Canada’s federal government implemented significant changes to the Temporary Foreign Worker Program (TFWP) in 2024 to better address labor market needs, ensure the protection of domestic workers, and make adjustments to its immigration policies. These changes, which came into effect at different points throughout the year, are important for both Canadian employers and foreign workers who are looking to work in Canada.
Here’s a detailed look at the key updates and their impacts:
1. Reduction in LMIA Validity (May 1, 2024)
One of the first notable changes was the reduction in the validity period for the Labour Market Impact Assessment (LMIA). Previously, LMIA approvals were valid for 12 months, allowing employers a longer time frame to hire foreign workers. However, starting May 1, 2024, this validity was cut down to six months.
The LMIA is a crucial document that Canadian employers must get before hiring foreign workers, demonstrating that there is a need for foreign labor and that no qualified Canadian workers are available for the role. Employers in the Recognized Employer Pilot program are exempt from this change, so their LMIA validity remains at 12 months.
2. Visitors No Longer Allowed to Apply for Work Permits from Within Canada (August 28, 2024)
A major shift occurred in August 2024, when the government ended a temporary policy that allowed foreign nationals with visitor status to apply for a work permit from inside Canada. This policy was originally introduced during the COVID-19 pandemic to help foreign workers who were already in Canada transition to work permits. As of August 28, 2024, individuals holding visitor status will now need to leave Canada to apply for a job-offer-supported work permit.
This policy change marks a significant shift in immigration practices, ensuring that those who wish to work in Canada follow the standard application processes.
3. Suspension of Processing Low-Wage LMIAs (September 26, 2024)
Another significant change in the TFWP was the suspension of processing Low-Wage LMIAs for specific areas in Canada. Effective September 26, 2024, employers in Census Metropolitan Areas (CMAs) with an unemployment rate of 6% or higher will not be able to apply for LMIA approvals under the low-wage stream.
The low-wage stream is intended for sectors that typically require less-skilled labor. However, the government is aiming to focus on reducing dependency on low-wage foreign workers in areas with higher unemployment. Some exceptions will apply to seasonal and non-seasonal jobs in food security sectors (such as agriculture and food processing), as well as jobs in construction and healthcare.
Quebec also implemented similar measures to limit LMIA processing for low-wage positions, especially in Montreal, where positions must meet the Quebec median wage of $27.47 per hour to qualify.
4. Shortened Duration for Low-Wage Stream Employment (September 26, 2024)
In conjunction with the changes to low-wage LMIA processing, the maximum employment duration for workers hired through the low-wage stream was reduced from two years to one year. This change applies to all sectors, except for those in critical industries like agriculture, construction, and healthcare.
This reduction reflects the government’s ongoing efforts to adjust its immigration and labor policies to better align with domestic labor needs and economic conditions.
5. Lowering of Workforce Caps for Low-Wage Workers (September 26, 2024)
The Canadian government also revised the workforce caps that limit the number of low-wage foreign workers that Canadian employers can hire under the TFWP.
In 2022, the cap was temporarily increased to 30% for certain sectors. However, in 2024, the cap was reduced again:
- On May 1, 2024, the cap returned to 20%, except for the construction and healthcare sectors, where businesses could still employ up to 30% of their workforce through the low-wage stream.
- By September 26, 2024, the cap for most sectors was reduced further to 10% of the employer’s total workforce, ensuring that businesses are not overly reliant on foreign labor for low-wage positions.
These changes are aimed at encouraging employers to invest in training and hiring local workers while maintaining essential foreign labor where necessary.
6. Attestations No Longer Accepted (October 28, 2024)
As of October 28, 2024, the government has made it clear that employers can no longer use attestations from certain professionals (such as lawyers, CPAs, or financial institution officials) as proof that they are providing goods or services for LMIA applications.
This change emphasizes that employers must now provide more tangible, verifiable documentation to show that they are fulfilling the obligations outlined in their LMIA application. This adjustment is part of the government’s broader effort to tighten controls on the TFWP and ensure compliance.
7. Wage Increase for High-Wage Stream (November 8, 2024)
Another significant change took place for high-wage foreign workers. As of November 8, 2024, the wage requirements for the high-wage stream of the TFWP were raise.
To qualify for this stream, foreign workers must now earn at least 20% more than the median wage for their position in their region. Alternatively, they must earn the same or higher wage as other employees with similar skills, experience, and job responsibilities at the same employer.
This change is design to attract higher-skilled workers while ensuring that Canadian employers offer competitive wages to foreign workers.
8. Annual Targets for TFWP Work Permits (2025)
In an important development, the 2025 Immigration Levels Plan set a target of 82,000 net new work permits for the TFWP. This target is consistent for the next three years, and it represents the government’s goal to maintain a steady flow of foreign workers into Canada.
This move is in line with the broader objective of reducing temporary resident levels from 7% to 5% of Canada’s overall population by 2026. These targets are likely to shape immigration policies and labor market decisions for years to come.
9. Ongoing Reviews and Future Recommendations
In 2024, the Standing Committee on Citizenship and Immigration (CIMM) conducted a series of discussions and meetings about the TFWP. This resulted in recommendations for future changes to improve the program’s effectiveness. These ongoing reviews aim to ensure that Canada’s immigration system evolves in line with labor market demands and economic trends.
Conclusion
The changes to Canada’s TFWP in 2024 reflect the government’s ongoing commitment to adjusting its immigration policies to meet the evolving needs of the labor market. Employers and foreign workers alike should stay informed about these modifications to ensure compliance and plan accordingly.
As Canada continues to refine its approach to temporary foreign labor, it is essential to be aware of the evolving rules and their impacts.
If you are an employer or a foreign worker interested in navigating these changes and applying for a work permit, consider seeking legal advice to ensure the best possible outcome for your application.
Frequently Asked Questions (FAQ)
What is an LMIA?
An LMIA (Labour Market Impact Assessment) is a document that Canadian employers must obtain to hire foreign workers. It confirms that there are no Canadian citizens or permanent residents available to fill the position.
Why did the Canadian government reduce the LMIA validity period?
The reduction was implement to better manage the program and respond to changing labor market conditions.
Employers remain up to date with the need for foreign labor & that the job market remains competitive for Canadian workers.
How do these changes affect low-wage workers?
The suspension of low-wage LMIA processing in certain areas and the reduced duration for low-wage stream . Employment are part of efforts to decrease dependency on foreign workers for low-wage positions in regions with high unemployment.
Will visitors still be able to apply for work permits from within Canada?
No, as of August 28, 2024. Visitors in Canada must leave the country to apply for work permits supported by a job offer.
What is the new wage requirement for the high-wage stream?
November 8, 2024, foreign workers must earn at least 20% + than , median wage for their position in their region to qualify for high-wage stream.
How can employers comply with the new documentation requirements for LMIAs?
Employers must now provide stronger, verifiable proof of meeting LMIA conditions . Instead of using attestations from professionals like lawyers and CPAs.
