Province’s proposed crackdown on temp agencies welcomed by AGEMA Work

Posted on November 29, 2021
by Michael
AGEMA Work Staff

In the last quarter of 2021, the Ontario government has released a ruling that, if approved, demands temporary help agencies and recruiters be licensed. This legislation will significantly impact the hospitality and tourism industry because more than 70% of job seekers apply through these agencies.

According to the Ministry of Labour, Training and Skill Development, these new licensing requirements for temporary help agencies and recruiters protect workers and ensure employment standards in Ontario.

It’s expected that these agencies will require licensing in 2024 if this regulation is approved.

Unfortunately, many temporary help agencies and recruiters are paying workers below minimum wage and invalidating employment rights. This is particularly true in the hospitality and tourism industry. That’s why job seekers must work with credible agencies or job platforms like AGEMA Work to avoid labour problems.

The AGEMA Work platform helps connect 15 resorts and hotels with workers. Though, the platform operates in a gig economy — workers are paid as employees of AGEMA Work, including vacation pay, CPP and EI, and enjoy flexible work schedules.

The primary intent of this regulation is to make all agencies and recruiters work by the rules. If an agency is practicing illegal labour activities, the government can close the agency or recruiter, creating enforcement powers.

Temporary help agencies and recruiters provide significant advantages to all industries. But it’s time to stop those unethical agencies who profit from hard-working employees. If this law is approved, it will take place in 2024.

As stated by Monte McNaughton, Minister of Labour, Training and Skills Development, protecting every worker in Ontario can only be accomplished by working with certified, credible agencies.

Ontario also recommends hiring a committed team of officers to find THAs and recruiters, breaching employment rights in conjunction with this law. By denying workers their rights, these agencies and recruiters gain an unlawful competitive advantage by lowering rates.

If the regulation is approved, temporary help agencies and recruiters will be obligated to give a letter of credit to secure unpaid salaries and wages owed to the workforce.

Temporary Help Agencies and Recruiters and the Hospitality and Tourism Industry

Using a certified and credible recruiting agency is the only way to prevent illegal practices for domestic and foreign workers in Ontario. Besides, working with a credible recruiting agency has many benefits, including:

  • Confidentiality
  • Ideal opportunities
  • Accessible jobs
  • Valuable feedback
  • Larger talent pool

That’s why passing this law in Ontario will significantly benefit job seekers and the hospitality and tourism industry. Credible recruiting agencies in Canada have been vital in the growth and expansion of the industry.


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