Ontario employers who knowingly work with unlicensed temporary help agencies or recruiters face fines of up to $50,000 under provincial licensing rules that took effect in 2024.
The Association of Canadian Search, Employment & Staffing Services is urging employers to verify licensing status before hiring staffing services, saying the penalties represent the highest fines in Canada for this type of violation.
“ACSESS members uphold the highest ethical standards and pledge annually to maintain strict professional conduct standards,” the association said in a statement.
New licensing regime protects workers
Ontario’s licensing system for temporary help agencies and recruiters aims to improve labour standards and protect workers. The province requires all staffing firms and recruiters operating in Ontario to hold valid licenses.
Employers can check a company’s licensing status through an online database maintained by the Ontario Ministry of Labour, Immigration, Training and Skills Development. The ministry’s website includes a “Check licensing status” button on its licensing page.
Reputation risks for employers
Beyond financial penalties, working with unlicensed agencies can damage an employer’s reputation and signal poor due diligence to employees, clients and stakeholders, ACSESS said.
The association represents about 400 member firms across Canada and requires members to follow a code of ethics covering treatment of employees and clients, as well as compliance with employment and human rights laws.
Licensed staffing firms offer enhanced workplace safety, professional expertise and adherence to ethical standards compared to unlicensed operations, according to the association.
Compliance crucial for business success
ACSESS said understanding the 2024 licensing changes and ensuring compliance is crucial for employer success in Ontario’s labour market.
The association encourages both employers and job seekers to work only with licensed staffing firms and recruiters to avoid regulatory violations and protect their interests.
