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IMPACT – MEDIUM
What is the change? The new labor market opinion application form requires employers to give authorities the power to perform on-site spot checks of an employer’s documents to ensure compliance with wages and working conditions.
What does the change mean? In anticipation of a spot check by inspectors, employers should review their documents, including payroll records, and make sure they are in compliance with the conditions and requirements of all labor market approvals.
Background: The change, which appears on the new Labor Market Opinion application form released in December 2013, is based on new regulations. The application requires an employer to sign a statement agreeing to be subject to inspection at any workplace location, and that the employer will cooperate with such an on-site inspection.
While employers have been subject to paper audits, this change gives inspectors explicit authority to visit worksites, inspect an employers’ files and request information. Inspections would be conducted by Employment and Social Development Canada (ESDC). An employer would normally get 48 hours of notice before a visit, but inspectors may visit without notice if they believe notice would prejudice the inspection.
BAL Analysis: So far, there is no evidence of an increase in on-site inspections. However, the change puts employers on notice of potential spot reviews of compliance with LMO conditions, and they are encouraged to conduct internal reviews to make sure their documentation and working conditions of all LMO employees complies with labor market opinion requirements.
This alert has been provided by the BAL Global Practice group and our network provider located in Canada. For additional information, please contact GlobalVisaGroup@bal.com.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
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