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New Regulations for Canada’s TFWP: No More Low-Wage LMIAs

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Low Wage LMIAs

In a move to prioritise Canadian jobs and workers, the government has announced significant changes to the Temporary Foreign Worker Program (TFWP). Starting September 26, the Labour Market Impact Assessment (LMIA) process will be halted for low-wage positions in certain cities.

What does this mean?

Essentially, employers in cities with high unemployment rates (6% or higher) won’t be able to hire foreign workers for low-wage jobs. This change aims to encourage employers to hire and train Canadian citizens and permanent residents instead.

Exceptions to the rule

However, there are some exceptions to this new rule. Jobs in essential sectors like food security (farming, food processing, and fish processing), construction, and healthcare will still be eligible for LMIA processing. This ensures that critical industries continue to receive the support they need.

Additional changes

To further promote fairness and transparency, employers will face new restrictions:

– They can’t hire more than 10% of their workforce through the TFWP.

– Workers hired through the Low-Wage stream can only work for a maximum of one year (down from two years).

What’s next?

While the government hasn’t released a list of affected cities yet, employers and foreign workers should prepare for these changes. If you’re an employer or worker impacted by these updates, stay tuned for more information and guidance from Employment and Social Development Canada (ESDC).

In a bold move, Canada’s government is shaking up the Temporary Foreign Worker Program (TFWP) to put Canadians first. As of September 26, the program will no longer process applications for low-wage positions in cities with high unemployment rates (6% or higher). This change aims to encourage employers to hire and train Canadian citizens and permanent residents instead of relying on foreign workers.

Why the change?

– Canada has become too dependent on the program

– 1.4 million Canadians are currently unemployed

– The government wants to ensure Canadians have access to good jobs

Key Changes:

– No LMIA processing for low-wage positions in cities with high unemployment rates (6% or higher)

– Exceptions for jobs in food security, construction, and healthcare

– Employers can’t hire more than 10% of their workforce through the TFWP

– Maximum duration of employment for workers hired through the Low-Wage stream reduced to one year

Cracking down on misuse and fraud

– New restrictions will help prevent employers from misusing the program and exploiting foreign workers

– Employers must retrain and upskill current employees to meet future workplace demands

What’s next?

– 90-day review of the High-Wage stream of the TFWP

– Potential changes to existing LMIA applications, sectoral exceptions, or refusal to process certain applications

Recent changes in Montreal

– Quebec Premier François Legault announced similar restrictions in Montreal

– Suspension of LMIA applications for low-wage positions in the administrative region

Part of a larger plan

– Managing temporary resident levels in Canada

– Preventing abuse in the TFWP

– Capping international student study permits until 2026

Canada Reforms Temporary Foreign Worker Program

The Canadian government is reforming the Temporary Foreign Worker Program (TFWP) to prioritize Canadian workers. Starting September 26, low-wage positions in cities with high unemployment rates (6% or higher) will no longer be eligible for Labour Market Impact Assessments (LMIAs). Exceptions apply for essential sectors like food security, construction, and healthcare. The changes aim to:

– Encourage employers to hire and train Canadians

– Prevent program misuse and fraud

– Manage temporary resident levels and pressures on social services

These reforms are part of a broader effort to ensure the TFWP meets Canada’s economic needs while protecting Canadian workers.

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