Note: This article provides a general overview of WSIB and employer-of-record concepts in Ontario. It is not legal advice. Employment law and WSIB obligations are complex and fact-specific. Consult a qualified employment lawyer or HR professional before making decisions based on this content.
When you hire workers through a staffing agency in Ontario, the question of who is the "employer" is not always straightforward. Understanding the employer-of-record relationship — and what it means for WSIB, payroll, and employment standards compliance — helps you work with your agency more effectively and avoid gaps in coverage.
What is an employer of record?
In a temporary staffing arrangement, the staffing agency is typically the employer of record. This means the agency is the legal employer of the temporary worker — it processes payroll, remits source deductions (CPP, EI, income tax), pays WSIB premiums, and is responsible for compliance with the Employment Standards Act, 2000 (ESA) with respect to that worker.
The client employer — the business where the worker actually performs the work — is the "host employer" or "client." The host employer controls the day-to-day work, provides the tools and workspace, and directs the worker's activities. This creates a dual-employer situation with distinct responsibilities on each side.
WSIB responsibilities in a staffing arrangement
Under Ontario's Workplace Safety and Insurance Act, both the staffing agency and the host employer have obligations. In general terms:
- The staffing agency is responsible for registering with WSIB, paying WSIB premiums for the workers it employs, and reporting injuries that occur at client sites.
- The host employer is responsible for providing a safe workplace, conducting safety orientations, supplying appropriate PPE, and complying with the Occupational Health and Safety Act (OHSA) for all workers on site — including temporary workers from an agency.
A key point: the host employer's OHSA obligations do not disappear because a worker is employed by an agency. If a temporary worker is injured on your site, you are responsible for the safety conditions that contributed to that injury, regardless of who is on the WSIB account.
Before engaging a staffing agency, ask for a copy of their WSIB clearance certificate. This confirms the agency is registered and in good standing with WSIB. A reputable agency will provide this without hesitation.
Employment Standards Act obligations
Ontario's ESA sets minimum standards for wages, hours of work, overtime, vacation, and termination. In a temporary staffing arrangement, the agency is generally responsible for meeting ESA minimums for the workers it employs. However, the ESA also imposes obligations on client employers in certain circumstances.
The ESA includes provisions that affect temporary help agencies and their client employers. These provisions have been amended over time, and the current rules around equal pay, assignment information, and termination notice for temporary workers are more detailed than they were in earlier versions of the Act. If you regularly use temporary workers, it is worth reviewing the current ESA provisions with an HR professional or employment lawyer to understand your obligations as a client employer.
Questions to ask your staffing agency
Before signing a staffing agreement, ask your agency:
- Are you registered with WSIB and in good standing? Can you provide a clearance certificate?
- Are you licensed as a temporary help agency under the Employment Standards Act?
- How do you handle WSIB claims when a worker is injured at a client site?
- What is your process for safety orientations before a worker starts at a new client site?
- What are the termination provisions in your client agreement, and how do they interact with ESA obligations?
A reputable agency will answer these questions clearly and provide documentation. If an agency is evasive about WSIB registration or licensing, that is a significant red flag.
Your safety obligations as a host employer
Regardless of the employer-of-record arrangement, you are responsible for the safety of every worker on your site. This means conducting a proper safety orientation for every temporary worker before they start, providing the same PPE and safety training you would give a direct employee, and ensuring your supervisors understand that temporary workers have the same rights under OHSA as permanent employees — including the right to refuse unsafe work.