Generally speaking, employers hiring foreign workers in Canada must pay such foreign workers at least the ‘prevailing wage’ for that occupation in that location. These prevailing wage figures are set by the Canadian government, and specifically Employment and Social Development Canada and the Canadian Job Bank. (Prevailing wages by occupation and location can be determined at https://www.jobbank.gc.ca/explorecareers?select=ec-wages. Each occupation has a high, low, and median wage – and it is the median wage which is taken as the prevailing wage.)
Recently, and as it does from time to time, the Canadian government updated its prevailing wage information. Employers must therefore make sure they are checking for current prevailing wage figures before lodging a Labour Market Impact Assessment (LMIA) application or otherwise hiring a foreign worker subject to prevailing wage guidelines. Moreover, if an employer is currently recruiting in the expectation of lodging a possible LMIA application, and using a now obsolete wage, the employer may need to recommence recruitment to reflect the newer prevailing wage. Further still, employers already employing foreign workers may need to ensure that foreign worker salaries are brought in line to match the new prevailing wage guidelines.
Compliance with immigration-related guidelines (including, for example, prevailing wage in ongoing hire/rehire situations) is an ongoing matter, and must be monitored throughout the life of a foreign worker matter – from inception of advertizing through conclusion of employment (and records to verify compliance must be kept for six years).
Employers employing, or set to employ, foreign workers in Canada should consider the issues above vis-à-vis any relevant situation that may be impacted.
The information in this article is for general purposes only, and not intended as legal advice for any particular situation.