The proposed legislation would ensure Temporary Help Agency (THA) employees are paid equally to permanent employees of the THA client when performing the same job. The proposed changes would protect assignment employees from repercussions for inquiring about their wage rate or the wage rate of an employee of the client. If the proposed legislation passes, this proposal would come into force on April 1, 2018.
The Changing Workplaces Review (CWR) recommended limiting the amount of time during which an assignment employee can be paid less than the workers the client hired directly. This limit is not intended to limit the duration of the triangular relationship itself, if all parties wish to continue it, but differential pay cannot continue indefinitely. The CWR recommend a qualifying period of six months before there is a requirement for equal pay and point to countries like the UK as having a similar system.
This will significantly impact the competitiveness of Ontario employers who rely on part-time, temporary and short term contract workers during periods of cyclical business fluctuations, and to staff entry level positions that eventually grow into full time opportunities.