On October 21, 2024, the government of Canada announced changes to the Temporary Foreign Worker (TFW) program used when no qualified Canadians can fill a job. Updates focus on the high-wage Labour Market Impact Assessment (LMIA), aiming to streamline processes and enhance transparency, with potential adjustments to wage thresholds, eligibility criteria, and employer compliance and reporting requirements.
In recent months, the Government of Canada has taken steps to reinforce the program's integrity. On August 26, 2024, the government committed to conducting additional reviews over the next 90 days to ensure the TFW Program remains aligned with labour market demands while safeguarding temporary foreign workers from exploitation and fraud.
Currently, the High-Wage LMIA Stream is available only for positions that offer wages above the median for the province or territory of employment. However, effective November 8, 2024, the eligible starting hourly wage will increase to the median wage plus 20% for the relevant province or territory. Additionally, as of October 28, 2024, employers will no longer be permitted to submit attestations from professional accountants or lawyers to verify business legitimacy.
Employers Should:
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Review and evaluate current hiring practices and ensure alignment with the new LMIA criteria.
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Keep abreast of the changes announced and their timelines to ensure compliance.
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Adjust Wage Offerings to meet the new thresholds.
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Consider training HR staff to understand the new requirements and how they will impact recruitment strategies.