Major Changes To Canada’s Temporary Foreign Worker Program
Throughout 2024, there have been major changes to Canada’s Temporary Foreign Worker Program.
These changes include the following:
Change | Summary | When It Came Into Effect |
Reduction in LMIA validity | The validity of an LMIA is reduced to six months (previously 12 months) | May 1, 2024 |
Visitors no longer able to apply for work permits from within Canada | Foreign nationals with visitor temporary resident status are no longer allowed to apply for job-offer supported work permits from within Canada | August 28, 2024 |
Suspension of processing of low-wage LMIAs | LMIAs for the low-wage stream will no longer be processed in CMAs with unemployment rates of 6% or higher | September 26, 2024 |
Reduction of duration of employment for low-wage stream | The maximum duration of employment for workers hired through the low-wage stream has been reduced to one year (down from two years) | September 26, 2024 |
Lowering of workforce caps for low-wage stream | The federal government reduced the percentage of low-wage workers a Canadian business can employ through the TFWP | September 26, 2024 |
Attestations no longer accepted | Employers can no longer use attestations from certain parties as proof of providing goods or services. They will need to show other documents instead | October 28, 2024 |
Annual targets established for TFWP work permits | Target of 82,000 net new TFWP work permits for 2025 | |
Increase of wage requirements for high-wage stream | Employment and Social Development Canada (ESDC) raised the minimum hourly wage requirements for the high-wage stream of the TFWP | November 8, 2024 |
Reduction In LMIA Validity
There have been major changes to Canada’s Temporary Foreign Worker Program. Canadian employers looking to recruit foreign workers under the TFWP need to complete the government’s labor market test, known as the Labor Market Impact Assessment (LMIA).
During the pandemic, the government temporarily increased the validity period of LMIA to 12 months to help address labor market challenges.
However, as of May 1, 2024, the validity of an LMIA has reverted to six months. The rollback was declared on March 21 by Immigration Minister Marc Miller & Employment Minister Randy Boissonault.
Note that employers participating in the Recognized Employer Pilot program are exempt from this change.
Visitors No Longer Able To Apply For Work Permits From Within Canada
On October 28, IRCC ended the temporary public policy that enabled certain visitors to apply for certain work permits from within Canada.
This temporary public policy was originally introduced in August 2020 as a COVID-19 pandemic measure, & had been set to an end on February 28, 2025.
With this public policy ending, many visitors were required to leave Canada before applying for job offer supported work permits, including work permits issued under the TFWP.
Suspension Of Processing Of Low-Wage LMIAs
On August 26, the Canadian government declared that it would no longer process LMIAs for the Low-Wage stream in census metropolitan areas (CMAs) with 6% or higher unemployment rates.
This change came into effect on September 26, 2024.
The government added that exceptions will be made for seasonal & non-seasonal jobs in food security sectors, as well as construction and healthcare.
The government updates the list of CMAs with unemployment rates above 6% every three months. The next update is set to take place on January 10, 2025.
Quebec also halted the processing of LMIA applications for low-wage positions in CMAs in the province. This also came into effect on September 26, 2024.
The province also declared that it would suspend the processing of LMIAs to applicants in Montreal with job offers below the Quebec median hourly wage.
This temporary measure was implemented on September 3, 2024, and is expected to be in place until March 3, 2024, and is expected to be in place until March 3, 2025. It does not apply to employers applying for LMIAs in specific industries like agriculture, food processing, education, health, construction, and social service sectors.
Duration Of Employment For Workers Through Low-Wage Stream
There have been major changes to Canada’s Temporary Foreign Worker Program in 2024. In August, it was also declared that the maximum duration of employment for workers recruited through the low-wage stream will be reduced to one year.
This change came into effect on September 26, 2024.
Workforce Composition Caps
The percentage of low-wage workers a Canadian business can employ through the TFWP has undergone significant revisions over the years.
In 2022, the cap was temporarily raised to 30% for certain sectors.
In 2024, the following changes were made:
- On May 1, 2024, the cap returned to 20%. Only businesses in the construction as well as healthcare sectors could continue employing up to 30% of their workforce via the low-wage stream of the TFWP.
- However, on August 26, the government declared further reforms. It reduced the 20% cap to 10% of an employer’s total workforce. This applied to the low-wage stream and came into effect on September 26.
- Meanwhile, in sectors such as construction and healthcare, the cap on the proportion of low-wage positions reduced to 20%.
Attestations Are No Longer Accepted
As of October 28, employers are no longer allowed to use attestations from the following:
- A lawyer or any other member in good standing with a law society
- An official from a financial institution
- A Chartered Professional Accountant (CPA)
Increase Of Wage Requirements For High-Wage Stream
On October 22, 2024, ESDC raised the minimum hourly wage requirements for the high-wage stream of the TFWP.
Effective November 8, applicants should earn the higher of the two options given below:
- A minimum of 20% more than the median wage for their position in their region to qualify
- A wage that is within the wage range that current employees at the same employer earn
Previously, to be eligible, applicants needed to earn the median wage for their position in their area.
Annual Targets Established For TFWP Work Permits
In 2024, there have been major changes to Canada’s Temporary Foreign Worker Program.
For the first time, this year’s Immigration Levels Plan – declared on October 24 – set targets for temporary resident admissions.
The government has proposed the following breakdown for admissions of temporary residents in Canada for the next three years.
Temporary Resident Category | 2025 | 2026 | 2027 |
Overall Arrivals and Ranges | 673,650(604,900 – 742,400) | 516,600(435,250 – 597,950) | 543,600(472,900 – 614,250) |
Temporary Foreign Worker Program | 82,000 | 82,000 | 82,000 |
As shown above, net new work permits issued under the TFWP will remain at 82,000 for the next three years.
These targets are in line with the government’s goal to reduce temporary resident levels.
Note: While the 2025 target is firm, the immigration levels set for 2026 & 2027 are notional targets. IRCC revises and confirms the next year’s target on or before November 1 every year.
Review Proposing Future Changes
In 2024, the federal government’s Standing Committee on Citizenship & Immigration held a series of meetings on the TFWP and submitted a report recommending changes to the program in the future.
If you seek information on how to begin your Canada immigration application process, you can talk to our NavaImmigration experts at 1800-918-8490. You can also drop us an email at [email protected].