Staffing Agency Licensing in Ontario

Sep 9, 2024

https://www.youtube.com/watch?v=n4VFc60J384

05 Dec 2023

Business in Canada: Staffing Agency Operations and Licensing

Introduction

  • Presentation by Jakov on staffing agency operations in Ontario.
  • Focus on new licensing and regulation rules introduced in the Employment Standards Act on July 1, 2023.

Differences Between Staffing and Recruiting

  • Recruiting: Assists clients in finding employees; employees hired by the client.
    • No direct relationship with employees except referral for interviews.
  • Staffing: Agency employs individuals and assigns them to clients.
    • The focus of today's presentation is mainly on staffing operations.

Licensing Requirements in Ontario

  • Licensing and registration will become mandatory, starting January 1, 2024.
  • Transition period ends July 1, 2024, with a recent extension from an original deadline of January 1, 2024.
  • Businesses applying by June 30, 2024, can operate pending application review.
  • Post-July 1, 2024 applications cannot operate until approval.
  • Expect delays due to a high volume of applications.

Registration Requirements

  • Basic corporate information required: location, officers, directors, number of employees.
  • $750 registration fee.
  • $25,000 irrevocable letter of credit required by the Ministry of Labor.
    • Acts as a financial guarantee for claims related to unpaid wages or unlawful fees.
  • Must verify good standing with tax authorities.

Registration Process

  • Online-only registration via My Ontario account.
  • Upload documents including a PDF of the letter of credit.
  • Obtain confirmation of good standing from tax authorities.

Additional Rules and Considerations

  • Licensing does not apply to businesses using subcontractors.
    • Transition from subcontractor to employee can be quick and unexpected.
  • Separate licenses needed for recruiting and staffing if both operations exist.
    • Requires separate fees and letters of credit.
  • Clients cannot use unlicensed staffing agencies.

Insights and Opinions

  • Perception that the government is prioritizing fees over compliance documentation.
  • Strong recommendation to apply before June 30, 2024.

Conclusion

  • Emphasizes the importance of ensuring compliance with the Employment Standards Act.
  • Offers assistance for compliance and agreement preparation.

Contact Information

  • Presented by Eugene from CBES.
  • Contact details provided for further assistance.
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