[co-authors: Junggun Park, Sarah Gray]*
Several significant changes to government policies relating to temporary foreign workers have recently gone into effect in Canada.
The Temporary Foreign Worker (‘TFW’) Programme is intended to be used when employers are facing short-term skill and labour shortages. The TFW Programme allows an employer to hire TFWs for a maximum period of two years when a Labour Market Impact Assessment (‘LMIA’) indicates that no Canadians and permanent residents are available. The employment duration must align with the employer’s reasonable employment needs.
Changes Announced
The changes announced by Employment and Social Development Canada (‘ESDC’) will impact employers across Canada, but particularly in larger cities. ESDC has previously announced that LMIA applications submitted for low-wage positions in the economic region of Montreal will not be processed from 3 September 2024 to 3 March 2025.
Effective 26 September 2024, the following changes will be made to the Temporary Foreign Worker Programme :
- The Government of Canada will refuse to process LMIAs in the Low-Wage stream in census metropolitan areas with an unemployment rate of 6% or higher.
- Employers will be allowed to hire a maximum of 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 to 20%.
- The maximum duration of employment for workers hired through the Low-Wage stream will be reduced to one year (from two years).
ESDC has indicated that exceptions will be granted for seasonal and non-seasonal jobs in food security sectors such as primary agriculture, food processing and fish processing, as well as in construction and healthcare.
Takeaway for employers
Employers should review their labour needs and consider whether current labour strategies will be impacted by these changes. Employers should also remain alert as the TFW Programme remains under review and additional changes may be forthcoming.
Looking ahead, the government may continue to review relevant TFWP policies in line with its continued focus to reduce the temporary resident population in Canada. A further review of the program will soon be undertaken, which could result in changes to the High-Wage stream as well, in addition to further restrictions or suspensions of LMIA applications.
*Mathews Dinsdale
