“Ontario delays new regulations on recruitment agencies after industry outcry”

The Ontario government is delaying and amending new licensing rules for staffing agencies, after the industry expressed concern that the requirements were too onerous for small recruiting firms.

Ontario announced in July that businesses in the recruiting and staffing industry would need to apply for licences by Jan. 1, 2024, pay $750 application fees and put up $25,000 letters of credit that the government could draw upon, if needed, to cover wages owed to employees.

The government said the rules were needed to crack down on agencies exploiting temporary and vulnerable workers. For example, a temporary staffing agency could collect money from an employer and then fail to pay the person they sent to do work.

…Small recruiting firms in particular said coming up with $25,000 on short notice would put their businesses at risk and cost hundreds of dollars in additional annual fees.

On Thursday, Ontario Labour Minister David Piccini wrote to recruiters to tell them implementation of the new rules would be delayed until July 1, giving the ministry time to rewrite the rules to address their concerns. His office confirmed the policy change on Friday…