Canada Announces Measures To Curb LMIA Work Permit Fraud

Last Updated On 19 August 2024, 11:42 AM EDT (Toronto Time)

Today, in response to growing concerns over misuse and fraud in Canada’s Temporary Foreign Worker (TFW) Program, the Canadian government has introduced a series of stringent measures.

This announcement was made today by Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, the department responsible for issuing labour market impact assessments.

As per Randy, these initiatives are designed to protect both Canadian workers and foreign workers by ensuring fair and lawful practices within the program.

This announcement came at a time when concerns were raised about why the government has approved the record number of LMIAs ever, given the recent rise in unemployment.

New measures to curb fraud in Canada’s Temporary Foreign Worker Program

Below are the new announcements made today:

20% Cap Enforcement: A strict enforcement of the existing policy that limits the number of low-wage temporary foreign workers to 20% of an employer’s workforce.
Enhanced Oversight: Increased monitoring and inspections in regions and industries identified as high-risk for TFW Program misuse.
Fee Increase: The government is considering raising the fees for Labour Market Impact Assessments to better reflect the cost of processing applications and to deter frivolous or fraudulent applications.
Regulatory Changes: Upcoming changes in regulations will further scrutinize employer eligibility and ensure that those who misuse the program face significant consequences.

Upcoming Plan

Refusal to Process: The government is contemplating a policy to refuse processing of applications under the low-wage stream to prevent abuse.
New Labour Stream: Plans are underway to modernize the TFW Program by introducing a specialized labour stream for the agriculture and fish & seafood processing sectors, aimed at addressing unique needs and challenges in these industries.

While most firms use the program as intended, more action is needed to preserve the Canadian labour market and hold unscrupulous actors accountable.

The Minister will regularly monitor employer demand for the TFW Program, as well as employment rates, and is prepared to adopt additional tightening measures as needed.

Minister’s Statement: Minister Randy Boissonnault stressed the government’s unwavering commitment to eradicating fraud and abuse within the TFW Program.

He highlighted the importance of these measures in maintaining the program’s integrity and protecting workers.

Implications: These changes signify a robust stance by the Canadian government to safeguard the labour market and ensure that the TFW Program operates fairly and effectively.

Legitimate businesses stand to benefit from a more regulated environment, while those engaging in fraudulent activities will face stringent repercussions.

However, the announcements made today seem to be political and do not seem to be effective since there are still a lot of loopholes and workarounds in the current temporary foreign worker program.

What is the temporary foreign worker program?

A temporary foreign worker program allows employers in a country to hire workers from other countries for a limited period of time to fill specific labor needs.

How does the temporary foreign worker program work?

The Temporary Foreign Worker Program allows employers to hire foreign workers on a temporary basis to fill specific job positions when qualified Canadian citizens or permanent residents are not available.

The program requires employers to obtain a Labour Market Impact Assessment to demonstrate that hiring a foreign worker will not negatively impact the Canadian labor market.

Once approved, the employer can offer a job to a foreign worker who then applies for a work permit.

Satinder Bains

Satinder brings expertise, knowledge, and experience related to internal work flows at IRCC. She worked at Canadian Consulate in Chandigarh before moving to Canada. Her articles on “Chinook – An internal IRCC tool used to bulk process temporary applications” was one of the notable work on our news website