Canada Work Permit: Temporary Foreign Workers (What Are The Rules?)
When a Canadian employer supports a foreign worker’s work permit application, it must report the wages it will pay.
Before starting the application, the employer should check the criteria of the immigration program, including wage criteria.
In both immigration application processing and government compliance inspections, the wages paid to temporary foreign workers are crucial.
General Rules
When an employer supports a temporary foreign worker’s work permit application, it must ensure the wages meet government requirements.
The employer must determine the worker’s base pay based on the hourly rate that will appear on their pay stubs. Wages must be clear and quantifiable.
Basic wages do not include:
- Tips
- Commissions
- Overtime
- Bonuses
- Benefits
- Profit-sharing
- Other compensation
Unionized Positions
If the position is unionized, the employer must ensure the worker is paid according to the collective agreement.
The goal is to ensure the worker is not at a disadvantage compared to Canadian workers in similar positions.
The wages should align with the pay scale in the collective agreement, even if the immigration program has its own rules. Authorities may require a copy of the collective agreement during application processing.
Temporary Foreign Worker Program (TFWP)
In the TFWP, wage requirements depend on the job location.
Hiring Anywhere in Canada Except Quebec
Wages for jobs outside Quebec are determined using the wage comparison tool on the Job Bank website.
This tool uses the National Occupational Classification (NOC) code for the position. Employers can compare wages paid to Canadian workers for the same occupation in the region.
Employers must pay at least the hourly median rate listed for the occupation and region.
If the tool does not specify the hourly median rate for the region, employers refer to the hourly median rate for the province or the national hourly median wage.
Hiring in Quebec
Wage requirements for jobs in Quebec are determined by Emploi Québec’s Guide des salaires, based on Statistics Canada data.
The Guide des salaires provides wage details for each occupation listed in the NOC.
Employers must check wage requirements based on years of experience needed for the position:
| Years of Experience | Minimum Wage Requirement |
|---|---|
| 0 to less than 2 | First quartile |
| More than 2 to less than 9 | Second quartile |
| Over 9 | Third quartile |
Employers determine the experience required, even if the worker has more experience.
New Requirement for Annual Reviews
From January 1, 2024, employers must review wages paid to temporary foreign workers at least once a year.
Employers must ensure workers are paid wages in line with the Guide des salaires or the hourly median rate on the Job Bank website, depending on the job location.
Positions covered by a collective agreement are the exception; the collective agreement determines the wages.
International Mobility Program (IMP)
In the IMP, wages are also determined using the wage comparison tool on the Job Bank website.
Employers must pay at least the hourly median rate specified for the occupation and region, including Quebec.
Compliance Inspections and Changes to Working Conditions
If a temporary foreign worker gets a work permit under the TFWP or IMP, the employer may be subject to compliance inspections.
During inspections, authorities will check the wages paid to the worker. They may request copies of pay stubs.
Employers must ensure wages align with amounts specified in immigration applications and carry out annual wage reviews as required.
Best Practices for Human Resources Professionals
HR professionals should keep an updated table of current employees, including:
- Status expiry date
- Position held
- NOC code
- Wage reported in the application
- Current wage
Employers should meet with managers to review wages using the tools mentioned.
HR professionals should communicate the impact of changes in employment terms to ensure compliance and maintain worker status.
The content of this article is intended as a general guide. Seek specialist advice for specific circumstances.
