Canada will stop approving new temporary foreign workers for low-wage jobs

foreign workers

After a prolonged period of heightened scrutiny surrounding the Temporary Foreign Worker Program (TFWP), the Ministers of Immigration, Employment, Workforce Development, and Official Languages of Canada have both provided their final stance.

Finally after a long wait regarding more information about abusers of the TFWP with a suite of measures; today officially at 10. Am EST Premier François Legault and Quebec Immigration Minister Christine Fréchette are scheduled to make an announcement.

They will announce a halt of the approval of new temporary foreign workers in low-wage jobs in the Montreal area starting this September.

Key Points

According to a senior government source, for job offers with hourly salaries less than $27.47, which is now Quebec’s median salary, the processing of Labour Market Impact Assessment (LMIA) applications will be delayed for six months, beginning on September 3.

The province of Quebec must authorize low-wage temporary foreign workers, and the federal Immigration Ministry must approve their employer’s LMIA application.

The measures announced today are in addition to earlier modifications to this program, which have positively impacted the quality, promptness, and scope of employer inspections carried out.

Exemptions 

These changes do not apply to:

  • Jobs in a place of work outside of the economic region of Montréal*;
  • Jobs with an offered wage equal to or higher than the current median wage in Quebec ($27.47 CAD);
  • LMIA applications received before the 3rd of September 2024;
  • Employers applying for LMIAs in certain industry groups, as described by the North American Industry Classification (NAICS), including:
  • Agriculture;
  • Construction;
  • Food processing;
  • Education; and
  • Health and social services sectors.

The administrative region of Montréal includes the municipalities of:

  • Baie-d’Urfé;
  • Beaconsfield;
  • Côte-Saint-Luc;
  • Dollard-des-Ormeaux;
  • Dorval;
  • Hampstead;
  • Kirkland;
  • L’Île-Dorval;
  • Montréal;
  • Montréal East;
  • Montréal West;
  • Mount Royal;
  • Pointe-Claire;
  • Sainte-Anne-de-Bellevue;
  • Senneville; and
  • Westmount.

The federal government says it will closely monitor this policy as it continues to make decisions about the future of the TFWP.

What led to Canada making such a Decision?

Canada is taking a firm stance against Labour Market Impact Assessment (LMIA) fraud with the introduction of new measures designed to enhance the integrity of its immigration system. The decision to pause approvals of temporary foreign workers under certain streams was influenced by several factors. Key among these were concerns about the exploitation of vulnerable workers and the need to ensure that jobs are first offered to Canadians and permanent residents. Additionally, the government faced increasing pressure to address the growing demand for labor in critical sectors. These considerations prompted a reassessment of the Temporary Foreign Worker Program (TFWP) to ensure it aligns with both economic and social objectives.

Minister Boissonnault’s comments placed renewed focus on the TFWP, highlighting potential abuses within the program. This scrutiny was further intensified by a United Nations report released on July 22, which alleged that the TFWP had become a “breeding ground” for significant abuses of foreign workers. The report emphasized the need for stronger protections against exploitation and human trafficking, particularly in industries heavily reliant on temporary foreign workers.

In response, Minister Randy Boissonnault underscored the government’s unwavering commitment to eradicating fraud and abuse within the TFWP. He highlighted the importance of these new measures in maintaining the program’s integrity and protecting workers. The government’s actions reflect a broader effort to reform and strengthen the TFWP, ensuring that it serves both the economic needs of Canada and the rights of the workers it employs.

Minister Miller, in a statement to Reuters, acknowledged the need for changes to the TFWP. He recognized that while the program requires reform, it is not fundamentally flawed. Miller concurred with Minister Boissonnault’s concerns about the low-wage stream, highlighting the necessity of a more thorough review of this pathway. Both ministers have previously noted that the low-wage stream of the TFWP poses a risk of suppressing wages for both foreign and domestic workers in Canada.

Previous Reforms announced on 6th August
  • Maintain a consistent 20% cap on temporary foreign workers, including those in the “dual intent sub-stream” aiming for permanent residency, employers utilizing this stream will be subject to stricter regulations. 
  • Enhanced oversight of Labour Market Impact Assessment (LMIA) issuance and inspections will be applied, especially in areas considered high-risk.
  •  A new labor stream specifically for Agriculture and Seafood processing is being introduced.
What Can We Expect Next?

Potential increases in LMIA fees are being considered to support enhanced integrity measures and processing activities. Stricter eligibility criteria for employers may also be enforced, possibly requiring a minimum number of years in operation or taking into account an employer’s history of layoffs when determining eligibility.

How can Foreign Workers who are facing Abuse in Canada report it to the Government?

If a foreign worker believes they are experiencing abuse from their employer, they have several options available. 

Firstly, they can apply for an open work permit (OWP) in Canada, which allows them to continue working in most industries and for various employers. 

They can also report the abuse through Service Canada’s helpline or contact Employment and Social Development Canada (ESDC) online, by phone, or in person.

Additionally, seeking assistance from organizations that support migrant workers, contacting their provincial or territorial workplace health and safety office if applicable, and reaching out to their employment standards office if there are violations of the employment agreement are other steps they can take.

Moreover, foreign workers can visit IRCC’s website to view a list of non-compliant employers who have previously violated their responsibilities under the TFWP.

Rights of a Foreign Worker

Despite the communication gaps about labor rights that often contribute to TFWP abuses, Canada has comprehensive labor laws protecting temporary foreign workers. 

These workers have the right to receive information about their rights, obtain a signed employment agreement, be paid as agreed, and work in an abuse-free environment. Employers must also adhere to local employment standards, provide health insurance until provincial coverage applies, and ensure access to healthcare for workplace injuries.

Temporary foreign workers cannot be forced to perform unsafe or unauthorized tasks, work when ill or injured, or work unpaid overtime.

They are also protected from retaliation for reporting mistreatment or unsafe conditions and cannot have their passports or work permits confiscated. Additionally, they cannot be deported or have their immigration status altered by their employer, nor be required to repay recruitment fees.

Canada is enhancing the integrity of its immigration system by implementing new measures to combat Labour Market Impact Assessment (LMIA) fraud. These reforms aim to protect both foreign and Canadian workers from the detrimental effects of fraudulent practices. Key changes include stricter verification procedures, increased fines, better public awareness, and expanded rights for foreign workers. Employers who do not meet Temporary Foreign Worker Program (TFWP) standards may face significant penalties, including warning letters, and Administrative Monetary Penalties (AMPs) ranging from $500 to $100,000 per violation, with a cap of $1 million annually. Serious breaches could result in temporary bans of 1 to 10 years or permanent exclusion from the program.

Foreign employees also have the right to a signed employment contract, to be informed of their legal rights, and to work in a safe atmosphere free from abuse. They cannot be made to labor unpaid overtime, take on dangerous jobs, or work when ill or injured. Protecting against arbitrary changes to immigration status or recruitment fee reimbursements, passport confiscation, and retaliation for reporting difficulties are other forms of protection. Employees can report abuses to different authorities, look for assistance through open work permits, and visit the IRCC website to find out which employers are in violation.

These programs demonstrate Canada’s dedication to an open, equitable, and productive immigration system that promotes economic development while upholding the rights and dignity of workers.

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