Greetings. For this Vignette issue, I have asked NPAworldwide President Dave Nerz to summarize the impact of recently-enacted legislation that is coming into effect in Ontario, CA on 1 January 2024. It is critical that all Ontario and Canadian NPAworldwide members reach out and complain to their respective legislative leaders on the anti-competitive and punitive nature of this legislation. —Jim Lyons, Chairman
New legislation was announced in July and will go into effect on January 1, 2024. It says, “Any person who, for a fee, finds, or attempts to find, employment in Ontario for prospective employees”…and “Any person who, for a fee, finds, or attempts to find, employees for prospective employers in Ontario…” is required to hold a license. The cost is $750 plus a $25,000 CND irrevocable letter of credit. This is for those residing in Ontario and those doing work with Ontario-based employers or employees. It will have an impact on NPAworldwide and members doing work in Ontario.
Here are links to more fully understand:
- https://www.ontario.ca/laws/regulation/230099
- https://www.ontario.ca/page/licensing-temporary-help-agencies-and-recruiters
This legislation, while perhaps initially well-intentioned to stop those involved in human trafficking and other illegal employment practices, has inappropriately targeted an audience of small businesses with an anti-competitive requirement. It is clear that those writing and influencing the legislation have little awareness of the independent recruiter’s role in placing candidates in positions to support employers. They are also potentially unaware of the anti-competitive nature of what has been done.
To make this threat more real, be aware that the provinces of Alberta and British Columbia are looking to adjust their licensing to correspond with the legislation in effect in Ontario. The large operators have had the support of ACSESS (Association of Canadian Search, Employment and Staffing Services) in drafting and finalizing the details of this legislation. It may help large staffing and recruitment businesses, the core members of ACSESS, reduce competition and own the market with a single application covering all their business locations.
We strongly recommend that our Ontario and all Canadian members begin writing and calling their legislative representatives and also file complaints regarding the of anti-competitive outcomes of this soon to be active legislation.
NPAworldwide is in the process of investigating an application that will cover all NPAworldwide members. There are obvious challenges with an application from our cooperative, but we have hopes of being successful or at least heard.
Special shout-out to Drew DiAlberto from DiAlberto Corp, who has just reported his first 2 splits since joining the network in February. Congratulations!