Canada’s Temporary Foreign Worker Program (TFWP) is designed to allow employers to secure foreign workers where there is a labour shortage in a particular sector or industry. Establishing that there is indeed a shortage of workers in a particular field/industry is done through the process of securing an ‘LMIA’ – Labour Market Impact Assessment. TFWP guidelines are set by Employment and Social Development Canada, and administered by Service Canada. [Note that the TFWP is distinct from the International Mobility Program (IMP), where, for various policy reasons, Canada allows employers to secure foreign workers without an LMIA. This would include intra-company transfers, various treaty-based professional categories, etc.]
The government had introduced some measures in April 2022 (see our ImmPulse™ newsletter on the issue here). Today, the government announced some updated/new provisions relating to the TFWP, expounding on the April 2022 pronouncements.
Included in today’s new pronouncements are the following, in effect until August 30, 2024:
- Employers in certain sectors will continue to be permitted to retain up to 30% of their workforce for low-wage occupations (below provincial median wage), through the TFW. Sectors include:
- Food Manufacturing
- Wood Product Manufacturing
- Furniture and Related Product Manufacturing
- Accommodation and Food Services
- Construction
- Hospitals
- Nursing and Residential Care Facilities
- The duration of employment for occupations below provincial median wage guidelines, will be for up to two years
- LMIA validity periods will be available to a maximum of 12 months
Further, as of January 1, 2024, employers will now be required to annually review foreign workers’ wages to ensure that they meet the then current prevailing wage. This may have been true in any event, but the issue is being more definitively codified. Certainly, this is of note to organizations who not only will be seeking new LMIAs/foreign workers, but also to organizations who have already been granted LMIAs and have foreign workers in Canada. Appropriate review and action should be considered.
The information in this article is for general purposes only, and not intended as legal advice for any particular situation.