Recruiters
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A recruiter finds people for open roles. The work is mostly outbound: writing a role brief the market will actually respond to, building a list of people who are doing that job now, approaching them privately, screening the ones who answer, and keeping a small number of serious candidates engaged through interviews, references and an offer. Employers use recruiters when the role is hard to fill, when posting it publicly would tip off competitors or staff, or when nobody internally has time to run a search properly.
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Recruiting is no longer an unregulated trade everywhere in Canada. In Ontario, a person who acts as a recruiter must hold a licence under the Employment Standards Act, 2000, and since July 1, 2024 it has been prohibited to act as a recruiter without one. The duty runs both ways: employers, prospective employers and other recruiters are prohibited from knowingly engaging or using the services of a recruiter who does not hold a licence. The Ministry maintains a public list of applicants and licensees showing licence status and any terms and conditions, so an employer can check before signing anything.
On LokalMatch you describe the role, the location and how you want the search run, and recruiters who work that market get in touch with you directly. We do not screen candidates, run the search or assess anyone's qualifications, and a recruiter appearing on LokalMatch is not a statement by us that they are the right firm for your role. Check the licence yourself where your province requires one, and read the terms before you sign.
Ways recruiters are engaged, and what each one buys you
- Contingency search: several recruiters may work the same role and only the one whose candidate is hired is paid, which suits roles with a deep candidate market.
- Retained search: the employer commits to one firm and pays in instalments across the search, used for senior, confidential or genuinely scarce roles.
- Container or engaged search: a smaller commitment up front with the balance on hire, a middle position between the two.
- Recruitment process outsourcing: the firm runs part or all of your hiring function over a term rather than filling one role.
- Contract and temp-to-hire recruiting: the worker is placed through an agency first, which in Ontario brings temporary help agency rules into play.
- Sourcing-only engagements: the firm builds and approaches a candidate list and hands it over, leaving interviewing and closing to you.
Recruiter licensing in Ontario and how to check a licence
Ontario's licensing scheme sits inside employment standards law rather than in a professional college. The Ministry of Labour describes a recruiter broadly: a person who, for a fee, finds or attempts to find employment for an individual, or finds or attempts to find an individual for an employer, assists someone else in doing either, or refers an individual to another person who does. The definition deliberately catches intermediaries, not just the firm that signs the placement invoice.
The definition excludes several groups, including employees who recruit as part of their job duties for their own employer, employers hiring their own staff, educational institutions, trade unions and registered charities. So an in-house talent acquisition team does not need a licence to hire for its own company, while an external firm charging a fee generally does.
Checking takes a minute. Ontario publishes a public status page listing applicants and licensed temporary help agencies and recruiters, together with the status of the licence and any terms and conditions attached to it. Because an employer that knowingly engages an unlicensed recruiter is itself in breach, this check protects you rather than the recruiter. Outside Ontario, licensing differs by province, so confirm the position where the work is being done instead of assuming Ontario's rule applies.
What a properly run recruiting engagement looks like
- An intake conversation that produces a written role brief: responsibilities, must-haves, nice-to-haves, reporting line, compensation band and the deal-breakers.
- An agreed search strategy, including which companies are in scope and which are off-limits because you already deal with them.
- Outreach and screening, with the recruiter reporting how many people were approached, how many replied and why strong candidates said no.
- A shortlist with written submissions rather than forwarded resumes, so you can see the recruiter's reasoning.
- Structured interviews run by you, with the recruiter coordinating scheduling, feedback and candidate expectations.
- References, any required background or credential checks with the candidate's consent, and support through the offer and resignation.
- A close-out conversation about what the market told you, which is often the most useful part when a search stalls.
Recruiter, job board or hiring in-house
A job posting reaches people who are looking. A recruiter reaches people who are not. That single difference explains most of when each approach is worth the money: for a role with a large active candidate pool, a well-written posting and a disciplined internal process will usually do the job, and paying a search fee adds little. For a role where the qualified population is small, already employed and not reading postings, a posting mostly generates volume you then have to sort.
Building the capability in-house is the third option and the one employers underrate. A recruiter who fills four roles for you leaves with everything they learned about your market. An internal hire keeps it, and can work on employer brand, referral programs and the candidate experience that makes the next hire easier. The honest test is volume and continuity: steady hiring justifies internal capacity, while occasional or unusual hiring rarely does.
Many employers end up with a mix, which is fine as long as the boundaries are written down. Agree who owns which candidates, what happens when an applicant arrives through two channels at once, and how long a recruiter can claim a candidate they introduced. Those disputes are common and entirely avoidable.
Where recruiting engagements go wrong
- A vague role brief, which produces candidates who are technically qualified and obviously wrong, and wastes the first several weeks.
- Ownership disputes over a candidate who applied directly and was also submitted by a recruiter, where the contract never defined introduction.
- Off-limits terms that are missing or one-sided, so the firm recruits from a client you would rather it left alone, or later recruits the person it just placed with you.
- Exclusivity granted casually on a role that never needed it, removing your ability to run a second channel.
- Screening questions that stray into protected grounds, which creates legal exposure for the employer as well as the recruiter.
- No reporting, so a stalled search looks identical to an active one until the deadline passes.
Replacement guarantees and what they actually cover
Most recruiting agreements include a guarantee period: if the hire leaves or is terminated within a defined window, the firm searches again. Read what triggers it before you rely on it. Guarantees are commonly void if you have not paid the invoice on time, if the role changed materially after the hire started, or if the departure was a redundancy rather than a fit or performance problem.
Ask whether the remedy is a replacement search or a refund, because the two are not equivalent. A replacement is worth little if you no longer need the role filled or have lost confidence in the firm. Ask, too, whether the guarantee renews on the replacement hire: a second placement with no guarantee at all is a common and rarely disclosed term.
Get the clause in the written agreement rather than in an email. The sequence that causes disputes is always the same: a verbal assurance during the pitch, a signed agreement that says something narrower, and a departure in month three.
How recruiters structure their fees
- Contingency fees are payable only on a hire and are usually calculated as a share of the hire's first-year compensation, so confirm exactly which elements of pay are counted.
- Retained fees are billed in instalments tied to milestones such as engagement, shortlist and placement, and are owed whether or not you hire.
- Some engagements bill hourly or by the day, which suits sourcing-only and advisory work.
- Recruitment process outsourcing is normally a monthly or per-hire arrangement over a fixed term.
- Ask separately about expenses such as assessments, advertising and travel, and whether they need your approval first.
- In Ontario, a licensed recruiter may not charge a work-seeker a fee for finding them employment; the employer pays.
Recruiters: frequently asked questions
Does a recruiter in Ontario need a licence?
Yes. Acting as a recruiter without a licence has been prohibited in Ontario since July 1, 2024 under the Employment Standards Act, 2000. Employers, prospective employers and other recruiters are also prohibited from knowingly engaging or using the services of an unlicensed recruiter, so the obligation is not only the recruiter's. Ontario publishes a public status page where you can look up applicants and licensees, the status of a licence and any terms and conditions on it. Licensing rules differ elsewhere in Canada, so check the province where the hiring happens.
Can a recruiter charge me, the job seeker, a fee?
Not for finding you employment in Ontario. The recruiter licensing framework is tied to the Employment Protection for Foreign Nationals Act, 2009, which contains a prohibition against charging fees, and the employer is the paying party in a normal recruiting engagement. Be sceptical of anyone who asks a candidate for money to be submitted for roles. Services genuinely sold to individuals, such as resume writing or career coaching, are a different product and should never be presented as a condition of being considered for a job.
What can a recruiter not ask candidates?
Human rights law limits it. The Ontario Human Rights Commission's guidance on hiring says a job ad should not contain statements, qualifications or references relating directly or indirectly to grounds such as race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, record of offences, age, marital status, family status or disability. Questions in interviews are constrained the same way, including questions about pregnancy or family plans. Federally regulated employers are covered by the Canadian Human Rights Act instead, which lists its own prohibited grounds.
Do Ontario job postings have to state the pay?
For many employers, yes. Requirements for publicly advertised job postings under the Employment Standards Act took effect on January 1, 2026 and apply to employers with 25 or more employees on the day the posting is published. Covered postings must include the expected compensation or a range of expected compensation, subject to limits set out in the rules, and must disclose whether artificial intelligence is used to screen, assess or select applicants. The rules also restrict Canadian experience requirements and require interviewed applicants to be told the outcome within a set period.
How does LokalMatch work for recruiting?
You describe the role and where it sits, and recruiters working that market contact you. LokalMatch does not run searches, source or screen candidates, verify a firm's track record or decide which recruiter suits your role, and being listed is not an endorsement. Compare the firms that reach out on their own terms, confirm licensing where your province requires it, and read the agreement, particularly the guarantee and candidate-ownership clauses, before you sign.
Sources
- Ontario: Licensing for temporary help agencies and recruiters
- Ontario ESA policy and interpretation manual: acting as a recruiter
- Ontario: Requirements related to publicly advertised job postings
- Ontario Human Rights Commission: Advertising
- Canadian Human Rights Act (R.S.C., 1985, c. H-6)
- Your guide to the Employment Standards Act (Ontario)
Written by the LokalMatch editorial team. Last reviewed September 14, 2026. How we write and check our guides
What recruiters can help with
Common reasons people and businesses hire recruiters:
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What affects the fees recruiters charge
Fees depend on the work involved and how the professional bills. We only publish fee ranges when they’re backed by real LokalMatch data or reliable sources. Until then, here’s what usually changes the fee:
- Scope and complexity of the work
- How the firm bills: hourly, per project or on a monthly retainer
- Experience of the team
- Timeline and how urgent the work is
- Ongoing support after the work is delivered
How to compare recruiters before you hire
- Ask for examples of similar work for clients like you.
- Read reviews and ask for references you can contact.
- Make sure the scope, deliverables and timeline are written down before work starts.
- Ask who will do the work: an in-house team, freelancers or subcontractors.
- Compare two or three proposals before you decide.
Questions to ask recruiters before you hire
- Have you done work like this before, and can I see examples?
- Who will work on this, and who is my main contact?
- How do you charge: hourly, per project or monthly?
- What is included, and what costs extra?
- How long is the contract, and how can either side end it?
- How will you report on progress?
- Who owns the work, files and accounts you set up for me?
Licences and registration
This kind of work is often limited to licensed or registered professionals, and the rules depend on where you are. Ask which body they’re registered with, and check their status on that body’s public register before you hire.
Guides about recruiting
- ✦
Executive Search Firms guide
Executive search is a retained assignment to fill a small number of senior roles: a chief executive, a functional head, a country lead, a board director.
Read guide - ✦
Payroll Services guide
A payroll service runs the pay cycle for an employer: calculating gross pay, withholding the right deductions, paying employees on time, sending the withheld amounts to the tax authority by the deadline, keeping the…
Read guide - ✦
Staffing Agencies guide
A staffing agency employs people and assigns them to work temporarily for its clients. That structure is the whole point and the source of nearly every rule that follows: the agency, not the business where the work…
Read guide
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