New Reforms for Canada’s Temporary Foreign Worker Program Announced by Minister Boissonnault

October 21, 2024 – Gatineau, Quebec – Employment and Social Development Canada

In an effort to safeguard both the Canadian workforce and foreign workers, Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault, unveiled a series of reforms to Canada’s Temporary Foreign Worker (TFW) Program. These changes, which will take effect in late October and early November 2024, are aimed at enhancing worker protections, increasing wage thresholds, and promoting the hiring of Canadians, particularly from underrepresented groups.

Key Changes to the TFW Program

Wage Increase for High-Wage Stream Effective November 8, 2024, the wage for workers entering Canada under the high-wage stream will rise to 20% above the median wage in the worker’s respective province or territory. Depending on the region, this could mean an hourly wage increase of $5 to $8. The goal is to ensure that foreign workers in this stream receive competitive wages, while incentivizing employers to prioritize Canadian workers.

Reclassification of Job Positions As a result of the wage increase, approximately 34,000 positions will shift from the high-wage stream to the more regulated low-wage stream. With this transition, an estimated 20,000 fewer positions may be approved under the TFW Program, as stricter rules will apply. This will include additional employer requirements regarding housing, transportation, and recruitment of domestic workers.

New Employer Verification Standards Starting on October 28, 2024, employers will no longer be allowed to use attestations from accountants or lawyers to prove their business legitimacy. Instead, the TFW Program will strengthen its collaboration with provincial authorities and rely on employer registries for verifying the legitimacy of businesses. This reform aims to prevent program misuse and ensure only genuine job offers are approved.

Protecting Canadian Workers and Underrepresented Groups

The reforms highlight the government’s intent to prioritize Canadian workers, particularly those from untapped talent pools such as youth, Indigenous peoples, women, and persons with disabilities. Minister Boissonnault noted that Canadian employers can look to these underrepresented groups to fill job vacancies, as youth unemployment and Indigenous unemployment remain significantly higher than the national average.

In line with this objective, employers must now make greater efforts to recruit domestically, including conducting additional recruitment strategies that target the skills needed for the job.

Limitations on Labour Market Impact Assessments (LMIAs)

The Labour Market Impact Assessment (LMIA) process will become more stringent under the reforms. For low-wage stream jobs, the government will not process LMIAs in regions with unemployment rates above 6%, except in high-demand sectors. Additionally, employers will face a cap on hiring foreign workers, limited to no more than 10% of their workforce under the TFW Program, down from the previous cap of 20%.

Ensuring Program Integrity

The Canadian government is also strengthening its measures to prevent fraud within the TFW Program. By enhancing data sharing with provincial partners and enforcing stricter verification of business legitimacy, the government aims to ensure that only compliant employers with genuine labour needs can access the program.

Conclusion

These reforms to the Temporary Foreign Worker Program reflect Canada’s ongoing efforts to balance labour market demands with worker protections. The changes are designed to encourage wage growth, promote domestic hiring, and protect temporary foreign workers from exploitation. Minister Boissonnault emphasized that while most employers use the program responsibly, the government will continue to monitor for any misuse, ensuring that the TFW Program remains a fair and transparent process for all.