Staffing agency in Ontario – New Licensing Rules 2023

Nov 15, 2023

Staffing agency in Ontario – All you need to know about the new license requirements

On July 1, 2023 the Employment Standards Act on Ontario was amended and now all businesses operating Staffing or Recruiting operations must be duly registered with the Ministry of Labor and have a license.

The deadline for submitting your application is currently July 1, 2024, and the Ministry introduced a “transition rule” that allows businesses that applied before July 1, 2024 to continue operating their staffing or recruitment operations for as long as their application is being reviewed.

You must apply before July 1 2024 (so until June 30, 2024) in order to enjoy the “transition period” rule.

The licensing process requires you to pay $750 CAD as a licensing fee and deposit $25,000 irrevocable letter of credit with the Ministry of Labor. You also must submit the proof that your business is in good standing with the tax reporting and payment.

The licensing requirement does not apply to businesses providing outsource and management of subcontractors, but you must ensure that your legal documents support the definition of your relationship with subcontractors as independent and not as “employees”.

Licensing applies separately to Staffing and Recruiting, so if you operate both types of businesses, you will need to apply twice, pay two $750 licensing fees and deposit two $25,000 letters of credit.

Useful Links:

Ministry of Labor registration portal: https://www.tha.labour.gov.on.ca/port…

Our video about legal documents for staffing agencies:    • How to Start and Operate a Staffing A…  

Our video about subcontractors and employees:    • Employee vs Subcontractor Part I  

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