As of January 1, 2024, employers must annually assess the wages of their foreign workers based on Labour Market Impact Assessments (LMIA). This is to ensure that the remuneration aligns with any potential increases in prevailing wage rates, as determined by Employment and Social Development Canada (ESDC). These rates can be checked on ESDC’s Job Bank website in the wage reports section.

Employers need to complete their wage rate review by January 1st of the subsequent year following the Job Bank wage update – this means that every November/December, employers must review the prevailing wage rate for each job held by a foreign worker, confirming that the wage paid to employees listed on the relevant LMIA approval is equal to or exceeds the current prevailing wage rate. Some aspects of this review process remain unclear, but additional guidance from ESDC is anticipated later this month.

ESDC has also introduced other modifications to the Temporary Foreign Worker Program (TFWP), including a reduction in LMIA approval validity from 18 to 12 months. Until August 30, 2024, employers can hire up to 30% of their workforce through TFWP in sectors with proven labor shortages in low-wage positions. For Agricultural Stream LMIA employers, the temporary public policy exempting them from recruitment requirements is scheduled to conclude on June 30, 2024.

We will continue to keep you updated on any relevant HR developments in your workplace. In the meantime, please feel free to contact us if you need any information about these, or other HR matters.