Employers have used the Temporary Foreign Worker (“TFW”) Program to address short-term skill and labour shortages. However, due to the rising unemployment rate and concerns that the program has been used to bypass hiring Canadian talent, the federal government has announced significant changes to the program.

What’s Changing?

Effective September 26, 2024, the following changes will be made to the TFW Program:

• The Government of Canada will no longer process Labour Market Impact Assessments (LMIAs) for the Low-Wage stream in census metropolitan areas with an unemployment rate of 6% or higher. However, LMIAs will continue to be processed for seasonal and non-seasonal jobs in food security sectors, as well as in construction and healthcare.
• The maximum number of TFWs that employers in the Low-Wage stream can employ will be capped at 10% of their total workforce, with the same exceptions as noted above.
• The maximum length of employment contracts for TFWs will be reduced to one year.

How Should Employers Address these Changes

Employers should review their labour needs and assess whether current strategies for addressing labour shortages will be affected by these changes. 

Employers should also reassess their policies and practices related to job candidates or current employees who may be impacted by these changes. Some employees may request alternative immigration-related support. It is important to note that the Ontario Human Rights Code (the “Code”) prohibits employers from discriminating against employees based on their citizenship, race, place of origin, ethnic origin, and other protected grounds, including during the hiring process. Employers cannot ask job candidates questions that relate to a Code-protected ground, whether directly or indirectly, such as through verbal questions or application forms. While employers may ask if a candidate is legally entitled to work in Canada, inquiring about specific immigration status could violate the Code.

Potential Future Updates

Following these changes to the TFW Program, the federal government has indicated that an additional review will take place within 90 days, which could lead to further changes to LMIA application processing, industry exceptions, and procedures for industries in the High-Wage stream.

This blog is provided as an information service and summary of workplace legal issues.

This information is not intended as legal advice.