Annual salary review for the TFWP: new standard 2024
January 1, 2024, marks a new milestone for the Temporary Foreign Worker Program (TFWP) in Canada. Following the announcement on October 26, 2023, by Employment and Social
Development Canada, the requirement for periodic salary reviews has come into effect. This measure, part of the action plan for employers and the workforce of the Temporary Foreign
Workers Program (TFWP), aims to ensure fair remuneration for foreign workers throughout their employment period.
Salary review requirements
Employers must apply the current salary from the start of a temporary foreign worker’s employment period for any Labour Market Impact Assessment (LMIA) application submitted
from January 1, 2024. This salary must be reviewed annually, no later than January 1, to align with the prevailing wage for the occupation and region.
Employment period and reviews
The salary update is mandatory for the entire duration of the contract, which can extend up to three years. It is crucial to note that the current salary may vary from the initial salary indicated in the approved LMIA, especially if the employment period exceeds 12 months.
Resources and salary updates
Employers must refer to the wage rates on the Job Bank, updated annually, usually in November. For jobs in Quebec, the ”Guide to Salary Rates by Profession” is the main reference, except in cases of collective agreements or decrees.
Compliance and sanctions
Employers not meeting these new requirements face severe penalties. These penalties, defined by the compliance regime of the TFWP, can include fines and a ban from using the program.
This new measure reflects Canada’s commitment to protecting foreign workers and ensuring they receive fair and equitable remuneration. Employers must remain vigilant and quickly adapt to this new standard to avoid penalties and maintain a competent and satisfied foreign workforce.
