Staffing agencies have been given a six month reprieve (from Jan 1, 2024 to July 1, 2024) in applying for licenses which will cost $750 for the application and requires a $25,000 letter of credit. Small agencies expressed concern that the requirements were too onerous and they would be forced to close their business.
In response to industry protests the Ontario government is delaying implementation of the mandatory licensing to July 1, 2024 while they consider adjusting the framework. The letters of credit are meant to be used by the government to cover wages owed to employees if needed. The act of licensing staffing and temporary agencies was to cover costs for any agency found exploiting temporary and vulnerable workers. Recruiters working for unions, charities or the government are exempt from the license requirement.
Read: the Globe and Mail’s article “Ontario delays new regulations on recruitment agencies after industry outcry
For more information: Licensing for temporary help agencies and recruiters
