In our prior article, Employers in Ontario That Leverage Recruiters and Temporary Help Agencies Take Note – New Licensing Requirements Effective January 1, 2024, we outlined the new licensing regime for Temporary Help Agencies and Recruiters in Ontario that was scheduled to take effect on January 1, 2024.
However, members of the recruiting and placement industry have been advocating for a relaxation of some of the licensing requirements, such as the $25,000 irrevocable letter of credit, as well as the associated deadline for filing a licensing application.
The Ontario Ministry of Labour, Immigration, Training and Skills Development recently announced that the implementation of the licensing regime will be delayed until July 1, 2024. Therefore, the deadline for which Temporary Help Agencies and Recruiters must have a licence to operate has changed from January 1, 2024, to July 1, 2024. This gives Temporary Help Agencies and Recruiters an additional six months to submit an application for a licence.
It remains to be seen if other aspects of the licensing regime will be relaxed, as advocated for by many members of the industry. Despite the deadline for the licensing regime having been extended, the fundamental structure of the licensing regime remains unchanged. As outlined in our original article, there will be significant consequences for operating or leveraging an unlicensed Temporary Help Agency or Recruiter in Ontario.
We recommend Ontario employers that leverage Temporary Help Agencies or Recruiters confirm the status of their licensing applications. Service agreements going forward should reflect the new licensing reality. If vendors cannot successfully secure the required licence by July 1, 2024, or fail to maintain it in good standing thereafter, the employer should have an expressed contractual right to terminate the service agreement without notice or charge.
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