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:
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.
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.
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.
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.
CFIB is actively working with the government to advocate for policy adjustments, including:
CFIB has outlined industry-specific impacts and recommendations to help affected businesses adapt.
Programs for Temporary Workers:
Programs for Permanent Workers:
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:
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!
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