Canada Tightens 'LMIA Overseas Workers', New Policies Coming to Employer Sponsorship Programs!

On August 6, 2024, Canada's Minister of Employment and Social Development, Randy Boissonnault, convened representatives of the Canadian Business Association and made it clear:

The Temporary Foreign Worker (TFW) program cannot be used as a means to circumvent hiring local talent.

The federal government will take further steps to combat abuse and fraud in the program and is considering rejecting applications in the low-wage category.

What is TFW

The Temporary Foreign Worker (TFW) program is designed to help Canadian employers recruit foreign talent to fill vacancies in the domestic labour market.

Employers can apply for a Labour Market Impact Assessment (LMIA) from the Ministry of Labour. Once approved, the foreign worker can apply for a targeted work visa in Canada to work exclusively for that employer in a designated position, while also adding points to their fast-track immigration (EE).

4 Measures to Reduce TFW

1

Harmonize the 20% TFW hiring cap policy

In other words, the percentage of temporary foreign workers (TFWs) must not exceed 20% with the same employer and in the same workplace.

This includes Labor Market Impact Assessment (LMIA) applications that support the dual intent of work visa and immigration (employers will face stricter requirements for dual intent LMIA applications).

2

Consider increasing LMIA fees

Employers hiring temporary foreign workers will be required to submit a LMIA to the federal government to demonstrate that they have not been able to find a suitable Canadian to fill the position in the last 28 days.

3

Plan to implement future regulatory changes regarding employer eligibility

Factors such as the minimum number of years in business and the employer's history of layoffs will also need to be considered.

4

Enhance strict oversight of high-risk areas when approving LMIA applications and conducting inspections.

The Government of Canada is taking action on the Temporary Foreign Worker Program (TFW) primarily because of the significant increase in the number of temporary residents entering Canada through the program in recent years.

Data shows that the number of people applying to enter Canada to work through TFW has nearly doubled from 108,000 before the 2018 outbreak to 239,000 in 2023.The number of approved applications in 2022 was 222,000, an increase of 89,000 from the previous year.