Kovasys Inc.

February 02, 2010 11:42 ET

Kovasys reports escalating costs for contract IT workers in Ontario

In the Canadian province of Ontario, a newly enacted bill has lead to the escalating costs for temp IT workers.

Attention: Business/Financial Editor, City Editor, News Editor, Tech/Telecomm Editor, Government/Political Affairs Editor ONTARIO, BILL 139--(Marketwire - Feb. 2, 2010) - Traditionally, temporary IT workers have provided a solid, low-cost resource for employers in search of a fast and reliable fix to their IT issues. Yet in the Canadian province of Ontario, a newly enacted bill has lead to the escalating costs for temp IT workers.

Bill 139 in Ontario - Ontario Employment Standards Act is intended to make the workplace more of a fair and even playing field for temporary technology workers. Many question, however, whether the bill is fair to employers; who now must give their temp IT consultants many of the same benefits as they do their vetted, full-time employees.

This bill guarantees that temporary employees are privy to all needed information about their assignments, including fully disclosed pay schedules and job descriptions. While this sounds reasonable on paper, it could mean that temp employees will receive notice of termination, severance pay upon leaving, and the right to take publicly declared holidays-just like their full-time counterparts. This will mean that employers will be required to pay out a lot more money and take on far more responsibility where their temporary workers are concerned.

The bill prohibits IT recruitment agencies from charging employees fees for any assignment or for work-related preparation tasks, such as resume writing and interview preparation. Since they are now unable to charge their workers these types of fees, financially stressed temp agencies may instead increase the fees that they charge the employers to whom they provide these workers. When asked whether business is affected by the newly introduced Bill 139, Alex Kovalenko, director of operations at Kovasys Inc. (http://www.kovasys.com), an IT Recruitment and Headhunting firm in Toronto, ON, said "Bill 139 have introduced additional burdens to our operations. Industry margins are already very low at about 3.6%. We have no choice but to pass on these additional costs to our clients."

The bill also prohibits temporary agencies from placing employment-related restrictions on their employees. The temp worker must be free to pursue full-time employment opportunities with their short-term employers. This particular stipulation might be beneficial to employers, who will be able to hire worthy temps on a full-time basis. Yet it may also restrict and reduce the eligible pool of temporary IT consultants.

At the same time, regulations such as Bill 139 could give a decidedly unfair advantage to temporary workers, who are always free to refuse work or to quit an assignment without serious repercussions. Now they will enjoy the same benefits as full-time employees - this could make for an inefficient workplace, and also could create tension between longtime staff members, who have put in their time; thus, without a doubt, earning all their rights and benefits. Now they have to stand back and watch as part time IT contractors, who may only have put in a few weeks or days at the same company, get the same rights and privileges that they do. IN: ECONOMY, FINANCE, LABOUR, TECHNOLOGY, TELECOMM

Contact Information

  • Alex Kovalenko, Director of Operations, Kovasys Inc.
    Primary Phone: 888-568-2747