Labour Mobility
Attracting internationally trained workers is central to the continued success of Canada’s economy. Even though the economy has been battered over the past 18 months the demand for talent continues as the workforce is ageing. Acute shortages are expected in key industries such as health care, education skilled trades and the professions. Immigration is, and will continue to be, an important source of replacement human capital in the Canadian economy.
CERC is regularly invited to offer suggestions and ideas to Citizenship and Immigration Canada to improve Canada’s Immigration system. In 2009 CERC responded to proposed changes to the regulations governing temporary foreign workers. Those changes are expected to be completed in June 2010 and to take effect in January 2011.
View CERC’s submission.
Over the past several years CERC has been providing government with suggestions to modernize Canada’s immigration system and make it more responsive to labour market needs. CERC will continue to work with government in a constructive spirit to ensure our immigration system supports the needs of employers.
CERC has also given input to the ongoing negotiations between the government of Canada and the European Union for a Comprehensive Economic Trade Agreement (CETA) between the two regions. The agreement will also include a chapter that covers labour mobility. The objective for such an agreement is to facilitate professional labour mobility and to establish a common skilled labour market between the two territories. If successful this agreement holds tremendous benefits for labour mobility in Canada.
View CERC’s discussion paper.
Taxation Policy
Taxation policy has a direct impact on the cost and success of employee relocation. Over the past several years we have been providing input to government on changes to the treatment of moving expenses and relocation benefits. In 2008 CERC was successful in pressing the Canada Revenue Agency to revise its Employers Guide which included regressive changes to current practices in the tax treatment of relocation allowances.
In January 2010, at the invitation of the Minister of Finance, we offered our recommendations for changes to the Income Tax Act for consideration in the 2010 Federal budget. In our recommendations we sought increases in the limits for discretionary moving allowances; changes to the definition of temporary living expenses and; increases in the limits for equity loss reimbursements.
Looking ahead, we will continue to press for change to regulations that govern the tax treatment of moving expenses and relocation benefits.
CERC submission to the Minister of Finance: 2010 pre-budget consultations.
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