The Canadian government recently announced significant changes to the Temporary Foreign Worker Program (TFWP), particularly impacting low-wage positions.
Coming into effect on September 26, 2024, these adjustments have important implications for employers across the country. If you employ temporary foreign workers or have international recruitment as a part of your hiring strategy, it is essential to understand these changes and how they impact your business.
Jump ahead:
Overview of Immigration Policy Changes
During the labour shortage caused by the COVID-19 pandemic, the Canadian government eased some of the TFWP rules, including increasing the cap on low-wage positions and offering work permit flexibility. As the country emerges from this time period, several components of the policy are reverting back to pre-COVID rules.
The main changes include:
- Reduction in the number of low-wage temporary foreign workers allowed under the program. Previously, employers could fill up to 20% of their workforce with temporary foreign workers through the low-wage stream. This cap has been reduced to 10%.
- Changes to the duration of work permit validity. Previously, work permits for low-wage temporary foreign workers were valid for two years. This has been changed to a duration of one year.
- Labour Market Impact Assessments: Moving forward, LMIAs will not be approved in regions with an unemployment rate above 6%. Additionally, the duration of their validity will be reduced from one year to six months.
Implications for Employers: Adapting to the New Rules
Canadian employers must adapt to these changes by rethinking their workforce strategies. Here are some key steps to consider:
- Focus on High-Wage Positions: If your business relies on temporary foreign workers, consider shifting your focus to high-wage LMIA positions. These roles have not been impacted by the recent changes and will allow you to bring in skilled workers who can contribute significantly to your business.
- Review Your LMIA Applications: As the validity period of new LMIAs have been reduced, employers must act quickly to utilize approved LMIAs and ensure that their applications are thorough and well-documented.
- Stay Informed About Further Changes: The recent announcements are part of a broader review of Canada’s immigration policies. Employers should stay informed about these developments to anticipate and respond to future policy shifts.
High-Wage LMIAs: The Way Forward
For employers who rely on high-wage LMIA positions, these changes present an opportunity rather than a challenge. High-wage LMIAs are not affected by the recent policy shifts, meaning businesses can continue to bring in skilled foreign workers for positions that require specialized expertise.
High-wage LMIA positions offer wages at or above the provincial or territorial median wage. These roles often require advanced skills and are important for industries where there is a shortage of qualified Canadian workers. With the government’s new focus on reducing low-wage positions, the demand for high-wage LMIAs is likely to increase as employers seek to fill gaps in their workforce with qualified talent.
Conclusion
The recent changes to Canada’s Temporary Foreign Worker Program signal a shift towards a more sustainable workforce strategy. For Canadian employers, this is a pivotal moment to reassess recruitment strategies and ensure compliance with the new rules. By focusing on strategically utilizing the TFWP for high-wage positions, businesses can continue to thrive in Canada’s evolving labour market.
As always, staying informed and proactive is key. At IVEY Group, we are committed to helping Canadian employers navigate these changes and continue to build strong, skilled teams that drive success. Whether you need assistance with high-wage LMIA applications or want to explore new recruitment strategies, we’re here to support you every step of the way. Click here to connect with a member of our team.
