Starting April 1, 2025, Prince Edward Island (PEI) has implemented the Temporary Foreign Worker Protection Act, bringing new licensing requirements for recruiters assisting foreign workers. This change aims to safeguard workers from exploitation while ensuring ethical recruitment practices.
Recruiters looking to operate in PEI must now obtain a recruiter license through the official online portal. A grace period until July 1, 2025, allows unlicensed recruiters to continue operating while they apply. However, after this date, engaging in foreign worker recruitment without a license will be considered a violation, leading to fines of up to $5,000.
Key Requirements Under the Temporary Foreign Worker Protection Act
To ensure fair labor practices, the Temporary Foreign Worker Protection Act prohibits certain actions by recruiters and employers:
- Charging recruitment fees to foreign workers.
- Providing false or misleading information about recruitment, employment, immigration, or housing.
- Taking possession of a foreign worker’s passport or official documents.
- Misrepresenting job duties, wages, benefits, or length of employment.
- Threatening deportation or other unlawful actions.
Who Needs a Recruiter License?
Recruiters assisting PEI employers in hiring foreign workers must obtain a license, regardless of their location or licensing status in other provinces. This applies to individuals who:
- Find employment for foreign nationals in PEI.
- Assist employers in hiring foreign workers.
- Refer foreign workers to other recruiters or agencies.
Exemptions From Licensing
Some individuals and organizations do not need to apply for a recruiter license. These include:
- Employers recruiting for their own businesses.
- Family members recruiting a relative.
- Government agencies or educational institutions, such as the University of Prince Edward Island and Holland College.
How to Apply for a Recruiter License in PEI
Steps to Obtain a License
To qualify for a recruiter license, applicants must be a member of:
- A provincial law society
- The Chambre des notaires du Québec
- A registered immigration consultancy
Additionally, each license application requires financial security of $10,000, payable via certified cheque or bank draft to the Minister of Finance. This ensures funds are available to compensate workers in case of violations.
Compliance and Record-Keeping Rules for Recruiters
Once licensed, recruiters must follow strict compliance rules, including:
- Maintaining written contracts with both employers and foreign workers.
- Keeping detailed records of recruitment activities for at least four years.
- Disclose any compensation received for referrals.
- Inform both employers and workers about dual representation if recruitment and immigration services are provided simultaneously.
- Updating the Employment Standards Branch regarding any changes to their contact details or affiliations.
Failure to comply can result in fines, license suspension, or revocation.
The introduction of recruiter licensing under the Temporary Foreign Worker Protection Act strengthens protection for foreign workers in Prince Edward Island. With a grace period until July 1, 2025, recruiters must act quickly to obtain their licenses and ensure compliance with the new regulations.
These changes reflect PEI’s commitment to ethical labor practices, ensuring fair recruitment and transparent hiring processes. If you are involved in foreign worker recruitment in PEI, securing your license is essential to avoid penalties and continue operating legally.
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