As discussed in previous blog posts (see here and here), the Ontario Employment Standards Act, 2000 (ESA) was amended to include new licensing requirements for recruiters and temporary help ‎agencies (THAs).

The new regime requires that recruiters and THA’s operating in Ontario obtain a licence or risk facing penalties. Recently, the province announced that the date by which temporary help agencies must have a licence to operate and recruiters must have a licence to act as a recruiter has changed from January 1, 2024 to July 1, 2024. This provides THAs and recruiters an additional six (6) months to submit an application for a licence.

The government delayed the new licensing rules after industry stakeholders expressed concern that the requirements were too burdensome for small recruiting firms.

In a letter to recruiters, the honourable David Piccini (Minister of Labour, Immigration, Training and Skills Development) confirmed that he instructed the province to take the time over this six-month extension to consider further changes to the licensing framework, including narrowing the scope of who needs to provide a letter of credit, as well as potentially accepting alternate forms of security.[1] As things currently stand, when applying for a new licence, an applicant must provide an electronic irrevocable letter of credit in the amount of $25,000.

The province began accepting applications for a licence in July 2023 and has indicated that applications that have already been submitted remain valid.