Ontario Regulation 182/24, established under the Employment Standards Act, 2000, introduces amendments aimed at improving the licensing framework for temporary help agencies and recruiters in Ontario. These changes aim to reflect the government’s commitment to improving workforce standards, particularly concerning the treatment of foreign nationals and wage standards.

Among the key amendments is the introduction of a new definition for “median hourly wage,” which is defined as the median wage for Ontario published by the Government of Canada at the time of a licence application or renewal. This establishes a clear benchmark for wage expectations tied to licensing requirements. Additionally, the regulation modifies existing eligibility criteria for licensing by replacing specific provisions related to previous licensing denials or revocations in other Canadian jurisdictions. The new amendments emphasize whether any officer, director, or partner of the applicant has had a licence revoked or denied, improving scrutiny over the backgrounds of applicants and their leadership.

A significant addition to the regulation is the requirement for applicants to disclose if they intend to recruit foreign nationals during the licence term. If so, they must confirm that such recruitment will be for positions offering wages at or above the median hourly wage, reinforcing the regulation’s focus on fair compensation. Furthermore, the regulation introduces a provision exempting certain applicants from application fees. Applicants are exempt if they have previously paid a fee related to a licence application or renewal and if they are transitioning between roles as a recruiter and a temporary help agency. This aims to reduce financial barriers to maintaining compliance with licensing requirements.

Modifications to security requirements for licensing specify acceptable forms of security—either an electronic irrevocable letter of credit or a surety bond—with the amount set at $25,000. This ensures that agencies have a financial commitment to operate responsibly. The regulation also introduces new provisions regarding changes in licensing terms and conditions. If a licensee fails to apply for renewal or if their licence is revoked or suspended, the Director can retain the security previously provided. Additionally, licensees can notify the Director if they no longer intend to recruit foreign nationals or will only do so for positions at or above the median wage.

Changes were made to the processes surrounding the issuance and potential revocation of licences. The Director will not consider any pending orders or notices of contravention during the determination of an applicant’s circumstances, ensuring that the licensing process remains fair and transparent. The regulation will come into force immediately upon filing, signaling a swift implementation of these changes aimed at reinforcing the integrity of the temporary help agency and recruitment sectors.

These amendments reflect the Ontario government approach to regulate the temporary help and recruitment sectors more effectively while protecting workers’ rights and improving the overall employment standards in the province.

Ontario (182/24) May 18, 2024