Canada Announces Major Reforms to the Temporary Foreign Worker Program

On October 21, 2024, Minister Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, announced specific changes aimed at strengthening the integrity of the Temporary Foreign Worker Program while ensuring it remains responsive to Canada’s changing labour requirements. If you are an employer or someone keen on Canada’s labour market, these changes could have an effect on you.

Canada Unveils Significant Changes to the Temporary Foreign Worker Program. Here are essential Information You Should Be Aware Of.

What is a Temporary Foreign Worker Program?

The Temporary Foreign Worker Program (TFWP) enables Canadian employers to recruit foreign nationals to address labour shortages in Canada.

The Temporary Foreign Worker Program was established to assist businesses in filling job vacancies when they are unable to find qualified Canadians to perform the work. It is intended not to substitute Canadian workers, but to serve as a support when no other options are accessible. Recently, the government has been implementing measures to ensure that this program functions effectively—supporting businesses in meeting their needs while safeguarding workers, both Canadian and foreign, from fraud.

Employers seeking to hire under the TFWP must complete the Canadian government’s labour market test, referred to as the Labour Market Impact Assessment (LMIA).

What Changes have been made to the Temporary Foreign Worker Program?

Key updates to the Temporary Foreign Worker Program that you should be aware of include:

1. Higher wages for Foreign Workers 

There is going to be an increase in wages for Foreign Workers. Beginning November 8, 2024, prepare for a shift if you’re employing foreign workers via the high-wage stream. The minimum wage required for these workers is increasing by 20% above the median wage in your province or territory. This indicates that wages may rise by an amount ranging from $5 to $8 per hour, contingent upon your location.

What is the reason for this occurrence? 

The goal is to ensure that wages are equitable and to motivate employers to seek out Canadian workers. By providing more competitive compensation, you increase the chances of attracting qualified workers domestically.

Additionally, an increasing number of jobs will now be categorized within the low-wage stream, which is accompanied by more stringent regulations. Employers will be required to adhere to stricter standards concerning housing, transportation, and initiatives to recruit workers who are already residing in Canada.

2. Enhanced Protections for Domestic Workers:

One of the primary motivations for these changes is to ensure that Canadian workers are not overlooked. Minister Boissonnault emphasized that Canada has a wealth of untapped talent, particularly within specific groups such as youth, Indigenous peoples, women, and individuals with disabilities. The unemployment rate among youth remains more than twice the national average.

3. Improvement of Employer Responsibility

Starting October 28, 2024, employers will be prohibited from using attestations from lawyers or accountants to confirm their business legitimacy. This initiative aims to enhance transparency and guarantee that only authentic job offers receive approval within the TFW Program.

The government is collaborating closely with provincial partners to exchange data and address any misuse of the program.

The primary objective is to ensure that the system is not being misused. The government aims to ensure that foreign workers are not exploited and that businesses adhere to regulations.

Minister Boissonnault emphasized, “By raising the threshold for high-wage stream positions, we are supporting wage growth for Canadians,” highlighting the government’s commitment to protecting the rights of all workers.

What is your perspective on the significance of these measures?

While the majority of employers utilize the TFW Program in a responsible manner, there are always a select few who may attempt to take shortcuts. The purpose of these changes is to safeguard workers, whether they are Canadian or foreign while ensuring that businesses can continue to fill positions as necessary. It involves achieving an appropriate equilibrium between fulfilling labour requirements and safeguarding individuals’ rights.

Should labour market conditions shift once more, the Canadian government stands prepared to implement further adjustments to guarantee the program continues to function effectively.

“This adjustment to the Temporary Foreign Worker Program underscores our dedication to safeguarding temporary foreign workers while placing emphasis on the Canadian workers ready to enter the labour market.” By increasing the threshold for high-wage stream positions, we are fostering wage growth for Canadians.

– Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages

Ultimately, these reforms aim to create a more equitable and resilient workforce in Canada. By increasing wages, prioritizing domestic workers, and enforcing stricter regulations, the government is making progress in ensuring that the TFW Program effectively benefits both employers and workers.

Whether you are an employer, a jobseeker, or simply curious about the evolving labour market, these changes merit your attention. Canada is progressing towards a more equitable future by implementing fairer wages and enhancing protections for workers.

Working in Canada

Working 40 hours a week, Monday to Friday, depends on the firm and function.

After one year of paid work, workers receive two weeks’ yearly leave; after five years, three.

Canada has five public holidays (New Years Day, Good Friday, Canada Day, Labour Day, and Christmas Day) and six government employee holidays. Different provinces and territories have distinct holidays.

The average Canadian income is CAD$50,000 (£29,481) to $60,000 (£35,377), and each province sets the minimum compensation for any profession. While Toronto and Vancouver are pricey, Ottawa, Calgary, Edmonton, and Montreal are cheaper.

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