What is it?

The Temporary Foreign Worker Program (TFWP) started back in 1973. Its original purpose was to allow Canadian employers to hire high-skilled foreign workers to address specific labour shortages when qualified Canadians or permanent residents were not available. More specifically, the program was designed to address shortages in agriculture, hospitality, and the care sectors.

How do employers participate in the TFWP?

Employers must complete a Labour Market Impact Assessment (LMIA). They must be a legitimate business and be able to prove difficulty in filling employment vacancies. In other words, they must advertise the job for at least 4 consecutive weeks in the 3 months prior to applying. Plus, their job advertisements must appear on three platforms, including the Government of Canada Job Bank.

In addition, there is a non-refundable application fee that employers have to pay for an LMIA of $1,000 CAD per position. If approved, the LMIA is valid for 6 months, during which the foreign worker must apply for a work permit. The LMIA is employer- and job-specific, meaning the worker cannot switch jobs without a new LMIA.

Benefits of the TFWP

The Government of Canada does not provide direct financial support, however, there are indirect supports. For example, the Settlement Program helps employers integrate skilled immigrants into the workforce through training and awareness programs. Another example is the Foreign Credential Recognition offers wage subsidies (up to $10,000) for onboarding skilled newcomers in specific sectors.

What’s all the fuss about?

Canada’s TFWP has faced growing criticism over the years. It has been trending recently being viewed by some as problematic for both workers and the broader Canadian labour market. Some of you may be wandering, what is this all about?

Amongst the most popular reasons are serious claims of worker exploitation and abuse. Another reason is fraud and misuse, where employers falsely claim no Canadians are available for jobs in order to hire TFWs at lower wages.

The most recent reason is youth unemployment and wage suppression. People argue the program contributes to higher youth unemployment and suppresses wages by allowing employers to hire cheaper foreign labor instead of investing in the local workforce. In other words, the program is being misused.

Is there a TFWP Impact on Alberta’s Beauty Industry?

In Alberta, the beauty and personal care sector often face staffing challenges due to a shortage of skilled estheticians and technicians. The TFWP has historically helped fill these gaps, particularly in rural or high-demand urban areas.

The beauty industry is part of the low-wage stream, which has seen a significant rise in LMIA applications due to labour shortages and high turnover. Also, employers in rural and smaller urban centers are more likely to use the TFWP to staff salons and spas where local recruitment is difficult.

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References

(https://www150.statcan.gc.ca/n1/pub/36-28-0001/2023012/article/00005-eng.htm)

(https://www.cbc.ca/news/canada/calgary/temporary-foreign-workers-business-alberta-1.7243593)

(https://amnesty.ca/temporary-foreign-workers-report/)

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EXECUTIVE SPA GROUP

Do you have any questions regarding work-related concerns?

The Government of Canada and the Government of Alberta have set regulations for all Canadian employers and employees to abide by. This resource list includes contacts for regulations surrounding work-related concerns, specifically, employment standards, human rights, and workplace health and safety.

See our contact list below or contact us directly for more information.

Visit Employment Standards if you have questions surrounding:

• Earning deductions
• Holiday pay
• Maternity/Paternity leave
• Termination
• Pay records
• Minimum wage
• Vacation pay
• Complaints

Visit Human Rights if you have questions surrounding:  

• Dress codes and appearance
• Duty to accommodate
• Fairness in hiring
• Leave for pregnancy and childbirth
• Personal and sexual harassment
• Respect in the workplace
• Workplace discrimination

Visit Workplace Health and Safety if you have questions surrounding:

• Safety training
• Working alone
• Worksite hazards and controls
• Reporting an injury
• Emergency response and preparedness plans

Finding the right information can be cumbersome at times. We hope this online resource helps! Executive Spa Group is a career and employment consultants that specializes in beauty industry work related concerns.

How to Pay Employees

Congratulations on being ready to employ staff! This is a big step for your company. While it can be scary to put your company’s reputation in the hands of others, knowing your responsibilities as an employer can help ease your transition.

The first step to paying employees is to register for a CRA payroll account. This account will be linked to your Business Number (BN). To open your CRA account, you will need to complete a
RC1B form.

As an employer, you will need to submit the following forms to the Canada Revenue Agency (CRA):

• TD1AB
• TD1

These forms are Personal Tax Credits Return forms that you have to give all new employees to complete. These forms help you determine what deductions you need to make from their paycheque.

What if employee is being paid hourly + commission?

It is common to pay beauty industry employees by commission, unless your employee is claiming expenses, the forms above will suffice.

Additionally, Alberta Employment Standards Code requires you to keep the following records for every employee:

**NOTE: Payroll records must be kept for at least 3 years from creation date.

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PAY SCHEDULE

At the end of each pay period, you must provide each employee with a statement of earnings that includes:

• regular and overtime hours of work;
• wage rate and overtime rate;
• earnings paid that show each component separately;
• deductions from earnings and the reason for each deduction;
• time off in lieu of payment of overtime; and
• statement period.

FYI- cash shortages can only be deducted from an employee IF:
1. the employee is the ONLY ONE with sole access to the cash
2. the employee authorizes the deduction in writing with the amount and date of shortage being deducted

If you plan to reduce any employee’s wage rate, overtime rate, general holiday pay, vacation pay or termination pay, the employee must be notified before the start of the pay period in which the reduction is to take effect.
Keep in mind, these rates must always be at least the minimum required by the legislated standards.

REMITTING TO THE CRA

You must remit to the CRA all deductions you made from an employee’s paycheque (federal and provincial income tax deductions, E.I. premiums, and CPP) before the 15TH of the month AFTER the month in which you made the deductions.

All remittances must be made in bulk for all of your employees.

You can use the Payroll Deductions Online Calculator (PDOC) to calculate payroll deductions. Paying employees is made easy with this tool!

ISSUING T4s

You must provide a T4 form to your employees ON or BEFORE the last day of February for the previous calendar year. This T4 contains information on the total CPP, E.I. premiums, and income tax deductions you made on your employees behalf for the previous calendar year.

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‘Cultivating the Beauty Industry’

Executive Spa Group
(780) 604 2772
info@executivespagroup

How do I choose the right training provider?

We know… There’s a lot of options out there!

Not everyone will be looking for the same values in their training choice. Some people may value an online course over in-person training due to their busy schedules. Some may value the reputation of their educator. This is of utmost importance for people that plan on working in salons and spas. Having respected training on your resume is a must. On the other hand, if you plan to be self-employed, the reputation of your trainer may not matter as much.

Either way, asking the following questions will be useful in helping you choose the right training provider for your career path:

Sample questions

What are the total fees?

What is covered in the total fee? Tuition? Books? A kit? Application fees? Graduation fees?

Is there a Work Experience component?

How much real experience will be provided if any?

What student support is offered if any?

Some schools may offer added support such as financial aid, job search services, counselling, computer access, etc.

What type of credential do I get when I graduate?

There is a difference between certificate and certification. Certification is industry-recognized and granted only after meeting industry requirements through testing. A certificate is documentation of participation in any given course.

What are the minimum and maximum class sizes?

Class size matters in technical training. How many students will you be competing with for your instructor’s help and attention?

Are there any student perks?

Some training providers may offer discounts at distributors post graduation. Other examples include parking, food services, technology supports, etc.

Are the instructors available for one-on-one support?

What methods can I use to contact my instructor after class?

Is there an attendance policy?

What is the training providers policy on attendance, personal image standards, conduct, etc?

What is the refund policy?

What if I change my mind before I start? The first week after? What if something unexpected happens that prevents me from finishing the course?

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EXECUTIVE SPA GROUP

EXECUTIVE SPA GROUP is a Beauty Industry Resource Centre offering business, career, and employment services to Albertans. Contact us to meet with our Career and Employment Consultant who can help you develop a career path that is right for you.

Tips as a self-employed person

All Service Providers know that tips make a big difference! They are a great way to plump up that bottom line. To a degree, entrepreneurs have the ability to maximize their potential for tips by controlling different aspects of service delivery.

Service Providers who are self-employed have control of every detail of the client’s experience. For example, décor, cleanliness, and punctuality are only ripples in the vast sea of customer excellence you can offer to attract a certain clientele.

Tips are a game changer, however, it can get a bit confusing when it comes to claiming them come tax time, especially if you pay yourself as an employee, or have employees.

Do I include tips when calculating CPP and EI deductions?

There are 2 types of tips.

• Controlled
• Direct

Controlled tips

Controlled tips are mandatory to the client. For example, spa parties may include a mandatory 18% gratuity that is included in the bill. If you include or “control” the tip amount in the final bill, then these tips must be included in the insurable earnings (wages + VAC pay + tips + commission). Anything considered “insurable earnings” must be accounted for when calculating the EI and CPP deductions.

Direct tips

Direct tips are out of your control. A client may or may not tip you or your service providers. Only the client is in control of the amount of tip they choose to leave. You as the employer are simply passing the tip from the hands of the client to the hands of your service provider. Direct tips are NOT considered insurable hours and are therefore not included when calculating EI and CPP deductions.

The declaration of tips is the responsibility of the tip reciever when filing their personal taxes.

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Learn more about tips and gratuities.

EXECUTIVE SPA GROUP

Beauty Industry Resource Centre

(780) 604 2772