Significant Changes to Temporary Foreign Worker Program Announced


The Temporary Foreign Worker Program (TFWP) is used by employers to fill job vacancies with temporary foreign workers when qualified Canadians are not available. Under the TFWP, employers may hire temporary foreign workers through a variety of streams, including the Low-Wage Stream, which is utilized by employers who wish to hire a temporary foreign worker who will be paid less than the median hourly wage rate of their province or territory.

After an employer has engaged in efforts to recruit and hire qualified Canadians, the first step for an employer who would like to use the Low-Wage Stream of the TFWP is to obtain a Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC). ESDC assesses applications and determines the likely effect hiring temporary foreign workers will have on the Canadian labour market. ESDC must issue a positive or neutral decision on the employer’s LMIA application for a temporary foreign worker to use the decision to obtain a work permit enabling them to work for the employer in the vacant position.

The TFWP is designed to be responsive to changes in the labour market. When post-pandemic labour market needs were high, several changes were introduced to the TFWP to help employers meet urgent employment needs. Now, with changing labour market conditions and declining job vacancies, several new restrictions on the Low-Wage Stream have been announced. More specifically:

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