Canada: Temporary Foreign Worker Program Improvements Extended with Key Changes Including Shorter Validity of LMIAs

The government of Canada has extended improvements to the Temporary Foreign Worker Program (TFWP) a second time until August 30, 2024. Along with the extension, the government has also announced changes to the program, which include a reduction in the Labour Market Impact Assessments (LMIA) validity period to 12 months, down from the previous 18-month validity. Another change is that effective January 1, 2024, employers will be required to annually review their temporary foreign worker employee’s wages to ensure that they reflect increases to prevailing wage rates suitable for the occupation and the region. The method and process for the annual wage review are not yet clear and additional guidance from the government is expected to be forthcoming. Other changes effective until August 30, 2024, include:

• • employers will continue to be allowed to hire up to 30% of their workforce through the TFWP in sectors with demonstrated labor shortages in low-wage positions (including food, wood product and furniture manufacturing, accommodation and food services, construction, hospitals and nursing and residential care facilities); and
  • employers can hire workers for low-wage positions (those under the provincial or territorial minimum wage) for up to two years.

The government will continue to review the relevant policies as the labor market and economic conditions evolve in Canada and to ensure there is no displacement or negative effects on Canadian workers or working conditions.