Quebec Halts LMIA Processing for Certain Low-Wage Temporary Foreign Workers

Starting September 3rd, Quebec will temporarily halt the processing of Labour Market Impact Assessments (LMIAs) for jobs in Montréal that offer hourly wages below $27.47 CAD, which is the province’s median wage. This suspension, approved by the Canadian federal government, is expected to last for six months.

Guidelines for Low-Wage Workers

Employers seeking to hire low-wage workers are exempt from submitting transition plans with their LMIA applications. However, they must adhere to a distinct set of guidelines. To limit access to the Temporary Foreign Worker Program (TFWP) and prioritize Canadian workers for available jobs, the Canadian government has implemented a cap on the number of low-wage temporary foreign workers that a business can employ. Additionally, certain low-wage positions may be excluded from LMIA processing. Employers with 10 or more employees applying for a new LMIA are restricted to a cap of 10% on the proportion of their workforce that can be made up of low-wage temporary foreign workers.

Policy Announcement and Government Response

Quebec Premier François Legault and Immigration Minister Christine Fréchette announced the suspension, aimed at managing temporary resident levels in the province and upholding the integrity of the TFWP. Earlier, on August 6th, Minister Randy Boissonnault, representing Employment and Social Development Canada (ESDC), introduced a series of measures targeting abuse within the TFWP. These include:

• Enforcing a consistent 20% cap on temporary foreign workers, including those in the “dual intent” sub-stream who plan to apply for permanent residency. Employers using this stream must comply with stricter guidelines.
• Heightened oversight and inspections of LMIA issuance, particularly in high-risk areas.
• Introducing a foreign labour stream specifically for agriculture and seafood processing.

Exemptions to the Suspension

The suspension does not apply to:

• Jobs located outside the economic region of Montréal.
• Jobs offering wages at or above Quebec’s median wage of $27.47 CAD.
• LMIA applications submitted before September 3rd, 2024.
• Employers in certain industries, such as agriculture, construction, food processing, education, and health and social services, as defined by the North American Industry Classification System (NAICS).

The federal government plans to closely monitor this policy and make further decisions regarding the TFWP’s future.

Scrutiny of the TFWP in Canada

The TFWP allows Canadian employers to hire foreign workers to address critical labour shortages. However, the program has faced increased scrutiny from Canada’s Employment and Immigration Ministers. On August 6th, Minister Boissonnault unveiled new measures to safeguard the TFWP’s integrity, particularly targeting the low-wage stream. He emphasized that the TFWP should not be a means to bypass the hiring of Canadian workers, nor should it contribute to artificially depressing wages in the country. Boissonnault also indicated that the ministry might consider halting the processing of LMIA applications under the low-wage stream entirely.

These concerns were echoed by Immigration Minister Marc Miller, who recently shared similar sentiments with Reuters.

Part of Broader Immigration Policy Adjustments

These changes occur as Canada reevaluates its approach to temporary immigration. In March, Minister Miller announced that temporary resident levels would be included in Canada’s annual immigration plan. To support this, Immigration, Refugees and Citizenship Canada (IRCC) has implemented a temporary two-year cap on some international students, introducing a Provincial Attestation Letter (PAL) system to limit study permit issuances.

Minister Miller also expressed plans to introduce new regulations for Post-Graduation Work Permits (PGWPs) and to focus more on “domestic draws” targeting temporary residents already in Canada for permanent residency.