Significant changes have officially arrived for Canadian immigration processing. In a move to streamline operations and tighten compliance, the federal government has discontinued the separate wage assessment review previously required under the Temporary Foreign Worker Program.
Immigration officers have been instructed to stop performing a distinct wage assessment for work permit applications. Instead, the validity of a foreign worker’s pay will now rely entirely on the wage specified in the Labour Market Impact Assessment (LMIA).
Shift to LMIA Based Processing
This procedural update means that the wage verification process is now consolidated. When an officer processes a work permit, they will simply use the wage rate confirmed in the LMIA to assess the application. This eliminates a layer of redundancy within the Temporary Foreign Worker Program application process.
For those new to the system, the LMIA is a crucial document. It serves as proof that an employer requires a foreign national to fill a specific vacancy because no Canadian worker or permanent resident is available. A positive LMIA, often referred to as a confirmation letter, is the golden ticket allowing a foreign national to apply for a work permit under the Temporary Foreign Worker Program.
Stricter Rules Effective September 2024
Beyond the wage assessment removal, the government is rolling out aggressive measures to protect the integrity of the Temporary Foreign Worker Program. Ottawa has cited a need to curb misuse and ensure employers are not bypassing the domestic talent pool.
Effective September 26, 2024, new restrictions will reshape how the program operates:
- Refusal of Low Wage LMIAs: The government will refuse to process LMIAs in the Low-Wage stream for census metropolitan areas where the unemployment rate is 6% or higher.
- Workforce Cap Reduced: Employers utilizing the Temporary Foreign Worker Program will be restricted to hiring no more than 10% of their total workforce through the program. This is a significant decrease from previous allowances.
- Shorter Duration: The maximum employment duration for workers in the Low-Wage stream is being cut from two years to just one year.
Exceptions and Regional Freezes
While the Temporary Foreign Worker Program is tightening, the government recognizes critical labour shortages in specific sectors. Exceptions to the new low-wage rules will be granted for:
- Primary agriculture and food processing (food security).
- Construction.
- Healthcare
Furthermore, specific regional changes are already in motion. As of August 2024, a proposal from Quebec was approved to freeze new approvals for the Temporary Foreign Worker Program in the low-wage stream for the Montreal region. This freeze applies to job offers paying below the median hourly wage of $27.47 and has resulted in a six-month processing suspension that began on September 3, 2024.
Why the Changes?
These modifications are designed to route employers back to Canadian workers and ensure the TFWP returns to its original purpose: a last resort for temporary labour shortages.
Employers must be diligent in preparing their applications. To navigate these updates successfully, businesses should review the latest compliance standards set by Employment and Social Development Canada to ensure their LMIAs meet the new strict criteria.
As the landscape of Canadian immigration shifts, these updates to the TFWP signal a stricter, more regulated environment for hiring overseas talent in 2024 and beyond.
