Introduction
Canada’s Temporary Foreign Worker Program (TFWP) has undergone significant reforms in 2024 and 2025 to address labor market needs, protect workers' rights, and ensure program integrity. These changes impact both employers and foreign workers.
Key Reforms to the TFWP
1. Wage Requirements for High-Wage Stream Effective November 8, 2024, the minimum hourly wage for workers entering Canada through the high-wage stream has been increased to 20% above the median wage in the applicable province or territory. This adjustment aims to ensure fair compensation and reduce the reliance on low-wage labor.
2. Reduction in LMIA Validity
As of May 1, 2024, the validity period for Labour Market Impact Assessments (LMIAs) has been reduced from 12 months to 6 months. This change ensures that labor market conditions are accurately assessed and that temporary foreign workers are employed only when no qualified Canadians are available.
3.Caps on Low-Wage Temporary Foreign Workers
The percentage of low-wage workers an employer can hire through the TFWP has been reduced:
From 20% to 10% for most sectors, effective September 26, 2024
A 20% cap remains for employers in the construction and healthcare sectors, which face critical labor shortages
4. Suspension of Low-Wage LMIA Processing in Certain Areas
As of September 26, 2024, the processing of LMIAs for low-wage positions has been suspended in census metropolitan areas with unemployment rates of 6% or higher. Exceptions apply to seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing, and fish processing), as well as construction and healthcare.
5. Changes to Work Permit Applications
Visitors to Canada are no longer eligible to apply for job-offer-supported work permits from within the country. This policy, effective August 28, 2024, requires visitors to leave Canada before applying for a work permit.
6. Annual Work Permit Targets
The Canadian government has set an annual target of 82,000 net new work permits under the TFWP, aligning with broader immigration objectives.
Implications for Employers
Compliance with Wage Requirements: Employers must ensure that wages for high-wage stream positions meet the new 20% above median wage requirement.
Adherence to LMIA Validity Periods: Employers should be aware of the reduced 6-month validity period for LMIAs and plan accordingly
Understanding Regional Restrictions: Employers in areas with high unemployment rates should be aware of the suspension of low-wage LMIA processing and plan their hiring strategies accordingly.
Preparation for Policy Changes: Employers should stay informed about ongoing policy reviews and potential changes to the TFWP.
Implications for Temporary Foreign Workers
Fair Compensation: Workers in the high-wage stream can expect improved wages, aligning with the new 20% above median wage requirement.
Employment Duration: The maximum employment duration for low-wage stream workers has been reduced to one year, with exceptions for certain sectors.
Work Permit Applications: Visitors to Canada must leave the country before applying for a work permit, as per the new policy
Conclusion
The recent reforms to Canada’s Temporary Foreign Worker Program reflect the government's efforts to balance labor market needs with the protection of workers' rights and program integrity. Employers and foreign workers must stay informed about these changes to ensure compliance and make informed decisions.
Call to Action:
If you're an employer or a foreign worker affected by these changes, consult with a legal professional or immigration Lawyer to understand how these reforms impact you and to ensure compliance with the new regulations.
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