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CANADA – Employers to review and adjust wages under Temporary Foreign Worker Program
December 19, 2023
The Canadian government is aiding employers during economic shifts by extending the Temporary Foreign Worker (TFW) Program Workforce Solutions Road Map until August 30, 2024. This plan allows certain sectors facing labor shortages to hire up to 30% of their workforce through the TFW Program at wages under the provincial median. Measures include maintaining two-year employment duration and adjusting Labour Market Impact Assessment (LMIA) validity from 18 to 12 months to match market needs. Starting January 1, 2024, employers must annually review wages of foreign workers to align with prevailing rates, ensuring fair compensation. These adjustments aim to meet labor needs while prioritizing Canadian jobs and wages, with continuous monitoring for economic changes and worker protection.
Job Bank wages are updated every year in the fall. The 2023 update took place on November 29, 2023.
In addition, it should be noted that the review of wages, occupation, and working conditions for previous temporary workers is an essential part of processing LMIA-exempt work permit applications under the International Mobility Program. Officers ensure that the employer’s provisions align with what was offered to past workers, a process involving scrutiny during and post-permit issuance, aiming to guarantee consistency and fairness. System improvements enable officers to link applications to organizations for comprehensive assessments and, if concerns arise, these can be referred to the Case Management Branch for investigation without hindering the processing.
Within a six-year window, officers verify if the current employer provided similar occupation, wages (not lower but substantially the same), and working conditions to past temporary workers. Any discrepancies, like wage increases affecting LMIA exemptions or changes in duties without proper documentation, can signal non-compliance. Additionally, working conditions encompass various aspects beyond wages, incorporating statutory benefits and territorial legislation adherence, crucial for ensuring employer compliance within the International Mobility Program.
As always, don’t hesitate to reach out to your Newland Chase dedicated contact or submit an inquiry here should you have any specific questions regarding this announcement.
This immigration update is for informational purposes only and is not a substitute for legal or scenario-specific advice. Furthermore, it is important to note that immigration announcements are subject to sudden and unexpected changes. Readers are encouraged to reach out to Newland Chase for any case- or company-specific assessments.
