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Less Paperwork, More Time: Licensing Period for Temporary Help Agencies and Recruiters Extended to Two Years
Date: October 30, 2025
On July 1, 2024, a new licensing regime under the Employment Standards Act, 2000 (ESA) for temporary help agencies (THAs) and recruiters took effect. Now, new amendments to Ontario Regulation 99/23 (Licensing – Temporary Help Agencies and Recruiters), filed by the Ontario government on October 21, 2025, should provide some administrative relief.
These amendments address the fees that THAs and recruiters are required to pay in order to apply for a licence. Organizations that are currently regulated and seeking a renewal application, as well as organizations seeking to become licensed for the first time, will want to be mindful of whether the current or new rules, coming into effect on January 1, 2026, apply to their next application. We have outlined key changes below.
Licensing Term Extended to Two Years
As of January 1, 2026, the licensing regime will be moving from a one-year system to a two-year system.
Currently, organizations seeking THA and recruiter licences are required to pay a fee of $750. Licences are currently valid for a term of one year and are therefore required to be renewed annually. THAs and recruiters are required to pay the fee each time they apply for renewal.
O. Reg 99/23 now specifies that licences have a two-year term and the corresponding fees to apply for a licence or licence renewal increase from $750 to $1,500. In practice, this means that, starting in 2026, THAs and recruiters who wish to become or remain licensed must apply for a licence every two years and pay a fee of $1,500 biennially.
Single Application Fee Exception Extended to Two Years
The current licensing regime also includes an exception whereby an organization that is applying for both a THA and a recruiter licence only has to pay a single application fee for the two licences. If a licence holder has been issued one licence (either a THA or a recruiter licence) less than one year before they apply for the other licence, then that organization will not need to pay the application fee when applying for the second licence. This is because that organization already has an active licence on file. Corresponding amendments to this process will ensure that, starting on January 1, 2026, a licence holder that has been issued a THA or recruiter licence within the last two years will not be required to pay the application fee when applying for the additional THA or recruiter licence.
Transitional Provisions Implemented
While the above-noted changes take effect for new applications submitted on or after January 1, 2026, the Ontario government has also implemented transitional provisions for existing licensees who applied for or were issued licences prior to January 1, 2026.
- Existing licences issued prior to January 1, 2026, remain under the current one-year timeframe. When those licences expire in 2026, any renewal applications will be governed by the new rules.
- For organizations that apply for a licence prior to 2026 (and who therefore would have paid the current $750 licensing fee) but do not have their licence issued by the government until after January 1, 2026, that licence will be issued for only one year, not two. Subsequent licences that are both applied for and issued after January 1, 2026 will have the new two-year timeframe applied.
- If an organization is applying for both a THA and a recruiter licence and one of the two applications is submitted before 2026 while the other is submitted after January 1, 2026, then the current one-year timeframe will apply to both licence applications. That is, both licences will be valid for only one year.
Proposed Change to Health Care Staffing Agency Reporting Act
The Ontario government has announced that it is seeking public feedback regarding a proposed regulation made pursuant to the Health Care Staffing Agency Reporting Act, 2025. That Act is not yet in force but, once proclaimed on a date yet to be announced, will establish a regulatory regime specific to licensed THAs that assign staff to work in a public hospital or long-term care home (described as a “health care facility staffing agency”).
The government is proposing to require that THAs keep records on and report to the Ministry on “aggregate administrative billing information”, which is defined as the difference between the amounts charged to a hospital or long term care home for the services of health care workers placed by the staffing agency and the amounts actually paid to health care workers by the staffing agency. This information would be calculated in the aggregate and broken down by the profession of health care workers placed and the location at which they are placed. The scope of this reporting requirement would include the placement of Registered Nurses, Registered Practical Nurses, and Personal Support Workers by regulated staffing agencies to hospitals and long-term care homes.
The government’s consultation period runs from October 20, 2025 through to November 10, 2025. You can find the government’s proposal here.
Unsure whether the current or new rules apply to your workplace? Contact your Hicks Morley lawyer.
The authors thank Stephen Warner, a 2025 articling student, for his assistance with this article.
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Hicks Morley Hamilton Stewart Storie LLP and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Hicks Morley Hamilton Stewart Storie LLP. ©