The licensing period for temporary help agencies doubled to two years on January 1, 2026. Here is exactly what changed, what it costs, and what your agency needs to do before your next renewal.
You run a PSW agency in Ontario. You have been operating under a THA licence since the regime launched in July 2024. Your renewal date is coming up, and you have heard the rules changed. You are not sure if you need to do anything now, or if the new two-year term automatically applies to you. You are not sure if the fee went up, or if you are grandfathered under the old rules.
I have been running a licensed PSW agency in St. Thomas, Ontario, for three years. I renewed our THA licence under the old system and I am preparing for our first renewal under the new rules. This guide is what I wish someone had handed me before the January 1, 2026 changes took effect. It is the plain-English version of Ontario Regulation 99/23 as amended by O. Reg. 233/25.
The Problem: Most Agencies Do Not Understand the Transitional Rules
The "before state" for many PSW agency owners is confusion. You know you need a THA licence. You know there is a fee. But you are not sure how the new two-year system interacts with your existing one-year licence. You are not sure if you should renew early or wait. You are not sure if you are paying the right amount.
The numbers tell the story. Before January 1, 2026, THA and recruiter licences were valid for one year and cost $750 to renew . Starting January 1, 2026, licences are valid for two years and the application fee increased to $1,500 . That is a 100% increase in the fee, but spread over two years instead of one—so the annualized cost is essentially the same. The real change is administrative: fewer renewals, less paperwork.
But the transitional rules are where agencies get tripped up. If you applied before January 1, 2026 and your licence was issued after that date, you get a one-year licence under the old rules . If your existing one-year licence expires in 2026, your renewal application is governed by the new two-year, $1,500 rules .
💡 Insider Tip: The single most important thing you can do is check the issue date of your current licence. If it was issued before January 1, 2026, it is a one-year licence. Your renewal will be under the new rules. If it was issued after January 1, 2026, you should have received a two-year licence. If you did not, call the Ministry of Labour, Immigration, Training and Skills Development.
Why This Matters Right Now in 2026
Three trends are making THA licensing compliance urgent for PSW agencies. First, the licensing regime is no longer new. It has been in force since July 1, 2024, and the Ministry has had time to audit and enforce . Unlicensed agencies are operating illegally, and clients who knowingly use them are also in violation .
Second, the employment landscape is tightening. The CRA is intensifying audits of staffing agencies, particularly around the classification of workers as independent contractors versus employees . Your THA licence is one piece of a broader compliance picture that includes WSIB registration, CRA source deductions, and tax compliance verification .
Third, PSW regulation through HSCPOA is ramping up in parallel. The Fixing Long-Term Care Act now requires PSWs working in long-term care to be HSCPOA registered or eligible for registration . Your THA licence does not cover HSCPOA compliance—they are separate obligations. But both are part of what facilities check when they vet agency partners.
The Solution: A Connected Compliance System
The answer is not to treat your THA licence as an isolated annual task. It is to build it into a connected compliance system that tracks every credential, every renewal, and every regulatory obligation your agency carries.
Here is a before-and-after comparison of what that looks like.
Before | After |
You track your THA licence renewal in a calendar reminder. | Your THA licence is one of dozens of credentials tracked in a colour-coded compliance dashboard. |
You scramble to find your letter of credit and tax compliance verification when renewal comes up. | Your letter of credit status and tax compliance verification are stored and monitored automatically. |
You are not sure if your licence is one-year or two-year. | The system flags your licence term and alerts you 90 days before expiry. |
You manage THA, WSIB, CRA, and HSCPOA compliance in separate spreadsheets. | All compliance obligations flow through one connected operating core. |
Need help building a connected compliance system? See how SYNERZ builds this for Canadian PSW agencies → www.synerz.ca
Pipeline Process Breakdown: The THA Licence Lifecycle
Step 1: Initial Application
You apply online through the Ministry of Labour, Immigration, Training and Skills Development. You pay the $1,500 application fee (as of January 1, 2026) and provide an irrevocable letter of credit in the amount of $25,000 . You also verify your tax compliance status with the Ministry of Finance using their verification tools .
Step 2: Licence Issuance
If your application is submitted on or after January 1, 2026, your licence is valid for two years . If your application was submitted before January 1, 2026 but issued after, your licence is valid for one year .
Step 3: Ongoing Compliance
During your licence term, you must remain registered with WSIB, remain in compliance with tax statutes, and not violate any orders under the ESA or the Employment Protection for Foreign Nationals Act, 2009 . Your $25,000 letter of credit must remain in place.
Step 4: Renewal
The renewal process uses the same online portal as the initial application . If you already have $25,000 in security on deposit with the Director, you do not need to provide additional security . If your renewal application is submitted but a decision has not been made by your licence's expiry date, your current licence remains valid until the decision is issued .
Step 5: Ongoing Monitoring
A connected compliance system tracks your licence term, flags renewal deadlines, and ensures your letter of credit, WSIB registration, and tax compliance status remain current. This is the same system we use at Essential Staff to manage every credential on every caregiver—THA licence included.
Real Results From a Live Ontario Agency
We have operated Essential Staff under the THA licensing regime since it took effect. We have maintained our licence without interruption, kept our $25,000 letter of credit in place, and passed every compliance check our facility partners have requested.
Our recruitment database has grown to over 600 PSWs. Our biweekly payroll takes 18 minutes, down from 3+ hours manually. We have run 26 payroll cycles per year for 3 years with zero CRA penalties. Our credential alerts fire at 30, 14, and 7 days before expiry—for every credential, on every caregiver.
THA licensing is one piece of that system. It is not a separate project. It is baked into how we operate.
Step-by-Step — How to Get Started
Check Your Current Licence Issue Date: If it was issued before January 1, 2026, you have a one-year licence. Your renewal will be under the new two-year, $1,500 rules.
Verify Your Letter of Credit: Confirm it is still in place, irrevocable, and in the amount of $25,000. If the Director already holds it, you do not need to provide additional security at renewal.
Confirm Your Tax Compliance: Use the Ministry of Finance's tax compliance verification tools to confirm you are not in default of any filing or payment obligations .
Check Your WSIB Registration: Confirm you are registered and have provided all required information to the WSIB .
Plan Your Renewal Timeline: Mark your licence expiry date. Submit your renewal application before it expires. If you submit before expiry, your licence remains valid during the review process .
Common Mistakes to Avoid
1. Assuming Your One-Year Licence Automatically Becomes Two Years
It does not. Licences issued before January 1, 2026 remain under the one-year term. Your renewal will be under the new rules.
2. Paying the Wrong Fee
If you applied before January 1, 2026, you may have paid $750. If you are renewing after that date, the fee is $1,500 .
3. Forgetting About the Letter of Credit
The $25,000 irrevocable letter of credit is a requirement for a THA licence . If the Director already holds it, you do not need to provide additional security at renewal—but confirm it is still in place.
4. Ignoring Tax Compliance Verification
You must verify your tax compliance status with the Ministry of Finance using their tools. Being in default of a filing or payment is grounds for refusal .
5. Missing the WSIB Requirement
You must be registered with the WSIB and have provided the required information and paid premiums . This is checked as part of the licensing process.
Closing CTA
Book a free 20-minute THA Licence Compliance Review. We review your licensing status, letter of credit, and compliance obligations and give you a clear picture of where your agency stands. No pitch. No obligation. Just clarity.
📧 info@synerz.ca | 📞 +1 647 493 8110 | 🌐 www.synerz.ca
Frequently Asked Questions
What is a THA licence and does my PSW agency need one?
A THA (temporary help agency) licence is required under Ontario's Employment Standards Act, 2000, for any employer that employs persons for the purpose of assigning them to perform work on a temporary basis for clients . If your PSW agency assigns PSWs to facilities or clients on a temporary basis, you need a THA licence.
How much does a THA licence cost in 2026?
As of January 1, 2026, the application fee is $1,500 for a two-year licence . Before that date, the fee was $750 for a one-year licence.
What is the difference between a one-year and two-year THA licence?
Before January 1, 2026, licences were valid for one year. Starting January 1, 2026, new licences issued are valid for two years . Transitional rules apply: licences issued before January 1, 2026 remain one-year licences, and their renewals will be governed by the new two-year rules .
What security do I need to provide for a THA licence?
You must provide an irrevocable letter of credit in the amount of $25,000 . If the Director of Employment Standards already holds $25,000 in security on your behalf, you do not need to provide additional security at renewal .
What are the grounds for refusing a THA licence renewal?
The Director may refuse to renew a licence if the applicant has not complied with an order under the ESA or the Employment Protection for Foreign Nationals Act, 2009, is not registered with WSIB, is in default of tax filing or payment obligations, or has been convicted of certain Criminal Code offences .
What happens if my THA licence expires while my renewal is being reviewed?
If you submit your renewal application before your licence expires, your current licence remains valid until the Director approves the renewal or serves notice that it is refused .
Author: Munawar Abbas — Founder & CEO, SYNERZ