Small recruiting agencies worry new Ontario rules could put them out of business

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New legislation has some smaller recruiting firms in Ontario concerned they could be driven out of business. smaller recruiting firms in Ontario concerned they could be driven out of business.

New legislation has some smaller recruiting firms in Ontario concerned they could be driven out of business.and put up $25,000 in the form of a letter of credit the government could draw upon if it was needed to pay employees if they don’t get their wages."This is going to put people out of business and this is going to create unemployment," said Suky Sodhi, President of Professional Selection, a recruitment company that specializes in hiring for the recruitment industry.

“The ministry consulted extensively and publicly on the licensing system since late 2020, including meeting with businesses and associations representing the vast majority of Ontario’s recruitment industry. Recruiters and temporary help agencies are very supportive of this change and believe that licensing will provide them with legitimacy and a level playing field.”

Mandy Wagner, the CEO of GxP Solution Recruiting, also said she will find it difficult to save the $25,000 when she feels it shouldn’t be required for her business.

 

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