Reforms could result in 20,000 fewer positions approved through temporary foreign worker program
Ottawa has once again introduced significant changes to its Temporary Foreign Worker (TFW) Program, aimed at safeguarding Canadian workers while continuing to protect workers from potential fraud and exploitation.
Starting on Nov. 8, 2024, the starting hourly wage for workers entering Canada through the high-wage stream will rise by 20% above the median wage for the applicable province or territory. This adjustment represents an increase of $5 to $8 per hour, depending on the region.
“As a result, a greater number of jobs are expected to be subject to the stricter rules of the low-wage stream, including additional employer requirements related to housing, transportation and recruitment of workers already in Canada,” said the government.
This wage hike aims to align the TFW Program more closely with its core goal: filling labour shortages only when no qualified Canadian workers are available.
This change “reinforces our commitment to protecting temporary foreign workers, while prioritizing the Canadian workers available to join the labour force. By raising the threshold for high-wage stream positions, we are supporting wage growth for Canadians,” said Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages.
Tighter rules for low-wage stream jobs
The government estimates that roughly 34,000 positions will be reclassified under the low-wage stream due to these reforms.
This shift could result in as many as 20,000 fewer positions being approved through the TFW Program when combined with other policies in effect as of Sept. 26, 2024, including the following:
- Ottawa does not process LMIAs in the low-wage stream in CMAs with an unemployment rate of 6% or higher (with some exceptions for high-demand sectors)
- employers may hire no more than 10% of their total workforce through the TFW Program (with some exceptions for high-demand sectors).
Lululemon faced criticism recently when it revealed it is allowed to hire temporary foreign workers for the expansion of its headquarters in British Columbia without seeking local labour first.
Strengthening worker protections and employer accountability
Another major reform announced by Boissonnault involves eliminating the use of professional attestations from accountants or lawyers to verify a business’s legitimacy, starting on Oct. 28, 2024.
He added that the TFW Program will further build on existing information sharing agreements with provincial and territorial partners, as well as existing employer registries, to enhance data sharing.
“These measures will help to ensure that only genuine and legitimate job offers are approved, helping prevent misuse of the program and ensuring stronger worker protection,” said the government statement.
The TFW Program has been criticized in the past for instances of worker exploitation, and these reforms aim to minimize such risks. The Labour Market Impact Assessment (LMIA), which employers must pass to demonstrate that hiring foreign workers will not harm the domestic job market, remains a key tool for maintaining program integrity.
The government remains vigilant about the potential misuse of the program. Minister Boissonnault assured the public that "while the majority of employers use the TFW Program as intended, we will continue to monitor for fraud and misuse."
