Why Employers Must Consider Wages When Sending Employees to Canada?

by | Oct 18, 2024

Wages in the Offer of Employment

When a Canadian employer is hiring a foreign national by submitting an offer of employment, they must include information about the wages the foreign worker will be paid. These wages need to match the median prevailing wage, meaning they should be similar to what others are paid for doing the same job in the same area as the foreign worker.

The Relevance of Detailed Wage Information

My name is Donovan Francis, and I’m a Canadian immigration lawyer at GOOSELAW™ Immigration. We help businesses with their employees’ work permits and save them from legal hassles. Here, I’ll explain why it’s important to include detailed wage information when hiring a foreign worker through a program that requires submitting an offer of employment.

Understanding the LMIA and LMIA Exemptions

In Canada, the general rule is that an employer must get the government’s approval before hiring a foreign national. This approval usually comes through a Labour Market Impact Assessment (LMIA). However, there are exceptions to this rule, called LMIA exemptions. If the job fits under one of these exemptions, the employer can skip the LMIA process and instead submit an offer of employment through the government’s online Employer Portal. The government reviews the offer, generates an “A” number, and the employer gives this number to the employee for their work permit application.

The Importance of Salary Information

The offer of employment must include various details, but salary is key. Employers must ensure that foreign workers are paid the median prevailing wage. This wage is set by the Canadian government through ESDC and depends on the worker’s duties and where they’ll work. For example, a software developer in Calgary, Alberta, will likely earn a different wage than one in Toronto, Ontario, because wages vary by location.

Why Wages Matter in Work Permit Applications

Wages are important because Canadian immigration authorities may review them in the future to ensure the employer followed the terms of the offer of employment. The government checks if the salary paid is the same or not less favorable than what was written in the offer. If the salary differs, they may think the worker’s job is different from what was first described.

Salary Discrepancies and Potential Issues

If the foreign worker gets promoted or their salary changes significantly, a new offer of employment may be needed. Wages allow the government to track if the employer is sticking to the agreed salary, which should match the median prevailing wage at the time the application was submitted.

Conclusion

In summary, Canadian employers hiring foreign nationals must carefully consider wage requirements when submitting an offer of employment. These wages must align with the median prevailing wage, and any discrepancies could lead to issues with the work permit process. By following the correct guidelines and providing accurate salary information, employers can avoid legal complications and ensure a smooth transition for their foreign workers into Canada.

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