Changes to Temporary Foreign Worker program coming in September

Ottawa – The federal government has announced changes to the Temporary Foreign Worker program intended to weed out potential misuse, fraud and employers’ reliance on temporary foreign workers, including reductions in access to the program and strengthened compliance measures.

In a news release, the government said the program has been used to circumvent hiring talented workers in Canada.

The following changes will be implemented, effective by Sept. 26, 2024:

• The federal government will refuse to process Labour Market Impact Assessments (LMIAs) in the low-wage stream, applicable in census metropolitan areas with an unemployment rate of six per cent or higher. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as construction and health care.
• Employers will be allowed to hire no more than 10 per cent of their total workforce through the TFW Program. This maximum employment percentage will be applied to the low-wage stream and is a further reduction from the March 2024 reduction. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as healthcare and construction.
• The maximum duration of employment for workers hired through the low-wage stream will be reduced to one year (from two years).

The government urged employers to employ workers available in in Canada, such as young people, newcomers and persons with disabilities, and to invest in retraining or “upskilling” for those they currently employ. The government said it will continue to work with business and organizations to help them find workers by providing supports for training and education as well as monitor labour market conditions and introduce further adjustments to the program as needed to ensure that only employers with demonstrable labour market needs have access.

Members of the public are invited to comment over the next 90 days on the program, which could result in changes to the High-Wage Stream, to existing LMIA applications for which positions have not been filled, to sectoral exceptions or refusing to process other LMIA applications, including for rural areas.

Restaurants Canada said these changes will have severe consequences for rural, remote and tourist regions of Canada. A news release from the organization representing restaurants and food-service outlets said, “We are deeply disappointed that our industry was not consulted in the lead-up to this decision.

“As a $115-billion industry and one of Canada’s largest private-sector employers, our voice is crucial in such decisions. While TFWs make up only three per cent of our industry, these workers have been vital in keeping many restaurants operational during challenging times.

“We support changes to the program that strengthen compliance and protections for workers and ensure the program is being used in the manner it was intended – as a last resort for employers struggling to fill vacancies. However, the changes announced today will cause more harm than good in those communities that have few other options to address labour shortages.”

The organization is urging the government to adopt a more flexible approach to these measures, considering geographic and socio-economic circumstances.

RC is encouraged by the government’s commitment to collaborating with businesses and organizations to meet labour needs while supporting Canadian workers through training and education. For over a year has been advocating for a matching and training program to connect job vacancies in industries like food service with the approximately one million unemployed newcomers holding open work permits in Canada.