Recognized Employer Pilot Update: Canada Expands Recognized Employer Pilot Program

Jan 12, 2024 | Blog, Canadian Employers, Immigration, In the News, New Immigration Programs, New Laws, Skilled Workers, Temporary Foreign Workers, Working In Canada

Phase 2 of the Recognized Employer Pilot Program (REP) is now open, offering faster and more streamlined processes for hiring temporary foreign workers (TFWs) in crucial roles.

What is the REP?

The Recognized Employer Pilot program, launched last September, offers a new approach to how Canadian employers can engage temporary foreign workers. Initially targeting the agriculture sector, the program will later extend to all industries in January, 2024. Eligible employers with a strong history of compliance with program requirements will receive a three-year permit to bring in foreign workers without the need for frequent reapplications.

The REP is a pilot program designed to reward employers with a proven track record of compliance with the Temporary Foreign Worker Program (TFWP). Qualifying businesses benefit from:

• Longer LMIA validity: LMIAs (Labour Market Impact Assessments) typically expire after 18 months. REP-eligible employers receive LMIAs valid for up to 36 months, reducing administrative burdens and facilitating long-term workforce planning.
• Simplified future applications: Once accepted into the REP, employers enjoy streamlined LMIA applications for future positions on the designated “in-shortage” list. This saves valuable time and resources.
• Enhanced visibility: Participating businesses receive a Job Bank designation highlighting their REP status, attracting qualified TFW candidates.

Expanded occupations in Phase 2

Effective January 2024, phase 2 of Canada’s REP opens access to critical talent marking a significant expansion compared to its initial focus on agriculture. Over 80 in-demand occupations across various sectors, from tech and healthcare to construction and manufacturing, are now eligible for REP, opening doors for a wider range of Canadian businesses. This broader scope aligns with the country’s diverse economic needs and creates more opportunities for skilled foreign talent to contribute to Canada’s growth.

Phase 2 occupations list

Source: www.canada.ca

TFW Wages

When hiring TFWs in Canada, understanding wage requirements is essential to avoid complications and comply with the Temporary Foreign Worker Program (TFWP).

Under the Recognized Employer Pilot (REP) program, you must pay the prevailing wage, which is the highest of two options:

1. Regional median hourly wage on Job Bank: This is a helpful resource to see what other employers are paying for similar positions.
2. Wage within your current employee range: If you have existing employees doing the same job, ensure the TFW wage falls within the range you pay them.

For jobs in primary agriculture, including programs like the Seasonal Agricultural Worker Program, different rules apply. Wages must meet or exceed the rates outlined in the National Commodities List (NCL) wage tables, or applicable minimum wage rates, whichever is higher.

Job Bank: Your Wage Look-Up Tool

Finding the median wage on Job Bank is easy:

1. Visit “Compare wages on Job Bank.”
2. Enter the job title or National Occupational Classification (NOC) code that best describes the position.
3. The hourly median wage will be listed in the middle column, by community or area.

Additional Factors and Exceptions

Remember, if the TFW position requires more skills or experience than the typical NOC description, the wage should reflect that. Overtime, tips, and other forms of compensation don’t count towards the guaranteed wage used for assessment.

Hiring TFWs for unionized positions comes with specific obligations. You must offer the same wage rates and forms of compensation outlined in the collective agreement.

Certain industries have established, specific wage rates considered prevailing. Visit “Variations to the wage requirements” for details. Offering a wage below the prevailing rate can result in a negative Labour Market Impact Assessment (LMIA).

Wage Reviews: Staying Up-to-Date

For LMIA applications submitted after January 1, 2024, wage reviews are mandatory. This ensures TFWs receive the prevailing wage throughout their employment period, regardless of the initial LMIA wage. Review and update wages annually based on updated Job Bank information (by January 1st of the following year).

Failing to update wages according to the prevailing rate can lead to sanctions, including fines and even bans from the TFW Program. Remember, fair treatment extends beyond wages. TFWs are entitled to the same rights and protections as all Canadian workers. Ensure you:

• Pay them for all work (including overtime)
• Provide workplace safety insurance
• Offer the same benefits as other workers
• Respect their identification and documents

Quebec: A Different Wage Table

If you’re hiring TFWs in Quebec, consult the wage table provided by the Ministère de l’Immigration, de la Francisation et de l’Intégration (MIFI).

Seek Help: Navigating the Rules

Most provincial and territorial labor ministries provide information and resources for employers and TFWs. If you’re unsure about any aspect of TFW employment, don’t hesitate to reach out for guidance.

By following these guidelines and prioritizing fair treatment, you can ensure a positive and productive experience for both your business and your temporary foreign workers.

Conclusion: Staying Informed and Taking Action

For employers interested in REP, staying updated on eligible occupations and program details is crucial. Remember, responsible TFW practices remain the cornerstone of the program. By leveraging REP’s benefits and adhering to its ethical framework, Canadian businesses can unlock a wider talent pool and contribute to a thriving national workforce.

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