New recruiting rules take effect in Ontario July 1 – Canadian HR Reporter

The requirement for temporary help agencies and recruiters in Ontario to hold a license to operate effective July 1 is not necessarily good news for employers, says Steven Dickie, partner, Employment and Labour, in an interview with Canadian HR Reporter.

For employers, this means they are prohibited from “knowingly engaging or using” the services of these agencies and recruiters unless they hold a license, which expires annually. Those found to be in contravention of the new rules face hefty financial penalties.

“My impression is that the legislative changes were motivated materially by the concerns regarding vulnerable workers, especially vulnerable, temporary foreign workers,” says Steven.

He suggests a couple of risk mitigation strategies. “Number one is to do their due diligence, certainly past the July 1 deadline, by checking the online registry to make sure that the entity with whom they’re considering doing business is licensed,” says Steven.

Employers should also think about building protective terms into their commercial agreements with the recruiters and agencies. This should include full indemnification for any liability that the employer is on the hook for, as a result of the agency’s or recruiter’s failure to maintain their license.

Read the full article by author Sarah Dobson posted by Canadian HR Reporter on June 3, 2024.