Legal Responsibilities When Using Temp Workers in Ontario

A Comprehensive Guide by Alytus Staffing Solution Inc., Toronto's Trusted Employment Agency

Temporary workers, often referred to as "temps," play a crucial role in Ontario’s evolving workforce. From filling short-term gaps to addressing seasonal demands, temp workers offer flexibility to employers while opening doors of opportunity for job seekers. However, while using temporary staff may seem straightforward, it comes with specific legal responsibilities that employers and staffing agencies must follow.

As Alytus Staffing Solution Inc., one of Toronto’s most trusted temporary employment agencies, we understand the complexity of navigating employment laws in Ontario. In this detailed guide, we explain the legal responsibilities of businesses when working with temporary workers, so you can stay compliant, avoid penalties, and foster fair work practices.

Understanding the Definition of Temporary Workers

To begin, it’s important to define what we mean by “temporary workers.”

In Ontario, temporary workers are individuals hired for a limited period through a temporary help agency (THA). They perform work assignments under the direction of the client company but are officially employed by the agency. This triangular relationship—Agency, Client, and Worker—has specific implications under the Employment Standards Act, 2000 (ESA).

1. Who Is the Employer? (Hint: It’s Not Just the Agency)

Many client businesses mistakenly believe the staffing agency is solely responsible for the temporary employee. While it’s true that the agency pays the worker and issues the Record of Employment (ROE), client companies also share legal responsibility.

Both the agency and the client company can be held jointly liable for certain breaches under the ESA, such as:

• Unpaid wages

• Unlawful deductions

• Overtime violations

• Holiday and vacation entitlements

This means that even if your business does not directly pay the temp worker, you may still face legal consequences if employment laws are violated.

2. Key Employment Standards That Apply to Temp Workers

Temp workers in Ontario are entitled to many of the same rights as permanent employees. These include:

• Minimum wage: As of 2025, temporary workers must be paid at least the general minimum wage, regardless of the nature of their assignment.

• Overtime pay: Any hours worked beyond 44 per week must be compensated at 1.5x the regular rate.

• Public holiday pay: Temp workers are entitled to statutory holiday pay if they meet ESA requirements.

• Vacation pay: At least 4% of gross wages must be paid as vacation pay.

• Termination rights: Workers who have been with an assignment for three months or more may qualify for notice or termination pay under certain conditions.

Failing to comply with these requirements can result in ESA enforcement actions, including monetary penalties and public “naming and shaming.”

3. Equal Pay for Equal Work – Know the Rules

As of recent legislative updates, Ontario law requires that temporary workers receive the same rate of pay as permanent employees doing substantially the same job in the same workplace.

So, if your full-time warehouse workers earn $20/hour, your temp workers cannot be paid less for doing the same tasks—unless there’s a legal exemption.

However, exceptions apply in cases where:

• The difference in pay is based on seniority or merit systems.

• The work differs significantly in responsibility or scope.

As an employer, it’s your legal duty to compare compensation practices and ensure equality.

4. Health & Safety Responsibilities: Shared But Serious

Another critical area of concern is occupational health and safety.

According to the Occupational Health and Safety Act (OHSA):

• Client employers must treat temporary workers the same as permanent workers in terms of safety.

• This includes training, personal protective equipment (PPE), supervision, and reporting of hazards.

• Both staffing agencies and client employers have overlapping responsibilities.

In case of a workplace injury, WSIB (Workplace Safety and Insurance Board) may investigate both the agency and the host employer. Thus, it’s essential to establish clear communication and shared protocols.

5. Temporary Help Agency Licensing Requirement

As of July 1, 2024, Ontario introduced a new law that requires all temporary help agencies to be licensed under the Employment Standards Act.

Here’s what client companies need to know:

• You must only work with licensed staffing agencies.

• Before entering a contract, check the Ministry of Labour’s online registry to ensure your chosen agency is compliant.

• Working with an unlicensed agency may lead to financial penalties and public sanctions.

Alytus Staffing Solution Inc. is proud to be fully licensed and compliant with Ontario's regulations—so you can partner with confidence.

6. Recordkeeping Obligations

Both the agency and client business should maintain proper records, including:

• Assignment details

• Start and end dates

• Wages paid

• Hours worked

• Location of work

These records are vital in the event of a Ministry inspection or dispute.

7. Termination, End of Assignment, and Notice

While temp roles are generally understood to be short-term, certain conditions apply:

• If the temp worker is dismissed from an assignment without cause, and they’ve been working consistently for over 3 months, they may be eligible for termination notice or pay in lieu.

• Even if the assignment ends “early,” there may be legal consequences if the worker was led to expect longer-term work.

It’s essential to set expectations clearly from the outset and follow ESA guidelines for termination.

8. Temporary Foreign Workers – A Special Case

Some businesses utilize temporary foreign workers (TFWs). These workers fall under both federal immigration laws and provincial employment standards.

Employers must ensure:

• Valid work permits

• No recruitment fees charged to the worker

• Full ESA protections

• Compliance with federal TFWP (Temporary Foreign Worker Program) guidelines

Misuse of the TFW program can result in hefty fines, business bans, or criminal charges.

Best Practices for Employers Working With Temporary Workers

To remain compliant while gaining the full benefit of a temporary workforce, consider implementing these best practices:

1. Partner only with licensed agencies like Alytus Staffing Solution Inc.

2. Document all communications and assignment expectations.

3. Train temp workers properly before assigning tasks.

4. Pay fairly and equally to avoid pay equity violations.

5. Treat temp workers with respect—fostering productivity and reducing turnover.

   
   

How Alytus Staffing Solution Inc. Helps You Stay Compliant

At Alytus Staffing Solution Inc., we do more than fill gaps—we help businesses navigate legal frameworks confidently.

With us, you get:

• A licensed and compliant staffing agency

• Transparent agreements and detailed documentation

• Pre-screened candidates trained to fit your industry

• Guidance on Ontario labour laws and ESA compliance

• Ongoing support in managing temporary staff

Whether you're in retail, warehousing, logistics, manufacturing, or hospitality, we bring reliable talent backed by legal assurance.

Conclusion

Employing temporary workers offers a flexible solution in today’s dynamic business world. However, it’s not without its responsibilities. From equal pay laws to health and safety, Ontario’s legal framework demands diligence from both agencies and client companies.

By understanding and upholding these obligations, you don’t just avoid legal risks—you contribute to a fair, ethical, and efficient workforce.

For expert staffing services in Toronto and ongoing legal compliance, partner with Alytus Staffing Solution Inc. today.

Frequently Asked Questions (FAQs)

1. Who is responsible for paying temp workers—agency or client?

Answer: The staffing agency is responsible for paying temp workers, but both the agency and the client can be held jointly liable for unpaid wages or legal violations.

2. Do temp workers in Ontario get public holiday pay?

Answer: Yes, if they meet the ESA requirements, temporary workers are entitled to public holiday pay just like permanent employees.

3. Can a company be fined for hiring through an unlicensed staffing agency?

Answer: Yes, as of 2024, Ontario mandates that businesses must only use licensed temp agencies. Non-compliance can result in fines and public penalties.

4. Is equal pay required for temp workers?

Answer: Yes. Temp workers performing substantially the same work as permanent employees must be paid equally unless a valid exemption applies.

5. What happens if a temp worker is injured on the job?

Answer: Both the agency and the client share responsibility under Ontario’s OHSA. The temp worker is covered by WSIB, and both parties must ensure proper safety training and equipment.

Name: Alytus Staffing Solution Inc.

Address: 23 Westmore Dr #415, Etobicoke, ON M9V 3Y7, Canada

Phone: +1 416-744-9496

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