New Changes to the Temporary Foreign Worker (TFW) Program
The Temporary Foreign Worker (TFW) Program is a Canadian government initiative that allows employers to hire foreign workers to fill temporary labour shortages when qualified Canadian citizens or permanent residents are not available. The program includes specific streams, including high-wage and low-wage positions. However, Prime Minister Justin Trudeau recently announced that the federal government will be reducing the number of temporary foreign workers in Canada. This decision comes in response to a historic surge in the program’s use and aims to address concerns about its misuse by some employers.
New Changes to the TFW Program
In response to current labour market conditions, Minister Boissonnault announced on August 26, 2024, that the Government is implementing new measures to curb the misuse and fraud within the TFW Program. These changes will take effect by September 26, 2024, and include:
Refusal to Process LMIAs in High-Unemployment Areas: The Government will no longer process Labour Market Impact Assessments (LMIAs) for the Low-Wage stream in census metropolitan areas with an unemployment rate of 6% or higher. There will be exceptions for seasonal and non-seasonal jobs in critical sectors like food security (primary agriculture, food processing, and fish processing), as well as construction and healthcare.
Limit on TFW Hiring: Employers will now be restricted to hiring no more than 10% of their total workforce through the TFW Program, specifically within the Low-Wage stream. This is a further reduction from the previous cap set in March 2024. However, exceptions will again be made for jobs in food security, healthcare, and construction sectors.
Shortened Employment Duration: The maximum duration of employment for workers hired through the Low-Wage stream will be reduced from two (2) years to one (1) year.
Temporary freeze of low-wage occupations in Montréal under TFW Program
On August 20, 2024, the Government of Canada gave the green light to a request from the Government of Quebec to temporarily halt the approval of new Temporary Foreign Workers in Montreal’s low-wage stream. Starting September 3, 2024, for a period of six (6) months, the processing of Labour Market Impact Assessment (LMIA) applications will be paused for job offers in the Montreal area that offer wages below $27.47 per hour, the current median hourly wage in Quebec.
Impact and What’s Next?
These changes are said to highlight the importance of employers investing in the Canadian workforce. The Canadian Government is encouraging business to tap into the potential of underutilized groups, such as young people, newcomers, and persons with disabilities. The Government of Canada states its commitment to helping businesses find the talent they need while ensuring that Canadian workers also have access to employment opportunities.
The Government will continue to monitor labour market conditions and may introduce further adjustments to the TFW Program as needed. Over the next few months, there will be a comprehensive review of the program, which could result in changes to the High-Wage Stream, modifications to existing LMIA applications, or additional changes to the processing other LMIA applications.
As these changes unfold, it's essential for employers and workers to stay informed and be prepared for the evolving landscape of the TFW Program.
To learn more information or seek legal advice, please do not hesitate to reach out to our experienced law firm at rharding@hardingimmigrationlaw.com or book a consultation here.
