Effective November 20, 2015, changes to the Ontario Employment Standards Act came into effect that could significantly impact companies using Temporary Help Agencies to staff positions.
If the Temp Agency you use does not pay the employees their regular wages, overtime wages, public holiday or special wages then your business (you personally, if you’re not incorporated) can be required to pay those monies to the employee.
Yes, this means that even if you already paid the temp agency, you’ll be paying the employee “again”.
The public policy behind this is to protect vulnerable workers. Clearly “vulnerable” employers are not a consideration.
In order to protect your business from this liability, ensure that you do some due diligence into the Temp Agency you’re using. Ensure they actually pay staff on time. Investigate how long they have been in business. Ask questions to protect your business from unintentionally paying twice for temporary employees.
Inga B. Andriessen JD