Canada: Temporary Foreign Worker Improvements Forthcoming
April 11, 2022
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At a Glance
The government of Canada is implementing improvements to the Temporary Foreign Worker Program (TFWP) to address labour shortages throughout the country. Key policy changes include:
- The permanent elimination of caps for seasonal industry workers to work in Canada for a longer period;
- Longer validity for Labour Market Impact Assessments;
- The extension of employment duration for High-Wage Stream and Global Talent Stream workers; and
- Relaxed hiring and application policies for low-wage occupations.
The situation
The government of Canada has announced the Temporary Foreign Worker Program (TFWP) Workforce Solutions Road Map, which introduces improvements to the TFWP to address labour shortages throughout the country.
A closer look
The below changes are effective immediately:
| Change | Details | Impact |
| Elimination of the cap for seasonal industries and extension of the maximum duration of stay for these positions | This change makes the Seasonal Cap Exemption that has been in place since 2015 permanent, whereby employers in seasonal industries (such as fish and seafood processing) can hire foreign workers for up to 270 days per year; this has permanently increased from the previous 180-day limit. | The change will provide employers with more predictability to address seasonal peaks and minimize the number of workers that employers need to hire under the program. |
| Longer validity for Labour Market Impact Assessments (LMIA) |
|
A longer validity for LMIA approvals will help employers better manage their labour needs by granting more flexibility to employers and employees alike. |
| Extension of employment duration for High-Wage Stream and Global Talent Stream workers | The maximum duration of employment for High-Wage and Global Talent Stream workers has been extended to three years, up from the previous two years. | This change helps employers to engage in better workforce planning. This provides more time for foreign workers to access pathways to qualify for and obtain permanent residence. |
The following changes are effective April 30, 2022:
| Cap increases for low-wage employers |
|
The increase will address current job vacancies across many sectors and occupations. |
| Removal of the 6% Refusal to Process policy | The government will end the current policy that automatically refuses LMIA applications for low-wage occupations in the Accommodation and Food Services and Retail Trade sectors in regions with an unemployment rate of 6% or higher. | The removal of this policy will help employers in regions where severe labour shortages have persisted despite local unemployment rates. |
Background
- Temporary Foreign Worker Program. The TFWP is suitable for qualifying foreign nationals who cannot benefit from certain exemptions (like intracompany transfers, status under a Free Trade Agreement, reciprocal employment, etc.), and allows employers in Canada to hire a foreign worker when no Canadians or permanent residents are available.
- Reason for improvements. According to the federal government, the job vacancy rate in Canada reached a historic peak in Q3 2021, with much of the demand in low-wage occupations. The initiative is aimed at supporting Canada’s economic growth and recovery from the COVID-19 pandemic and meet its labour market needs.
Looking ahead
The government will monitor the implementation and continually review relevant policies to ensure there is no displacement or negative effects on Canadian workers or working conditions.
The government will convene an inaugural TFWP Ministerial Consultative Roundtable in June 2022, to hear directly from worker representatives and other stakeholders on how to make the program more effective for both workers and employers.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
