The purpose of this communication is to provide additional information on the Temporary Foreign Worker Program’s (TFW Program) Labour Market Impact Assessment (LMIA) tightening measures that were announced on August 6 and August 26, as well as September 18. These new measures will be in effect beginning September 26, 2024, until further notice.
Please note that the TFW Program website will be updated on September 26, 2024, to reflect all changes coming into effect.
The following changes will apply to LMIA applications received on or after September 26, 2024:
- Refusal to process LMIA applications for low-wage positions
o LMIA applications for positions where the workplace is located in any of the Canadian Census Metropolitan Areas (CMA) with an unemployment rate of 6% or more, and where the wage offered is lower than the median hourly wage in effect in the province or territory, will not be processed and fees for these applications will not be collected.
o This measure applies to both seasonal (270 days or less) and non-seasonal positions.
o Positions in the Primary Agriculture stream, and occupations in food manufacturing (NAICS 311), construction (NAICS 23), and healthcare (NAICS 622 and 623) sectors will not be subject to this refusal to process, whether the position is seasonal or not.
- Cap on the proportion of low-wage positions
o Employers will be allowed to hire temporary foreign workers in low-wage positions under the TFW Program for up to a maximum of 10% of their total workforce, in a specific work location. This is a further reduction from the 20% cap announced in March 2024.
o This measure will also apply to low-wage positions eligible for “simplified processing” in the province of Québec.
o Exceptions will be made: the cap on the proportion of low-wage positions, at a given worksite, will be of 20% for occupations in food manufacturing (NAICS 311), construction (NAICS 23), and healthcare (NAICS 622 and 623) sectors. This is a further reduction from the 30% cap announced in March 2024 for positions in the construction and healthcare sectors.
o As a reminder, low-wage positions in the Primary Agriculture stream, seasonal positions of less than 270 days, and highly mobile or truly temporary positions (120 calendar days or less) remain exempt from this measure.
- Reduction of the maximum duration of employment for low-wage positions
o The maximum duration for the period of employment for workers hired in low-wage positions will be reduced from two years to one year.
o This measure will also apply to low-wage positions eligible for “simplified processing” in the province of Québec.
o Low-wage positions in the Primary Agriculture Stream will be exempt from this measure.
- “Dual-intent” LMIA applications in support of Permanent Residency under the TFW Program
o As announced on August 6, 2024, the TFW Program requirements for “dual-intent” LMIA applications in support of permanent residency will be harmonized with those currently in place for low-wage and high-wage positions, and primary agriculture.
o “Dual-intent” LMIA applications in support of permanent residency that are for low-wage positions will be subject to the refusal to process measure announced on August 26, 2024 (unemployment rate of 6% in a CMA), the cap on the proportion of low-wage positions at a given worksite, and the one-year maximum duration for the period of employment.
If you have any questions on the TFW Program, please visit Canada.ca or reach out to the Employer Contact Centre.
You are encouraged to share this communication throughout your respective networks, and with any colleagues or peers who may need to be aware of this information.
