The New Temp Workers Law Passes

The Ontario government’s new law designed to give greater protections to ‘temp’ workers passed yesterday on a vote of 54 to 13, with all of the Conservative MPPs voting against the law.  Here is the Government’s summary of the law, and here is the actual Bill 139 (Employment Standards Amendment Act (Temporary Help Agencies).   I need to study this law more closely to sort out all of its ramifications.  However, some of the labour law firms have done a good job already.  For example, here is the summary done by Amanda Hunter of Hicks Morley.
The new law introduces some significant changes to the way in which temp workers must be treated. Among other things, the law prohibits the temp agencies from charging the temp workers fees for services such as job placement and resume writing.   It also clarifies that the temp agency is the ’employer’ of the temp worker.  In the past, there have been cases in which both the temp agency and the business to which the worker was assigned argue that they are not the workers’ employer.  And it entitles temp workers to notice of termination and holiday pay like most other workers in the province in certain defined situations.
However, within the business community, especially (and not surprisingly) within the temp industry, there was strong opposition to the new law.  The main argument was that requiring temp agencies to pay the employment-related costs and banning the practice of charging a fee when temps are taken on full-time by the ‘client’ of the temp agency, will drive many temp agencies out of business.
Should the state care if employers go out of business because they can’t afford to pay the benefits required under the Employment Standards Act?  Or should the state take the position that, if you can’t meet minimum standards, then you should not be in business in this province?