Canada's modified rules on Temporary Foreign Worker Program comes into effect today

The Canadian federal government has announced significant changes to the Temporary Foreign Worker (TFW) Program, particularly aimed at reducing the reliance on low-wage foreign workers.

These changes are intended to ensure that employers make a greater effort to hire available Canadian workers before turning to foreign labour. The government has cited concerns over the misuse of the TFW Program to bypass hiring Canadian talent, especially in the low-wage stream.

What is the Temporary Foreign Worker Program?
The Temporary Foreign Worker (TFW) Program allows Canadian employers to hire foreign workers to fill temporary jobs when qualified Canadian workers are not available. This program is regulated by the federal government to ensure that it addresses genuine labor shortages and is not misused by employers.

Employers using the TFW Program are required to obtain a Labour Market Impact Assessment (LMIA) to demonstrate that hiring foreign workers will not negatively impact the Canadian labor market. The LMIA ensures that no qualified Canadians are available to perform the same job.

Key changes to the Temporary Foreign Worker Program
On August 26, 2024, Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, announced key changes to the TFW Program, which will take effect from September 26, 2024. The modifications focus on reducing the use of low-wage foreign workers and encouraging businesses to invest in training and hiring within Canada. Below are the key changes announced:

Cap on low-wage foreign workers
The government will enforce a 10% cap on low-wage temporary foreign workers across Canada, including in Quebec under the Traitement Simplifié or Simplified Processing program. It allows the hiring of temporary foreign workers in specialized occupations listed in the government of Quebec website.

However, employers in the healthcare, construction, and food processing sectors, which face critical labor shortages, will be allowed a higher 20% cap on hiring low-wage foreign workers.

Duration of Labour Market Impact Assessments (LMIA)
All Labour Market Impact Assessments (LMIAs) approved for the Low-wage Stream will be limited to a work duration of one year, even under the Traitement Simplifié program. This restriction aims to ensure that foreign workers are used for temporary purposes only. An exception will be made for the Primary Agriculture Stream, which is exempt from this limitation.

This push aligns with efforts to recalibrate the Temporary Foreign Worker (TFW) Program, which saw a surge in low-wage positions during the COVID-19 pandemic, increasing from 21,394 in 2018 to 83,654 in 2023.

Government concerns about misuse of the TFW Program—where some employers bypassed Canadian labor in favor of foreign workers—have led to tighter regulations. These changes aim to ensure that local talent is prioritized, promoting a more inclusive workforce and addressing labor shortages sustainably.

TFW: Business owners voice concerns
While the federal government is keen to enforce stricter regulations, a considerable section of business owners argues that finding local workers before turning to the TFW Program is a challenge. According to a report from CBC News, these business owners are concerned that the new restrictions will severely impact their operations, potentially forcing them out of business.

How do the changes in TFW individuals seeking employment?
The new restrictions on Canada's Temporary Foreign Worker (TFW) Program will make it more difficult for foreign workers to find low-wage jobs in Canada, as employers face tighter caps and shorter work periods. Those looking for work through the TFW Program may have fewer options, particularly in sectors with high unemployment. However, there will be a high demand for foreign workers in the healthcare, construction, and food processing sectors.

Source: https://www.msn.com/en-in/money/news/canada-s-modified-rules-on-temporary-foreign-worker-program-comes-into-effect-today-how-does-it-impact-employers-and-jobseekers/ar-AA1rg43p?ocid=hpmsn&cvid=c5ef99cd371b446c8452e16ecf1ce871&ei=17