Ontario rules
The THA licence in Ontario: requirements, costs, and renewal (2026 guide)
Every temporary help agency in Ontario must hold a licence under the Employment Standards Act to operate legally. In 2026, applying costs $1,500 and requires a $25,000 irrevocable letter of credit or surety bond.
Operating without a licence carries a $15,000 penalty for a first contravention, $25,000 for a second within three years, and $50,000 for a third. Clients are also prohibited from knowingly using an unlicensed agency, so your licence status is checked by the businesses you serve.
Reviewed with the owner of the Ontario light-industrial staffing agency Kordis was built inside.
Who needs a THA licence in Ontario?
Any business that employs people and assigns them to perform work on a temporary basis for its clients is a temporary help agency under Part XVIII.1 of the Employment Standards Act. Since July 1, 2024, it has been illegal to operate as a temporary help agency in Ontario without a licence, and illegal for clients to knowingly use an unlicensed one. Applications opened January 1, 2024.
If you also recruit workers for placement with employers (rather than employing them yourself), you may need a recruiter licence as well. One application can cover both, and the security requirement is a combined $25,000, not two separate deposits.
How much does the THA licence cost in 2026?
| Item | Amount | Notes |
|---|---|---|
| Application fee | $1,500 | Rose from $750 on January 1, 2026. Paid per application, and one application can cover both the THA and recruiter licences. |
| Security | $25,000 | An irrevocable letter of credit or surety bond. It must auto-renew and permit partial drawings. Renewal applicants do not resubmit if the Director already holds acceptable security. |
| Penalty: operating unlicensed, first contravention | $15,000 | Issued by notice of contravention; prosecution is also available. |
| Penalty: second contravention within 3 years | $25,000 | Escalates automatically on repeat contraventions. |
| Penalty: third contravention within 3 years | $50,000 | The ministry can also order compliance and prosecute. |
What is the $25,000 letter of credit for?
The security exists so the Ministry of Labour can recover unpaid wages for workers if an agency fails to pay them. Your bank issues an irrevocable letter of credit (or a surety company issues a bond) in the ministry's favour. It has to auto-renew unless the issuer gives at least 90 days notice, and it must allow the ministry to draw part of the amount, not just all of it at once.
Practically, most banks will want collateral or a hold on funds to issue the letter, so treat the $25,000 as capital your agency needs to set aside before applying.
How does renewal work?
Renewal is done online by submitting a new application. There is no separate, lower renewal fee published; budget the application fee again. The one saving: if the ministry already holds your security and it remains acceptable, you do not need to arrange a new letter of credit for renewal.
Ontario publishes every agency's status on the THA and recruiter public registry. Licensed, pending, refused, and revoked statuses are all visible to anyone, including your clients and your competitors. We cover what clients see about you in our registry guide.
What happens if you operate without a licence?
- A first contravention carries a $15,000 monetary penalty, a second within three years $25,000, and a third $50,000.
- The ministry can order compliance and can prosecute under the Employment Standards Act.
- Your status appears on the public registry, and clients are prohibited from knowingly engaging an unlicensed agency, so an unlicensed period can cost you contracts, not just penalties.
Common questions
How much is the THA licence application fee in 2026?
The application fee is $1,500 for applications made on or after January 1, 2026. Before that date it was $750. The fee is paid once per application, and a single application can cover both a temporary help agency licence and a recruiter licence.
Do I need both a THA licence and a recruiter licence?
You need a THA licence if you employ workers and assign them to clients. You also need a recruiter licence if you find or attempt to find workers for employers to hire directly. Agencies that do both apply for both; the combined security stays $25,000.
Is the $25,000 a fee I lose?
No. It is an irrevocable letter of credit or surety bond held as security, not a payment. The ministry can draw on it to cover unpaid worker wages if your agency fails to pay. If you operate compliantly, it simply renews each year.
Can clients check whether my agency is licensed?
Yes. Ontario runs a public registry showing every agency's name and licence status, including refused and revoked licences. Clients are legally prohibited from knowingly using an unlicensed agency, so many procurement teams check the registry before signing.
When did the THA licence become mandatory?
Applications opened on January 1, 2024, and the prohibition took effect on July 1, 2024. Since that date, operating as a temporary help agency in Ontario without a licence, or knowingly using one as a client, contravenes the Employment Standards Act.
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