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Staffing Agencies

Staffing Agencies near you

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 happens, is the employer. It runs payroll, holds the employment relationship between assignments, and carries the employment standards obligations that go with being an employer. Businesses use agencies to cover leaves and seasonal peaks, to staff work with an uncertain end date, and to try someone in a role before hiring them directly.

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This kind of work is often limited to licensed or registered professionals. Ask for their licence or registration number before you share any details.
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Ontario now licenses this industry. Temporary help agencies must hold a licence to operate under the Employment Standards Act, 2000, and operating without one has been prohibited since July 1, 2024. Clients are prohibited from knowingly engaging or using the services of an unlicensed agency, which makes licence status the first thing a business should check rather than a detail for the contract stage. The Ministry maintains a public status page listing applicants and licensees with the status of each licence and any terms and conditions.

LokalMatch is where you describe the staffing you need: the roles, the shifts, the location and how long you expect the work to last. Agencies that cover that work contact you directly. We do not employ, supply, screen or place workers, and we do not assess whether an agency is licensed or suitable. Look the licence up yourself on the public registry, because the prohibition on knowingly using an unlicensed agency applies to you as the client.

Agency licensing in Ontario, and why the client is exposed too

The licensing regime was built to make unlicensed operators unusable rather than merely illegal. An agency must be licensed to operate; a client is prohibited from knowingly engaging or using the services of an agency that is not. The same structure applies to recruiters. Ontario publishes the list of applicants and licensees precisely so that a client can discharge that duty in a couple of minutes, and it shows licence status plus any terms and conditions imposed on a licence.

Applicants must generally provide security in a prescribed form, such as an irrevocable letter of credit or a surety bond, which exists so that unpaid wages can be recovered. That requirement tells you what the scheme is really aimed at: agencies that disappear owing workers money. Penalties apply for operating without a licence.

A transitional rule allowed applicants who applied before the deadline to continue operating while their application was pending, which is why some agencies were lawfully operating without a granted licence during the changeover. If an agency tells you its application is in progress, that is a question to resolve against the public registry rather than to accept on trust.

Assignment types, and which one fits the work

  • Short-term cover for absence, leave or a sudden vacancy, where speed matters more than anything else.
  • Seasonal and peak-period staffing, planned in advance against a known busy period.
  • Longer contract assignments with a defined end, often for project work or a funded position.
  • Temp-to-hire, where the client may hire the assignment employee directly after a period.
  • Payrolling, where the client has already chosen the person and the agency employs them administratively.
  • Fully managed on-site staffing, where the agency supervises a crew and manages scheduling at your site.

Engaging an agency: the sequence that avoids trouble

  • Check the licence on Ontario's public status page before commercial discussions, not after.
  • Write down the roles, skills, shift patterns, site conditions and any certifications the work requires.
  • Agree the estimated duration of each assignment in writing, because assignment length affects notice obligations.
  • Confirm in writing who supervises the worker day to day and who handles health and safety orientation at your site.
  • Settle conversion terms up front: what happens, and what is owed, if you want to hire an assignment employee directly.
  • Agree how hours are recorded and approved, and how disputed hours are resolved.
  • Keep your own records of who worked, when and on what, rather than relying solely on the agency's reporting.

Fees agencies may not charge, and reprisals that are prohibited

The Employment Standards Act closes off the fee arrangements that historically pushed costs onto workers. A temporary help agency is not allowed to charge a fee to an assignment employee, or a prospective assignment employee, for becoming an employee of the agency, for assigning or attempting to assign them to perform work for a client, or for help with preparing resumes or preparing for job interviews. An agency also may not charge the employee a fee for accepting direct employment with one of its clients.

That last prohibition matters commercially. Conversion fees, where they are permitted at all, are a matter between the agency and the client. If an agency proposes that the worker pay to move onto your payroll, that is not a negotiating position to explore.

Reprisal protections extend to clients, not just agencies. A client may not penalise an assignment employee for asking about or asserting their rights under the Act, including questions about licensing compliance, and refusing to let someone work or ending their assignment in retaliation is prohibited. In practice this means a supervisor's reaction to an awkward question is your legal problem as well as the agency's.

Agency employee, direct hire or independent contractor

The three arrangements are not interchangeable and choosing between them on cost alone is how businesses end up in disputes. With an agency assignment employee, the agency is the employer and holds the employment standards obligations, while you direct the work. With a direct hire, you hold everything. With a genuine independent contractor, neither party holds an employment relationship at all, and that is exactly the claim most likely to be tested later.

Whether someone is an employee or a contractor is decided on the substance of the relationship, not the label in the agreement. Long, full-time, closely supervised engagements that look like employment tend to be treated as employment when they are examined, whatever the contract says. If the work is really a job, an agency assignment is usually the cleaner answer than a contractor agreement stretched past its purpose.

One more distinction is worth holding on to: employment standards in Canada are mostly provincial, but employees in federally regulated industries such as banking, air transportation, telecommunications, broadcasting and interprovincial transport come under the Canada Labour Code instead. That changes which statute governs hours, termination and leaves, so confirm which regime your workplace sits in before applying any rule you read.

Entitlements agencies owe assignment employees

  • The employment relationship with the agency continues between assignments; an assignment ending does not by itself end employment.
  • Assignment employees are entitled to written notice or pay in lieu when an assignment estimated to last three months or more ends early, as set out in the Act.
  • Termination and severance of employment with the agency follow the Act's general rules, with severance eligibility tied to length of employment with the agency.
  • Public holiday entitlements apply, with the treatment differing depending on whether the employee was working the assignment on the holiday.
  • Clients and agencies are both subject to the Act's anti-reprisal provisions.
  • None of these entitlements can be contracted away in the commercial agreement between you and the agency.

Planning seasonal and peak staffing

Seasonal staffing fails for predictable reasons: the requirement is defined too late, the volume is described vaguely, and the site is not ready for people who have never worked there. Agencies compete for the same candidate pool during the same weeks every year, so the businesses that brief early get the workers who have done the job before.

Give the agency the shape of the peak rather than a headcount. The number of positions, the shift pattern, the physical demands, the certifications required, the start and likely end dates, and the realistic chance of extension all change who accepts an assignment. An accurate estimated duration is not only good practice; assignment length feeds directly into the notice obligations that arise when an assignment ends early.

Plan the site side as well. Health and safety orientation, equipment, access and supervision are the client's practical responsibility even though the agency is the employer, and a crew that arrives to no orientation is the single most common reason a seasonal ramp-up goes badly in week one.

How agency billing is structured

  • Agencies typically bill an hourly rate per worker that bundles wages, statutory costs and the agency's margin, so ask what the rate includes.
  • Overtime, shift premiums and public holiday treatment should be set out explicitly rather than left to be argued later.
  • Conversion or buy-out terms apply when you hire an assignment employee directly, and are owed by the client, never the worker.
  • Minimum billing increments, call-out minimums and cancellation windows vary and are worth comparing.
  • Ask how the agency handles disputed or unapproved hours before the first invoice rather than after.
  • Ask whether rates are fixed for the assignment or indexed, particularly for assignments running across a minimum wage change.

Staffing Agencies: frequently asked questions

Must a temporary help agency be licensed in Ontario?

Yes. Temporary help agencies must hold a licence to operate under the Employment Standards Act, 2000, and operating without one has been prohibited since July 1, 2024, subject to a transitional rule for those who applied before the deadline. Clients are separately prohibited from knowingly engaging or using the services of an unlicensed agency. Ontario maintains a public status page listing applicants and licensees with licence status and any terms and conditions, which is the place to confirm an agency before you engage it.

Who is the employer of a temp worker, the agency or my business?

The temporary help agency is the employer of the assignment employee. It holds the employment relationship, including between assignments, and carries employment standards obligations such as termination notice and public holiday entitlements. Your business directs the work day to day and has practical responsibilities on site, particularly health and safety orientation and supervision. The Act's anti-reprisal protections apply to clients as well as agencies, so penalising an assignment employee for raising their rights is prohibited at your end too.

Can an agency charge a worker a fee?

No, not for the things that matter. An agency may not charge an assignment employee or prospective assignment employee a fee for becoming an employee of the agency, for assigning or attempting to assign them to a client, or for help preparing a resume or preparing for interviews. It also may not charge the employee a fee for accepting direct employment with a client. Conversion arrangements are a commercial matter between the agency and the client, and should never be passed to the worker.

Do employment standards rules differ if my business is federally regulated?

Substantially, yes. Most employees in Canada are covered by provincial or territorial employment standards, but employees in federally regulated industries come under the Canada Labour Code. Federally regulated sectors include banking, air transportation, telecommunications and broadcasting, postal and courier services, interprovincial road and rail transport, pipelines and uranium mining, along with federal Crown corporations. Because hours, termination, leaves and related rules differ between the two regimes, establish which one applies before relying on any specific entitlement.

What does LokalMatch do for staffing requests?

You post what you need staffed and agencies that serve your area and sector get in touch. LokalMatch does not employ or supply workers, does not screen or place anyone, and does not verify an agency's licence, insurance or performance. Being listed is not a recommendation. Since a client can breach the Act by knowingly using an unlicensed agency, check the public registry yourself and settle rates, conversion terms and supervision in writing with the agency directly.

Sources

  1. Ontario ESA guide: Licensing for temporary help agencies and recruiters
  2. Ontario ESA guide: Temporary help agencies
  3. Ontario: temporary help agency and recruiter licence status registry
  4. Ontario: Licensing for temporary help agencies and recruiters (overview)
  5. Government of Canada: federally regulated industries and workplaces
  6. Canada Labour Code (R.S.C., 1985, c. L-2)

Written by the LokalMatch editorial team. Last reviewed September 14, 2026. How we write and check our guides

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What affects the fees staffing agencies 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 staffing agencies 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 staffing agencies 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.

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