Bill 159 2014

An Act to amend the Employment Standards Act, 2000 with respect to temporary help agencies

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

   1.  Subsection 74.1 (1) of the Employment Standards Act, 2000 is amended by adding the following definition:

"licence" means a licence issued or renewed under this Part; ("permis")

   2.  The Act is amended by adding the following sections before the heading "Obligations and Prohibitions":

Licensing

Licence required

   74.4.1  No person shall carry on the business of a temporary help agency unless the person has a licence.

Application for licence

   74.4.2  (1)  A person may submit an application to the Director for a licence.

Application documents

   (2)  The applicant shall submit an application to the Director in the manner required by the Director and shall give the Director any information and documents he or she requires and pay the prescribed fee.

Withdrawal of application

   (3)  The applicant may withdraw the application at any time before the licence is issued.

No reimbursement

   (4)  If the applicant withdraws the application, the applicant shall not be reimbursed for payment of the prescribed fee.

Issuance of licence

   (5)  The Director shall issue a licence to an applicant who agrees to abide by this Act and who satisfies the prescribed requirements, if any, for the licence unless the Director believes, on reasonable grounds, that the applicant is not suitable to be licensed, having regard to any prescribed circumstances and any other matters that the Director considers appropriate.

Conditions

   (6)  The Director may impose conditions on a licence when it is issued.

Term of issued licence

   (7)  A licence expires one year after the day it is issued.

Application to renew licence

   74.4.3  (1)  A person who has a licence may apply to the Director to renew the licence.

Application documents

   (2)  The applicant shall submit the application for renewal to the Director in the manner required by the Director and shall give the Director any information and documents he or she requires and pay the prescribed fee.

Deadline

   (3)  The application for renewal must be made within the prescribed period or, if no period is prescribed, before the expiry date of the licence.

Effect of application

   (4)  If the application for renewal is submitted to the Director by the deadline described in subsection (3), the applicant's current licence continues in effect after the expiry date until the Director notifies the applicant that the Director has renewed or refused to renew the licence.

Withdrawal of application

   (5)  The applicant may withdraw the application for renewal at any time before the licence is renewed.

No reimbursement

   (6)  If the applicant withdraws the application for renewal, the applicant shall not be reimbursed for payment of the prescribed fee.

Report

   (7)  If the applicant is applying to renew a licence that has not previously been renewed, the applicant shall submit the following information with the application for renewal:

    1.  The number of hours worked by each assignment employee for each client of the applicant's temporary help agency for each work week in the previous six-month period.

    2.  A declaration that certifies the applicant's temporary help agency is in compliance with this Act and that is signed by the applicant or, if the applicant is a corporation, a director or officer of the applicant.

Renewal

   (8)  The Director shall renew the licence of an applicant who agrees to abide by this Act and who satisfies the prescribed requirements, if any, for the licence unless the Director believes, on reasonable grounds, that the applicant is not suitable to be licensed, having regard to any prescribed circumstances and any other matters that the Director considers appropriate.

Conditions

   (9)  The Director may impose conditions on a licence when it is renewed.

Term of renewed licence

   (10)  A licence expires three years after the day it is renewed.

Suspension or revocation by Director

   74.4.4  (1)  The Director may, by order, suspend or revoke a licence,

  (a)  if the licensee ceases to satisfy the prescribed requirements for the licence;

  (b)  if the licensee does not carry on the business of a temporary help agency for a period of at least 90 days;

   (c)  if the Director believes, on reasonable grounds, that the licensee is no longer suitable to be licensed, having regard to the circumstances, if any, prescribed for the purposes of subsection 74.4.2 (5) or 74.4.3 (8) and any other matters the Director considers appropriate;

  (d)  if the licensee contravenes or fails to comply with a requirement or prohibition under this Act;

  (e)  if the licensee contravenes or fails to comply with a condition imposed on his or her licence; or

   (f)  in any other prescribed circumstances.

Effect of suspension

   (2)  During a suspension, the licensee shall not carry on the business of a temporary help agency.

Revocation

   (3)  The Director may revoke a suspension order at any time.

Licence not transferable

   74.4.5  A licence is not transferable.

   3.  The Act is amended by adding the following sections before the heading "Reprisal by Client":

Wage to be 80 per cent of fee charged

   74.11.2  A temporary help agency shall pay an assignment employee who is assigned to perform work for a client a wage that is at least 80 per cent of the amount that the temporary help agency charges the client for the assignment of the assignment employee, as determined under the regulations.

Semi-annual report from temporary help agency

   74.11.3  (1)  A temporary help agency shall give the Minister a report,

  (a)  every year on or before September 1, with respect to the first six months of the year; and

  (b)  every year on or before March 1, with respect to the last six months of the previous year.

Form and content

   (2)  The report must be in the form authorized by the Minister and shall include the following information:

    1.  The number of hours worked by each assignment employee for each client of the applicant's temporary help agency for each work week in the six-month period.

    2.  A declaration that certifies the applicant's temporary help agency is in compliance with this Act and that is signed by the applicant or, if the applicant is a corporation, a director or officer of the applicant.

    3.  Any other prescribed information.

False information

   (3)  A temporary help agency shall not knowingly furnish false information in a report to the Minister.

Employer Prohibition

No more than 25 per cent of staff to be assignment employees

   74.11.4  (1)  Every employer shall ensure that the total number of hours worked by assignment employees in a work week does not exceed 25 per cent of the total number of hours worked by all employees, including assignment employees, in that work week.

Exemption, fewer than 10 employees

   (2)  Subsection (1) does not apply to an employer with fewer than 10 employees.

Exemption, temporary increase in business

   (3)  Subsection (1) does not apply to an employer who experiences a temporary increase in business volume, as defined in the regulations.

Exemption, application to Director

   (4)  An employer may apply to the Director for an exemption from compliance with subsection (1).

Required information

   (5)  An application for an exemption shall be in a form approved by the Director and shall be filed together with any information, materials and evidence the Director considers necessary.

Power to exempt

   (6)  After receiving an application for an exemption, the Director may exempt the applicant from compliance with subsection (1).

   4.  Section 141 of the Act is amended by adding the following subsection:

Regulations re Part XVIII.1

   (2.5)  The Lieutenant Governor in Council may make regulations,

  (a)  governing the issuance, renewal, suspension and revocation of licences issued under Part XVIII.1;

  (b)  governing the manner of calculating the wage that a temporary help agency must pay an assignment employee for the purposes of section 74.11.2;

   (c)  governing the calculation of the percentage of hours worked by assignment employees for the purposes of subsection 74.11.4 (1);

  (d)  defining "temporary increase in business volume" for the purposes of subsection 74.11.4 (3).

Commencement

   5.  This Act comes into force six months after the day it receives Royal Assent.

Short title

   6.  The short title of this Act is the Employment Standards Amendment Act (Temporary Help Agencies), 2014.

 

EXPLANATORY NOTE

The Bill amends the Employment Standards Act, 2000 to establish a licensing regime for temporary help agencies and to require them to pay their employees at least 80 per cent of the amount the agency charges its clients for the employees' services. It also requires employers to ensure that no more than 25 per cent of the hours worked by their employees are performed by assignment employees.

Temporary help agencies are prohibited from operating without a licence. The procedure for applying for a licence from the Director is set out. The Director also has the power to suspend and revoke licences.

Temporary help agencies must pay their employees at least 80 per cent of the fee they charge to their clients for the employees' services. Temporary help agencies have to submit a semi-annual report to the Minister that declares they are in compliance with this requirement.

Employers must ensure that no more than 25 per cent of the total number of hours that are worked by their employees are performed by assignment employees. There are exemptions from this requirement for employers with fewer than 10 employees and employers that have experienced a temporary increase in business volume. Employers can also apply to the Director for exemption from this requirement.