Foreign Worker Recruiter's License Bond
Surety Bond Financial Security for Minister of finance
A Foreign Worker Recruiter’s License Bond is a surety bond required by the Trust Clerk at the Employment Standards Branch in order to obtain your foreign worker recruiter’s license.
We make it easy to apply for and obtain your Recruiters License Bond online with a simple application and approval process. Whether you’re applying for you’re bond for the first time, or have a bond elsewhere and would like to switch over to us – we’re here to help!
Apply online today through the “Get a Quote” button; or contact us if you have any questions.
What is a Foreign Worker Recruiter's License Bond?
As mentioned above, a Foreign Worker Recruiters License Bond is a surety bond financial security instrument. We provide this product through a financial institution that is commonly a Canadian insurance company. However, a surety bond is not an insurance product and provides a different guarantee than what you’d typically associate with insurance coverage.
Although the Minister of Finance allows for securities such as certified cheques or bank drafts, and irrevocable letters of credit (ILOC) to be provided, a bond is almost always the most cost effective method of providing this financial security.
The bond must be issued in the individual applicant’s own name and also include the business name if applicable. For example, “Recruiter’s Name carrying on business as Company Name”.
The bond guarantees that a licensed recruiter must uphold their obligations required by law and make sure that any partners, affiliates, and agents they work with do the same. The bond is typically requested in the amount of $20,000, but can be issued for more if needed.
For clarity, a surety bond is a three party agreement and includes:
The Principal – This is you, the recruitment agent applying for the bond as well as the business the agent represents. This individual and entity are still responsible for any losses that may be caused under the terms of this surety agreement.
The Surety – This is the insurance company providing the financial backing for the issued bond and is bound to the Obligee that the principal will comply with the commitments on the bond (sample bond wording for BC).
The Obligee – This is the party whom the guarantee on the bond is being made to. For the Foreign Workers Recruitment Bond this is the Director / Minister of Finance.
What is received when purchasing a Recruitment License Surety Bond?
When you purchase a Foreign Worker Recruiter’s Bond through us, you will receive a renewable surety bond that you will then be provided to the Minister of Finance or other authoritative body depending on province. This typically includes:
- Bond Number
- Bond Amount: $20,000 (but can be more if needed)
- Full legal name of the applicant & business name (if applicable)
- Obligee: Director / Minister of finance
- Insurer’s Signature
- Surety Company Seal
- Effective Date of the Bond
- Principal’s Signature (you will sign once the bond arrives)
As outlined on the Government of BC website, you are able to send the surety bond before or after you apply, but your application will only be processed after Employment Standards receives the security (bond).
The security must meet specific requirements in order for it to be accepted. Not to worry, we have the formally approved surety bond template that is needed by the Employment Standards Branch.
Why do I need a Foreign Worker Recruitment License Bond?
This bond is required as your financial security instrument in lieu of tying up the capital it would take to become a licensed recruiter.
As the required security is commonly $20,000 or more, it’s great to have an guarantee option like a surety bond as it is very cost-effective (rather than depositing these funds with the government body).
To re-iterate on what has been mentioned above, this financial security is needed to ensure that recruiters uphold their obligations under law set forth by the Temporary Foreign Worker Protection Act.
If a recruiter does not, they can:
- Be fined
- Lose their license
- Have other restrictions placed on their license
A reputable surety company provides a financial backing to protect foreign workers knowing what their rights are.
Recruiters need to ensure they clearly communicate to foreign workers what their rights are under the Temporary Foreign Worker Protection Act. You can do so by posting and sharing this document (updated Oct. 2023).
How much does a Foreign Worker Recruiter's License Bond cost?
A Foreign Worker Recruiters Bond can be purchased for as little as $375.00 CAD per year. We pride ourselves in providing the most competitive rates available on the market today and offer guarantees through Canada’s top underwriters like Intact Insurance.
We strive in efficiancy and always issue digital (e-bond) versions of surety bonds when availabe. Unfortunately, as of April 2024, Foreign Worker Recruitment Licensing bodies are still requiring hard / paper copies of bonds which we mail to you for signature and provision.
It never costs you anything to pursue a quote for any type of bond or commits you to proceeding with a purchase once a quote is received, so get started today!
How long does it take to have a Recruitment License Bond issued?
We’re able to issue the Recruiters License Bond with same-day service for qualifying agents. You’re approved for this type of bond up to $100,000 CAD as long as you can answer “No” to the following questions:
- Has the individual or company applying ever declared bankruptcy?
- Has the individual or company applying ever had a claim with a surety company?
- Has the individual or company been denied bonding in the past?
If you need to answer “Yes” to any of these questions, we can likely still place your bond; however, there may be a request for some additional information such as bankruptcy discharge, financial statements, or other details.
Click the quote button today to get started and have you’re bond issued same-day!
$20,000+ Surety Bond
Renewable Annual Term
Reliable Canadian Underwriters
Online Approval & Payment
Best Rates Available
How It Works
Step 1
Complete a brief online questionnaire about your recruitment license.
Step 2
Our staff will be in touch shortly with a formal quote for your recruiters bond via e-mail.
Step 3
Your surety bond will be issued so you can provide it to the Minister of Finance Employment Standards Branch.
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