The THA licence in Ontario: requirements, costs, and renewal (2026 guide)

Who needs a THA licence in Ontario?

Any business that employs people and assigns them to perform work on a temporary basis for its clients is a temporary help agency under Part XVIII.1 of the Employment Standards Act. Since July 1, 2024, it has been illegal to operate as a temporary help agency in Ontario without a licence, and illegal for clients to knowingly use an unlicensed one. Applications opened January 1, 2024.

If you also recruit workers for placement with employers (rather than employing them yourself), you need a recruiter licence as well, and that means two separate applications rather than one. The cost does not double: the application fee is charged only on the first of the two submissions, and the security stays a combined $25,000 rather than two separate deposits.

How much does the THA licence cost in 2026?

What is the $25,000 letter of credit for?

The security exists so unpaid wages can be recovered for workers if an agency fails to pay them. Your bank issues an electronic irrevocable letter of credit (or a surety company issues a bond) in favour of the Director of Employment Standards, and the issuer must be a bank listed in Schedule I, II or III of the Bank Act or a credit union under the Credit Unions and Caisses Populaires Act, 2020. It has to renew automatically, and if the issuer reserves the right not to renew it must give the Director 90 days notice or more. It must also permit partial drawings, so the Director can demand less than the full amount rather than all of it at once.

Practically, most banks will want collateral or a hold on funds to issue the letter, so treat the $25,000 as capital your agency needs to set aside before applying.

How does renewal work?

Renewal follows the same process as the initial licence: a new application, submitted online. Two things changed on January 1, 2026 and both matter to your budget. The term is longer, so a licence from an application submitted on or after that date generally expires two years after it is issued or renewed rather than one. And the fee is the same $1,500 again, because no separate lower renewal fee is published. The one saving: if the Director of Employment Standards already holds your $25,000 security, you do not arrange a new letter of credit to renew.

Ontario publishes every agency's status on the THA and recruiter public registry. Licensed, pending, refused, and revoked statuses are all visible to anyone, including your clients and your competitors. We cover what clients see about you in our registry guide.

What happens if you operate without a licence?

• A first contravention carries a $15,000 monetary penalty, a second within three years $25,000, and a third $50,000.
• The ministry can order compliance and can prosecute under the Employment Standards Act.
• Your status appears on the public registry, and clients are prohibited from knowingly engaging an unlicensed agency, so an unlicensed period can cost you contracts, not just penalties.