Canada imposed tougher hiring rules for temporary foreign workers, making it more difficult for them to get employment and settle in the country. Canada has modified the Temporary Foreign Worker Program (TFW) to ensure fair labor market conditions and reduce reliance on foreign workers. The Program permits Canadian employers to employ foreign workers for temporary positions when qualified Canadians are unavailable.
Beginning November 8, 2024, the hourly wage criteria for the high-wage stream will be adjusted by 20% over the median hourly wage—between $5 and $8 per hour, depending on the province or territory. Effectively, Canadian employers may prefer hiring domestic workers rather than paying higher wages for Temporary Foreign Workers.
The Canadian government claims that the Temporary Foreign Worker (TFW) Program has been misused to bypass hiring talented Canadian workers and instead rely on foreign workers. Currently, some employers are employing temporary foreign workers at lower wages than Canadians, reducing wage growth and job availability, putting them in precarious situations. This new rule will encourage firms to hire Canadians before hiring foreign workers.
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Canada has been taking several measures to lessen dependency on foreign workers and create good-paying jobs for Canadian workers.
Further, to crack down on employers that supply misleading information on their applications, the government will introduce tough new data verification methods beginning October 28, 2024, ensuring that only authentic and legitimate employment offers are approved.
Also, effective September 26, 2024, employers are limited to hiring no more than 10 per cent of their total workforce through the Temporary Foreign Worker Program.
The changes to the Temporary Foreign Worker Program are expected to move 34,000 positions from the high-wage stream to the more stringent rules of the low-wage stream. This could result in as many as 20,000 fewer positions being approved, in combination with other recently announced policies.
The Temporary Foreign Worker Program differentiates jobs between the low-wage and high-wage streams by the wage level offered.
The low-wage stream is for jobs where the wage offered is below the provincial or territorial median hourly wage plus 20 per cent.
Under Low-Wage Stream
Employers must provide support for workers that include return transportation to their country of origin and ensuring or providing suitable accommodation;
Employers must conduct at least two additional methods of recruitment that are consistent with the occupation
Employers are limited to a temporary foreign worker complement of 10 per cent of their workforce at any worksite
The Temporary Foreign Worker Program will not process Labour Market Impact Assessment (LMIA) applications for positions in Census Metropolitan Areas (CMAs) where the unemployment rate is 6 per cent or higher.
The high-wage stream is for jobs where the wage offered is above the provincial or territorial median hourly wage plus 20 per cent.
Under High-Wage Stream
There is currently no limit on the number of workers an employer can hire; and
Census Metropolitan Areas’ unemployment rates are not taken into consideration in LMIA application assessments.