In a recent announcement, effective January 1, 2024, the Canadian government has introduced significant changes to the Temporary Foreign Worker Program (TFWP). These changes, outlined by Employment and Social Development Canada (ESDC), aim to ensure fair wages for foreign workers and address labor shortages in certain sectors.
Annual Wage Rate Review Requirement
Starting in 2024, employers must conduct an annual review of wages for their Labour Market Impact Assessment (LMIA) based foreign worker employees. This review is crucial to align wages with any updates to prevailing wage rates set by ESDC. Prevailing wage rates, typically updated in November each year, can be accessed on ESDC’s Job Bank website.
Employers will need to complete their wage rate review by January 1 of the year following the Job Bank wage update. This means that, if an employer secures an LMIA approval for a specific wage rate, they may need to adjust their employees’ wages if the prevailing rate increases.
Other Key Changes to TFWP
ESDC has also introduced several additional changes to the TFWP:
- LMIA Approval Validity Period: The LMIA approval validity period will be reduced to 12 months from the previous 18-month period.
- Hiring Limits: Employers can continue to hire up to 30% of their workforce through the TFWP in sectors with demonstrated labor shortages in low-wage positions until August 30, 2024.
- Duration of Employment: Employers can hire workers for low-wage positions for up to two years until August 30, 2024.
Future Implications for Agricultural Stream LMIA Employers
A temporary public policy waiving recruitment requirements for Agricultural Stream LMIA employers is scheduled to end on June 30, 2024. After this date, new Agricultural Stream LMIA applications will need to meet recruitment requirements again.
ESDC will likely continue to review policies as Canada’s labor market and economic conditions evolve. Regular updates will be provided to ensure employers stay informed.
As we navigate these changes, it’s crucial for employers to stay proactive and informed about their responsibilities under the revised TFWP.
Settlement Services: A Vital Component for Employee Well-being
Relocating to a new country for work can be challenging for employees. Settlement services play a crucial role in facilitating a smooth transition, reducing stress, and improving mental health. At Directpath Canada, we understand the importance of comprehensive settlement services for both employers and employees.
Our commitment to excellence in Global Recruitment, Immigration, and Settlement Services has been recognized in the industry. We take pride in assisting individuals and businesses in navigating the complexities of international employment.
For more information on how Directpath Canada can support your global recruitment needs and enhance the settlement experience for your employees, visit our website or contact us today.
