Recruiting agencies welcome Ontario licensing plans

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Established recruiting businesses that serve Ontario’s trucking business are welcoming provincial plans to license associated companies starting Jan. 1.

The province says it’s introducing the regime to crack down on momentary assist businesses and recruiters that pay lower than minimal wage, deny different employment rights, or cost unlawful charges. Licence holders might want to present a $25,000 irrevocable letter of credit score that can be utilized to repay owed wages, whereas repeat offenders will face fines as much as $50,000.

Liam O’Briain, chief working officer at Kee Human Sources, says he has seen a surge in companies paying employees beneath the desk and beneath minimal wage over the past 5 years – notably within the Higher Toronto Space.

(Picture: iStock)

“It’s been fairly irritating,” O’Briain says. “They pay them like a vendor versus an worker. They’re not taking any deductions. They’re not paying WSIB, CPP, EI. Trip time just isn’t accrued.”

However success will rely upon enforcement, he provides.

“It’s going to take fairly a little bit of sources in the event that they wish to get this achieved correctly,” O’Briain says. “The place they’ll have success goes after totally different carriers that use these businesses that aren’t performing above-board.”

It will likely be unlawful for firms to knowingly use unlicensed companies for staffing, and people who rent such companies can be required to repay employees for any illegally charged charges.

“I look ahead to businesses getting a greater repute with extra pointers in place. Everybody must be just a little extra strict,” provides Hannah MacDonald, senior gross sales and advertising supervisor with the Higher Collectively Group, which incorporates Revolution Staffing.

“There may be at all times room for enchancment – it doesn’t matter what course of you’re taking a look at.”

Ontario had 2,300 placement businesses and momentary assist companies as of December 2022, in line with Statistics Canada.

Short-term assist businesses and recruiters that apply for a licence earlier than Jan. 1 can be allowed to proceed working till the ministry points a choice on the appliance. If a licence or renewal is refused, candidates can have 30 days to stop operations.

Purposes will carry $750 charges.

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