September 27th, 2024 at 09:35 am

Canada Introduces Stricter Regulations for Temporary Foreign Worker Program

To minimize abuse and give Canadian workers priority, Canada has announced major modifications to its Temporary Foreign Worker Program. Shorter LMIA validity periods, a reduced quota on foreign workers, and a temporary suspension of low-wage TFW approvals in Montreal are among the significant changes.

Canada intends to implement modifications to the Temporary Foreign Worker (TFW) Program to curb abuse and encourage the recruitment of domestic labor. When there are no suitable Canadian candidates for a temporary position, this program permits firms to engage foreign workers.

There are worries, meanwhile, that the TFW Program has been abused to avoid employing qualified Canadians. As a result, the government is implementing several changes to lessen its dependency on foreign labor.

Overview: Temporary Foreign Worker Program

By enabling them to engage foreign workers for temporary positions, the Temporary Foreign Worker (TFW) Program assists Canadian firms in addressing labor shortages. Employers are required to acquire a Labour Market Impact Assessment (LMIA) proving that no qualified Canadian workers are available for the position before hiring foreign workers.

Fears of Abuse

Concerns about employers abusing the scheme to avoid hiring talented Canadians have been voiced by the Canadian government. In response, they enacted additional regulations to lessen dependency on foreign labor and guarantee that the program is only utilized in extreme circumstances.

Key Changes to the Temporary Foreign Worker Program

1. Labor Market Impact Assessment (LMIA) Restrictions

Applications for Low-Wage LMIAs will no longer be processed by the government for census metropolitan regions where the unemployment rate is 6% or above. Jobs related to food security, such as those in construction and healthcare, as well as in the food processing, fish processing, and agriculture industries, will be exempt.

2. Foreign Workers’ Workforce Cap

The quota on foreign workers under the TFW Program for low-wage occupations has been cut by the Canadian government from 30% to 10% of an employer’s workforce. This is a major decrease from the previous cap that was set in March 2024.

3. Reduced Length of Employment

The maximum employment duration for foreign workers hired under the Low-Wage stream will be shortened by the government from two years to one year.

4. Evaluation of the High-Wage Stream Program

The government will assess the unprocessed LMIA applications and the High-Wage stream for possible modifications over the following ninety days.

Extra Actions

In addition to the new regulations, the following changes were implemented in October 2023:

1. Shorter LMIA Validity

The Labor Market Impact Assessment (LMIA) validity period was shortened by the Canadian government from 18 months to 6 months as of October 2023. This modification attempts to guarantee that firms are actively looking for eligible Canadian workers while promoting quicker hiring procedures and decreasing position-filling delays.

2. Reduced Cap on Foreign Workers

The government reduced the maximum number of temporary foreign workers that companies could hire from 30% to 20% in October 2023. This action was a part of the government’s larger initiative to make sure Canadian companies hire local talent first and use less immigrant labor to fill low-paying positions.

Quebec-Specific Regulations

Stronger regulations have also been implemented by the Quebec government. On August 20, 2024, the Canadian government declared that it would no longer be accepting new temporary foreign workers for low-paying jobs in Montreal. Beginning on September 3, 2024, the Canadian government stopped processing LMIA applications for occupations paying less than the $27.47/hour Quebec median wage in the Montreal area.

What Comes Next?

The goal of the Canadian government is to reduce reliance on foreign labor and increase employment opportunities for citizens of Canada. These new regulations are a part of the continuous efforts to guarantee that the original intent of the Temporary Foreign Worker Program—namely, to fill labor shortages exclusively in cases where Canadian workers are unavailable—is fulfilled.