Last Updated On 12 October 2024, 12:23 PM EDT (Toronto Time)

Today, new Canada LMIA (Labour Market Impact Assessment) rules come into effect, marking a major shift into the Temporary Foreign Worker (TFW) Program.

These changes were originally announced on August 26, 2024, with an effective date of today, September 26.

This move targets metropolitan areas with unemployment rates of 6% or higher, aiming to prioritize Canadian workers and curb over-reliance on foreign labour.

Key Changes to the Temporary Foreign Worker Program Now in Effect

Effective today, the following changes have been made to the TFW Program:

Suspension of LMIAs in High Unemployment Areas: The government will no longer process LMIAs under the low-wage stream in census metropolitan areas with unemployment rates of 6% or higher.
- However, exceptions will be made for critical sectors, including primary agriculture, food processing, fish processing, construction, and healthcare.
10% Cap on Foreign Workers: Employers can now hire only 10% of their total workforce through the TFW Program, down from the previous 20% cap.
- Exceptions to this cap will apply to essential industries like agriculture, food processing, construction, and healthcare.
Reduced Employment Duration: The duration of employment for workers hired through the Low-Wage stream is now limited to one year, reduced from the previous two-year maximum.

Previous Changes Introduced to Curb LMIA Fraud

In response to growing concerns about misuse and fraud within Canada’s Temporary Foreign Worker (TFW) Program, the Canadian government introduced a series of stringent measures on August 6, 2024.

These changes were designed to enhance the integrity of the program and ensure that it is used as intended to fill genuine labor shortages when qualified Canadian workers are not available.

Key Measures Introduced on August 6, 2024

Regulatory Changes: The government is also preparing new regulatory changes to scrutinize employer eligibility more closely.

These changes will ensure that employers who misuse the program face significant penalties, including fines and bans from accessing the TFW Program.

20% Cap Enforcement: The government has implemented strict enforcement of the existing rule that limits the number of low-wage temporary foreign workers to 20% of an employer’s workforce.

This measure aims to curb the overuse of foreign labor in low-wage positions and encourage employers to hire more Canadian workers.

Enhanced Oversight: Monitoring and inspections have been significantly increased, particularly in regions and industries identified as high-risk for TFW Program misuse.

This step is part of the government’s broader effort to crack down on employers who exploit the program to avoid hiring Canadian workers.

Fee Increase: To better reflect the cost of processing Labour Market Impact Assessments (LMIAs) and to discourage frivolous or fraudulent applications, the government is considering raising LMIA fees.

This proposed fee increase is intended to deter employers from submitting multiple or non-serious applications.

Monitoring and Future Adjustments

The Canadian government will closely monitor these changes and make further adjustments as needed.

Within the next 60 days, a comprehensive review of the TFW Program will take place, which could lead to further changes in the high-wage stream, sector-specific exceptions, and adjustments in processing existing LMIA applications.

Addressing Rising Unemployment and Program Misuse

These changes are part of a broader strategy to recalibrate the TFW Program as the Canadian labour market evolves.

With unemployment rising to 6.6% as of August 2024, the government has already reduced the validity of LMIAs from 18 months to 6 months and has decreased the cap on temporary foreign workers from 30% to 20%.

In a related update, the government recently approved Quebec’s request to temporarily freeze new TFW approvals in Montreal’s low-wage stream, suspending LMIA processing for job offers below the province’s median hourly wage of $27.47.

Ensuring the Right Use of the TFW Program

The new LMIA rules reflect Canada’s commitment to safeguarding job opportunities for Canadians and ensuring that the TFW Program serves its intended purpose.

As the economic landscape continues to shift, further adjustments are expected to maintain a balanced and fair job market.

These changes are now in effect, underscoring the government’s dedication to prioritizing Canadian talent and ensuring that the TFW Program meets the evolving needs of the country.

Kamal Deep Singh, RCIC

Kamal Deep Singh, RCIC (Regulated Canadian Immigration Consultant) licensed by CICC (formerly known as ICCRC) with member number R708618. He brings extensive knowledge of immigration law and new changes to rapidly evolving IRCC.