Starting January 1, 2024, Canada has implemented significant changes to the Temporary Foreign Worker Program (TFWP), primarily focusing on ensuring fair wages for foreign nationals employed in the country. These changes include:
Annual Wage Review: Employers must annually review wages of their foreign worker employees to align with the prevailing wage rates, which is the median hourly wage for the same occupation and region in Canada.
Compliance with Prevailing Wage: It’s mandatory for employers to check and adjust wages every year, around January 1st, to meet or exceed the prevailing wage levels, based on the Labour Market Impact Assessment (LMIA).
Wage Determination Tools: Employers are advised to use the Government of Canada’s Job Bank Wage Search tool to determine the appropriate prevailing wage for their job and region. Job Bank Wage Search Tool
Documentation and Penalties: Maintaining records of wage reviews and payments is essential. Non-compliance may lead to penalties, including fines and potential denial of future LMIAs.
Additionally, the government is introducing other changes to the TFWP, such as:
- Allowing certain sectors to hire up to 30% of their workforce in low-wage positions through the TFWP.
- Setting a maximum work duration of two years for jobs paying less than the provincial or territorial median hourly wage.
- Reducing the maximum validity of the LMIA from 18 months to 12 months.
These measures aim to prevent wage suppression and ensure parity between temporary foreign workers and Canadian workers, while also reflecting current job market needs more accurately.
At NPZ Law Group, our U.S. and Canadian lawyers seek to assist clients with regard to employment and family immigration issues. If you or your friends or family should have any questions about any aspect of U.S. and Canadian Immigration Law, please feel free to contact us at info@visaserve.com or you can call our office at 201-670-0006 (ext. 104). We look forward to being able to assist you.