Recruitment Compliance Guide for Toronto

If you are researching how to get started in Toronto, you are in the right place. This is a practical guide built around real agency experience, local regulations, and the tools that actually work for Toronto businesses in 2026.

Right-to-work checks

Every worker placed in Toronto must have their right to work verified before the assignment starts. Acceptable documents include a UK or EU passport, BRP card, or share code for settled/pre-settled status holders. Keep a copy of the document on file with the date of check and the name of the person who verified it.

Agency Workers Regulations

The AWR gives temporary workers equal pay and conditions after 12 weeks in the same role. You must track the qualifying period for every temp placement and notify clients before week 12 arrives. Failing to apply AWR correctly exposes both the agency and client to employment tribunal claims.

GDPR for Toronto agencies

Candidate CVs, ID documents, bank details, and contact information are all personal data under GDPR. You need a lawful basis for processing each type, a clear retention policy (most agencies keep active candidate records for 2 years and placed workers for 6 years), and a process for handling subject access requests within 30 days.

Worker payment models

PAYE through your own payroll, umbrella company, or CIS (for construction workers) are the main options for Toronto agencies. Each has different NI, holiday pay, and IR35 implications. Seek specialist advice before deciding — the wrong structure can trigger HMRC investigations and retrospective tax liability.

Insurance requirements

Employer's liability insurance is mandatory if you have direct employees. Most clients will also require public liability (minimum £2m) and professional indemnity cover before signing a supply agreement. Check your insurance covers the sectors you operate in.

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