On August 26, 2024, the federal government announced upcoming changes to the Temporary Foreign Worker (TFW) Program.
The TFW Program was established to address labour market shortages by filling positions that qualified Canadian workers could not occupy.
Effective September 26, 2024, the following measures will be implemented:
- The Government of Canada will cease processing Labour Market Impact Assessments (LMIAs) for the low-wage stream in census metropolitan areas with an unemployment rate of 6% or higher.
- Employers participating in the TFW Program will be restricted to hiring no more than 10% of their total workforce through the low-wage stream, a reduction from the limits set in March 2024.
- Additionally, the maximum duration of employment for workers hired under the Low-Wage stream will be reduced from two years to one year.
To comply with the TFW Program, employers should follow these key steps:
- Conduct recruitment efforts in Canada
- Apply for a Labour Market Impact Assessment (LMIA) where permissible
- Meet program-specific requirements
- Provide fair wages and working conditions
- Comply with employment standards and laws
- Maintain accurate records of recruitment, wages, working conditions, and compliance with all TFW Program requirements. Employers should also retain copies of work permits and LMIAs
- Be prepared for inspections or audits by the Government of Canada, which may request evidence of compliance with the terms and conditions of the LMIA
- Support foreign workers’ rights
- Avoid excessive use of the low-wage stream
- Monitor changes to program regulations
Following these steps will help employers remain compliant with the TFW Program and avoid penalties, including fines, LMIA suspensions, or bans from hiring foreign workers in the future.