Ontario to require temporary foreign worker agencies, recruiters to be licensed starting Jan. 1

Ontario will require temporary help agencies and recruiters of temporary workers to have a licence to operate, effective Jan. 1, Ontario Labour Minister Monte McNaughton announced Wednesday.

The move comes after the province said inspections have shown "multiple" help agencies are paying temporary foreign workers below minimum wage and denying employment rights. 

"While temporary help agencies are vital to Ontario's businesses and job seekers looking to get their foot in the door, for too long they have operated in a grey zone that allows criminals to prey on vulnerable workers," McNaughton said. 

The policy was first announced as part of the Working for Workers Act in 2021, but will be implemented for the first time next year. 

According to the government, last year, there were about 2,300 temporary help agencies operating across the province employing about 114,000 workers. 

In 2020-2021, Ontario inspections found more than $4 million was owed to over 10,000 employees on farms, food processing, storage, warehousing and retirement homes.

New system aims to make work safer, combat trafficking

Starting in 2024, the new licensing system will require temporary help agencies to provide $25,000 in a letter of credit that can be used to repay owed wages to employees.

It also adds penalties of $50,000 for repeat violations. 

In the announcement at Jack's Organics in Amherstburg — the country's largest organic tomato greenhouse — officials said the move would help ensure the safety of workers and combat labour trafficking. 

"These historic changes will help protect the most vulnerable members of our society, including temporary foreign workers, young people, women and newcomers," McNaughton said.

Jamie Lefaive, general manager of Jack's Organics, said they work with more than 130 temporary foreign workers each year. 

"We take great pride in the fruit we grow, but we cant do it without our team of local and international agri-food workers," Lefaive said.  "We take the steps to contract only the assistance of verified, vetted agencies who follow the law and adhere to the same high standards we do at our farms."

Under the new system, employers will be able to check an online database before they work with an agency to see if the agency meets licensing requirements. 

It will be against the law for companies to knowingly use unlicensed businesses for staffing. 

Temporary help agencies can apply online and continue to operate until they receive a licence. If their licence or a renewal of a licence is refused, they must cease operations within 30 days. 

Licenses must be renewed annually. 

Announcement has 'key gaps,' advocate says

Syed Husssan, executive director of the Migrant Workers Alliance for Change, says Wednesday's announcement is a step in the right direction, but comes late and with gaps. 

"The No. 1 issue here is that migrant workers must prove, after the fact, that they have in fact been exploited by recruiters," Hussan said."Now, recruiters have gotten very savvy. They don't give you receipts for seizing your passport. They don't give you receipts when they charge you huge sums of money.

"Without that evidence, migrant workers are consistently unable to actually gain their rights, or repay or get back the money they're owed."

Where the policy works, Hussan said, is in the licensing of temporary help agencies and recruiters, meaning the province can move quickly to take the money from the bond and remove the agency from the registry. 

But it all hinges on workers being able to make complaints, with evidence — something many won't be able to do, he added. 

Hussan also said the law applies to a specific group of workers: those in the temporary foreign worker program. Where workers who are being exploited are undocumented, this won't apply.

"Fundamentally what needs to be changed is the full inclusion of migrant workers in all existing labour rights and protections."