By Attorney Henry Moyal
CHANGES TO THE LIVE IN CAREGIVER PROGRAM EFFECTIVE APRIL 1, 2010…..WILL IT EXTINGUISH NANNY AGENCIES?
The Federal Minister vowed to change the course of business for those who prey on vulnerable people who wish to come to Canada. The minister’s strategy is to go after immigration consultants (and perhaps will ban them entirely if we are lucky) and to change the live in caregiver program so workers are not overworked and employers are held accountable. This week, Minister Jason Kenney announced that there will be a new procedure when employers file for a Labour Market Opinion (LMO) to Service Canada. The new rules apply to any application filed after April 1, 2010. This new measure coupled with provincial legislation that bans agencies from charging a fee to any caregiver is certainly a step in the right direction. The end result is certainly going to affect nanny agencies in Toronto and abroad. For decades, nanny agencies made most of their revenue by charging caregivers to come to Canada to find an employer. That is now illegal under both federal/provincial law. For decades, nanny agencies/employers demanded money back from the workers to recoup for expenses incurred (travel, placement, health etc…). That too is illegal now. Will employers be willing to spend the money now to pay for the agency, pay for health cost and travel costs? We will certainly see but there is no doubt nanny agencies are not pleased. The goal now is to educate caregivers about their rights and to let them know that employers cannot deduct wages for costs the employers incurred to bring them to Canada.
THE NUTS AND BOLTS OF THE NEW LAWS
Effective April 1, 2010, all employers applying for an LMO wishing to hire a live-in caregivers must meet the following requirements:
1. Health Insurance – employers are now responsible for paying for their caregiver’s health insurance at no cost to the caregiver until he/she becomes eligible for provincial health coverage. Employers are not permitted to recoup these costs from live-in caregivers.
2. Workplace Safety – employers are now required to enroll their caregivers in provincial workplace safety insurance. This must be done at no cost to the caregiver and employers are not permitted to recoup these costs from live-in caregivers.
3. Recruitment Fees – employers who wish to use a recruitment agency to hire a foreign live-in caregiver must pay for all the services provided by the agency and must pay all fees and costs associated with such a recruitment agency. Employers are not permitted to recoup recruitment fees or other costs associated with the use of such an agency from the caregivers.
4. Transportation costs – employers are required to pay the transportation costs for bringing their caregivers to Canada. In the instance where foreign caregivers are already in Canada, employers are responsible for paying to relocate them to the location of work (where care giving will take place) at no cost to the caregiver.
5. Mandatory Employment Contract -employers must submit to Service Canada an employment contract with their LMO application to hire a foreign live-in caregiver. The employment contract must include the following:
Duration of the contract
Duties of the position
Hours of work
Accommodation arrangements
Registration for provincial workplace safety coverage
Transportation costs and arrangements
Health Care provisions
Recruitment fees
Terms of resignation and termination
In the past, the employer-worker contract was only required to be submitted to the embassy before a work permit was issued. Now, detailed contracts are required up front and will require a signature from the employer (not an agency).
***Attention Permanent Resident Applicants: Effective April 2010, all applicants who file an application to the Centralized Intake Office in Sydney, Nova Scotia will only have once opportunity to submit an IELTS English proficiency test. In the past, it was possible to delay the application to the Canadian Embassy requesting more time to obtain a higher score. Not any more. Now, any application received after April 10, 2010 will mean that applicants will have to present their strongest IELTS score before the four month stipulated deadline.***
Attorney Henry Moyal is a certified and licensed immigration lawyer in Toronto, Ontario. The above article is general advice only and is not intended to act as a legal document. Send questions to Attorney Moyal by phone 416 733 3193 or email www.moyal.com
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