Canada’s Tougher Work Permit Regulations Put Foreign Workers at Risk of Deportation

Recent changes to Canada’s Temporary Foreign Worker Program (TFWP) are causing significant concern. New regulations are compelling employers to pay higher wages and limiting foreign hires, putting many skilled workers at risk of deportation.

Canada has long been praised for its welcoming immigration policies. However, the latest updates to the TFWP are stirring worries about job security and deportation across various sectors. Let’s explore these developments and their implications for foreign workers.

Temporary Foreign Worker (TFW) Program

The TFW Program allows Canadian employers to hire foreign nationals for temporary positions when qualified Canadians are unavailable. This program aims to fill labor shortages in sectors like agriculture, hospitality, construction, and healthcare.

Employers must obtain a Labour Market Impact Assessment (LMIA) to participate. This assessment proves that hiring a foreign worker won’t harm Canadian job seekers. The program includes two main streams: high-wage and low-wage, each with distinct rules regarding pay and hiring limits.

What Changed in the TFW Program?

In November 2024, Canada enacted stricter rules for employers using the TFW Program to protect domestic jobs. Here are the key changes:

Higher Wages for High-Wage Stream

Starting November 8, 2024, employers must pay 20% more than the regional median wage for high-wage positions. This increase, ranging from 5to5 to 5to8 per hour, encourages companies to prioritize hiring Canadians.

Cap on Hiring Foreign Workers

From September 26, 2024, companies can employ temporary foreign workers for only 10% of their total workforce in low-wage jobs. This limit forces employers to rely more on local hires, restricting access to affordable international labor.

Job Shifts Across Streams

Due to these changes, around 34,000 positions are expected to shift from the high-wage stream to the low-wage stream. The low-wage category comes with stricter conditions and fewer job security benefits for foreign workers.

Why Are Foreign Workers at Risk?

The new regulations present significant challenges for employers:

• Pay More or Let Go: Many companies may struggle to meet the increased wages, risking the renewal of work permits for foreign employees.
• Permit Expiry Looms: Without timely renewals or job offers that meet the new wage requirements, many skilled workers may face deportation when their permits expire.
• Reduced Hiring Flexibility: The 10% cap on foreign hires limits job opportunities for international workers, tightening an already competitive labor market.

The Impact on Canadian Employers

Canadian businesses are now caught between compliance and crisis, especially in sectors reliant on international workers. Employers must absorb higher labor costs or face workforce shortages. This challenge extends beyond finances; many companies risk losing trained and experienced staff integrated into their operations and communities.

Will Canada Remain Attractive to Foreign Workers?

With heightened wage requirements and stricter caps, Canada’s image as a welcoming destination for skilled migrants may diminish. Potential applicants might consider countries with more stable and predictable immigration policies.

Final Thoughts

The revised Temporary Foreign Worker Program aims to protect Canadian workers but creates uncertainty for many foreign nationals contributing to the economy. As work permits expire and regulations tighten, the risk of deportation increases, affecting not just individual workers but potentially many across the country.