Temporary Foreign Worker Program and recent program changes

Running a small business is tough, especially when finding qualified workers is a challenge. The Temporary Foreign Worker Program (TFWP) helps Canadian employers fill labour shortages when no suitable local workers are available. However, recent changes to the program could impact small and medium-sized enterprises (SMEs) looking to hire foreign workers. Here’s what you need to know and how to navigate these changes: 

Wage thresholds and adjustments

Increase in the High Wage Threshold: As of November 8, 2024, the provincial wage thresholds for high-wage positions were increased by 20% above the provincial or territorial median wage. More employers may find themselves subject to the low-wage stream requirements when seeking to retain or recruit foreign workers or face higher labour costs.

Prevailing Wage Requirement: As of January 1, 2024, employers submitting a LMIA must pay foreign workers the posted prevailing wage for the occupation and location. Employers must now review this wage annually using data from the Job Bank where applicable. 

New Hiring Caps 

As of September 26, 2024, most sectors now have a cap of 10% on the number of low-wage positions held by TFWs.  The cap reflects the proportion of low-wage foreign workers as a total workforce at a given work location. Primary agriculture, caregiving positions for healthcare institutions, short-term or seasonal positions remains exempt from these restrictions.

Certain LMIA Applications Will Be Refused

As of September 26, 2024, LMIA applications for low-wage positions in census metropolitan areas with an unemployment rate of 6% or higher are not being processed. Applications submitted to fill certain occupations in primary agriculture, construction, healthcare, short-term positions (120 days or less) continue to be eligible for processing. 

Impact of recent changes on SMEs

Certain businesses that depend on foreign labour may experience new hiring constraints and costs. Others may find it more difficult to retain existing workers that they have trained and integrated into their knowledge transfer and succession plans. The stricter eligibility and compliance requirements could also increase the administrative burden on small businesses.

What we are doing

CFIB is actively working with the government to advocate for policy adjustments, including:

• Reviewing the refusal-to-process rule, caps and prevailing wage policies.
• Ensuring faster processing times.
• Streamlining administrative requirements for SMEs.

CFIB has outlined industry-specific impacts and recommendations to help affected businesses adapt. 

Other Immigration Programs to help fill in labour shortages

Programs for Temporary Workers: 

• International Mobility Program
• International Students
• Post-Graduation Work Permit Program
• International Experience Canada

Programs for Permanent Workers: 

• Express Entry
• Provincial Nominee Program

Please keep in mind 

It is illegal to hire a foreign national who does not have a valid work permit or other legal authorization to work in Canada. Employers of temporary foreign workers should examine their employees’ work permits to ensure they are properly documented and monitor the expiry dates of the work permits in the event an extension is required. An employer who illegally employees a foreign worker can be convicted and given up to two year’s jail time and/or a fine up to $50,000. 

Employers may be inspected and face penalties if found non-compliant. Employers who violate conditions of the TFW Program may:

• be prohibited from hiring temporary foreign workers for periods ranging from 2 years to a permanent ban.
• face fines up to $100,000 per violation.
• have their name published on a public list with details of the violation(s).

To stay compliant, check work permits, track expiry dates, and ensure proper documentation. More details: Government of Canada Compliance Guide or contact our HRNow! Team with any compliance questions you might have. They are ready to help where they can! 

External Resources & Assistance

• Government of Canada: Provides the latest TFWP guidelines and application processes.
• CFIB Savings Program Partners:
  • MINTZ Global Screening: Employment background screening services.
  • Recruit Without Borders: Specialized recruitment services for Canadian employers.
  • Auray: Affiliate partner specializing in recruiting Canadian, international, and temporary workers.
  • Equinox: Affiliate partner specializing in foreign worker recruitment (relaunching February 21).

CFIB remains committed to advocating for small businesses and providing the necessary support to navigate these immigration changes effectively. 

Need help or have questions? Reach out to our HRNow! Team at 1-833-568-2342 or hrnow@cfib.ca