Attention employers and job seekers! The Canadian Government is implementing significant changes to the Temporary Foreign Worker (TFW) Program, starting October 28 and November 8, 2024. These new regulations aim to enhance worker protections, ensure program integrity, and prioritize the hiring of Canadian workers.
If you rely on foreign talent, it’s crucial to understand the new requirements that will impact your access to the TFW Program. Here’s what you need to know:
Key Changes Overview
- New Business Legitimacy Requirements (Effective October 28, 2024) Employers will no longer be able to use attestations from accountants or lawyers to verify their business legitimacy. Instead, the program will utilize information-sharing agreements with provincial authorities and existing employer registries. This change is designed to prevent fraud and ensure that only legitimate employers can hire foreign workers.
- Higher Wage Thresholds for High-Wage Jobs (Effective November 8, 2024) The minimum hourly wage for foreign workers in the high-wage stream will increase by 20% above the current provincial median wage, translating to an increase of $5 to $8 per hour. Positions not meeting this threshold will be reclassified under the low-wage stream, which comes with stricter employer obligations.
- Tighter Regulations for the Low-Wage Stream The low-wage stream will enforce additional rules:
- Transportation and Housing: Employers must provide return transportation and ensure suitable accommodation.
- Recruitment Efforts: Two extra recruitment methods targeting Canadian workers will be required.
- Hiring Limits: Employers in non-essential sectors can only hire a maximum of 10% of their workforce through the TFW Program, with exceptions for high-demand fields like agriculture and healthcare.
- Regional Unemployment Restrictions: LMIA applications for low-wage positions will not be processed in areas with an unemployment rate of 6% or higher.
The Impact on the Labour Market
These changes come amid significant unemployment challenges in Canada:
- Youth Unemployment: 13.5%, more than double the national average of 6.5%.
- Indigenous Workers: 7.7% unemployment rate.
- Persons with Disabilities: 65.1% employment rate compared to 80.1% for those without disabilities.
The government aims to encourage employers to tap into these underrepresented talent pools, reducing reliance on temporary foreign workers.
What This Means for Employers and Workers
- Increased Costs for Employers: Higher wages will impact profitability for employers in the high-wage stream.
- Reduced Access to the Program: Stricter requirements could lead to fewer LMIA approvals, especially in non-high-demand sectors.
- Focus on Domestic Hiring: The government’s goal is to bolster recruitment from underrepresented groups in Canada.
These upcoming changes signify a commitment to balancing labor market needs with enhanced worker protections. By raising wage thresholds and tightening employer requirements, Canada aims to create a fairer and more sustainable labor market for everyone.
Stay informed and ready to adapt to these important changes in the TFW Program. Together, we can ensure a stronger future for Canadian workers and a more responsible approach to foreign labor.