Canada Implements New Rules for Temporary Foreign Worker Program (TFWP): What Employers and Jobseekers Should Know

The Canadian government has recently updated its Temporary Foreign Worker Program (TFWP), focusing on reducing the reliance on low-wage foreign workers. The new changes, effective from September 26, 2024, aim to encourage employers to prioritize hiring Canadians before looking to foreign workers. These updates are designed to address concerns about misuse of the program and ensure that local talent gets the first opportunity for employment.

Key Updates to the TFWP

1. 10% Cap on Low-Wage Workers

Canada has introduced a 10% cap on the number of low-wage foreign workers that businesses can hire. Sectors like healthcare, construction, and food processing, which face significant labor shortages, will be allowed a higher cap of 20%. This rule applies across Canada, including in Quebec, under the Traitement Simplifié (Simplified Processing) program.

2. Duration Limit on Low-Wage LMIA

The Labour Market Impact Assessment (LMIA), a requirement to hire foreign workers, will now have a one-year limit for low-wage positions. The only exception will be for the Primary Agriculture Stream, which remains exempt from this limitation.

3. Refusal to Process Policy (RTP)

A new Refusal to Process (RTP) policy has been introduced for areas with unemployment rates over 6%. Employers in these regions cannot hire foreign workers unless the positions are in sectors like healthcare or construction, which are in critical need.

Impact on Employers

Employers must now demonstrate a stronger commitment to hiring Canadians, especially underprivileged groups such as youth, immigrants, and individuals with disabilities. The government's goal is to reduce misuse of the TFWP, which saw a surge in low-wage positions during the pandemic. Employers who fail to comply with these new regulations could face significant challenges in meeting their labor needs.

Impact on Foreign Jobseekers

For foreign jobseekers, the new restrictions mean fewer opportunities for low-wage jobs in Canada. However, there is still a high demand for workers in sectors like healthcare, construction, and food processing. Those looking for work under the TFWP will need to navigate tighter caps and shorter employment periods.

Next Steps

The government plans to review the TFWP within the next 90 days. This review may lead to further changes in the High-Wage Stream or adjustments to LMIA applications. Business owners have voiced concerns that the tighter restrictions could make it harder to fill labor shortages, especially in sectors that rely heavily on foreign labor.

For more information on these changes, visit the full article on Economic Times.