Overview

Beginning on July 1, 2024 under the Employment Standards Act, 2000 (ESA):

  • Temporary help agencies are required to hold a licence to operate.
  • Recruiters are required to hold a licence to act as a recruiter.
    • Employers, prospective employers and other recruiters are prohibited from knowingly engaging or using the services of any recruiter that does not hold a licence.

Where applications are made before July 1, 2024, there is a transitional rule that applies.

The ministry maintains a website that lists certain licensing information including:

  • licence holders, along with the status of their licence
  • whether a recruiter licence is subject to any terms and conditions
  • applicants seeking a licence
  • any other information that is required to be published under the ESA or its regulations

Who is required to have a licence

The licensing requirements apply to temporary help agencies and recruiters. These terms are defined in the ESA and its regulations.

Temporary help agencies

A temporary help agency is an employer that employs persons for the purpose of assigning them to perform work on a temporary basis for clients of the employer. If a temporary help agency is located outside of Ontario, but assigns employees to work in Ontario, the licensing requirements will also apply.

Learn more about what is a temporary help agency under the ESA.

Recruiters

A recruiter is any person - which includes a corporation, partnership and individual/sole proprietorship - who, for a fee, finds or attempts to find employment (whether the employment is temporary or permanent) in Ontario for prospective employees, or finds, or attempts to find, employees (to be employed on a temporary or permanent basis) for prospective employers in Ontario, but does not include the following:

  • an employee who performs the functions described above as a duty of the employee’s position
  • an employer who finds or attempts to find employees to be employed by the employer
  • certain educational institutions that find or attempt to find employment in Ontario for its students or alumni
  • a trade union
  • a registered charity
  • a person who:
    • is party to an agreement with the Crown in right of Ontario, the Crown in right of Canada or a municipality to find or attempt to find employment in Ontario for prospective employees or to find or attempt to find employees for prospective employers in Ontario, and
    • does not perform these functions outside of those government agreements
  • a person who:

A recruiter does not have to be located in Ontario for the licensing requirements to apply.

Learn more about who is a recruiter under the ESA.

Every legal entity must apply separately

Every legal entity that operates as a temporary help agency or that acts as a recruiter must apply for a licence. Legal entities that are treated as one employer under section 4 of the Employment Standards Act, 2000 must apply separately.

If a legal entity operates as a temporary help agency and acts as a recruiter, it must submit two separate applications: one to operate as a temporary help agency and one to act as a recruiter.

Important dates for licensing requirements

Temporary help agencies and recruiters are prohibited from operating without a licence starting July 1, 2024, unless the transitional rule applies.

Transitional rule for applications submitted before July 1, 2024

If you submitted your application before July 1, 2024 and have not received a decision on your application from the ministry by July 1, 2024, you are allowed to continue to operate as a temporary help agency or act as a recruiter on and after July 1, 2024. This applies until the ministry notifies you either that a licence has been issued or that the application for a licence has been refused.

Learn what happens if your application is refused.

Applications submitted on or after July 1, 2024

If you apply on or after July 1, 2024, you are prohibited from operating as a temporary help agency or acting as a recruiter unless and until the ministry issues a licence to you.

Violations of the licensing provisions in the ESA may result in enforcement action, which can include:

  • ordering compliance
  • issuing monetary penalties
  • prosecution

Apply online

You must submit your application online.

You can save the information you have entered after you complete each step and you can continue with the application later. Your information will be saved for 14 days.

What you will need to provide in the application

The following list provides some examples of the information and documentation needed to complete your application:

  • contact information, including email addresses, for one or more individuals who may be contacted if the ministry has questions about the application
  • the address of each location where the applicant carries on business inside and outside of Canada
  • if the applicant is a corporation, the name and address of each corporate officer and director
  • if the applicant is a partnership, the name and address of each partner
  • information about the applicant, corporate officers and directors, partners and similar applications and licences in other Canadian jurisdictions
  • if the applicant is a recruiter, whether the applicant will act as a recruiter in respect of foreign nationals during the term of the licence and if so, whether the recruitment is only in respect of positions with wages at or above the median hourly wage.
  • information about certain criminal convictions of the applicant, corporate officers and directors, or partners, and whether they are subject to a ban under the Ontario Immigration Act, 2015
  • information about other legal persons (which include businesses and individuals) the applicant engages or uses in connection with the recruitment or employment of foreign nationals
  • information about compliance with the:
  • tax compliance verification number obtained from the Ontario Ministry of Finance showing tax compliance
  • in some cases, a security in the amount of $25,000, which can take the form of an electronic irrevocable letter of credit or a surety bond

Security requirement

Please read the information under the applicable heading below for information about the requirement to provide a security to the Director of Employment Standards as part of the application process.

1. You are applying only for a temporary help agency licence

A temporary help agency that is applying for an initial licence must provide a $25,000 security that meets specific requirements to the Director of Employment Standards.

If a temporary help agency is applying for a renewal of its licence and the Director of Employment Standards already holds security in the amount of $25,000 from the legal entity, then the applicant does not need to provide additional security when it applies to renew its licence.

2. You are applying only for a recruiter licence

Whether a recruiter needs to provide a security to the Director of Employment Standards as part of its application depends on the type of work the recruiter will engage in during the term of the licence.

A security is not required as part of a recruiter’s application in either of these situations:

  1. the applicant will not act as a recruiter in respect of foreign nationals during the term of the licence, or
  2. the applicant will act as a recruiter in respect of foreign nationals during the term of the licence but only in respect of positions with wages at or above the median hourly wage.

“Foreign national” means an individual who is not a Canadian citizen or a permanent resident within the meaning of the federal Immigration and Refugee Protection Act.

“Median hourly wage” means, on the date the application is submitted, the median hourly wage for Ontario published on a Government of Canada website. The median hourly wage for Ontario on April 2, 2024 is $28.39 per hour. Recruiter applicants should visit the Government of Canada's website to see the current median hourly wage for Ontario.

Term and condition of the recruiter licence

Where one of the two situations described above applies and security is not required and is not provided by a legal entity that is applying only for a licence to act as a recruiter, a term and condition will apply to the recruiter’s licence. It will be a term and condition of the licence that if the licensee acts as a recruiter in respect of foreign nationals, it may do so only in respect of positions at or above the median hourly wage.

During the annual licence renewal process, the recruiter will have the opportunity to indicate whether the situations described above will continue to apply.

Making changes to the term and condition

The recruiter can also make changes during the term of the licence:

  • If there is a term and condition of a licence but the licensee no longer wants the term and condition to apply, they must provide security that meets specific requirements. The term and condition will continue to apply until the Director of Employment Standards provides written notice that it no longer applies.
  • If the licensee has already provided security and there are no terms and conditions of the licence, but the licensee wants the term and condition to apply, they must provide certain written notice. The term and condition of a licence takes effect when written confirmation of the change is provided by the Director of Employment Standards.

Note that in the case where the term and condition applies to the licence where it did not previously apply, subsection 4(7) of O. Reg. 99/23 sets out for how long the Director of Employment Standards may continue to hold the previously-provided security.

3. You are applying for both a temporary help agency and a recruiter licence

Each legal entity must provide security so that the total security held by the Director of Employment Standards in respect of the applicant is $25,000.

If a legal entity will be applying for two initial licences: one to operate as a temporary help agency and one to act as a recruiter, then only one $25,000 security must be provided. The security must meet specific requirements.

If the legal entity applies for the renewal of its licences and the Director of Employment Standards already holds a $25,000 security in respect of the legal entity, then it does not need to provide additional security with either of its renewal applications.

Note that the exemption from the security requirement described under the heading “You are applying only for a recruiter licence” may apply to a recruiter that also operates as a temporary help agency. However, the exemption does not apply in respect of a licence to operate as a temporary help agency. This means that if you are applying for both a temporary help agency and a recruiter licence, you must provide security that meets specific requirements. Where the Director of Employment Standards holds security of $25,000 in respect of a legal entity that has both a temporary help agency licence and a recruiter licence, the term and condition will not apply to the recruiter licence.

Acceptable forms of security

The acceptable forms of security are an electronic irrevocable letter of credit and a surety bond.

Electronic irrevocable letter of credit

If you are required to provide a security, and if you choose to provide an electronic irrevocable letter of credit, it must meet specific requirements.

We encourage you to use our template for irrevocable letters of credit to ensure your letter of credit meets all requirements and assists with the timely review of your application.

Letter of credit requirements

To be acceptable, the letter of credit must:

  • be made in favour of the Director of Employment Standards
  • include a statement that it is being provided for the obligations of the applicant “under the Employment Standards Act, 2000 and or the Employment Protection for Foreign Nationals Act, 2009”
  • be issued by a bank that is listed in Schedule I, II or III of the Bank Act (Canada), or by a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 2020
    • Schedules I and II of the Bank Act (Canada) contain a list of authorized banks in Canada. An irrevocable letter of credit that is issued by any bank that is listed in Schedule I or II will meet this requirement.
    • Schedule III contains a list of authorized foreign banks.  An irrevocable letter of credit that is issued by any branch of a bank that is listed in Schedule III, whether that branch is in Canada or outside of Canada, will meet this requirement
  • be electronic
    • This includes providing an electronic version of a “paper document”.  For example, an applicant can upload a .pdf version of an irrevocable letter of credit that is printed on paper into the online application system.
  • be in the amount of $25,000 Canadian dollars
  • be irrevocable so it cannot be recalled or cancelled during its term
  • automatically renew when it expires.  The letter of credit may include a statement that it will not automatically renew when it expires if the bank or credit union provides notice to the Director of Employment Standards, but only if the amount of notice specified is 90 days or more.
  • permit “partial drawings” without any conditions, meaning that the Director of Employment Standards can, for reasons set out in the regulation and in accordance with the prescribed processes, demand and receive a payment less than the entire amount specified in the letter of credit
  • be written in English or in French
  • have no other conditions

Surety bond

If you are required to provide a security, and if you choose to provide a surety bond, it must meet specific requirements.

We encourage you to use our surety bond template to ensure your bond meets all requirements and assists with the timely review of your application.

Surety bond requirements

To be acceptable, the surety bond must:

  • be made in favour of the Director of Employment Standards
  • include a statement that it is being provided for the obligations of the applicant “under the Employment Standards Act, 2000 or the Employment Protection for Foreign Nationals Act, 2009”
  • be issued by an insurer licensed under the Insurance Act to write surety and fidelity insurance.
    • A list of insurance companies licensed under Ontario’s Insurance Act can be found here.
    • In order to ensure a specific provider is licensed to write surety and fidelity insurance, click on the “plus sign” next to the individual provider to see if the terms “surety” and “fidelity” appear next to the “licence class(es)” category. If both terms are there, then the provider meets this criterion.
  • be in the amount of $25,000 Canadian dollars
  • be irrevocable so it cannot be recalled or cancelled during its term
  • automatically renew when it expires. The surety bond may include a statement that it will not automatically renew when it expires if the insurance provider gives notice to the Director of Employment Standards, but only if the amount of notice specified is 90 days or more.
  • permit “partial drawings” without any conditions, meaning that the Director of Employment Standards can, for reasons set out in the regulation and in accordance with the prescribed processes, demand and receive a payment less than the entire amount specified in the surety bond.
  • be written in English or in French
  • have no other conditions

As a best practice, the surety bond should be provided electronically with a digital seal where possible. If this cannot be done, in addition to providing an electronic copy of the document the applicant must also mail the original surety bond with the seal to:

Temporary Help Agency & Recruiter Licensing Unit
Ministry of Labour, Immigration, Training and Skills Development
505 University Avenue, 19th floor
Toronto, ON M7A 1T7

Application fee

There is an application fee of $750.00. This applies to initial applications and to annual renewal applications. In general, where a legal entity applies for both a temporary help agency and a recruiter licence (or for a renewal of these two licences), it will be required to pay the $750 application fee only on the first of these two application submissions. Details on when this applies are set out below.

The application fee is not refundable. This payment can be made online by:

  • Mastercard
  • Mastercard debit
  • Visa
  • Visa debit

Legal entities that are both a temporary help agency and a recruiter

In general, where a legal entity applies for both a temporary help agency and a recruiter licence (or for a renewal of these two licences), it will be required to pay the $750 application fee only on the first of these two application submissions.

If the legal entity has paid an application fee for one type of licence, it will not be required to pay the fee for the other type of licence as long as the submission of the application for the other type of licence falls during one of these two timeframes:

  • the legal entity is waiting for a determination on the application it paid to submit, or
  • the legal entity was issued a licence or renewal based on the application it paid to submit and the expiry date stated on that licence has not yet passed.

This exemption from paying the application fee does not apply to two consecutive applications made by a legal entity. In other words, where a legal entity has submitted an application for which no application fee was required, it must pay the $750 application fee to submit its next application.

Example 1: Submission of initial applications

Legal entity ABCD Ontario Inc. operates as a temporary help agency and acts as a recruiter.

ABCD Ontario Inc. applies for an initial licence to operate as a temporary help agency. It completes the online application form and on May 9, 2024 it pays the $750 application fee and submits the application to the ministry.

ABCD Ontario Inc. then applies for an initial licence to act as a recruiter. It has not yet received a decision on its temporary help agency licence application. It completes the online recruiter application form and on June 3, 2024 it submits the application to the ministry.

An application fee will not be charged to submit this recruiter application. This is because ABCD Ontario Inc. paid the application fee to apply for the other type of licence (in this case, a temporary help agency licence) and is still waiting for a determination on that application.

Note that if ABCD Ontario Inc. has submitted its applications in the reverse order (i.e., if it had submitted the application for the recruiter licence first and the application for the temporary help agency licence second), it would pay the $750 application fee for the recruiter licence and would not have to pay the application fee for the temporary help agency licence. In both situations, an applicant that applies for both a temporary help agency licence and a recruiter licence pays the $750 application fee only once.

Example 2: Renewal applications

Legal entity 12345 Ontario Inc. operates as a temporary help agency and acts as a recruiter.

It submitted an application for an initial licence to act as a recruiter on June 5, 2024. It paid the $750 application fee for this submission. It also applied for an initial licence to operate as a temporary help agency on June 7, 2024. No application fee was required for the submission of the temporary help agency licence application.

A licence to operate as a temporary help agency was issued on August 15, 2024 and it was in effect from August 15, 2024 to August 14, 2025. A licence to act as a recruiter was issued on August 20, 2024 and it was in effect from August 20, 2024 to August 19, 2025.

12345 Ontario Inc. will now be applying to renew both licences. It submits its applications for licence renewal prior to the expiry of each of the licences to ensure there will be no gaps in licensing coverage.

12345 Ontario Inc. applies to renew its recruiter licence by submitting a renewal application on August 1, 2025. The $750 application fee will be charged for this application. This is because the legal entity’s previous application (which was its initial application for a temporary help agency licence) was exempt from the application fee. No two consecutive applications made by a legal entity can be exempt from the application fee.

12345 Ontario Inc. then applies to renew its temporary help agency licence on August 2, 2025. It has not yet received a decision on its recruiter renewal application. An application fee will not be charged to submit the application to renew its temporary help agency licence.

Since 12345 Ontario Inc. paid the application fee to apply for the renewal of the other type of licence (in this case, a recruiter licence), is still waiting for a determination on that application, and the previous application submitted was not exempt from the application fee, this temporary help agency licence renewal application is exempt from the application fee.

Note that if 12345 Ontario Inc. had submitted its renewal applications in the reverse order (i.e. if it had submitted the application to renew the temporary help agency licence first and the application to renew the recruiter licence second), it would pay the $750 application fee to renew the temporary help agency licence and would not have to pay the application fee to renew the recruiter licence. In both situations, the applicant pays the $750 application fee only once.

If your application is refused

If your application for a licence is refused, you will be able to file an application with the Ontario Labour Relations Board to review the decision.

If you submit your initial application for a licence before July 1, 2024 and your application is refused, you may continue to operate as a temporary help agency or act as a recruiter for 30 days after the day the ministry serves notice of the refusal. If you choose to file an application with the Ontario Labour Relations Board to review the decision, you can also continue to operate during the review process unless the Board orders otherwise.

The rules set out above about continuing to operate do not apply where the initial application was submitted on or after July 1, 2024. If an application is submitted on or after July 1, 2024, the applicant cannot operate unless and until a licence is issued.

Find information about the status of applications and licences.

How long a licence lasts

A licence to operate as a temporary help agency or to act as a recruiter generally expires one year after the date it was issued or renewed.

However, if the temporary help agency or recruiter holds a licence and applies to renew that licence before it expires, the licence remains valid until the Director of Employment Standards approves the licence renewal or serves notice that the renewal application is refused.

Licence renewal

In order to renew a licence, a new application needs to be completed and submitted.

The $750.00 application fee will be charged for renewal applications unless the exception applies to one of the renewal applications for a legal entity that is both a temporary help agency and a recruiter.

Detailed information about the renewal of licences will be available at a later date. This information will explain the renewal process, including the steps a licence holder must take to apply for a renewal.

Users of temporary help agencies and recruiters

Starting July 1, 2024:

  • Clients of temporary help agencies are prohibited from knowingly engaging or using the services of a temporary help agency unless the agency holds a licence to operate as a temporary help agency. Learn more about the relationship between temporary help agencies and clients. This prohibition is in effect unless the transitional rule applies to the temporary help agency. Learn more about the transitional rule.
  • Employers, prospective employers and other recruiters are prohibited from knowingly engaging or using the services of any recruiter unless the recruiter holds a licence to act as a recruiter. This prohibition is in effect unless the transitional rule applies to the recruiter. Learn more about the transitional rule.

In addition, where the temporary help agency or the recruiter submitted their initial application for a licence before July 1, 2024, the prohibition is not in effect during these two periods:

  • the 30-day period after the day on which the ministry serves the temporary help agency or recruiter notice of the refusal.
  • the period during which an application to review the refusal is ongoing with the Ontario Labour Relations Board, unless the Board orders otherwise.

Find out if a particular temporary help agency or recruiter is licensed

Information about the status of applications and licences is posted on the ministry’s website.

Enforcement of licensing rules

Violations of the licensing rules in the ESA may result in enforcement action, which can include:

  • ordering compliance
  • issuing monetary penalties
  • prosecution

Penalties

Employment standards officers have the power to issue notices of contravention with prescribed penalties when they believe someone has contravened a provision of the ESA.

If any person provides false or misleading information in the context of application for a temporary help agency or recruiter licence, the officer can issue a notice of contravention with the following penalties:

  • $15,000 for a first contravention
  • $25,000 for a second contravention in a three-year period
  • $50,000 for a third contravention in a three-year period

As of July 1, 2024: If an officer finds a contravention of any of the following prohibitions:

  • operating as a temporary help agency without a licence
  • acting as a recruiter without a licence
  • clients knowingly engaging or using an unlicensed temporary help agency, or
  • employers, prospective employers or other recruiters knowingly engaging or using the services of an unlicensed recruiter

The officer can issue a notice of contravention with the following penalties:

  • $15,000 for a first contravention
  • $25,000 for a second contravention in a three-year period
  • $50,000 for a third contravention in a three-year period

Contact us

Applications or Licences

For assistance with an application or a licence, please contact us:

Employment Standards Act

For other inquiries related to the Employment Standards Act, including general questions about the licensing system, please contact us: