TORONTO — Ontario is set to introduce legislation that would require temp agencies and recruiters to be licensed.
Labour Minister Monte McNaughton says there are more than 3,000 agencies in the province, and the vast majority operate ethically, but some are bad actors.
Ministry of Labour inspections have found multiple temporary help agencies that are paying people below minimum wage and denying basic employment rights.
Under the proposed legislation, the agencies and recruiters would need to provide an irrevocable letter of credit that could be used to repay wages owed to workers, if need be, and would be vetted before being issued a licence.
Labour inspections at farms, retirement homes, food processing and warehousing facilities have found more than $3.3 million owing to employees, and about half of that has been recovered.
The government wants the licensing system to be in place in 2024.