Canada | New wage requirements under the Temporary Foreign Worker Program

Government officials announced a new wage review process for the Temporary Foreign Worker Program that will be in place until Aug. 30, 2024.

‌Key Points:

• The TFW Program Workforce Solutions Road Map was introduced to help Canadian employers fill job vacancies due to labor shortages.
• The government confirmed that, as of Jan. 1, 2024, employers will have to annually review temporary foreign workers’ wages to ensure they reflect increases to prevailing wage rates for their given occupation and region of work.
• The reviews are designed to ensure that employers continue to pay temporary foreign workers at the prevailing wage throughout employment.

BAL Analysis: The new wage review process is designed to help employers respond to current labor market needs and support workers by addressing concerns of wage suppression. Employers may see an increase in labor costs and should take the new wage requirements into account when planning their 2024 budgets.

This alert has been provided by the BAL Global Practice Group.

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