Quebec Limits Temp Agencies in Childcare

Summary#

• Quebec’s Bill 195 would limit how subsidized early childhood education and care providers (like CPEs and subsidized daycares) use staffing agencies and independent contractors. It also sets rules for all staffing agencies that send workers to childcare settings.

• The goal is to reduce reliance on costly temp agencies, protect workers, and make staffing more stable, while keeping tools for emergencies.

• Bans subsidized providers from using independent contractors and for‑profit staffing agencies. Only non-profit or co‑op agencies could be used, unless an exception is granted.

• Allows the government to create exceptions by region or job type, and lets the minister approve temporary exceptions in exceptional cases.

• Imposes rules on any staffing agency that supplies workers to childcare: $2 million liability insurance, written employment contracts, training and evaluation programs, no non‑competes, and no poaching of centre staff.

• Lets the government set maximum hourly rates agencies can charge by job title.

• Requires agencies and providers to report semi‑annually on agency use and hours worked; strengthens inspections, fines, and a public list of banned agencies.

• Takes effect six months after it becomes law.

What it means for you#

• Parents

  • You may see fewer agency staff in subsidized centres and more regular employees, which could mean more stable care teams.
  • There could be short‑term staffing gaps while centres adjust. The bill does not change parent fees.
  • In emergencies, the minister can allow temporary use of for‑profit agencies to keep services running.

• Educators and centre staff

  • Agencies cannot solicit you to leave your job to join them. Centres cannot be targeted for poaching by agency workers.
  • If you move from an agency to a centre, the agency cannot enforce a non‑compete or charge penalties.
  • If you work for an agency, your employment must be in a written contract that states your job title and hourly rate. Agencies must offer training and skills development.

• Agency workers

  • Your agency must carry $2 million in liability insurance and keep a training and evaluation program.
  • Your normal hourly wage must be shown on invoices sent to centres, increasing pay transparency.
  • For‑profit agencies will have fewer placements in subsidized centres, except where exceptions apply.

• Staffing agencies

  • For‑profit agencies cannot supply workers to subsidized providers unless a regulation or ministerial authorization allows it. Non‑profit and co‑op agencies can.
  • You must: hold liability insurance, disclose if a worker was refused by another centre for similar tasks, avoid non‑competes, avoid soliciting centre staff, and report hours by job title and site every six months.
  • You cannot place: people without a written employment contract, current centre employees or those employed by that centre within the past three months, or anyone not authorized to work in Canada.
  • You may face maximum hourly rate caps, inspections, fines, repayment orders, and a public ban if you break the rules.

• Subsidized childcare providers (CPEs and subsidized daycares)

  • You cannot use independent contractors or for‑profit agencies, unless an exception applies. You must report, twice a year, the agencies you used.
  • If you break the rules, the minister can require a compliance plan and can bar agencies from serving you.
  • In exceptional cases, you can ask the minister for temporary authorization to use a for‑profit agency or independent workers.

• Family‑based childcare (home childcare)

  • The government may set limits later on how much you can use independent workers. Details will come by regulation.

• Timing

  • The law would start six months after it receives final approval.

Expenses#

No publicly available information.

Proponents' View#

• Reduces spending on expensive temp agency markups so more public funds support children and stable staff.
• Encourages direct hiring and workforce stability in a sector facing shortages.
• Protects workers by banning non‑competes and poaching, and by requiring training and liability insurance.
• Adds price controls (maximum hourly rates) and transparency (wage disclosure on invoices).
• Keeps flexibility for emergencies and local needs through exceptions and minister approvals.
• Improves oversight with reporting, inspections, fines, and a public list of non‑compliant agencies.

Opponents' View#

• Could worsen staffing shortages in the short term if centres cannot fill shifts without for‑profit agencies.
• Reduces flexibility for rural or hard‑to‑staff areas that rely on agencies or contractors.
• May limit work opportunities for independent contractors and reduce income for agency workers.
• Administrative rules and reporting add costs and paperwork for agencies and centres.
• Rate caps might cause agencies to exit the market or decline shifts, leading to service gaps.
• Broad ministerial discretion for exceptions could lead to uneven application across regions.