This Ontario temporary help agency licence FAQ covers the most common questions about Ontario's licensing regime for temporary help agencies (THAs) and recruiters. The regime launched on July 1, 2024, and a significant amendment to Ontario Regulation 99/23, filed October 21, 2025 and effective January 1, 2026, extended licence terms to two years and raised the application fee to $1,500. Whether you are applying for the first time or renewing under the new rules, the answers below explain what you need to know.
What Is an Ontario Temporary Help Agency Licence?
An Ontario temporary help agency (THA) licence is a mandatory authorization issued under the Employment Standards Act, 2000 (ESA). It permits a business to assign workers to client employers on a temporary basis. Without a valid licence, a THA cannot legally operate in Ontario as of July 1, 2024.
The licence is issued by the Director of Employment Standards. For applications submitted on or after January 1, 2026, the licence is valid for two years from the date it is issued or renewed.
Who Needs an Ontario Temporary Help Agency or Recruiter Licence?
Any business or individual that meets either of the following definitions must be licensed before operating in Ontario:
Temporary Help Agency: An employer who assigns their own employees (assignment employees) to perform work for clients on a temporary basis.
Recruiter: A person or entity, including corporations, partnerships, and individuals, who finds or attempts to find employment in Ontario for prospective employees, or finds employees for prospective employers, for a fee.
The licensing requirement applies even to entities based outside Ontario if they operate within the province. Clients and employers are prohibited from knowingly engaging unlicensed agencies or recruiters.
Are There Any Exemptions from the Licensing Requirement?
Yes. The following are exempt from the recruiter definition and do not need a licence:
- Employees who recruit as part of their normal job duties
- Employers recruiting for their own workforce
- Designated educational institutions (school boards, universities, community colleges, career colleges)
- Trade unions
- Registered charities
- Persons operating under service agreements with government (typically non-profit employment services)
- Persons who assist individuals with developmental disabilities under provincial programs
Business and IT consultant exception: Temporary help agencies whose all assignment employees qualify as business or IT consultants are exempt from THA licensing requirements.
What Is the Difference Between a THA Licence and a Recruiter Licence?
These are two distinct licences for two distinct functions:
| Temporary Help Agency Licence | Recruiter Licence | |
|---|---|---|
| Who needs it | Businesses that assign workers to client employers | Persons who find jobs or workers for a fee |
| Security deposit | $25,000 required | $25,000 required unless exempted (see below) |
| Application fee | $1,500 (as of Jan 1, 2026) | $1,500 (as of Jan 1, 2026) |
| Licence term | 2 years (apps on/after Jan 1, 2026) | 2 years (apps on/after Jan 1, 2026) |
An entity that operates as both a THA and a recruiter must hold both licences. However, if both applications are submitted at the same time, the $1,500 fee is paid only once on the first application.
How Do I Apply for an Ontario THA or Recruiter Licence?
All applications are submitted online through the Ministry's THA licensing portal at https://www.tha.labour.gov.on.ca/portal/login/.
You will need to provide:
- Contact details for all responsible individuals
- All business locations (Ontario and international)
- Names and addresses of all corporate officers, directors, and partners
- Disclosure of any criminal convictions
- Your tax compliance verification number
- Information on whether you recruit foreign nationals
- Compliance history under the ESA, the Employment Protection for Foreign Nationals Act, 2009 (EPFNA), the Occupational Health and Safety Act (OHSA), and the Workplace Safety and Insurance Act, 1997 (WSIA)
You can save your progress for up to 14 days between steps.
What Is the Ontario THA Licence Application Fee?
The fee depends on when your application is submitted:
| Submission Date | Application Fee | Licence Term |
|---|---|---|
| Before January 1, 2026 | $750 | 1 year |
| On or after January 1, 2026 | $1,500 | 2 years |
Payment is accepted by Mastercard, Visa, or debit. The application fee is not refunded once a decision has been made.
If you apply for both a THA licence and a recruiter licence at the same time, you pay the $1,500 fee only on the first application submitted.
How Long Is an Ontario THA or Recruiter Licence Valid?
For applications submitted on or after January 1, 2026, a licence is valid for two years from the date it is issued or renewed.
For applications submitted before January 1, 2026, the one-year term continues to apply.
The Ministry sends reminder emails 90 days and again 30 days before your licence expires. If your renewal application is submitted but not yet decided by expiry, your current licence remains valid until a decision is made.
Do I Need to Provide a Security Deposit?
Temporary Help Agencies: Yes. A $25,000 security deposit is required.
Recruiters: A $25,000 security deposit is required unless one of the following applies:
- You will not recruit foreign nationals, or
- You will only recruit foreign nationals for positions at or above Ontario's median hourly wage (established by Statistics Canada, Table 14-10-0041-01)
If you hold both a THA licence and a recruiter licence, a single $25,000 deposit covers both. At renewal, no additional security is required if the Director already holds $25,000 on your behalf.
Acceptable forms of security:
- Electronic irrevocable letter of credit, issued by a Schedule I, II, or III bank under the Bank Act (Canada), or by a credit union; must auto-renew unless 90+ days notice given; must permit partial drawings; no other conditions; in English or French
- Surety bond, from an insurer licensed under the Insurance Act to write surety and fidelity insurance; same conditions apply
What Compliance Requirements Must I Meet to Be Licensed?
The Director must verify compliance with the following statutes before issuing a licence:
- Employment Standards Act, 2000
- Employment Protection for Foreign Nationals Act, 2009
- Occupational Health and Safety Act
- Workplace Safety and Insurance Act, 1997
You must also be registered with the WSIB, current on provincial and federal tax filings and payments, and free of any criminal convictions related to human trafficking or contravention of the Immigration and Refugee Protection Act (unless a record suspension has been granted).
When Did Ontario's THA Licensing Regime Begin?
The licensing requirement took effect July 1, 2024.
Applications submitted before July 1, 2024 that were still undecided on that date were subject to a transitional rule: applicants could continue operating until the Ministry issued its decision (approval or refusal).
Applications submitted on or after July 1, 2024 cannot operate without a licence prior to approval.
Can an Employer Use an Unlicensed Temporary Help Agency or Recruiter?
No. Since July 1, 2024, clients, employers, and prospective employers are prohibited from knowingly engaging unlicensed temporary help agencies or recruiters. Violations are subject to the same administrative monetary penalties that apply to the unlicensed agency itself.
On What Grounds Can an Ontario THA Licence Be Refused?
The Director may refuse a licence on discretionary grounds, for example, reasonable belief that the applicant will not conduct business with honesty and integrity, or if false or misleading information was provided in the application.
The Director must refuse a licence if the applicant:
- Has not complied with orders under the ESA or EPFNA
- Charged fees to foreign nationals in violation of EPFNA §7
- Collected illegal fees from foreign nationals
- Took or retained passports or work permits
- Has criminal convictions for human trafficking (Criminal Code §§279, 279.01–279.04) without a record suspension
- Has a conviction under IRPA §118(1) without a record suspension
- Is not registered with the WSIB or is in default of WSIB obligations
- Is subject to a ban under the Ontario Immigration Act, s. 19
- Is in default of provincial or federal tax filings or payments
- Has a director, officer, or partner meeting any of the above criminal conviction criteria
In most cases (except criminal conviction grounds), applicants receive a 60-day period to demonstrate compliance before a refusal is issued.
What Happens If My Licence Application Is Refused?
The Director will provide written reasons. Your rights depend on when you applied:
Applications submitted before July 1, 2024:
- You may continue operating for 30 days after receiving the refusal notice
- You may appeal to the Ontario Labour Relations Board (OLRB) within 30 days
- You may continue operating during the appeal unless the OLRB orders otherwise
Applications submitted on or after July 1, 2024:
- You cannot operate without a licence unless/until it is granted
- You may appeal to the OLRB within 30 days
In both cases, a refused or revoked applicant is subject to a two-year ban on reapplication, unless new evidence is submitted that satisfies the Director.
Can an Issued Licence Be Revoked or Suspended?
Yes. The Director may revoke or suspend a licence on the same grounds that permit refusal. If this occurs, the affected THA or recruiter must notify all clients and assignment employees in writing within 30 days and provide appeal information.
What Is the Ontario Labour Relations Board's Role in THA Licensing?
The OLRB hears appeals of the Director's decisions, including licence refusals, revocations, and suspensions. The OLRB can uphold, vary, set aside, or issue, renew, or reinstate a licence. OLRB decisions are final, subject only to judicial review by the Divisional Court.
What Are the Penalties for Operating Without a Licence?
Administrative monetary penalties (AMPs) apply as follows:
| Contravention | Penalty |
|---|---|
| First offence | $15,000 |
| Second offence within 3 years | $25,000 |
| Third offence within 3 years | $50,000 |
The same penalty scale applies to providing false or misleading information in an application. Additional enforcement tools include compliance orders and prosecution.
What Changed About Ontario THA Licensing on January 1, 2026?
Ontario Regulation 99/23 was amended, the amendment was filed on October 21, 2025 and took effect January 1, 2026. Key changes:
- Licence term extended: From 1 year to 2 years
- Application fee increased: From $750 to $1,500 per application
- Transitional rules:
- Licences issued before January 1, 2026 remain valid under the 1-year term
- Applications submitted before January 1, 2026 but issued after that date result in 1-year licences
- When mixed-timing applications occur (one submitted before, one after January 1, 2026), both licences are governed by the 1-year framework
- When existing licences expire in 2026, renewal applications are governed by the new 2-year, $1,500 rules
The fee exception was preserved: entities applying for both a THA licence and a recruiter licence at the same time pay the $1,500 fee only once.
Do I Need to Do Anything to Transition to the New 2-Year Licence?
No mid-term action is required for existing licences. Your current licence remains valid until its expiry date. When you apply to renew, if your application is filed on or after January 1, 2026, the new two-year term and $1,500 fee automatically apply.
How Do I Renew My Ontario THA or Recruiter Licence?
The renewal process uses the same online portal as initial applications. At renewal you will need to confirm whether foreign national recruitment will continue (relevant to recruiter security requirements). If the Director already holds $25,000 in security on your behalf, no additional deposit is required.
If your renewal application is submitted but a decision has not been made by your licence's expiry date, your current licence remains valid until the decision is issued.
What Happens to the Security Deposit After My Licence Ends?
The Director holds the $25,000 security for 12 months after your licence expires, is cancelled, revoked, or suspended. If complaints are filed during that 12-month period, the holding period extends to 12 months after the last decision on those complaints.
The security can be applied to satisfy amounts owed under ESA §§74.14, 74.16, 74.19, 103, and 104, and EPFNA §§24(2)–(4) (fees, costs, repayment, and compensation).
If the Director draws on the security, you have 30 days to restore the total to $25,000.
Is There a Public Registry of Licensed Agencies and Recruiters?
Yes. The Ministry maintains a public portal listing all applicants and licensees, their status, any terms or conditions on their licence, and other required information. This allows client employers to confirm whether an agency or recruiter holds a valid licence before engaging them.
Sources and Official Resources
Ontario Statutes and Regulations Cited
- Employment Standards Act, 2000, Licensing Provisions (Part XVIII.1)
- Ontario Regulation 99/23, Licensing: Temporary Help Agencies and Recruiters
- Employment Protection for Foreign Nationals Act, 2009
- Occupational Health and Safety Act, R.S.O. 1990
- Workplace Safety and Insurance Act, 1997
Government Guidance
- Licensing Temporary Help Agencies and Recruiters, Ontario.ca
- Your Guide to the Employment Standards Act: Licensing, Ontario.ca
Contact Hadri Law
Navigating Ontario's THA and recruiter licensing regime, whether you are applying for the first time, renewing under the new two-year rules, or responding to a refusal or revocation, can be complex. Hadri Law's corporate and commercial lawyers advise businesses on employment compliance, licensing obligations, and regulatory proceedings in Ontario.
If you have questions about your specific situation, we invite you to schedule a free consultation with our team.
Call us: (437) 974-2374 Book online: calendly.com/hadrilaw/free-consultation
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The information on this page is provided for general informational purposes and does not constitute legal advice. For advice specific to your circumstances, please consult a lawyer.
