New rules in Ontario for agencies bringing temporary foreign workers to Canada

Ontario is cracking down on employment agencies, demanding that they be licensed by January next year to stop the exploitation of temporary foreign workers.

Temporary aid agencies (THA) and recruiters, some of whom have been illegally paying foreigners less than minimum wage and denied their basic labor rights, will be required to obtain a permit to work in the province from January 1, 2024.

“Although temporary relief agencies are vital to Ontario’s businesses and job seekers trying to get their foot in the door, for too long they have operated in a gray zone where criminals can prey on vulnerable workers,” said Provincial Immigration Minister Monte McNaughton.

“Our government’s licensing system will ensure that law-abiding companies can have confidence in the THAs and recruiters they work with and that those who abuse employees will face the harshest fines in Canada and will not be allowed to work in our province. “

Ontario’s approximately 2,300 employment agencies and temporary auxiliary business locations as of December 2022 employed some 114,000 full-time employees last year.

Read more Canada immigration news

June job growth in Canada led by Ontario, Nova Scotia and Newfoundland
Ontario targets technical professions with 748 Canada Express Entry invitations
Newly arrived Canadian immigrants must be paid to train as truck drivers in Ontario

But the industry is known for exploitation.

In 2020-21, Department of THA use inspections on farms and in food processing plants, warehousing and storage facilities, and retirement homes found that $4.2 million was owed to more than 10,000 workers, even as the businesses that benefited from those labor unaware of these violations of provincial labor laws.

With the upcoming changes, both businesses and job seekers will be able to check the Department’s online database before engaging with a THA or recruiter to see if they meet the county’s strict licensing requirements.

Are you an employer looking for foreign employees in Canada? Immigration.ca can help through its sister company, craftsman.com. We offer a comprehensive recruitment package to help you identify and hire the best individuals from abroad. Contact us now.

It will be against the law for companies to knowingly use unlicensed companies to staff and those who hire rogue recruiters will have to reimburse employees for any illegal fees charged to them.

THAs and recruiters will be required to provide $25,000 beginning in the new year in the form of an irrevocable letter of credit that can be used to pay back wages owed to employees. Violators can be fined $50,000 based on repeated offenses, the highest amount in Canada.

Industries that rely heavily on temporary foreign workers welcomed the strengthened protections for their employees, saying it will protect an important part of their workforce.

If you are a candidate looking for a job in Canada, or an employer looking to recruit foreign talent from abroad, immigration.ca can help. Access our expertise through our in-house recruitment firm craftsman.com“the leader in foreign recruitment”.

“These workers are essential to the operations of greenhouse vegetable growers and ensuring their safety and protection is vital to the continuity of our industry,” said George Gilvesy, president of the Ontario Greenhouse Vegetable Growers (OGVG) industry association.

Chris Blore, president and chief executive officer of the Tourism Industry Association of Ontario, echoed those sentiments.

“Recruiters and temporary aid agencies are critical to helping tourism and hospitality businesses access the skilled workers they need to thrive year-round in Ontario,” said Blore.

Human rights organizations welcome stricter protections for temporary foreign workers

“This new and robust licensing system is a welcome tool to protect some of the most vital employees in our industry and to support companies in choosing reputable recruiting partners.”

Human rights groups also welcomed the move to add more protections to temporary foreign workers.

“The Canadian Center to End Human Trafficking supports Ontario’s efforts to bring greater accountability to the recruiting industry,” said Julia Drydyk, the organization’s executive director.

“The new register will provide transparency and ensure that the government has more information to protect foreigners from fraudulent recruiters. This initiative is one of many important steps we must take to combat labor trafficking and unfair labor practices in this province.”

Video

Data from Immigration, Refugees and Citizenship Canada (IRCC) shows that Ontario is by far the most popular destination for foreigners coming to work in Canada through the International Mobility Program (IMP) and Temporary Program for Foreign Workers (TFWP).

Last year, Ontario was the destination of choice for nearly a third, 30.3 percent, of all foreigners who came to Canada through the TFWP. Through that program, the province welcomed 41,185 temporary foreign workers in 2022.

Ontario also benefited that year from the arrival of 180,080 foreigners, or nearly 38.7 percent of the total number arriving through the IMP.

The two programs combined gave Ontario employers access to a workforce of 221,265 foreigners. That’s about the same as the entire population of Oakville.

THAs and recruiters who apply for a permit by January 1 of next year, which must be renewed annually, may continue to operate until they receive a decision from the county on their application.

But if a license or license renewal is denied, the applicant has only 30 days to stop working as a THA or recruiter.

Ontario has hardened it too Work for Employees Act, 2023 earlier this year to give the province the resources to whack the highest fines in Canada on businessmen who withhold passports of their temporary foreign workers.

“Anyone preying on vulnerable members of our community has no place in our society,” McNaughton said.

“If you think you’re going to deny someone’s basic human rights by withholding their passport, we’re going to attack your wallet and you’ll be behind bars for a long time. We will continue to use every tool in our toolbox to ensure that Ontario is a province where hard work pays off and big dreams come true.”

Under that law, which has been sent for a third reading, withholding a foreigner’s passport or work permit can lead to fines ranging from $100,000 to $200,000 for any employee whose rights are violated.

Ontario is set to hand out some of the largest fines to employers who infringe TFW rights

In addition to the per-passport fines, those found guilty of violating the proposed law could face a fine of up to $500,000 or imprisonment for up to one year — or both. Convicted companies could face fines of up to $1 million.

The Working for Workers law, which would be the third iteration of this law that has already had previous drafts over the past two years, also includes proposed changes to protect home workers during mass layoffs and expands the number of reasons reservists can take military leave.

The law would also force construction sites to have women-only restrooms and increase cancer coverage for firefighters.

Megan Walker, the now-retired executive director of the London Abused Women’s Centre, says the proposed legislation will send a strong signal to those who exploit migrant workers.

“The government is giving migrant workers back their human right to control their own documents, including their passports,” Walker said.

Since November 2021, Ontario has established a new unit to detect human trafficking and this has already led to criminal charges, occupational health and safety and labor standards prosecutions, warrants and other compliance activities.

In its first year of operation, the unit received more than 300 tips, initiated investigations, and helped 3,500 workers recover more than $400,000 in wages.

York Regional Police Chief Jim MacSween says he and his detectives from the force’s human trafficking unit are keen to see this new legislation come into effect.

“This legislation … will give us another tool to fight labor trafficking and the exploitation of vulnerable people in our community,” MacSween said. “This new law empowers our officers to hold individuals and companies accountable for their actions.”

Experience as a temporary foreign worker is often a stepping stone to permanent residence

Below the Express Entry Systemcan immigrants apply permanent residence online if they meet the eligibility criteria for one of the three federal immigration programs, the Federal Skilled Worker Program (FSW), Federal Skilled Trade Program (FST), and Canada Experience Class Program (CEC), or a participating provincial immigration program.

Candidates’ profiles are then ranked against each other according to a points-based system called the Extensive classification system (CRS). The highest ranked candidates will be considered for a Invitation to apply (ITA) for permanent residence. Those receiving an ITA must quickly submit a complete application and pay a processing fee within 90 days.

Through a network of Provincial nominated programs (PNP), nearly all ten provinces and three territories of Canada can also nominate skilled worker candidates for admission to Canada, when they have the specific skills required by local economies. Successful candidates who receive a provincial or territorial nomination can then apply for Canadian permanent residency through the federal immigration authorities.