

Hired a nanny through a licensed agency in Ontario. Now I’m being told I have to pay her cash because she doesn’t have a work permit under my name. Is this normal?
I hired a live-in nanny through a licensed Ontario agency and paid a substantial placement fee.
The nanny has already moved into my home.
A few days ago, I emailed the agency asking how best to set her up on payroll. The owner simply replied, “Ask your accountant.”
Today, after following up again, he told me that:
she is not yet sponsored;
she does not have a work permit under my name;
she cannot be paid through payroll; and
I have to pay her cash until the sponsorship process is completed.
The agency owner is now saying this was discussed from the beginning, but it absolutely was not. I’ve reviewed the service agreement and it only refers to sponsorship in conditional terms (e.g. “if sponsorship is required”). It does not say this nanny specifically required sponsorship before she could work for me.
For context, about two weeks ago I signed the standard Temporary Foreign Worker Program employer/employee contract as part of the paperwork, but I understood that to be part of the immigration process—not authorization for her to begin working.
My questions are:
Is it normal for a caregiver to move into an employer’s home and start working before obtaining an employer-specific work permit?
Should an agency disclose before placement that the caregiver cannot legally be put on payroll and that the employer will be expected to pay cash?
If you were in my position, would you continue with the placement or ask for a refund?
If anyone has experience with the caregiver sponsorship process or has run into this before, I’d appreciate your perspective.