Farm labour contractors

Duties of a farm labour contractor

A farm labour contractor (FLC) must:

• Carry a farm labour contractor licence while carrying on licensed activities
• Display a copy of the licence on all vehicles used to transport employees
• Display wage rates at work sites and in vehicles used to transport employees
• Show the licence beforehand to everyone the FLC intends to do business with
• Immediately notify the Director of Employment Standards of any change in residential/business address
• Immediately notify the Director of any change in company directors or officers
• Provide the Director with registration numbers, licence numbers and copies of valid inspection certificates for each vehicle used to transport employees

A daily log must be kept at the work site and made available for inspection. This daily log must be retained for 2 years and include the following information in English:

• The name of each worker
• The name of the employer and work site location to which workers are supplied and the names of the workers who work on that work site on that day
• The dates worked by each worker
• The fruit, vegetable, berry or flower crop picked each day by each worker
• The volume or weight picked each day by each worker

A farm labour contractor who provides transportation to a job site for a farm worker and who does not provide employment for the worker must pay the worker at least the minimum hourly wage for the greater of 2 hours or the time spent transporting the worker from the departure point and returning to the departure point or to a place that is no further away, provided it is acceptable to the employee.

If employment is not available due to unsuitable weather conditions or for any other reason completely beyond the farm labour contractor’s control, the minimum daily pay requirements above do not apply.

Licensed farm labour contractors must pay wages directly to each employee’s bank account at least semi-monthly. Confirmation of deposits made to the bank accounts of individual employees must be provided to the Employment Standards Branch upon request or in accordance with a Demand for Employer Records.

You can download a one-page summary of farm labour contractor duties (PDF, 96KB) for your records.

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Records

Farm labour contractor records must be kept in English for 2 years after employment ends. Records may be inspected by the Agriculture Compliance Team.

If a farm labour contractor has employees, they must also keep payroll and employment records for each employee for 4 years.

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Farm labour contractors must pay farm workers

Workers must not be required to pay fees to get hired. Their wages must be deposited directly into their bank account on payday.

Wages being paid to farm workers must be displayed at each work site and in every vehicle used for transporting employees.

Travel pay: If a farm labour contractor transports farm workers to a job site and does not provide any work, they must be paid the greater of:

• The minimum hourly wage for 2 hours of work

OR

• The time spent travelling from the departure point and back to that place, or to an alternative place that is no further away and is acceptable to the employee

This does not apply if work is not available because of bad weather or other causes that are beyond the control of the farm labour contractor.

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Display the vehicle safety notice

The Vehicle Safety Notice (PDF, 44KB) must be displayed in all vehicles used to transport workers. It must be displayed where the driver and all passengers can see it.

You must complete and upload the Farm Labour Contractor Examination (PDF 287.6KB) with your application. Your exam is marked once you submit your completed application package. You need 80% to pass. You can rewrite it if you don't pass.

The exam is based on requirements for farm labour contractors in the Employment Standards Act and Regulation:

• Duties of a farm labour contractor
• Farm labour contractors must be licensed
• Licensing of farm labour contractors
• Additional duties of farm labour contractors – posting safety notices in vehicles
• Administrative fee – transportation costs
• If there is a change of directors or officers
• Exclusions from payment options (pay workers by direct deposit)
• Exclusions from Farm Labour Contractor Licensing Requirements

Electronic funds transfer setup with your financial institution: Farm worker wages must be deposited directly into their bank account on payday. Request a letter from your bank or credit union that confirms you have obtained their services to direct deposit wages for your workers. The letter must include the name and branch address of the bank or credit union.

WorkSafeBC: Provide your WorkSafeBC number and a clearance letter that states your account is active and in good standing.

• WorkSafeBC: Clearance letter application

Motor vehicle inspections: Provide inspection reports for vehicles used to transport workers from the Commercial Vehicle Safety and Enforcement Vehicle Inspections & Standards Program. If you license other vehicles later, send inspection reports immediately to any Employment Standards Branch office.

Financial security

Request a financial security in the form of an irrevocable letter of credit from your financial institution. You must provide the original letter, faxes or copies are not accepted. The financial security is retained for up to 12 months after the farm labour contractor’s licence expires. The financial security may be returned prior to the 12-month period if:

• There are no outstanding complaints against the farm labour contractor
  
  AND
   
• No complaints are received against the farm labour contractor within the statutory complaint period of 6 months after their licence expires

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Calculate the amount of your financial security

Multiply minimum wage by 80 hours. Multiply the result by the number of employees included in the licence.

Here's an example for minimum wage beginning on June 1, 2024:

$17.40 (min. wage) x 80 hours = $1,392.00 x 25 employees = $34,800.00

Request a financial security from your financial institution. Write a letter to your financial institution (PDF, 123.6KB) to request an irrevocable letter of credit (ILOC) payable to the Minister of Finance. This step can take up to 3 weeks. Make sure that the letter of credit includes:

• An expiry date that is 12 months after your licence would expire
• An automatic renewal clause
• The farm labour contractor's legal name (e.g. Smith’s Farms Ltd. or John Smith operating as Smith Farms)

The financial security is reduced when you renew your licence, if you have complied with the core requirements of the Employment Standards Act:

• Farm labour contractors must be licensed
• Minimum wage
• Paydays
• Payroll records
• Vacation pay

The number of years operating in compliance determines the reduced financial security amount.

• 1 year to less than 2 years: Multiply minimum wage by 60 hours to calculate the financial security
• 2 years to less than 3 years: Multiply minimum wage by 40 hours to calculate the financial security
• 3 years or more: Multiply minimum wage by 20 hours to calculate the financial security

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Pay the financial security

The financial security cannot be paid by credit card. Payment types include ILOC, cheque or money order. You can mail your financial security to:

Employment Standards Branch
PO Box 9570 Stn Prov Govt
Victoria, BC  V8W 9K1

If sending by courier (or if a signature is required for delivery):

​Employment Standards Branch
200-880 Douglas Street
Victoria, BC  V8W 2B7

You can apply online now and send your financial security later. Your application will be processed once the security is received.

Renewal applications may require a new calculation.

Make sure that all information is accurate. Some details from your application form will be made available online so that producers can contact you. You must provide a physical address and a business phone number where you can be contacted at all times. Include a PO box number if you have one.

If this is your first application, you can only request a 1-year licence.

If your licence was suspended or cancelled, you can only request a 1-year licence. Licence fees are not refunded if a licence is cancelled.

You must pay a $150 non-refundable application fee for a farm labour contractor application.

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Each application package is reviewed and assessed to make sure that a contractor will operate in the best interests of workers and producers. This process can take several weeks.

If your application package is complete, someone will contact you to schedule an interview.

If your licence is not approved, someone will contact you by phone (and follow up with a letter) to let you know the reasons why your licence was not approved. Your financial security will be refunded. Applicants who previously had their licence cancelled may be refused another licence.

Farm Labour Contractors (FLCs) must comply with the Employment Standards Act and Regulation.

Specific licensing rules include:

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Licences can be cancelled or suspended and an FLC could be fined for:

• Making a false or misleading statement in an application for a licence
• Breaching a condition of the licence
• Contravening the Employment Standards Act or Regulation
• Failing to comply with the Motor Vehicle Act, Workers Compensation Act, or Occupational Health and Safety Regulation
• Being ordered to remove a vehicle from service while it's being used to transport workers

If your licence is suspended, it can be reinstated once you are in compliance again. If your licence has been cancelled, you need to reapply.

The Employment Standards Branch investigates all complaints about FLCs. If a complaint is received about your company, someone will contact you to get more information and try to resolve the complaint. If it is determined that you owe a worker money, the Director of Employment Standards may initiate collection to recover funds.

You should submit your farm labour contractor renewal application at least 30 days before your licence expires. If not, you could get fined for operating without a licence. The Branch does not issue reminders when a licence is set to expire.

You can complete the farm labour contractor licence application online to reduce processing time and pay using a credit card (Visa, MasterCard or American Express). Note: Debit cards (such as Interac or Visa Debit) cannot be used to pay the application fee.

Renewal applications may require a new calculation.