Canada Gives Employers More Time to Hire Foreigners With the Modification of the TFWP

Randy Boissonnault, the Canadian Minister for Employment, Workforce Development, and Official Languages, has announced the modifications to the Temporary Foreign Workforce Solutions Road Map to help employers address critical labour shortages through the Temporary Foreign Worker Program (TFWP).

This development was due to the sustained Canadian unemployment rate, which is 5.5% despite the levels of immigration in September, showing the demand for the Temporary Foreign Worker Program (TFWP), which rose by 40% when compared to the same period last year.

It was also gathered that the Temporary Foreign Workforce Solutions Road Map has continued to be an ongoing initiative specially designed to boost employers' capacity to adapt to the Temporary Foreign Worker Program (TFWP) in response to the Canadian labour market and economic dynamics.

Cicnews posted that the modifications announced by the Minister include the following: 

• Employers in seven selected sectors (Food Manufacturing, Wood Product Manufacturing, Furniture and Related Product Manufacturing, Accommodation and Food Services, Construction, Hospitals, and Nursing and Residential Care Facilities) may continue to hire up to 30% of their workforce in low-wage positions through the TFWP.

• A duration cap of employment of two years will be upheld for positions under the provincial or territorial minimum wage.

• Labour Market Impact Assessments (LMIAs) will now have a reduced validity from the previous 18-month maximum to a 12-month maximum.

• Effective January 1st, 2024, employers will be required to perform annual reviews of their temporary foreign worker’s wages to ensure that they are comparable to the prevailing wage rates for their given occupation and region of work.

These extended measures are scheduled to remain in place until August 30, 2024, with the flexibility to adapt to labour market and economic conditions. 

What Is the Temporary Foreign Worker Program (TFWP)?

The Temporary Foreign Worker Program (TFWP) is one of Canada’s two primary work permit programs, handled by Immigration, Refugees, and Citizenship Canada (IRCC), and is designed to address issues concerning shortages in the workforce through immigration.

This program encompasses various streams, including agriculture, live-in caregivers, and high and low-wage foreign worker streams, enabling Canadian companies to hire foreign nationals to work in the country.  

The program covers various sectors such as agriculture, live-in carers, and high and low-wage foreign work streams, which allow Canadian companies to hire foreign nationals to work in their country.

However, before employers can employ foreigners, they must undergo a Labour Market Impact Assessment (LMIA) process, which assesses whether a Canadian PR or citizen could have been hired for the same role.

A positive LMIA allows the hiring of a foreign worker, while a negative response will result in the disqualification of the work permit application.

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