence being denied, revoked or suspended.

Feedback to the questions posed in the attached document will provide valuable insight as the government determines the best ways to address these critical issues.
Analysis of Regulatory Impact:
Work is currently underway analyzing possible administrative and compliance costs to THAs, recruiters and client businesses that may result from the regulatory proposal. MLITSD estimates that there could be as many as 8,000 licensees, based on Statistics Canada data and an extrapolation based on other provinces' experiences.

The compliance costs to THAs, recruiters and client businesses would include:

- Learning costs (administrative costs) - time or cost associated with learning about the regulation, cost related to completing the licence application, time or cost associated with checking the government website for a list of licensed THAs/recruiters.

- Fees - Fees of $750 per year per licensee.

- Security - costs associated with obtaining an irrevocable letter of credit, which may be dependent on the financial institution, the amount covered, customer credit history, etc.

The intent of this proposal is to support workers in this industry with relevant legislation, while also helping to level the playing field for businesses. Employees would benefit from knowing that the THA or recruiter had provided a security, which could be used by the Ministry to satisfy obligations owing under orders, for example, orders to pay wages. Client businesses may be less likely to incur a liability by unknowingly hiring a non-compliant THA or recruiter.

Feedback from this posting will further inform the development of the regulations and the analysis of regulatory impact.
Further Information:
Proposal Number:
Posting Date:
November 21, 2022
Comments Due Date:
December 6, 2022
Contact Address:
Temporary Help Agency and Recruiter Licensing Framework Consultations
Employment and Labour Policy Branch
400 University Avenue, 15th Floor, Suite 1502
Toronto, Ontario
M7A 1T7