Reforms to Temporary Foreign Worker Program Announced Today

Employment Minister Jason Kenney and Immigration Minister Chris Alexander today announced long-awaited reforms to the Temporary Foreign Worker Program. The reforms, which have been in development over the past two years, are primarily focused on low-skilled, low-wage occupations, but they will also increase the government’s investigative and enforcement powers. The reforms take effect immediately. 

Reorganization of Temporary Foreign Worker Program 

The current Foreign Worker Program is being split into two groups: The Temporary Foreign Worker Program (previously known as the Labor Market Opinion process) and will be administered by Employment and Social Development Canada (ESDC); and the International Mobility Program that will be administered by Citizenship and Immigration Canada (CIC). 

The Temporary Foreign Worker Program 

Today’s announcement of the Temporary Foreign Worker Program (TFWP) primarily focused on low-skilled, low-wage occupations. The program will be subject to stringent requirements to ensure employers give Canadian workers preference, with foreign workers considered a last and limited resort to fill vacant positions. 

Wage levels are replacing the National Occupation Classification as the main criterion for administering the TFWP by distinguishing between “high-” and “low-” wage workers. 

The Labor Market Opinion is being replaced by the Labor Market Impact Assessment (LMIA) as the screening mechanism for employers seeking to hire temporary foreign workers. The LMIA will require that employers provide information on the number of Canadians who applied for the position to be filled by the foreign worker, the number of Canadians interviewed, and an explanation as to why each was not hired. The LMIA fee is C$ 1,000, a considerable increase from the LMO fee of C$275. 

With limited exceptions, employers seeking to hire high-wage temporary foreign workers will now be required to submit transition plans to demonstrate how they will increase efforts to hire Canadians, for example, through higher wages, investments in training, and more active recruitment from within Canada. 

Beginning this fall, ESDC will publish data regarding the names of corporations that receive positive LMIAs. 

The International Mobility Program 

The International Mobility Program includes the Intracompany Transferee category and entry processes issued under free trade agreements and is exempt from the LMIA requirement, based on the competitive advantages and reciprocal benefits that Canadians are afforded in other countries. 

Under this program, employers must include job offers in its applications. The program will be subject to a new compliance monitoring program, which will be funded by the addition of a $230 work permit fee. “Open” work permits will be subject to an extra $100 in fees. 

Previously announced changes to intracompany transferee processing standards will apply to the International Mobility Program. 

Increased Enforcement Powers and Potential Penalties 

Both ESDC and CIC will be empowered to ensure employers comply with rules under both new temporary work programs. One out of four businesses will be inspected each year for immigration program compliance. The government will have expanded authority to blacklist employers who have been suspended and are under investigation. Monetary fines will be increased to up to C$100,000 or five years’ imprisonment. 

What This Means for Employers 

Today’s announcements primarily affect employers recruiting foreign nationals for low-skill, low-wage occupations. However, the underlying message from ESDC and CIC is that any employer that abuses its foreign national workforce will be subject to increased compliance and enforcement and to increased sanctions. 

How Can Fragomen Assist 

Fragomen can assist clients with assessing requirements for work permits across Canada and can also assist with preparing and filing work permit applications. We are reviewing the newly announced reforms and will provide additional updates as the government provides new information on the changes. 

Fragomen can also assist with advice and support on compliance and record-keeping obligations, and will continue to monitor any communications released by the government about compliance matters. 

This alert is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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