What Is a Temp Agency? How Temp Agencies Work in Ontario

A temp agency, also called a temporary help agency or staffing agency, hires workers and sends them to do temporary work for other businesses. The agency is the employer on paper: it pays the worker, makes the payroll deductions and covers WSIB. The business that uses the worker, called the client, directs the day-to-day work and pays the agency an hourly rate.

That simple setup explains most of what confuses people about temp work. This guide covers how it works in Ontario, who pays whom, what the different types of placement mean and when an agency makes sense for workers and employers.

How does a temp agency work?

Most assignments follow the same five steps:

1. A business tells the agency what it needs. That means the role, the shift, how many people, the site address and the start date.
2. The agency finds and screens people. A good agency interviews candidates, checks references and confirms certificates that the job requires, such as a forklift training certificate.
3. The worker accepts the assignment and goes to the client’s site. The client explains site rules, gives any site-specific training and supervises the daily work.
4. The worker records hours. The client normally approves the timesheet, and the agency uses it for payroll.
5. The agency pays the worker and invoices the client. The worker deals with the agency about pay, and the client deals with the agency about the bill.

Who pays a temp worker: the agency or the business?

The agency does. Ontario’s Employment Standards Act calls workers placed by a temporary help agency “assignment employees”, and the agency is their employer. That means minimum wage, overtime after 44 hours in a week, vacation pay and public holiday pay come from the agency, and the agency pays the WSIB premium for them.

The client pays the agency one hourly rate per worker that covers the worker’s wage and the agency’s costs. We explain exactly what is in that rate in our guide on how much staffing agencies charge employers in Canada.

Temp, temp-to-hire and permanent placement: what is the difference?

• Temporary: the worker stays on the agency’s payroll for the whole assignment. It can last a day, a few weeks or several months, depending on the client’s need.
• Temp-to-hire: the worker starts as a temp, and if the client likes the work, the client hires them onto its own payroll. It lets both sides try each other first.
• Permanent placement (direct hire): the agency finds a candidate, and the client hires that person directly. The client usually pays the agency a fee for the introduction.

Are a temp agency, staffing agency, employment agency and recruiter the same thing?

In everyday speech the words overlap, and many agencies do more than one thing. The practical question to ask is: who will be my employer, and whose name will be on my pay stubs? If it is the agency, it is a temp agency. If the company only introduces you to an employer who then hires you directly, it is acting as a recruiter or placement service.

What jobs do temp agencies fill?

In the GTA the most common temporary jobs are in warehouses, factories, construction and events, plus office, driving and care work:

• Warehouse staff: pickers, packers, shippers and receivers, loaders and forklift operators
• Manufacturing staff: machine operators, assemblers and production workers
• General labour: construction helpers, cleanup crews, movers and event crews
• Office and admin staff: receptionists, data entry clerks and customer service
• Personal support workers for care homes and home care

What are the benefits and drawbacks for employers?

Benefits: you can fill a shift quickly, cover busy periods without permanent hires, try a worker before hiring them, and hand payroll and WSIB to the agency. A good agency also replaces a worker who does not fit.

Drawbacks: the hourly bill rate is higher than the worker’s wage, and each new worker needs an orientation to your site. Using the same agency and the same workers repeatedly reduces that second problem.

What are the benefits and drawbacks for workers?

Agency work is often the fastest way to start a job, try different workplaces and get into an employer that may hire you permanently. The trade-offs are less job security and hours that can change. We cover both sides in is it worth going through a temp agency.

Common questions

Is a temp agency job a real job?

Yes. You are an employee of the agency, with pay stubs, payroll deductions and the same Employment Standards Act protections as other employees, such as minimum wage and overtime.

How long does a temp assignment last?

It depends on the client. Some last a day, many run for weeks, and some continue for months. Many employers use assignments to find people they may hire permanently.

Do temp agencies charge workers a fee?

No. In Ontario a temporary help agency cannot charge you a fee to register or to find you work. Read do temp agencies charge workers a fee for details and warning signs.

Can I turn down an assignment?

You can, but an agency has to fill its client’s shift, so turning down several offers in a row may mean you get fewer calls. Tell your recruiter which shifts and locations you can really work.

Looking for work or staff?

If you are looking for work, see our job pages for Toronto, Brampton and Mississauga, or submit your resume. It is free for job seekers. If you need staff, call 647-295-5358 or request staff and a recruiter will reply the same business day.