Ontario is working towards protecting workers by requiring licences at temporary help agencies.
During an announcement on Wednesday by Monte McNaughton, the Minister of Labour, Immigration, Training and Skills Development, it was stated that the province is looking to protect vulnerable and temporary foreign workers.
Inspections by Ministry of Labour, Immigration, Training and Skills Development officers have shown that multiple temporary help agencies are illegally paying people below minimum wage and denying basic employment rights to gain an unfair competitive advantage over law-abiding agencies by undercutting rates.
Many jobseekers in the province are often unaware of if an agency or recruiter is meeting employment standards, and they will now be able to check the ministry's online database to ensure they are licensed.
McNaughton says this is to ensure that agencies and recruiters meet the ministry's requirements.
"All temporary help agencies and recruiters will be required to have a licence to legally operate here in Ontario. They will have to meet the ministry's strict licensing requirements and be added to an online database where businesses can evaluate their credentials."
He says the fines for breaking this law will be the highest in the country.
"Those operating without a licence 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."
McNaughton adds that this change is to help protect the most vulnerable.
"Including temporary foreign workers, young people, women, and newcomers. And businesses will be able to go on our website and search to see if a temporary help agency or recruiter is licensed because we know the vast majority want to ensure they're working with reputable, law-abiding agencies."
To continue operating, agencies and recruiters will need to provide $25,000 in the form of an irreversible letter of credit that can be used to repay owed wages to employees.
Offenders could face up to a $50,000 penalty based on repeat violations.
Licence's will need to renewed each year, and those that apply for a licence before January 1, 2024, may continue operating until they receive a decision from the ministry on their application.
If a licence or licence renewal is refused, the applicant has 30 days to cease operating as a temporary help agencies or recruiter.