PROPOSED REGULATION OF TEMPORARY HELP AGENCIES

Bill 139, an amendment to the Employment Standards Act, received second reading in the Ontario legislature on March 2, 2009 and has been referred to a committee for further study. The Bill would amend the Employment Standards Act to regulate the operation of temporary help employment agencies. The provisions would apply to the agencies themselves, the employees they place, and the clients at which they place these employees. The Bill specifically provides that the employee remains an employee of the agency, with all of the legal obligations that implies. The Bill requires that the agency provide the employee with its legal name, as well as its operating or business name if it is different, and all relevant contact information for the agency. The agency must also provide specific information with respect to the client at which the employee is working, including the client’s legal name, contact information, hourly wage or commission information, and the hours which the employee will be working.

The Bill specifically prohibits an agency from charging a fee to the employee for becoming a client of the agency, or from accepting an assignment through the agency. The agency is also prohibited from charging the employee should the assignment become permanent.

Finally, the Bill has specific provisions for the termination of these employees under the provisions of the Employment Standards Act. In particular, the temporary employee is entitled to severance based on the total wages earned by the employee during the twelve-week period preceding the termination.

The Bill will come into force six months after the date on which it receives Royal Assent. We will keep you apprised as to its progress through the Legislature.
If you have any questions regarding the information in this Newsletter, please contact Earl Altman, or any of the other lawyers in our office - Garfinkle, Biderman LLP - ealtman@garfinkle.com.

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