Modifications to Temporary Employment Agencies’ Rate Setting

The WSIB recently completed a review of the rate setting system for Temporary Employment Agencies (TEAs), prompted by concerns from certain TEAs, particularly those supplying clerical labour. These concerns highlighted that the rate-setting approach initially planned for 2020 would lead to significant rate increases for some agencies. Accordingly, the WSIB has modified the TEAs’ rate setting based on its consultation with stakeholders.

Key Aspects of the Modification Include:

New Clerical Labour Classification: A classification specific to clerical labour and knowledge-based roles (similar to the pre-2020 classification) will be created.

Reporting Clerical Labour Separately: TEAs will report clerical labour under this new classification, regardless of the client’s classification. Non-clerical labour will continue to be reported according to the client’s classification.

Placement in Class L: The new classification will be part of Class L (Professional, Scientific, and Technical Services), reflecting a comparable risk profile.

Rate Assignment: The new classification will have its own rate, allowing TEAs to maintain rates comparable to those assigned before 2020.

Effective Date:

The new classification is expected to take effect on January 1, 2025, allowing the TEA industry time to adjust, and the WSIB time to implement necessary changes.

TEAs will generally be assigned the Class L rate when the new classification is established, with their previous experience used to determine their prior year rate.

2024 rates for TEAs will continue to have rates set under the existing system. The modified approach will be subject to regulatory amendments in Ontario.

Closing Existing Operations for WSIB Reporting Purposes:

TEAs supplying clerical labour to various sectors will need to close those operations for WSIB reporting purposes in 2025, as all clerical labour will fall under the new classification.

For example, a TEA may exclusively supply clerical labour to clients in several classes and they are assigned a rate of $0.18 for each of those operations. In 2025 they will close those operations when the new classification is opened. Their experience under those operations will transfer to the new classification and their $0.18 rates will be used to calculate their prior year rate in the new classification. They will then move from their prior year rate towards their projected rate.

 

Compliance and Monitoring:

The WSIB will continue to ensure all businesses, including TEAs, comply with reporting and premium payment requirements. TEAs’ reported premiums under the new classification will be monitored as part of the WSIB’s risk analysis, with corrective actions taken where non-compliance is identified.