Update on Bill 27 Licensing Framework
Effective: July 1st, 2024
Annual License Requirement: All staffing agencies, regardless of location, must obtain a license to place candidates in Ontario.
License Fee: $750 per year
Surety Bond (THA Requirement): Mandatory requirement of a $25,000 bond or equivalent Letter of Credit for the Temporary Help Agency (THA) licensing process. This also applies if your agency works with foreign workers earning below the current median wage of $28.39.
Pending Applications: Agencies with pending applications by July 1st can continue operations until a decision is made. If declined, there is an appeal process available.
Penalty for Non-compliance: Employers using non-registered agencies will face penalties under the new regulations.
In 2023, Ontario’s recruiter licensing regime threatened many small businesses by requiring a $25,000 irrevocable letter of credit. Our grassroots efforts highlighted the lack of industry representation in policy development, gaining media attention through outlets like the Globe and Mail and CTV News.
Phase One Success:
The Ministry extended the licensing deadline to July 1, 2024, and agreed to review the regulations.
Phase Two Efforts:
We engaged extensively with various stakeholders and held numerous meetings with the Minister of Labour, David Piccini, and his team. Our advocacy included getting Minister Piccini to attend the Canadian Staffing Summit 2024, where he provided updates and spent 30 minutes in one-on-one discussions with business owners to address their concerns.
