Would you let your employees get onto a bus if the driver didn’t have a license or insurance? Probably not, because you wouldn’t put their lives at risk. If a company uses an un-licensed Employment Agency or Recruiter; lives are not at risk, but the risk to their image and finances could be extremely costly.
We recommend using only licensed employment agencies that carry an appropriate level of insurance. The reason is simple: Hiring a new employee can be one of the most expensive decisions your company makes, why would you trust this part of your decision to someone who is not in compliance with the law especially if the consequences can have adverse effects on your company’s bottom line? One unlicensed recruiter we are aware of is currently being investigated by BC, Alberta and Canadian Boarder Services Agencies. They face tens of thousands in fines and Employment Standards complaints related to improper hiring practices of dozens of employees for some of BC and Alberta largest companies.
- Licensing indicates a Recruiter follows the Laws which govern them. Failure to comply with Employment Agency licensing can range from financial penalties and up to 2 years in Jail.
- The Employment Standards Act and Regulations requires that employment agencies keep records of candidates and give no false information. The record keeping requirement is necessary to protect employers in the event of an Employment Standards complaint of which thousands are filed in BC every year.
- Most licensed Recruiters also carry Error& Omission Insurance to protect an Employer in the event of employment standards complaints. If a Recruiter does not follow the basic requirements of law it could result in false promises being made to candidates, which could result in lawsuits. Without proper record keeping there is less to defend an employer from a human rights complaint or a wrongful hire lawsuit.
Licensing is a minimum standard in BC for employment agencies. There are over 250 licensed employment agencies in the province. These agencies range from national firms to individual HR professionals. Each province in Canada regulates Employment Agencies; therefore having a license in one province does not allow a business to operate in a second province. Red Seal Recruiting has been licensed in BC since 2005. We also maintain licenses in Alberta and Manitoba, and hold $3 Million in commercial liability insurance $2 Million in error and omissions insurance. Protect your company’s brand and make sure you hire a recruiter who follows the rules.
For more information check out each provinces regulations on employment agencies:
BC Employment Standards Act and Regulations Fines range from $500 to $10,000
Alberta Fair Trading Act fines max out at $50,000 and Two years in Jail.
Manitoba Worker Recruitment and Protection Act fines for unlicensed recruitment can be as high as $50,000
Saskatchewan’s Employment Act is one of the most sweeping pieces of Employment Standards Legislation which will likely come into force in 2013. Fines for unlicensed recruitment can be as high as $100,000 or one year in jail.