- For example, Henry is an employee of a recruiting company. In his job, he finds, or attempts to find, employees for prospective employers in Ontario. He is excluded from the definition of recruiter and is not required to have a licence. (His employer is required to have a licence, however.)
- Another example: Iris works in the human resources department of a manufacturing company. As part of her job, she finds or attempts to find employees for her employer. She is excluded from the definition of recruiter and is not required to have a licence.
- For example, Maeve is an employer. She attempts to find employees to work at her welding and fabrication shop. She is excluded from the definition of recruiter and is not required to have a licence.
- a school board,
- a person operating a private school in accordance with section 16 of the Education Act ,
- a college of applied arts and technology,
- a university,
- a person who has been given written consent under section 4 of the Post-secondary Education Choice and Excellence Act, 2000 to do the things set out in section 2 of that Act,
- a career college registered under the Ontario Career Colleges Act, 2005 ,
- an institution that has been designated by the Minister of Colleges and Universities as a designated learning institution for the purposes of the Immigration and Refugee Protection Regulations (Canada), or
- an Indigenous Institute prescribed for the purposes of section 6 of the Indigenous Institutes Act, 2017 .
- finds or attempts to find employment in Ontario for prospective employees who are eligible to receive services and supports under the Services and Supports to Promote the Social Inclusion of Persons with Developmental Disabilities Act, 2008 and who receive funding to purchase those services and supports in accordance with a program funded by the Ministry of Children, Community and Social Services, and
- doesn’t find or attempt to find employment in Ontario for prospective employees except in those circumstances.
- is party to an agreement with the government (federal, provincial or municipal) to find or attempt to find employment in Ontario for prospective employees or to find or attempt to find employees for prospective employers in Ontario, and
- does not perform these functions outside of those government agreements.
Fee
The definition of the term “recruiter” captures certain activities that are provided “for a fee”. Such a fee can be received from any individual or entity, where the recruiter is finding or attempting to find either employment in Ontario for prospective employees, or employees for prospective employers in Ontario.
For example, the fee could be received from prospective employers, another recruiter that subcontracted some or all its recruiting work to the recruiter in question, or others.
“For a fee” captures every type of fee and fee arrangement. For example, it includes:
- a fee-for-service arrangement where the recruiter receives a flat rate or a percentage for each placement
- an arrangement where the recruiter receives a fee based on the number of hours the recruiter spends providing recruiting services
- a subscription-based fee arrangement where the recruiter receives fees in the form of, for instance, a monthly subscription to provide recruiting services
Temporary help agencies and recruiters located outside of Ontario may need a licence
A temporary help agency that assigns employees to work in Ontario does not have to be located in Ontario for the licensing requirements to apply. This is the case whether the temporary help agency is located in another Canadian province or territory or outside of the country.
For example, Temporary Help Agency ABC is a company located in Quebec. Most of the clients that it contracts with are also in Quebec. However, Temporary Help Agency ABC also occasionally assigns employees to work for clients that have workplaces in Ontario. This means that Temporary Help Agency ABC must follow the licensing rules in Ontario’s ESA and have a licence to operate as a temporary help agency to assign employees to work for clients in Ontario. It also means that clients that have workplaces in Ontario cannot knowingly use the services of Temporary Help Agency ABC if Temporary Help Agency ABC does not have a licence to operate under Ontario’s ESA ’s licensing system.
A recruiter that finds or attempts to find employment in Ontario for prospective employees, or prospective employees for employers in Ontario does not have to be located in Ontario for the licensing requirements to apply. This is the case whether the recruiter is located in another Canadian province or territory or outside of the country.
For example, Recruiter Inc. is located in Newfoundland. It charges a fee to businesses in exchange for finding employees to work at their workplaces. Recruiter Inc. finds employees to work in workplaces all across Canada, including in Ontario. Because Recruiter Inc. finds employees to work in Ontario, it must follow the licensing rules in Ontario’s ESA and is required to have a licence to act as a recruiter in Ontario. Employers, prospective employers and other recruiters cannot knowingly engage or use the services of Recruiter Inc. to find employees to work in Ontario if Recruiter Inc. does not have a licence to act as a recruiter under Ontario’s ESA ’s licensing system.
Separate licence is required for each legal entity
Every legal entity that operates as a temporary help agency or acts as a recruiter must apply for a licence. This is the case even if the separate legal entities are treated as one employer under section 4 of the ESA .
Entities that are both a temporary help agency and a recruiter require two licences
If a legal entity operates both as a temporary help agency and acts as a recruiter, it is required to submit two separate applications: one to operate as a temporary help agency and one to act as a recruiter.
Temporary help agencies and contracts with the Service Organization
Section 10.1 of Ontario Regulation 285/01 under the ESA establishes an exemption from Part XVIII.1 (Temporary Help Agencies and Recruiters) of the ESA that applies to certain assignment employees who are assigned to provide specific types of services where the assignment is made pursuant to a contract with the Service Organization within the meaning of the Connecting Care Act, 2019 .
The exemption in section 10.1 applies only in relation to an individual who is an assignment employee. The requirement for a temporary help agency to be licensed in order to operate is not an obligation in relation to an assignment employee. Section 10.1 therefore does not create an exemption from the licensing requirements.
Note, however, that the ESA ’s licensing requirements do not apply to the Crown, a Crown agency or an authority, board, commission or corporation all of whose members are appointed by the Crown.
Foreign governments
The licensing requirements in the ESA do not apply to an entity that is a foreign government or an agency of a foreign government. The licensing requirements in the ESA also do not apply to international intergovernmental organizations.
Business and information technology consultants exception
An employee who is a “business consultant” or an “information technology consultant” ( IT consultant) as defined in the ESA – and any person for whom such an individual performs work or from whom such an individual receives compensation - is excluded from the ESA if the requirements in subsection 3(7) are met. For more information on the business and IT consultants exception, please see the ESA guide chapter on this topic.
With respect to temporary help agencies, a temporary help agency whose assignment employees all fall within this exception is not required to be licensed. For the exception to apply, every assignment employee who is employed by the temporary help agency must be captured by this exception. If one assignment employee falls outside of the exception at any point in time, then the temporary help agency would need to be licensed.
The business and IT consultant exception does not apply to recruiters and so does not affect recruiter licensing. This is because the exception applies with respect to specified individuals and any person for whom such an individual performs work or from whom such an individual receives compensation. In the recruiter context, the prospective employee does not perform work for the recruiter nor does the prospective employee receive compensation from the recruiter. Further, a prospective employee cannot meet all the criteria in subsection 3(7) at the time of recruitment because the payment conditions can only be met after the prospective employee has begun work. Given that one of the conditions requires actual payment of a specified amount versus an agreed wage, this condition cannot be met during recruitment.
Users of temporary help agencies and recruiters
Starting July 1, 2024:
- Clients of temporary help agencies are prohibited from knowingly engaging or using the services of a temporary help agency unless the agency holds a licence to operate as a temporary help agency. (Learn more about who is a client under the ESA .) This prohibition is in effect unless the transitional rule applies to the temporary help agency. Learn more about the transitional rule.
- Employers, prospective employers and other recruiters are prohibited from knowingly engaging or using the services of any recruiter unless the recruiter holds a licence to act as a recruiter. This prohibition is in effect unless the transitional rule applies to the recruiter. Learn more about the transitional rule.
In addition, where the temporary help agency or the recruiter submitted their initial application for a licence before July 1, 2024, the prohibition is not in effect during these two periods:
- the 30-day period after the day on which the ministry serves the temporary help agency or recruiter notice of the refusal, and
- the period during which an application to review the refusal is ongoing with the Ontario Labour Relations Board, unless the Board orders otherwise.
Where the temporary help agency or recruiter applies to renew its current licence before it expires, the prohibition is also not in effect during these two periods:
- the 30-day period after the day on which the ministry serves the temporary help agency or recruiter notice of the refusal to renew, and
- the period during which an application to review the refusal is ongoing at the Ontario Labour Relations Board, unless the Board orders otherwise.
Lastly, the prohibition is not in effect during these two periods where a temporary help agency or recruiter’s licence is revoked or suspended:
- the 30-day period after the day on which the ministry serves the temporary help agency or recruiter notice of the revocation or suspension, and
- the period during which an application to review the revocation or suspension is ongoing at the Ontario Labour Relations Board, unless the Board orders otherwise.
Employers, prospective employers and other recruiters who are seeking the services of a recruiter should be aware that a recruiter licence may be subject to a term and condition that, during the term of the licence, the recruiter may only act as a recruiter for foreign nationals in respect of position with wages at or above the median hourly wage. Knowingly using a recruiter for services that do not meet the term and condition is also a contravention of the ESA .
Violations of the licensing provisions in the ESA may result in enforcement action, which can include ordering compliance, issuing monetary penalties and/or prosecution. For more information, see the Role of the ministry chapter of this guide.
How the public knows who is licensed
The ministry maintains a website that lists all applicants seeking a licence to operate as a temporary help agency or to act as a recruiter and all licensed temporary help agencies and recruiters, along with the status of their licence and any other information that is required to be published under the ESA or its regulations. One example of such information is whether a recruiter’s licence is subject to a term and condition.
Important dates for licensing requirements
The prohibition on operating without a licence took effect on July 1, 2024. However, there is a transitional rule that applies where an application for a licence was made before July 1, 2024.
Transitional rule: applications submitted prior to July 1, 2024
Applicants who submitted their application before July 1, 2024 are permitted to continue to operate as a temporary help agency or act as a recruiter on and after July 1, 2024 if they have not yet received a decision on the application from the ministry by July 1, 2024.
The applicant can continue to operate as a temporary help agency or act as a recruiter until the applicant is notified by the ministry that either a licence has been issued or the application for a licence has been refused.
Applications submitted on or after July 1, 2024
Where an application is submitted on or after July 1, 2024, the applicant is prohibited from operating as a temporary help agency or acting as a recruiter unless and until a licence is issued.
Violations of the licensing provisions in the ESA may result in enforcement action, which can include ordering compliance, issuing monetary penalties and/or prosecution. For more information, see the Role of the ministry chapter of this guide.
How to apply for a licence
It is a violation of the ESA for a person to provide false or misleading information in their application.
The following sections provide information about some of the key elements of a licensing application:
Application fee
There is generally an application fee of $750. This applies to initial applications and to annual renewal applications.
However, in general, where a single legal entity applies for both a temporary help agency and a recruiter licence (or for a renewal of these two licences), it will be required to pay the $750 application fee only for the first of these two application submissions. Learn more about how the application fee works in the case of a legal entity applying for both licences.
Security
Unless exempt from the requirement, each legal entity must provide security in the total amount of $25,000 to the Director of Employment Standards.
The acceptable forms of security are an electronic irrevocable letter of credit and a surety bond. Learn more about the requirements for electronic irrevocable letters of credit and surety bonds.
Exemption from the security requirement
Legal entities applying only for a recruiter licence may not be required to provide security to the Director of Employment Standards as part of their licensing application. Whether security is required depends on the type of work the recruiter will engage in during the term of the licence.
Security is not required as part of a recruiter’s application in either of these situations:
- the applicant will not act as a recruiter in respect of foreign nationals during the term of the licence, or
- the applicant will act as a recruiter in respect of foreign nationals during the term of the licence but only in respect of positions with wages at or above the median hourly wage.
Foreign national means an individual who is not a Canadian citizen or a permanent resident within the meaning of the federal Immigration and Refugee Protection Act .
Median hourly wage means, on the date the application is submitted, the median hourly wage for Ontario published on a Government of Canada website. The median hourly wage for Ontario as of April 2, 2024 is $28.39 per hour. Recruiter applicants should visit the Government of Canada's website to see the current median hourly wage for Ontario.
Note that the exemption from the security requirement may apply to a recruiter that also operates as a temporary help agency. However, the exemption does not apply in respect of a licence to operate as a temporary help agency. This means that if you are applying for both a temporary help agency and a recruiter licence, you must provide security that meet specific requirements.
Term and condition of certain recruiter licences
Where a legal entity that is applying only for a recruiter licence is exempted from the requirement to provide security - and accordingly does not provide security - a term and condition will apply to its licence.
It will be a term and condition of the licence that if the licensee acts as a recruiter in respect of foreign nationals, it may do so only in respect of positions at or above the median hourly wage.
The term and condition will appear on the ministry’s website that lists information about the status of licences under the ESA .
Determining if pay is at or above the median hourly wage
The question may arise as to how a recruiter will know if a position related to the recruitment activity is paid at or above the median hourly wage for the purposes of ensuring the term and condition are met.
Generally, in order to determine whether pay is at or above the median hourly wage, the recruiter will compare the “expected wage” (this can be established through the advertised rate, the rate provided to the recruiter by the prospective employer, and/or the wage being sought by a prospective employee) with the median hourly wage.
- Where the recruitment activity relates to a position that provides the expected remuneration as an hourly rate, a direct comparison can be made between the position’s expected wage and the median hourly wage. If the hourly wage rate does not equal or exceed the median hourly wage, then the term and condition will not be met.
- Where the recruitment activity relates to a position that provides the expected remuneration as a monthly or annual salary, the hourly rate will be calculated by dividing the expected salary by the number of expected non-overtime hours of work to establish the hourly wage. The hourly wage is then compared to the median hourly wage. If the hourly wage rate does not equal or exceed the median hourly wage, then the term and condition will not be met.
A recruiter must ensure that the recruitment activity it will engage in is compliant with the term and condition of the licence (meaning that the expected wage for the position related to the recruitment activity is at or above the median hourly wage). If the recruiter is not certain that the recruitment activity meets the term and condition, the recruiter can either not engage in that work or take steps to have the term and condition removed. Once the term and condition is removed, the recruiter can engage in that work.
- For example, if the recruitment activity relates to a position that is expected to be paid only by commission, the recruiter cannot be certain that the prospective employee would earn at least the median hourly wage. As such, the Program’s position is that this recruitment activity would not meet the term and condition of the licence.
- If, however, the recruitment activity is related to a position that is expected to be paid by way of a base rate plus commission, the recruiter would be able to rely solely on the base rate to determine if a prospective employee would be paid at least the median hourly wage for the position. If the base rate is equal to or greater than the median hourly wage, the recruitment would meet the term and condition.
It is Program policy that other wages such as overtime earnings, public holiday pay, and vacation pay do not factor into the comparison between the expected wage and the median hourly wage.
Making changes to the term and condition
During the annual licence renewal process, the recruiter will have the opportunity to indicate whether the situations described above (under the heading “Exemption from the security requirement”) will continue to apply during the term of the renewed licence.
The recruiter can also make changes during the term of the licence:
- If the recruiter has a licence to which a term and condition applies, but the licensee wants to recruit foreign nationals in respect of positions below the median hourly wage, they must provide security that meets specific requirements. The term and condition will continue to apply until the Director of Employment Standards provides written notice that it no longer applies.
Example
Legal entity 6789 Ontario Inc. has a recruiter licence to which the term and condition applies. It wants a licence that permits recruitment of foreign nationals in relation to positions with wages below the median hourly wage.
It can request this change by providing the Director of Employment Standards with an acceptable security. The term and condition will continue to apply to the licence until the Director of Employment Standards gives written notice to the licensee stating that the term and condition has been removed.
- If the licensee has already provided security and there are no terms and conditions attached to the licence, but the licensee wants the term and condition to apply, they must provide certain written notice. The term and condition of a licence takes effect when written confirmation of the change is provided by the Director of Employment Standards.
Example
Legal entity JKLM Ontario Inc. provided security with its recruiter application. It successfully obtained a recruiter licence to which the term and condition did not apply, but it later decides that it wants the term and condition to apply to its licence.
To request this change, the legal entity can – during the term of the licence - provide the Director of Employment Standards with written notice that either 1) it will not act as a recruiter in respect of foreign nationals during the remainder of the term of the licence, or 2) that it will act as a recruiter in respect of foreign nationals but only in relation to positions with wages at or above the median hourly wage. The term and condition will not apply until the Director of Employment Standards provides written notice of the change to the licence.
Note that in the case where the term and condition applies to the licence where it did not previously apply, Ontario Regulation 99/23 sets out for how long the Director of Employment Standards may continue to hold the previously-provided security.
During the term of a licence, there may be situations where a legal entity wants to make a change to the term and condition of the licence more than once. This can be done by following the required steps to make each change.
For example, a recruiter had a licence to which the term and condition did not apply, which was later changed to a licence that included the term and condition. If the recruiter wants to make another change to the term and condition, such that it will be permitted to recruit foreign nationals in respect of positions below the median hourly wage for the remainder of the licence, it can provide the Director of Employment Standards with $25,000 security that meets specified requirements.
Where the Director of Employment Standards already holds security (pursuant to the rules in Ontario Regulation 99/23) that was previously provided in respect of the licence, the licensee does not need to provide new security. The recruiter can instead give written notice to the Director of Employment Standards that it intends to act as a recruiter for foreign nationals in respect of positions with wages below the median hourly wage for the remainder of the licence.
As in all situations, the term and condition will continue to apply until the Director of Employment Standards provides written notice that it no longer applies.
Licence renewal
Detailed information about the renewal of licences will be available at a later date. This information will explain the renewal process, including the steps a licensee must take to apply for a renewal.
How long a licence lasts
A licence to operate as a temporary help agency or to act as a recruiter generally expires one year after the date it was issued or renewed.
However, if the temporary help agency or recruiter that holds a licence applies to renew it before the licence expires, the licence remains valid until the Director of Employment Standards approves the licence renewal or serves notice that the renewal application is refused. More information about licence renewal will be available at a later date under the “Licence Renewal” heading above.
Reasons why a licence is issued or refused
The ESA and Ontario Regulation 99/23 (Licensing – Temporary Help Agencies and Recruiters) set out criteria for the Director of Employment Standards to apply when deciding whether to issue or refuse to issue a licence.
These criteria apply both to the first time a temporary help agency or recruiter applies for a licence, and to applications to renew a licence.
The rules set out in the ESA and the regulation establish the circumstances under which the Director:
Each set of circumstances is set out separately below.
When the Director must issue a licence
The Director of Employment Standards must issue a licence to an applicant if the Director receives an application and is satisfied that the applicant has both:
- complied with any orders that were issued under the ESA or the Employment Protection for Foreign Nationals Act, 2009 , and
- met the requirements of the ESA and the regulations for the licence.( EPFNA )
When considering whether orders have been complied with, the Director of Employment Standards will not take into consideration any order or notice of contravention under the ESA or the Employment Protection for Foreign Nationals Act, 2009 that is pending review by the Ontario Labour Relations Board.
When the Director may refuse to issue a licence
The Director of Employment Standards may refuse to issue a licence if the Director has reasonable grounds to believe that either:
- based on the past or present conduct of the applicant — or any officers, directors or representatives of the applicant — the applicant will not carry on business with honesty and integrity and in accordance with the law, or
- the applicant has made a false or misleading statement or provided false or misleading information in an application for a licence or renewal of a licence.
When the Director must refuse to issue a licence
The Director of Employment Standards must refuse to issue a licence if the applicant:
- has not complied with an order issued under the ESA or the Employment Protection for Foreign Nationals Act, 2009 ( EPFNA )
- has ever charged a fee to a foreign national in contravention of subsection 7(1) of the EPFNA
- has ever collected a fee charged to a foreign national in contravention of subsection 7(3) of the EPFNA
- engages or uses the services of any person — other than an employee of the applicant — that has ever charged a fee in contravention of subsection 7(1) of the EPFNA .
- engages or uses the services of any person — other than an employee of the applicant — that has ever collected a fee charged to a foreign national in contravention of subsection 7(3) of the EPFNA .
- fails to meet the requirements set out in the ESA and the regulations for a licence
- for example, an applicant who is required to provide security in the amount of $25,000 fails to provide it to the Director of Employment Standards.
- Subsections are: 279 (1) and (2), 279.01(1), 279.011(1), 279.02 (1) and (2), 279.03 (1) and (2), and 279.04(1)
- the Taxation Act, 2007
- the federal Income Tax Act
- Part IX of the federal Excise Tax Act or
- an Act of another province or territory that imposes a tax on corporations and is administered and enforced by the Canada Revenue Agency
In addition, the Director of Employment Standards must refuse to issue a licence if any of the following apply to any registered corporate officer or corporate director of an applicant that is a corporation, or any partner of an applicant that is a partnership:
- the individual has ever been convicted of an offence under a specified subsection of the federal Criminal Code for which a record suspension under the federal Criminal Records Act has not been ordered.
- Subsections are: 279 (1) and (2), 279.01(1), 279.011(1), 279.02 (1) and (2), 279.03 (1) and (2) and 279.04(1),
When applying the criteria described above, the Director of Employment Standards will not take into consideration any order or notice of contravention under the ESA or the EPFNA that is pending review by the Ontario Labour Relations Board.
In determining compliance with the statutes administered and enforced by the Ontario Ministry of Finance and the Canada Revenue Agency, the Director of Employment Standards relies on the Ministry of Finance’s tax compliance verification system.
Applicants are required to provide a tax compliance verification number in the application form. This requirement applies whether or not the applicant is located in Ontario and whether or not the applicant has tax obligations in Ontario. For questions about obtaining a tax compliance verification number, contact the Ontario Ministry of Finance.
Reasons why a licence is revoked or suspended
The Director of Employment Standards (Director) has the discretion to revoke or suspend a licence that has already been issued based on any of the criteria on which an application for a licence or a licence renewal could have been refused.
The Director may request that a licensee provide specific information that is relevant to the decision as to whether or not to revoke or suspend a licence. The information must be provided in the form and within the timeframe set by the Director.
A suspended licence may be reinstated by the Director if the Director considers it appropriate to do so.
60 days to show proof of compliance prior to refusal, revocation or suspension
In all situations except one, where the Director of Employment Standards intends to:
- refuse to issue an initial licence,
- refuse to renew a licence,
- revoke a licence that has been issued and has not expired, or
- suspend a licence that has been issued and has not expired,
the applicant or licensee will be provided with written notice of this intent and will be given 60 days from the date the notice is served to show evidence of compliance with the licensing requirements.
If the temporary help agency was permitted to operate as a temporary help agency before the notice of intent was served, it can continue to operate during this 60-day period and clients can continue to engage it and use its services during this time. Similarly, if the recruiter was permitted to act as a recruiter before the notice of intent was served, it can continue to act as a recruiter during this 60-day period and employers, prospective employers and other recruiters can continue to engage it and use its services during this time.
On the other hand, if the temporary help agency was not permitted to operate as a temporary help agency before the notice of intent was served, it will not be permitted to operate during this 60-day period and clients cannot engage or use its services during this time. Similarly, if the recruiter was not permitted to act as a recruiter before the notice of intent was served, it cannot act as a recruiter during this 60-day period and employers, prospective employers and other recruiters cannot engage it or use its services during this time.
Failure to provide evidence of compliance within the 60-day period may result in a refusal, revocation or suspension, as the case may be.
Note that the applicant or licensee can waive this 60-day period by providing notice in writing to the Director of Employment Standards.
Exception
Written notice from the Director of Employment Standards (Director) setting out the intention to refuse to issue a licence, or to revoke or suspend a licence, and the 60-day period described above, do not apply where the Director’s decision is based on the applicant, or any officer, director or partner of the applicant, having been convicted of an offence under one of the following provisions, for which a record suspension under the Criminal Records Act has not been ordered:
- Criminal Code (federal) – subsections 279 (1) and (2), 279.01(1), 279.011(1), 279.02 (1) and (2), 279.03 (1) and (2) and 279.04(1), or
- Immigration and Refugee Protection Act (federal) – subsection 118(1).
If a licence is refused, revoked or suspended
If the Director of Employment Standards refuses to issue or renew a licence or revokes or suspends a licence, the Director will serve the applicant or licensee with notice of the refusal, revocation or suspension and will provide written reasons for the decision.
Any of the following scenarios may apply after July 1, 2024, depending on the circumstances:
Initial application refused: application submitted before July 1, 2024
Where an applicant’s initial application for a licence was submitted before July 1, 2024 and was refused after July 1, 2024, the applicant may continue to operate as a temporary help agency or act as a recruiter for 30 days after the day the ministry serves notice of the refusal.
The applicant will be able to file an application with the Ontario Labour Relations Board to review the decision. This must be done within 30 days after the day the ministry serves notice of the refusal. The applicant can continue to operate during the review process unless the Ontario Labour Relations Board orders otherwise.
Initial application refused: application submitted on or after July 1, 2024
Where the applicant’s initial application for a licence was submitted on or after July 1, 2024, the applicant cannot operate unless and until a licence is issued.
The applicant will be able to file an application with the Ontario Labour Relations Board to review the decision. This must be done within 30 days after the day the ministry serves notice of the refusal. The applicant cannot operate during the review process. It can only operate if the Ontario Labour Relations Board decides to issue a licence.
Renewal application refused
Where an applicant has filed an application to renew a current licence before it expires, the applicant may continue to operate as a temporary help agency or act as a recruiter for 30 days after the day the ministry serves notice of the refusal.
The applicant will be able to file an application with the Ontario Labour Relations Board to review the decision. This must be done within 30 days after the day the ministry serves notice of the refusal. The applicant can continue to operate during the review process unless the Board orders otherwise.
Licence revoked or suspended
Where a licence has been revoked or suspended, the licensee may continue to operate as a temporary help agency or act as a recruiter for 30 days after the day the ministry serves notice of the revocation or suspension.
The licensee will be able to file an application with the Ontario Labour Relations Board to review the decision. This must be done within 30 days after the day the ministry serves notice of the revocation or suspension. The licensee can continue to operate during the review process unless the Board orders otherwise.
Requirement to provide written notification
If a temporary help agency’s application for a licence is refused, or its licence is revoked or suspended, the temporary help agency must give written notice of the refusal, revocation or suspension to every client and assignment employee of the agency. This must be done within 30 days after the day the ministry served the notice of the refusal, revocation or suspension. If the temporary help agency files an application for review seeking a review of the Director of Employment Standards’ decision, that information must be included in the written notice.
If a recruiter’s application for a licence is refused, or its licence is revoked or suspended, the recruiter must give written notice of the refusal, revocation or suspension to every employer, prospective employer and prospective employee who has engaged or used the services of the recruiter. This must be done within 30 days after the day the ministry served the notice of the revocation or suspension. If the recruiter files an application for review seeking a review of the Director of Employment Standards’ decision, that information must be included in the written notice.
Potential two-year ban on re-applying if licence is refused or revoked
No applicant who is refused a licence or is refused the renewal of a licence and no legal entity whose licence has been revoked may reapply for a licence for a period of two years after the refusal or revocation, unless the Director of Employment Standards is satisfied that new evidence is available.
Voluntarily cancelling a licence
The Director of Employment Standards may cancel a licence that has been issued and that has not yet expired at the written request of the licensee.
Where a request for a voluntary cancellation is made and the Director of Employment Standards provides notice that a licence is cancelled, the legal entity is required to provide certain written notification:
- A temporary help agency whose licence is cancelled must give written notice of the cancellation to every client and assignment employee of the agency within 30 days of the date the licence is cancelled.
- A recruiter whose licence is cancelled must, within 30 days of the date the licence is cancelled, give written notice of the cancellation to every employer, prospective employer or prospective employee who has engaged or used its services.
The ministry’s website that provides information on the status of applications and licences will be updated to reflect the cancellation of the licence.
Use of security
The security (electronic irrevocable letter of credit or surety bond) that is provided to the Director of Employment Standards as part of the application process can be used to satisfy amounts owing by the applicant or licensee under certain types of orders.
Orders under the Employment Standards Act, 2000 that the security can be used to satisfy are:
- Section 74.14 – order to recover fees
- Section 74.16 – order for compensation, temporary help agency
- Section 74.19 – order re: recruiter reprisal
- Section 103 – order to pay wages
- Section 104 – order for compensation
Orders under the Employment Protection for Foreign Nationals Act, 2009 that the security can be used to satisfy are:
- Subsection 24(2) – order to repay fees
- Subsection 24(3) – order to repay costs
- Subsection 24(4) – order for compensation
If the applicant or licensee’s security is used to satisfy an amount owing under any of these orders, the Director of Employment Standards will provide written notice within 30 days of the funds being used.
An applicant or licensee who is notified that its security has been used to satisfy an amount owing under one of these orders must provide the Director of Employment Standards with additional security so that the total security held by the ministry in respect of the legal entity is $25,000. This additional security must be provided within 30 days of receipt of the notice.
Entity no longer licensed or change to term and condition of recruiter licence
Ontario Regulation 99/23 sets out what happens with security provided by an applicant or a licensee to the Director of Employment Standards in two situations:
- After the legal entity is no longer licensed under the ESA .
- This can result from any of the following situations:
- a licence expires and the licensee does not apply for a renewal
- a renewal application is refused
- a licence is revoked or suspended
- a licence is cancelled at the request of the licensee
- This can result from any of the following situations:
- Where a change is made to the term and condition of a recruiter licence such that security from the legal entity is no longer required to be in place.
In these situations, the Director of Employment Standards will hold the security for the following periods of time:
- If no ESA or EPFNA complaint is filed in respect of the licensee for 12 months after the expiry, cancellation, revocation, suspension or change to the licence term and condition, the security will be returned at that point.
- If an ESA or EPFNA complaint is filed in respect of the licensee in the 12 months after the expiry, cancellation, revocation, suspension or change to the licence term and condition, then either:
- The security will be held for up to 12 months after the date on which an employment standards officer makes a decision on the complaint, or
- if the complaint is withdrawn or deemed to be withdrawn, the security will be held for up to 12 months after that date.
Where more than one ESA or EPFNA complaint was filed within 12 months after the expiry, cancellation, revocation, suspension or change to the licence term and condition and the dates of the decision, withdrawal or deemed withdrawal in the complaints are different, then the 12-month period during which the security will be held runs from the latest date.
Appealing a decision of the Director
An application to seek a review of a decision made by the Director of Employment Standards can be filed with the Ontario Labour Relations Board ( OLRB ) in either of the following circumstances:
- an application for an initial licence has been refused
- an application for a licence renewal has been refused
- a licence has been revoked
- a licence has been suspended
An application for review must be made within 30 days after the day on which the notice of refusal, revocation or suspension was served.
The OLRB can uphold, vary, or set aside the Director of Employment Standards’ decision. The OLRB can also issue, renew or reinstate a licence.
The OLRB ’s decisions are final and binding, although a party to a review may apply to Divisional Court for Judicial Review.
Requirement to provide written notification
If the OLRB upholds the Director of Employment Standards’ decision to refuse to issue or to renew a licence, or to revoke or suspend the licence of a temporary help agency, then the temporary help agency must give written notice of the refusal, revocation or suspension to every client and assignment employee of the agency within 30 days after the OLRB issues its decision.
If the OLRB upholds the Director of Employment Standards’ decision to refuse to issue or to renew a licence, or to revoke or suspend the licence of a recruiter, then the recruiter must give written notice of the revocation or suspension to every employer, prospective employer and prospective employee who has engaged or used the services of the recruiter. This must be done within 30 days after the OLRB issues its decision.
