published on 28 October 2024 @ 3:15 pm · COMMENT
Upcoming Changes to Canada’s Temporary Foreign Worker Program: Strengthening Worker Protections and Prioritizing Domestic Talent
Following our October 24, 2024 email update on the latest program developments, this article offers a closer look at the specific changes to the Temporary Foreign Worker (TFW) Program announced by the Canadian government. With new measures set to take effect on October 28 and November 8, 2024, these changes represent a significant shift aimed at reinforcing the integrity of the program, strengthen worker protections, and reduce reliance on foreign labour to ensure that Canadian workers are prioritized in the hiring process.
Key changes include new business legitimacy requirements and higher wage thresholds for high-wage jobs, which will significantly impact employers across various industries.
- Business Legitimacy Requirements – Effective October 28, 2024
As of October 28, employers will no longer be able to use attestations from accountants or lawyers to establish the legitimacy of their business when applying to hire foreign workers. Instead, the government will leverage information-sharing agreements with provincial and territorial authorities, as well as existing employer registries, to verify the legitimacy of employers. This reform is aimed at preventing fraud and misuse of the program by ensuring only genuine businesses with legitimate job offers are able to hire foreign workers. Employers will need to ensure that their business is compliant with all provincial and federal regulations to meet these new standards.
- Higher Wage Thresholds for High-Wage Stream Jobs – Effective November 8, 2024
On November 8, the wage threshold for foreign workers hired under the high-wage stream will be increased by 20% above the median wage in the applicable province or territory. This adjustment will result in a significant hourly wage increase of $5 to $8, depending on the region. The aim of this measure is to encourage employers to hire domestic workers and reduce the overall approval of foreign labour applications.
Jobs that do not meet this new wage threshold will be reclassified under the low-wage stream, which recently saw significant changes in August 2024 and comes with more stringent rules and obligations for employers.
These changes reflect the government’s broader goal of reducing dependence on the TFW Program, with early estimates suggesting that 20,000 fewer applications could be approved annually based on the new requirements and wage conditions.
With these imminent changes to the TFW Program, it is critical for employers to reassess their compliance strategies and ensure adherence to the updated regulations, as failure to meet the new requirements could result in penalties, including restrictions on accessing the program.
filed under: IMMIGRATIONPERMANENT RESIDENCE