When it comes to regulating recruitment agencies, Canada has a long, long way to go.
Canada is a NO PLACEMENT FEE country.
Recruitment agencies in Canada exist for only three reasons (but really, they’re only there for the express purpose of making money)
- To help Canadian employers with finding suitable candidates for positions in their organizations they need to fill.
- To help prospective workers find work by matching them with Canadian employers.
- To help assess prospective workers for Canadian employers.
The activities and operations of recruitment agencies in Canada are overseen by the Employment Agency Business Licensing Regulation (EABLR) and the Fair Trading ACT (FTA).
The EABLR categorizes recruitment agencies in Canada as either national or international.
National recruitment agencies in Canada are only allowed to provide their services to Canadian citizens, permanent residents or foreign workers already in Canada who are looking for work.
International recruitment agencies in Canada are only allowed to provide their services to foreign workers who wish to work in Canada.
A recruitment agency in Canada can possess a license for both categories.
What can Recruitment Agencies in Canada charge Canadian employers and prospective workers?
Recruitment agencies in Canada can charge fees to Canadian employers for services rendered.
Recruitment agencies in Canada can charge prospective workers for services such as resume writing, job skills training and the like. A written agreement must be signed by both the recruitment agency in Canada and the prospective worker, clearly stating the fees involved and that payment of such fees are not a condition for the recruitment agency to help the prospective worker.
Recruitment agencies in Canada cannot charge prospective workers a recruitment or placement fee. Any payments made by prospective workers to recruitment agencies in Canada must be clearly stated in a written agreement signed by both the recruitment agency in Canada and the prospective worker.
Recruitment agencies in Canada cannot demand a deposit from a prospective worker, even if the recruitment agency promises that the deposit will be paid back.
Recruitment agencies in Canada cannot give instructions to Canadian employers to recover the costs of recruitment from the prospective worker.
The differences between Recruitment Agencies in Canada and Immigration Consultants and Representatives
An Immigration Consultant (sometimes called an Immigration Representative) is a person hired by a prospective worker (in most cases, a foreign worker) to transact on their behalf with Government of Canada agencies like the Refugee Board, the Canada Border Services Agency (CBSA) or Immigration Refugees and Citizenship Canada (IRCC).
Recruitment agencies in Canada cannot transact on behalf of prospective workers with Government of Canada agencies like IRCC. If a prospective worker needs a visa to enter Canada to work, the prospective worker will need to complete and submit the proper application documents to the nearest visa office to their country of residence.
Immigration consultants or immigration representatives cannot assist prospective workers in looking for work in Canada. Canadian employers must hire a recruitment agency in Canada who is licensed to engage in such activities.
Unlike recruitment agencies in Canada, immigration consultants or immigration representatives are not licensed, instead they are given consent by the prospective worker to transact on their behalf with the appropriate Government of Canada agencies.
Canadian employers and the recruitment agencies in Canada that represent them must obey the rules and regulations for hiring prospective workers of both Canada and the source country.
Remember that Canada is a No Placement Fee Country. New POEA rules require Canadian employers to partner with licensed recruitment agencies in both Canada and the Philippines when hiring prospective workers from the Philippines.