February 14, 2024
Changes for all new LMIA applications now in effect
Employment and Social Development Canada (ESDC) is reminding employers who utilize the Temporary Foreign Worker Program (TFWP) about recent changes that came into effect on Jan. 1, 2024. The changes apply to all new Labour Market Impact Assessment (LMIA) applications submitted on or after this date.
Under the changes, employers are now required to apply the prevailing wage at the beginning of a temporary foreign worker’s period of employment, revising the wage annually, no later than January 1 of the following year, ensuring that it is not lower than the prevailing wage for the occupation and region where these workers are employed. This update must be carried out throughout the work period, which can last up to three years, depending on the program stream. As a result, it is possible that the applicable prevailing wage may be different from the wage indicated on the approved LMIA.
Job Bank wage rates are typically updated in November of each year. Employers will be notified of this update and the need to comply with this new requirement by the following January.
Employers who fail to update wages accordingly may be subject to sanctions under the TFW Program’s employer compliance regime including administrative monetary penalties and bans from using the program.
Employers are encouraged to share this communication throughout your respective networks and with any colleagues or peers who may need to be aware of this information. Please note that this information will soon be available on the TFW Program website.
If you have questions on the TFW Program, please visit Canada.ca or communicate with the Employer Contact Centre.