Canada to Tighten Temporary Foreign Worker Program Rules

Canada is preparing to enforce stricter regulations on its Temporary Foreign Worker (TFW) Program, particularly affecting the low-wage stream. 

The federal government is considering refusing TFW applications for jobs below the median hourly wage in each province and territory. This change aims to prevent abuse and misuse of the program, a growing concern.

The proposed changes follow ongoing concerns about the exploitation of temporary foreign workers. The government has emphasized its commitment to protecting the health and safety of these workers, ensuring they are not taken advantage of by employers. 

As part of these efforts, more reforms will be introduced to curb fraud and misuse within the program.

Employers seeking to hire a TFW must submit a Labour Market Impact Assessment (LMIA) to the federal government, demonstrating that no qualified Canadian was available for the job. 

This process includes a fee of $1,000 per position requested, and employers who have not hired a TFW in the past six years will undergo a review to ensure a workplace free of abuse.

A cap on the proportion of TFWs in low-wage positions was implemented on April 30, 2022, limiting the number to 20 percent per specific work location. This cap is designed to prioritize employment opportunities for Canadians and permanent residents. 

However, starting May 1, 2024, certain sectors, including construction, hospitals, and nursing care facilities, will be eligible for an increased cap limit of 30 percent.

The TFW program is critical for agriculture, which employs the most TFWs. However, other sectors have seen significant increases in TFW employment since 2018, prompting the need for tighter regulations to maintain the integrity of the program.

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