Canada introduces strict rules for hiring low-wage foreign workers

The Canadian government has announced steps to prioritize Canadian workers over foreign nationals in job creation. Going forward, low-wage foreign workers may find it difficult to get jobs and work in Canada.

The measures are specific to the Low-Wage stream workers – Firstly, Canada is stopping LMIAs in the Low-Wage Stream, Secondly, the TFW Program will allow employers to hire only up to 10% of their total workforce and thirdly, the Low-Wage stream will reduce the maximum employment duration for workers from two years to one year.

Prime Minister Justin Trudeau had earlier announced that the Canadian government would reduce the number of temporary foreign workers in the low-wage stream that businesses can hire. “The labor market has shifted. Now is the time for our businesses to invest in Canadian workers and youth,” Trudeau declared.

In a significant effort to deter immigrant laborers with low wages, the Canadian government has declared that they 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, effective September 26.

Further, the government is taking action to weed out Temporary Foreign Worker (TFW) Program misuse and fraud. 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.

Finally, the maximum duration of employment for workers hired through the Low-Wage stream will be reduced to one year (from two years).

However, 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.
Over the next 90 days, the Program will undergo a review, potentially leading to changes to the High-Wage Stream as well.

The Labour Force Survey shows a 6.4% unemployment rate in Canada, a 0.2% increase from May and June, with 1.4 million unemployed individuals in June 2024.

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 will be 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.

Source : https://www.msn.com/en-in/news/India/canada-introduces-strict-rules-for-hiring-low-wage-foreign-workers/ar-AA1pMFdu?ocid=hpmsn&cvid=f980d6778f6c4dda9e014ebeb75f4c42&ei=48