The Canadian government has announced that there will be some modifications to the Temporary Foreign Worker Program (TFWP). The TFWP is the program that deals primarily with allowance for work permits through the issuance of Labour Market Impact Assessments (LMIAs) to employers who can substantiate a need to hire workers from outside Canada.
The TFWP is distinct from the International Mobility Program (IMP), which allows for non-LMIA work permits in categories such as intra-company transfers or professionals from certain countries. It appears, at least based on information currently available, that the following information impacts the TFWP only.
The government is updating some provisions in essentially a ‘ramp-down’ of changes that were implemented during the COVID era, but which now seem obsolete, and/or which may now be harmful to the labour market. As of May 1, 2024:
- New LMIAs will be valid for six months only, rather than twelve months.
- Note that this is the period of time within which the foreign worker must apply for a work permit after LMIA issuance, not the period of time granted to work in Canada.
- Employers will be allowed to secure only 20% of their workforce through the TFWP in the low wage stream.
- Excluded from the lowered cap are employers in the health care and construction industries, where the 30% cap will continue to apply.
- Employers will be required to engage in other recruitment techniques before seeking LMIAs, including, for instance, the recruitment of asylum seekers with valid work permits.
Affected parties should consult with appropriate counsel to consider any issues directly applicable to them.
The information in this article is for general purposes only, and not intended as legal advice for any particular situation.