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Ontario lawmakers are set to introduce new legislation that will require temporary staffing agencies and recruiters to be licensed to conduct business in the province. The law is designed to ensure that all talent acquisition firms and recruitment specialists operate morally and ethically while placing temporary workers on assignment.
Why Use Temporary Staffing Services? According to a news release revealed by the Ontario government, studies and inspections conducted by the Ministry of Labour discovered violations in the treatment of workers. Most notably, firms were found to be compensating employees below minimum wage, denying holiday and overtime pay, and refusing to grant them basic employment rights. In doing so, these agencies are gaining unfair advantages over other staffing firms by undercutting markup rates.
Some temporary staffing agencies even charged workers illegal hiring fees upon placing them on assignment—highlighting yet another highly illegal practice uncovered during the investigation. Within the proposed legislation, the Ontario government is considering hiring a team of dedicated officers to monitor and prevent the exploitation and trafficking of domestic and foreign workers.
This group would be responsible for examining illegal practices and recouping unpaid wages on behalf of exploited workers. In years past, the Ontario Provincial Police has rescued dozens of migrant workers from a trafficking ring who were being compensated below minimum wage, while their placements were fully—and illegally—controlled by third-party recruiters.
According to a report, over 2, temporary staffing agencies operate in Ontario. Under the proposed legislation, all of these firms would need to be licensed to conduct business. Not only would these agencies be vetted by the aforementioned team of dedicated officers before receiving their license, but they would need to provide an irrevocable letter of credit that could be used to repay wages owed to workers.