Termination of Registered Employees
Brokerages must keep the Registrar informed of all changes to employees by completing a Notice of Employee Change form and submitting it to the Registrar whenever an employee leaves employment with the brokerage.
Registered employees include employed brokers and salespersons whether by employment contract, written or oral, or any other contract, including an independent contractor contract or agreement.
Brokerages must also provide the Registrar with copies of relevant termination letters. Sec. 33(2) of Regulation 567/05 (GEN) made under the Real Estate and Business Brokers Act, 2002 (the “Act”) requires a brokerage that initiates termination of the employment of a broker or salesperson to give the broker or salesperson written notice of the termination including the date the termination takes effect. Brokerages must forward a copy of the written termination to the Registrar’s office within 5 days of the effective termination date along with the Notice of Employee Change form.
Brokers and salespersons who initiate termination of their employment with a brokerage are also required by Sec. 33(1) of Ontario Regulation 567/05 (GEN) to give their brokerage written notice of termination including the date the termination take effect. Brokerages must then forward a copy of the broker or salesperson termination letter along with Notice of Employee Change form to the Registrar’s office within five days.
Frequently a terminated registered employee is not notified of his/her termination in a formal written manner. Some of the problems this lack of notice may cause are as follows:
- Former registered employees may miss the opportunity to transfer employment within the 60-day period set out in Sec. 10(2) of Ontario Regulation 567/05 (GEN) without paying additional fees to RECO.
- Former registered employees may inadvertently misrepresent their status to consumers.
- Former registered employees may experience problems with their local real estate boards, if they are members.
- Former registered employees may exceed the time limits set out in the Act for reinstatement of their registration and they will have to complete requalifying educational courses prior to registration. This not only affects the former registered employee but may put the former brokerage at risk of legal action by the former registered employee.
- Former registered employees may also be prohibited from claiming lawful benefits under federal or provincial statutes or from receiving the benefit of life, disability or medical insurance coverage.
The Registrar’s office requires that when a brokerage forwards a copy of the written employee termination to the Registrar that the brokerage provide “proof” that the former employee received the termination. This requirement may be satisfied by using any form of delivery that provides proof of delivery with copies of the appropriate confirming documentation forwarded to the Registrar’s office.
IN ALL CASES BROKERAGES MUST RETURN TO THE REGISTRAR THE DUPLICATE ORIGINAL CERTIFICATE OF REGISTRATION RELATED TO THE EMPLOYEE THAT IS HELD BY THE BROKERAGE WHEN SUBMITTING THE EMPLOYEE’S NOTICE OF TERMINATION.
NOTICE OF CHANGES TO REGISTRAR SECTION 28 OF THE REAL ESTATE AND BUSINESS BROKERS ACT, 2002
28. (1) Every brokerage shall, within five days after the event, notify the registrar in writing of,
(c) the date of commencement or termination of the employment of every broker and salesperson
and, in the case of termination of employment of a broker or salesperson, the reason for the
(2) Every broker or salesperson shall, within five days after the event, notify the registrar in writing of,
(b) the commencement or termination of his or her employment by a brokerage and the date of the
commencement or termination.
NOTICE OF CHANGES
SECTION 33 OF ONTARIO REGULATION 567/05
33.(1) A broker or salesperson who initiates the termination of his or her employment with a brokerage
shall give the brokerage written notice of the termination, including the date the termination takes
effect, and shall forward a copy of the notice to the registrar within five days after the termination
(2) A brokerage that initiates the termination of the employment of a broker or salesperson shall give
the broker or salesperson written notice of the termination, including the date of the termination
takes effect, and shall forward a copy of the notice to the registrar within five days after the
termination takes effect.
RE‐EMPLOYMENT WITHIN SPECIFIED PERIOD
SECTION 10 OF ONTARIO REGULATION 567/05
10.(1) If a broker or salesperson ceases to be employed by a brokerage and, within the
period described in Subsection (2), is employed by that brokerage or another brokerage, the broker
or salesperson may, during that period, make an application for registration in a form that the
registrar has approved for use in those circumstances.
(2) The period referred to in Subsection (1) is the period that begins on the day the broker or
salesperson ceased to be employed and ends on the earlier of the following dates:
1. The date that is 60 days after the day the broker or salesperson ceased to be
2. The date that the previous registration of the broker or salesperson would have
expired if he or she had not ceased to be employed.