REP – Recognized Employer Pilot

Canada has introduced the Recognized Employer Pilot (REP) as part of the Temporary Foreign Worker Program (TFWP).

Employers found eligible for the new pilot can benefit from a simplified Labour Market Impact Assessment (LMIA) process, longer validity periods for approved LMIAs, and various other benefits.

Overview

Effective from September 2023, the Recognized Employer Pilot (REP) simplifies the process of recruiting temporary workers for Canadian employers who:

• Regularly useTemporary Foreign Worker Program (TFWP)to fill roles in high demand fromthe REP job list.
• Meet leading standards for living and working conditions, including worker protections.

Employers recognised under this programme can benefit from validity periods of up to 36 months, and an application processLabour Market Impact Assessment (LMIA)simplified in order to recruit additional workers through the LMIA Online Portal. An exemption may be requested where applying through the LMIA Online Portal is not feasible.

The REP is designed with administrative efficiency in mind and aims to deliver:

• Faster and more reliable access to workers for employers.
• Stronger protection for workers.
• Greater flexibility for the Canadian workforce.

Occupations eligible for the REP

The REP comprises two phases. The phase in which an employer applies is determined by the position they wish to fill.

• Phase 1began in September 2023 and applies to five specific occupations.
• Phase 2began in January 2024 and expands the list of eligible occupations.

Employer eligibility requirements

When applying to the REP, the employer’s Labour Market Impact Assessment (LMIA) application is reviewed closely by Service Canada to determine whether they are eligible to take part in the REP.

An employer may be eligible for the REP if they:

• Have received at least three positive Labour Market Impact Assessment (LMIA) decisions in the past five years to hire temporary workers for roles on the REP occupation list.
• Have a record of meeting the highest standards for working conditions, living conditions and worker protection through their participation in the Temporary Foreign Worker Program (TFWP).
• Undertake to comply with the standard requirements of the Temporary Foreign Worker Program (TFWP).

Even where the eligibility requirements above are met, an employer may still be considered unsuitable for the REP if they:

• Have received negative Labour Market Impact Assessment (LMIA) decisions.
• Have been found non-compliant.
• Face serious allegations of endangering the health and safety of temporary workers.
• Have failed to meet their obligations in relation to inspections.
• Are affected by labour market changes bearing on the roles they wish to fill.

No additional information needs to be supplied when applying to the REP. When submitting a Labour Market Impact Assessment (LMIA) application, an employer may choose to apply to the REP at the same time. Eligibility is assessed on the basis of their previous relationship with the Temporary Foreign Worker Program (TFWP).

Eligible employers can benefit from a longer validity period for approved Labour Market Impact Assessments (LMIAs) — up to 36 months — and from access to a simplified Labour Market Impact Assessment (LMIA) process in future when recruiting further workers through the LMIA Online Portal. Where an application cannot be submitted through the online portal, an employer may also request an exemption.

Requirements for employers

Employers wishing to take part in the REP pilot must ensure that they meet all the requirements applying to participants in the Temporary Foreign Worker Program (TFWP).

Recruitment fees

Recruiting temporary workers can give rise to a range of costs and fees, including:

• Fees for engaging a third-party representative.
• Advertising costs.
• Costs a foreign national may incur in seeking and securing employment.
• Costs an employer may incur in obtaining guidance or assistance in appointing a foreign national.

As an employer, they are obliged to verify and ensure that neither they nor anyone recruiting on their behalf charges or recovers any recruitment fee, directly or indirectly, from a temporary worker. Failure to comply results in a negative Labour Market Impact Assessment (LMIA) decision.

Applications submitted with the assistance of a third-party representative must complete all the relevant sections of the application. Read more aboutusing a recruiter for the Temporary Foreign Worker Program (TFWP).

Business legitimacy

All employers wishing to take part in the REP pilot and the Temporary Foreign Worker Program (TFWP) must provide documentation andverify that their business and their job offer are genuine.

Recruitment and advertising

Before applying to the REP, employers must meet the advertising and recruitment criteria set out for the relevant stream of the Temporary Foreign Worker Program (TFWP) to which they are applying.

The protocol requires employers to give priority to hiring Canadian citizens and permanent residents before assigning work to a temporary foreign worker (TFW). They are also obliged to continue recruitment and advertising activities until the vacancies are filled. In addition, during the application they are required to set out in detail all the recruitment efforts undertaken.

Read more aboutadvertising requirementsand the individual streams of the Temporary Foreign Worker Program (TFWP).

Transition plan

A transition plan is a mandatory step when recruiting temporary workers for high-wage roles. The plan should run for the whole duration of the Temporary Foreign Worker Program (TFWP) employment and demonstrate the employer’s commitment to activities aimed at recruiting, retaining and training Canadian citizens and permanent residents, so as to reduce reliance on the Temporary Foreign Worker Program (TFWP) in future.

Employers who have not previously prepared a transition plan must include one as set out in the relevant section of the high-wage Labour Market Impact Assessment (LMIA) application form.

Labour Market Impact Assessment (LMIA) applicants who have previously submitted a transition plan for the same position and work location must provide an update on the outcome of the commitments in the earlier plan. This information is used to determine whether the stated activities were in fact carried out.

There are alsoadvertising exemptions for certain positions.

The cap on low-wage workers

Since 30 April 2022, all employers recruiting for low-wage positions have been subject to a cap of 20% on the number of temporary workers they may employ at a given work location. The restriction is in place to ensure that employment opportunities are offered first to Canadian citizens or permanent residents.

Some of thespecified occupationsalso qualify for a 30% cap on low-wage workers at a given location.

Finally, there are alsoexemptionsfrom the low-wage worker cap for certain occupations and industries.

Health insurance

In the relevant provinces and territories, private health insurance covering emergency medical care must be purchased and paid for by the employer for any period within the work permit’s validity during which the temporary foreign worker (TFW) is not covered by the relevant provincial or territorial health insurance system.

In addition, employment contracts for seasonal agricultural workers in Canada require the provision of private health insurance covering emergency medical care for any period during which the temporary foreign worker (TFW) is not covered by the applicable provincial or territorial health insurance system.

The insurance purchased by the employer must be in place from the temporary foreign worker’s (TFW) first day of work in Canada, and these costs may not be recovered from the temporary worker.

Read more aboutemployers’ healthcare obligationsunder the Temporary Foreign Worker Program (TFWP).

Workplace safety

Like all other workers in Canada, temporary workers have the right to work in a safe environment free from harassment of any kind.

It is essential that employers provide the temporary workers they wish to recruit under the Temporary Foreign Worker Program (TFWP) with cover through the provincial or territorial workplace safety insurance provider, as required by law. Where provincial or territorial law allows an employer to choose a private insurance plan, remember to:

• Ensure that the private plan chosen provides compensation equal to or better than that provided by the province or territory; and
• Confirm that every worker at the workplace is covered by the same insurance provider.

To enquire about the equivalence of a private insurance plan, contact the relevant provincial or territorial workplace safety authority.

The insurance purchased by the employer must reflect the first day the temporary foreign worker (TFW) starts work in Canada, and these costs may not be recovered from the temporary worker.

Employers handling pesticides or potentially harmful chemicals must comply with provincial and territorial regulations. They must inform their workers about the use of these substances and provide workers with:

• Protective equipment free of charge;
• The relevant formal and informal training; and
• The supervision required by law.

Employment contract

Although a copy of the employment contract does not have to be submitted at the time of the Labour Market Impact Assessment (LMIA) application, the employer must undertake to provide each temporary foreign worker (TFW) with a fully completed and signed employment contract on or before their first day of work with the employer. The employment contract must:

• Set out the same occupation, the same wage and the same working conditions as those stated in the job offer;
• Be written in English or French according to the temporary foreign worker’s (TFW) preference; and
• Be signed by both the temporary foreign worker (TFW) and the employer.

Employers may create and use their own employment contract provided it contains all the required details. The employment contract template for primary agriculture may also be used.

Employers are required to keep comprehensive employment records that fully demonstrate compliance with the employment contract throughout the entire period of employment.

Additional employment contract rules apply to workers under the sub-streamSeasonal Agricultural Worker Pilotof the Temporary Foreign Worker Program (TFWP).

Housing inspection/Language of work/Unionised positions/Document retention

In addition to these requirements, employers taking part in the REP pilot must also meet worker-specific conditions such as:

• Language of work
• Housing quality (if they are agricultural workers)
• Unionised occupations
• Document retention

Read more aboutthe conditions and requirements of the programme,

Inspections and reviews

Under the conditions listed above, recognised employers taking part in the REP agree to:

• Take part in the existing inspection system and in random REP verification visits to ensure compliance with both Temporary Foreign Worker Program (TFWP) and REP guidelines.
• Ensure that the temporary foreign worker receives the prevailing wage posted for the occupation and the work location where the temporary foreign worker (TFW) is employed, on an annual basis.
• Continue to make reasonable efforts to hire Canadian citizens or permanent residents, with ongoing recruitment activity through sources of their choosing until all vacancies are filled.
• Where applicable, carry out the mandatory inspections of employer-provided accommodation before the temporary foreign workers arrive each season. Compliance with all provincial, territorial or municipal laws on housing standards is mandatory.

Employer compliance rules

Note that if an employer taking part in the Temporary Foreign Worker Program (TFWP) is found not to comply with any of the programme standards, they may face consequences including but not limited to:

• A 2-year ban from the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP).
• Having their name and business address published on the Immigration, Refugees and Citizenship Canada (IRCC) page listingemployers found to be non-compliant.
• Receiving a negative decision on any Labour Market Impact Assessment (LMIA) still in process.
• Having any Labour Market Impact Assessment (LMIA) already issued suspended or revoked.

Read more aboutTFWP employer compliance rules.

Processing fee

Each position applied for under the REP carries a mandatory processing fee of $1,000 CAD to cover the cost of processing the employer’s application.

The processing fee is non-refundable if the employer withdraws the application, if the application is cancelled, or if the application receives a negative assessment. A refund is issued only where the fee was collected in error.

Temporary foreign workers may not pay, or be asked to reimburse, the processing fee.

The Labour Market Impact Assessment (LMIA) processing fee does not apply to jobs:

• In primary agriculture.
• Jobs falling under codesNational Occupational Classification (NOC)80020, 80021, 82030, 82031, 84120, 85100, 85101 and 85103.