Canada has introduced new wage requirements for employers hiring through the Temporary Foreign Worker Program (TFWP). Effective from January 1, 2024, employers must comply with updated wage standards to meet Labour Market Impact Assessments (LMIA) requirements. This change mandates employers to adjust the wages of temporary foreign workers to reflect the prevailing wage at the start and throughout their employment period.
Most Canadian employers require an LMIA, which verifies the necessity for a temporary foreign worker and confirms the absence of available Canadian or permanent resident candidates for the job. However, certain job categories are exempt from the LMIA requirement. These exemptions include jobs under international trade accords, federal-provincial/territorial government agreements, and positions deemed in Canada's best interests. The list of exemptions and corresponding codes was last updated on December 15, 2022.
The Job Bank, a national database, acknowledges regional wage variations across Canada. For instance, the median hourly wage for a truck driver (National Occupation Code - NOC 73300) is $34.25 in some regions of British Columbia, but only $19.23 in parts of New Brunswick. Nationally, the median hourly wage for this occupation is $25. Other examples include a registered nurse (NOC 31301) with a median hourly wage of $40.39, a software engineer (NOC 21231) at $51.64, and a cook (NOC 63200) typically earning $16 per hour.
Canada's ongoing labor shortages have intensified the need to attract foreign workers to bolster the economy. The Canadian Federation of Independent Business (CFIB) estimates that labor shortages have led to a potential loss of up to $38 billion in contracts and sales for Canadian businesses. The CFIB's report, "Small Businesses in Canada Hit Hard: The Big Financial Toll of Labour Shortages," highlights the severe impact of worker scarcity on businesses and warns of potential future exacerbations.
The Forum of Ministers Responsible for Immigration (FMRI) acknowledges the critical role of immigration in addressing labor shortages, attracting new investments, and supporting economic growth. Provinces and territories are instrumental in ensuring immigration meets employers' labor needs and benefits all regions. Efforts are also being made to improve foreign qualification recognition, allowing newcomers to work in fields matching their skills and experience.
In Canada, the rights of temporary foreign workers are legally protected, affording them the same rights and protections as Canadians and permanent residents. Employers are obligated to:
Employers are prohibited from:
These new wage requirements and protections are part of Canada's commitment to ensuring fair treatment and adequate compensation for temporary foreign workers, vital to the nation's economic growth and labor market stability.
Prepared on the information from immigration.ca