Canada’s Temporary Foreign Worker Program is being modified to avoid misuse and fraud. The Temporary Foreign Worker (TFW) Program allows Canadian employers to hire foreign workers to fill temporary jobs when qualified Canadians are not available.
However, the Canadian government says that the Temporary Foreign Worker (TFW) Program has been misused to bypass hiring talented workers in Canada and instead rely on foreign workers. Before using the Temporary Foreign Worker Program, the employers must first obtain a Labour Market Impact Assessment (LMIA) to demonstrate that no Canadian labour is available to perform the same job.
The Canadian government has announced plans to reduce the reliance of Canadian employers on the Program.
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Temporary Foreign Worker Program New Rules (effective by September 26, 2024)
The Government of Canada will refuse to process Labour Market Impact Assessments (LMIAs) in the Low-Wage stream, applicable in census metropolitan areas with an unemployment rate of 6% or higher. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as construction and healthcare;
Employers will be allowed to hire no more than 10% of their total workforce through the TFW Program. This maximum employment percentage will be applied to the Low-Wage stream and is a further reduction from the March 2024 reduction.
The maximum duration of employment for workers hired through the Low-Wage stream will be reduced to one year (from two years).
Over the next 90 days, the Canadian government will review the Program, leading to changes to the High-Wage Stream and unfilled LMIA applications.
Starting October 2023, adjustments have been made to the validity period of Labour Market Impact Assessments from 18 months to 6 months and the cap on temporary foreign workers from 30% to 20%.
On August 20, 2024, the Government of Canada announced the approval of a proposal by the Government of Quebec for a temporary freeze on the approval of new Temporary Foreign Workers in the low-wage stream in Montreal.
Effective September 3rd, 2024, processing of Labour Market Impact Assessment applications has been discontinued for six months for job offers located in the Montreal region with wages below $27.47/hour, which is the current Quebec median hourly wage.