Minister Boissonnault Announces Changes to the Temporary Foreign Worker Program to Protect Canadian Workers
October 21, 2024 – Gatineau, Quebec – Employment and Social Development Canada has introduced new reforms to the Temporary Foreign Worker (TFW) Program aimed at safeguarding both the Canadian labor market and temporary foreign workers.
The changes reflect the government’s ongoing commitment to improving the program’s integrity while ensuring it remains responsive to the country’s workforce needs.
Enhancing the TFW Program
The TFW Program is intended as a last resort for employers when they are unable to find qualified Canadian workers. In recent months, the government has undertaken several steps to strengthen the program. On August 26, 2024, it pledged to conduct a comprehensive review within 90 days to ensure the TFW Program continues to meet labour market needs while protecting temporary foreign workers from exploitation.
Today, Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages announced important reforms, which will be implemented starting November 8, 2024, including an increase in the wage rate for foreign workers in the high-wage stream.
Wage Increase in the High-Wage Stream
Under the new reforms, the minimum hourly wage for temporary foreign workers in the high-wage stream will increase by 20%, based on the median wage of the province or territory where the work is being performed. This wage hike, amounting to an extra $5 to $8 per hour, depending on the location, ensures that high-wage jobs offer better pay.
This increase is expected to shift many jobs to the low-wage stream, which has stricter rules regarding accommodation, transportation, and the recruitment of Canadian workers. These changes help the TFW Program align with its goal of giving priority to hiring Canadian workers first.
Encouraging Canadian Worker Employment
Minister Boissonnault stressed the importance of drawing on underutilized talent in Canada, such as youth, Indigenous people, women, and individuals with disabilities. At the 21st Century Workforce Summit on October 17, 2024, he highlighted that youth and other marginalized groups face disproportionately higher unemployment rates compared to the national average.
These reforms will push employers to consider hiring Canadians from these groups before seeking temporary foreign workers.
Stricter Business Legitimacy Verification
As part of the reforms, the government will also tighten the process for verifying employers’ legitimacy. Starting October 28, 2024, employers will no longer be allowed to use letters from accountants or lawyers to confirm their business legitimacy. Instead, the government will use enhanced data-sharing agreements with provinces and territories to verify employers’ operations.
These measures aim to prevent misuse of the TFW Program and ensure that only genuine job offers are approved.
Continued Monitoring and Adjustments
The government remains vigilant in monitoring potential misuse or fraudulent activity within the TFW Program, as well as changes in the labor market. According to Minister Boissonnault, the government is ready to make further adjustments to ensure the program continues to protect Canadian workers.
Key Changes to the Temporary Foreign Worker Program
Labour Market Impact Assessment (LMIA): The LMIA process remains crucial in protecting the Canadian labor market. Employers must receive a positive LMIA before hiring a temporary foreign worker, ensuring that hiring foreign workers won’t negatively affect the Canadian workforce.
Low-Wage Stream: For jobs with wages lower than the median provincial or territorial wage plus 20%, employers must meet several additional requirements, such as:
- Offering return transportation to the worker’s country of origin.
- Providing appropriate accommodation.
- Undertaking at least two additional recruitment efforts in Canada.
- Ensuring that foreign workers make up no more than 10% of their workforce (with exceptions in high-demand sectors).
- No LMIAs will be processed for jobs in regions with unemployment rates of 6% or higher.
High-Wage Stream: This stream applies to jobs with wages above the median wage plus 20%. Employers face fewer restrictions in this stream, such as:
- There are no limits on the number of foreign workers employers can hire.
- Unemployment rates are not considered in LMIA assessments for this stream.
Impact of the Reforms
The changes are projected to move 34,000 positions from the high-wage stream to the low-wage stream, resulting in stricter rules for employers. Additionally, these reforms, along with policies enacted on September 26, 2024, are expected to reduce the number of jobs approved through the TFW Program by up to 20,000.
By increasing wages for high-wage positions and tightening rules around recruitment and worker treatment, the government is prioritizing Canadian workers while maintaining protections for temporary foreign workers.
Minister Boissonnault’s recent reforms to the Temporary Foreign Worker Program represent a continued commitment to protecting Canadian jobs and workers. By raising wage thresholds and tightening employer requirements, the government ensures that Canadian workers remain the first choice for job vacancies, while also strengthening safeguards for temporary foreign workers to prevent exploitation. These reforms are part of broader efforts to maintain a fair and equitable labor market for all workers in Canada.
