Canada Imposes New Restrictions on Temporary Foreign Worker Program

Canada will introduce new changes to the Temporary Foreign Worker (TFW) Program to prevent misuse and promote the hiring of Canadian workers. This program allows employers to hire foreign workers for temporary jobs when no qualified Canadians are available.

However, concerns have been raised that the TFW Program has been used to bypass hiring skilled Canadian workers. In response, the government aims to reduce reliance on foreign labor through a series of reforms.

What Is the Temporary Foreign Worker Program?

The Temporary Foreign Worker (TFW) Program helps Canadian employers address labor shortages by allowing them to hire foreign workers for temporary roles.

Before bringing in foreign workers, employers must obtain a Labour Market Impact Assessment (LMIA), which demonstrates that no qualified Canadian workers are available to do the job.

Concerns Over Misuse

The Canadian government raised concerns that employers are misusing the program to avoid hiring talented Canadians. In response, they introduced new rules to reduce reliance on foreign workers and ensure the program is used only as a last resort.

Also Read: Want to Work in Canada? These Programs Can Easily Get You a Work Permit

Key Changes to the Temporary Foreign Worker Program (Effective September 26, 2024)

1. Labour Market Impact Assessment (LMIA) Restrictions

The government will no longer process LMIA applications in the Low-Wage stream for census metropolitan areas with unemployment rates of 6% or higher. Exceptions will apply to jobs in food security sectors like agriculture, food processing, and fish processing, as well as in construction and healthcare.

2. Workforce Cap on Foreign Workers

The Canadian government has lowered the limit on foreign workers in the TFW Program to 10% of an employer’s workforce for low-wage jobs, a significant decrease from the previous 30% cap set in March 2024.

3. Shortened Employment Duration

The government will reduce the maximum employment period for foreign workers hired under the Low-Wage stream from two years to one year.

4. Program Review for High-Wage Stream

Over the next 90 days, the government will review the High-Wage stream and unprocessed LMIA applications for potential changes.

Additional Measures

In addition to the new rules, several adjustments were made in October 2023:

1. Shorter LMIA Validity

As of October 2023, the Canadian government reduced the validity period of Labour Market Impact Assessments (LMIAs) from 18 months to just 6 months. This change aims to encourage faster hiring processes and reduce delays in filling positions while ensuring that employers are actively searching for qualified Canadian workers.

2. Lower Foreign Worker Cap

In October 2023, the government lowered the cap on temporary foreign workers that businesses could hire from 30% to 20%. This move was part of the government’s broader effort to ensure that Canadian employers prioritize local talent and reduce their dependence on foreign labor to fill low-wage roles.

Quebec-Specific Regulations

The Government of Quebec has also introduced stricter rules. The Canadian government announced a temporary freeze on approving new temporary foreign workers for low-wage positions in Montreal on August 20, 2024.

The Canadian government suspended the processing of LMIA applications in the Montreal area for jobs paying below the Quebec median wage of $27.47/hour starting September 3, 2024.

What’s Next?

The Canadian government is working to create more jobs for Canadians and decrease dependence on foreign workers.

These new rules are part of the ongoing efforts to ensure the Temporary Foreign Worker Program serves its original purpose—specifically, addressing labor shortages only when Canadian workers are not available.