The Ontario government announced it is introducing legislation that would require licensing for temporary staffing firms and recruiters. It would also establish penalties to be charged to unlicensed operators or those who charge workers illegal fees. The government is also proposing to hire a team of officers to crack down on temporary staffing firms and recruiters who are exploiting or trafficking domestic and foreign workers.

Labour Minister Monte McNaughton said the legislation would be the toughest of its kind in Canada if passed.

“From day one, my ministry has worked to ensure any employer who abuses the rights of their workers — no matter their passport — will quickly find our officers at their front door,” McNaughton said. “Today’s announcement sends a clear message to anyone who still thinks they can break the rules that time is up.

Temporary staffing firms would be vetted prior to being issued a license and applicants would need to provide an irrevocable letter of credit that could be used to repay owed wages to workers. Penalties could be issued against agencies and recruiters as well as the companies that use them.

Licenses could be required as early as 2024 if the legislation is approved.

“ACSESS strongly endorses the establishment of a licensing regime ensuring that all temporary help agencies comply with their legal obligations,” said Mary McIninch, executive director, government relations of the Association of Canadian Search, Employment and Staffing Services. “This initiative creates a level playing field and results in a fairer industry for [temporary staffing firms], their clients and assignment employees alike. We applaud the government for taking a bold approach that includes enforcement initiatives against for [temporary staffing firms] that operate illegally and the client companies that use them.”