Canada has ended the wage assessment under the Temporary Foreign Worker Program, and work permit applications will now be processed under the labour market impact assessment (LMIA).
The instructions for wage assessment under the Temporary Foreign Worker Program (TFWP) have been removed. The relevant authorities have been asked to continue to process work permit applications under the TFWP using the wage in the labour market impact assessment.
Labour Market Impact Assessment
A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada may need to get before hiring a foreign worker.
Employers of some types of temporary workers need to get a Labour Market Impact Assessment (LMIA) before the worker applies for a work permit. An LMIA is a document from Employment and Social Development Canada that gives the employer permission to hire a temporary worker.
A positive LMIA will show that there is a need for a foreign worker to fill the job. It will also show that no Canadian worker or permanent resident is available to do the job. A positive LMIA is sometimes called a confirmation letter.
If the employer needs an LMIA, they must apply for one. Once an employer gets the LMIA, the worker can apply for a work permit. To apply for a work permit, a worker needs a job offer letter, a contract, a copy of the LMIA, and the LMIA number.
Temporary Foreign Worker Program
Canada’s Temporary Foreign Worker Program is being modified to avoid misuse and fraud. The Temporary Foreign Worker (TFW) Program allows Canadian employers to hire foreign workers to fill temporary jobs when qualified Canadians are not available.
However, the Canadian government says that the Temporary Foreign Worker (TFW) Program has been misused to bypass hiring talented workers in Canada and instead relies on foreign workers.
Before using the Temporary Foreign Worker Program, employers must first obtain a Labour Market Impact Assessment (LMIA) to demonstrate that no Canadian labour is available to perform the same job.
Temporary Foreign Worker Program New Rules
The Temporary Foreign Worker Program’s new rules are effective September 26, 2024. The Government of Canada will refuse to process Labour Market Impact Assessments (LMIA) in the Low-Wage stream, applicable in census metropolitan areas with an unemployment rate of 6% or higher.
However, exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing, and fish processing), as well as construction and healthcare.
Employers will be allowed to hire no more than 10% of their total workforce through the TFW Program. This maximum employment percentage will be applied to the Low-Wage stream and is a further reduction from the March 2024 reduction.
The maximum duration of employment for workers hired through the Low-Wage stream will be reduced to one year (from two years).
Starting October 2023, adjustments have already been made to the validity period of Labour Market Impact Assessments from 18 months to 6 months and the cap on temporary foreign workers from 30% to 20%.
On August 20, 2024, the Government of Canada announced the approval of a proposal by the Government of Quebec for a temporary freeze on the approval of new Temporary Foreign Workers in the low-wage stream in Montreal.
Effective September 3rd, 2024, processing of Labour Market Impact Assessment applications has been discontinued for six months for job offers located in the Montreal region with wages below $27.47/hour, which is the current Quebec median hourly wage.