The province is offering more protection to migrant workers and other vulnerable temporary employees in the region.
As of January 1st, 2024, temporary help agencies (THAs) and recruiters will have to have a licence to operate in the province.
According to the Ministry of Labour, Immigration, Training and Skills Development, inspections have shown multiple temporary help agencies in Ontario are illegally paying people below the minimum wage and denying other basic employment rights to gain an unfair competitive advantage over law-abiding agencies by undercutting rates.
“While temporary help agencies are vital to Ontario’s businesses and jobseekers looking to get their foot in the door, for too long they have operated in a grey zone that allows criminals to prey on vulnerable workers,” said Monte McNaughton, Minister of Labour, Immigration, Training and Skills Development. “Our government’s licensing system will ensure law-abiding businesses can have confidence in the THAs and recruiters they work with and that those who abuse workers face the harshest fines in Canada and are banned from operating in our province.”
Businesses and jobseekers will now be able to check the Ministry’s online database to see if they have met the province’s stringent licensing requirements. It will be against the law for companies to knowingly use unlicensed businesses for staffing, and those who hire deceitful recruiters will be required to repay workers for any illegal fees charged to them.
“The Ontario Greenhouse Vegetable Growers are pleased to see the steps taken to legitimize temporary help agencies (THAs) and protect a key component of our workforce,” said George Gilvesy, Chair of the Ontario Greenhouse Vegetable Growers. “These workers are essential to the operations of greenhouse vegetable farms, and ensuring their safety and protections are vital to the continued operations of our sector.”
Temporary help agencies and recruiters will need to provide $25,000 in the form of an irrevocable 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.
In 2022, the government launched a task force to work with law enforcement agencies and community partners to detect and address illegal practices and recover unpaid wages for exploited employees. Since then, multiple investigations have helped remove hundreds of vulnerable and migrant workers from hazardous working situations.
