Salary review and requirement updates: Changes for employers and foreign workers in Canada
Employment and Social Development Canada's Minister of Employment and Social Development, Randy Boissonneau, discussed the new requirements and programs for foreign workers seeking work visas in Canada. The program has been updated to better align with market conditions and adapt to changes in the country's economy.
Starting from January 1, 2024, employers will be required to annually review the salaries of temporary foreign workers and adjust them in accordance with the growth of prevailing wage rates for the specific profession and location in Canada, as reported by newsnowgh.com.
If there are no suitable Canadians or permanent residents available, the Temporary Foreign Worker Program in Canada allows companies to temporarily hire foreign workers.
Through regular salary adjustments, these evaluations will ensure that employers pay temporary foreign workers at the current rate for the duration of their employment.
Additionally, the Canadian government has announced that other measures will be extended and implemented until August 30, 2024. These measures will be reviewed in light of future changes in the economy and labor market.
This includes maintaining the provision that allows employers to operate in seven designated sectors: accommodation and food services, construction, wood products and related products, food production, housing, and long-term care facilities.
Employers can hire a maximum of 30% foreign labor for low-paid jobs. Furthermore, the amendments provide for the retention of a maximum employment period of two years for jobs paying less than the average hourly wage in the province or territory.
To better reflect the labor market, the maximum validity period for labor market impact assessments has been reduced from 18 months to 12 months.
By streamlining business processes, the Recognized Employer Pilot (REP) will protect temporary foreigners, reduce the administrative burden on companies previously compliant with the program's requirements, and improve their ability to respond to labor shortages.