| The new regulations will require all recruiters and temporary help agencies operating in Ontario to be licensed. This mandate is designed to ensure that only licensed entities can offer recruitment services or temporary staffing solutions within the province. Under these new rules, anyone engaged in finding or placing employees for a fee, whether for temporary or permanent roles, must hold a valid license. This applies to both corporations and individuals. Employers and other recruiters are also prohibited from using the services of any recruiter who does not possess a license. Additionally, clients of temporary help agencies must ensure that these agencies are licensed before engaging their services. The term “recruiter” covers a wide range of entities, including corporations, partnerships, and sole proprietorships involved in recruitment activities. However, it excludes employees recruiting as part of their job, employers recruiting for themselves, certain educational institutions assisting students or alumni with employment, trade unions, and registered charities.Similarly, temporary help agencies, defined as organizations that employ individuals to work temporarily for their clients, must also be licensed. This requirement extends to agencies based outside of Ontario if they assign workers to positions within the province. Enforcement of these new licensing requirements will be strict. Violations can lead to compliance orders, fines, or prosecution. The penalties for operating without a license or engaging with unlicensed services begin at $15,000 for a first offense and can escalate to $50,000 for repeated violations within a three-year period. Additionally, providing false or misleading information during the licensing application process can result in severe fines. To help businesses stay informed, the Ministry will maintain a dedicated website with real-time updates on the status of licensed recruiters and temporary help agencies. This site will provide details on current license holders, any conditions applied to their licenses, and other relevant information. |
For more details on Ontario’s Bill 27 and its potential impact on your business, please reach out to us for an initial consultation. You can also visit our website at www.peakperformancehr.com.To explore how our fractional HR solutions can support your organization, email us at [email protected] or call 1-800-674-3471 Ext. 700.
