What happened
A temporary help agency in Hamilton, Ont., has been fined $100,000 for producing false records and obstructing an employment standards officer, as reported by Talent Canada. The company is ML Staffing Solutions Inc.
On Dec. 28, 2022, an officer inspecting the agency issued a demand for records to check compliance with the Employment Standards Act (ESA). The agency responded with partial records. The officer then collected records from the agency's clients and from its bank.
The client and bank records matched each other. None of the information in the agency's own records was accurate, according to the report. That left the officer unable to inspect whether the agency was complying with the ESA.
The agency pleaded guilty in the Ontario Provincial Offences Court in Hamilton to producing false records and to hindering or obstructing an officer. The court also added the 25 per cent victim fine surcharge required by the Provincial Offences Act.
Why it matters if you are hiring
The story is about the agency, but the detail that matters to employers is where the officer looked next: the agency's clients. If you use temporary help, your own files can become evidence in someone else's inspection.
That applies to any Ontario employer filling warehouse, production, clerical or general labour roles through an agency. Your invoices, timesheets, assignment details and payment records may be the records an officer compares against what the agency says it paid and tracked.
It also changes how to judge an agency. Low bill rates are not the only thing to check. Ask whether the agency can show clean payroll, hours and pay records on request. An agency that cannot, or will not, is a risk to your operation, your schedule and your reputation, even if the penalty lands on them.
The report does not say what the underlying ESA issues were or whether any workers were owed money. Employers should not guess at that. They should make sure their own arrangements would hold up if asked.
One thing to do this week
Pull the last three months of invoices and timesheets from each temporary agency you use. Check that hours billed match hours your site recorded, and ask each agency in writing to confirm it can produce payroll records for those workers on request. Keep the reply on file.
Traverse Staffing places people across operations, contract, manufacturing, sales, finance and technical roles for employers in Ontario and across Canada, and we keep the records behind every placement in order so you can stand behind them.