In order to assist employers in addressing critical labor shortages through the Temporary Foreign Worker Program (TFWP), Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, announced amendments to the Temporary Foreign Workforce Solutions Road Map today. Employers can now hire temporary foreign workers with ease.
The goal of the Temporary Foreign Workforce Solutions Road Map is to provide employers with the ongoing ability to adapt the Temporary Foreign Workforce Program (TFWP) to changing labor and economic situations in Canada.
Today’s announcement has instituted or maintained the following changes to the Temporary Foreign Workforce Solutions Road Map:
- Up to 30% of their workforce may still be hired in low-wage positions through the TFWP by employers in seven specific sectors: food manufacturing, wood product manufacturing, furniture and related product manufacturing, accommodation and food services, construction, hospitals, and nursing and residential care facilities;
- A duration cap of employment of two years will be upheld for positions under the provincial or territorial minimum wage;
- The validity period for Labour Market Impact Assessments (LMIAs) will be shortened from the previous 18 months to 12 months; and
- Employers must conduct yearly reviews of the wages of their temporary foreign workers starting on January 1st, 2024, to make sure that they are commensurate with the going rates for the particular occupation and area of employment.
These extended measures are all scheduled to expire on August 30, 2024, with the option to modify them as necessary based on labor market and economic conditions.
Even though the COVID-19 epidemic caused Canada to make significant strides in addressing historical labor shortages, a number of industries, like the ones listed above, are still beset by a chronic labor deficit that the nation is unable to handle internally. In September, the jobless rate stood at 5.5%, a level that has remained constant over the past three months despite unprecedented immigration levels. In fact, there are still open positions as seen by the roughly 40% rise in employer demand for the TFWP over the same period last year. Employers can now hire temporary foreign workers with ease
What is the Temporary Foreign Worker Program (TFWP)?
Immigration, Refugees and Citizenship Canada (IRCC) uses the Temporary Foreign Work Permit Program (TFWP), one of Canada’s two umbrella work permit programs, to solve the country’s labor shortfall by encouraging immigration.
Under this program, foreign nationals may be hired by Canadian enterprises to work in Canada. It also includes streams for agriculture, live-in caregivers, and high- and low-wage foreign workers. To determine if a Canadian citizen or permanent resident could have been hired for the same position, employers must submit to the government of Canada a Labour Market Impact Assessment (LMIA), an official permission process and document. If an LMIA returns with a positive or neutral decision, a foreign worker may be hired—however if the decision is the hiring is not supported by the LMIA, and the work permit application will be refused. LMIA-supported work permits are tied to a specific employer and one industry. Employers can now hire temporary foreign workers with ease.
A crucial component of the program is employer compliance. In addition to keeping an online database of businesses found to be in violation of TFWP criteria (which cover things like pay, working conditions, and workers’ rights), the Canadian government has also implemented a safety program for program participants who are vulnerable workers. In order to expedite the LMIA process for reputable businesses with a strong program record, the IRCC also introduced the Recognized Employer Pilot (REP). This initiative highlights the significance of these employees in keeping open positions.
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