Recruitment agencies can have different roles in different countries. In this post, we’ll be breaking down what you need to know about working with recruitment agencies in Canada – from what fees apply, to what service they provide.
Employment agencies exist for three main purposes:
- Assist employers with recruiting fitting employees.
- Match job seekers to employer positions.
- Test or evaluate job related skills on behalf of recruiting organizations.
Recruitment agencies in Canada are governed by the Employment Agency Business Licensing Regulation (EABLR) and the Fair Trading Act (FTA).
The Employment Agency Business Licensing Regulation cites two categories of recruitment agencies; national and international. National Employment Agency Businesses are only authorized to assist or recruit employees within Canada who are seeking work within the country. International Employment Agency Businesses have the authority to assist or recruit employees from outside Canada who seek to work in Canada. A recruiting agency can however possess both categories of licenses.
Agency fees: what is chargeable and what is not?
- Recruitment agencies in Canada are allowed to charge employers for services delivered.
- Recruiters can charge employees a fee for services, provided these services are not directly related to the recruitment. Examples of chargeable services therefore include resume preparation and job-skills training among others. In such circumstances, a separate written agreement must exist that quotes the fee. However, the fee must not be charged as a condition to help the individual find work.
- A recruitment agency cannot demand or collect a fee from someone it is helping to find work.
- An agency is also prohibited from demanding or holding a deposit or bond from the employee, even if there is a promise to refund the fee.
- The recruiting agency cannot direct the employer to recover the costs of agency services from the employee.
Recruitment agencies and immigration representatives
Though the two are easy to confuse, it is important that you understand the differences. An immigration Representative is a person hired by a foreign employee to conduct business on their behalf with the Refugee Board, the Canada Border Services Agency or the Citizenship and Immigration Canada (CIC).
Whereas an immigration representative can directly engage the CIC, an employment agency cannot negotiate with the CIC on behalf of a worker. Immigration representatives however have no authority to assist a person to secure work in Canada.
For job seekers, the greatest advantage of working with recruiting agencies is that agencies have access to the inner job market; they can reach employers more easily through their vast networks.
For employers, recruiting agencies are an economical, time saving and reliable method of finding the right employees.