By now I’m sure you’ve heard about the changes that have been made to the Live-in Caregiver Program impacting families across Canada who are hiring nannies from abroad. There is so much content out there; tidbits of information across vaguely written government sources, and snippets of the reform cited in newspaper articles. Attempting to decipher the changes and what it all means can be overwhelming at best. I thought it would be helpful to bring in an expert to summarize the reform and tell us a bit about what this all means for families in Canada.
Enter, stage left, Caroline
Schulz (applause), Immigration Lawyer at Schulz
Legal. Caroline has graciously donated her time to put together this
information for Nanny&Me readers, so thank you Caroline!
For families across Canada
who are in the market for a live-in nanny, sponsoring abroad has become an
increasingly popular choice in recent years. Hiring a live-in nanny from
overseas has provided Canadians with the opportunity to obtain quality in-home
childcare in a cost-effective way, but has this all changed? Amidst an ever-growing
childcare crisis, the Canadian government implemented major changes to the Live-in
Caregiver Program (LCP), now called the Caregiver Program. Most notably (and
instilling the highest degree of panic in Canadian families) caregivers are no
longer obliged to live with their Canadian employers, but what does this really
mean for those of us seeking live-in caregivers?...
Let’s
Break it Down…Talking Changes
End of live-in requirement
The new program puts an end
to the live-in requirement. Caregivers may live with their employers if they so
choose and in such cases, room and board can no longer be deducted from their
wages.
Employers with live-in
arrangements, as before, must continue to assure Service Canada that the
accommodations they are offering meet minimum standards (re: size, finishings,
furnishings etc.) before a Labour Market Impact Assessment (LMIA) can be
approved.
Eliminating the live-in
requirement could provide more incentive
for Canadians to consider caregiver job opportunities. Employers may accordingly need to offer
caregivers higher wages and benefits to satisfy Service Canada that they have
made appropriate efforts to recruit Canadians.
Permanent Residence Application Caps
Caregivers are no longer
guaranteed a path to permanent residence. In the past, caregivers were
guaranteed permanent residency after two years of full-time employment, but now
there are two streams for which caregivers can apply, and each one will be
capped at 2,750 permanent resident applications each year. Caregivers can now
apply for permanent residence under either the Caring for Children stream or
the Caring for People with High Medical Needs stream. As such, eligible
applicants may be rejected without consideration if the cap has been met.
The Caring for Children stream pertains to babysitters, nannies, and parent-helpers for
children under eighteen. The Caring for People with High Medical Needs stream
applies to foreign workers who provide support for the elderly or those with
disabilities and may include registered nurses, licensed practical nurses,
nurses aides, or home support workers.
To be eligible for either
stream, caregivers must have:
•
a written signed contract with their employer;
•
a positive Labour Market Impact Assessment (LMIA);
•
a work permit before entering Canada;
•
two-years of full-time work experience in Canada within the past four
years in a relevant occupation (e.g. nanny for Children Class or nurse for High
Medical Needs Class)
•
intermediate level knowledge of English or French as proven by language
test results;
•
successful completion of the equivalent of at least one year Canadian
post-secondary school education that is confirmed by an Educational Credential
Assessment;
•
a license to practice in Canada, if applicable (i.e.nurses)
Employers ought to ensure
that a future caregiver meets the minimum language and education requirements.
Does the old program still apply?
Caregivers or prospective
caregivers who have work permits based on Labour Market Impact Assessment
(LMIA) applications that were submitted to Service Canada on or before November
30, 2014 can apply for permanent residence under the LCP. In fact, Citizenship
and Immigration Canada (CIC) has pledged to admit 30,000 permanent residence
applications under the old program in 2015 to reduce processing backlogs. Such
applications will be assessed based on the old live-in caregiver criteria. The
caregiver must be able to demonstrate that their work permit was based on a
LMIA that was submitted on or before November 30, 2014.
Caregivers with prospective
employers who have applied for an LMIA after November 30, 2014, will not be
eligible for permanent residence under the old program.
Take-away for Canadian families
The reforms have ended the
live-in requirements for caregivers and are may increase the prevailing
wage for caregivers. As always,
employers must be careful to ensure that they are meeting their requirements
pursuant to immigration and employment legislation.
FAQ
1. What are the broader
implications of the reform on childcare?
The
cost of hiring a caregiver is likely to increase as room and board can no longer be
deducted. The program could become cost prohibitive for middle-income Canadians
and the Canadian government may face increasing pressure to introduce some form
of universal childcare.
2. Will the new rules have
implications on the interest level of caregivers in coming to Canada due to the
cap residency numbers, or are higher wages (over other countries) enough of an
incentive?
Difficult
to say as so many factors contribute to a caregiver's decision to come to
Canada. Caregivers no longer have a guaranteed path to permanent residence as a
result of the caps. On the other hand, wages for caregivers may increase and
the government has pledged to process their applications for permanent
residence within 6 months. This means less time apart for caregivers and their
loved ones. Permanent residence applications under the old program often took
several years to process during which time caregivers were separated from their
families.
3.
Is the
reform, as a result of the permanent residence caps going to create higher
demand in the local childcare market, driving up costs for families?
This is difficult to
predict at this time. I don't believe there will be a significant decrease in
the number of caregivers wanting to come to Canada. However, it may be more
challenging to bring caregivers to Canada as the end of the live-in requirement
may attract more Canadians to caregiver positions. Families will need to
demonstrate that they have made efforts to recruit Canadians for caregiver
positions, this may include offering increased wages.
4. The old live in caregiver
website specified that employers could deduct room and board, the new rules
state that this is not permitted, however the Ontario labour rules state that
employers can, but the labor rules were written prior to the new live in
caregiver rules. What is the status of room and board deductions?
Under
the new rules, employers cannot deduct room and board from wages.
5. Are families allowed to
charge rent?
Families
cannot charge rent. This would effectively be the same as deducting room and
board from wages.
6. Do you foresee the changes
having any impact on work permit processing times from Hong Kong for those
applications currently in the pipe? (ie. those submitted in the old program).
The
changes do not directly impact upon work permit processing times. The
government has only pledged to more quickly process permanent residence
applications.
7. Are families required to
pay for a return flight for nannies? (vs. a one-way ticket as in the past).
Families
ARE required to pay for a nanny's return flight if he/she wants to return home
at the end of his/her employment. If a nanny switches employers, the new
employer would be responsible for this cost.
8.
For
families grandfathered in under the old program, are all aspects of the program
grandfathered in? For example, in the old program, one could extend an LMIA
quite easily. If a family applied for two years, they could extend it for
another two with a written request. Will they still be able to do this?
No. If a
caregiver's work permit expires, the family will have to apply for a new Labour
Market Impact Assessment (LMIA) and demonstrate that no Canadians or permanent
residents are available for the position. LMIA applications are increasingly
time consuming and complicated. Employers must now advertise the position on
the national Job Bank and two other mediums for at least four weeks before
applying for the LMIA. If the LMIA is approved, the nanny can then apply
for a new work permit.
For
more information please visit here and here
or contact the Caroline Schulz.
Related news articles on this topic:
Filipino Canadians fear end of immigrant dreams for nannies - The Toronto Star
Major Reforms to Caregiver Program Announced by Canadian Government - Canada Immigration Newsletter
