Canada has increased the wage level for jobs under the Temporary Foreign Worker Program (TFWP) for the high wage category.

Canada has announced that the required wage levels for jobs under the Temporary Foreign Worker Program (TFWP) will increase. Starting November 8, wages in the high wage category will be 20 percent higher than the current level, which is the current level in line with the average wage in the relevant province or region.

This change will result in an increase of $5 to $8 per hour. As a result of this change, 34,000 jobs that were previously authorized to work will be moved from the high-wage category to the low-wage category. Canada has recently introduced tougher rules for the low-wage bracket, including more restrictions on employers, shorter Labor Market Impact Assessment (LMIA) credits and restrictions on areas with high unemployment rates.

The following restrictions apply to the low wage category from 26 September:

• A 10% limit on the number of temporary foreign workers for employers at the national level, which also includes jobs under the Traitement Simplifié program in Quebec. However, in the healthcare, construction and food processing sectors, this limit has increased to 20%.
• All work permits issued for the low-wage category allow workers to work in Canada for only one year, except for jobs related to primary agriculture.
• Canada will no longer process labor market impact assessments (LMIAs) for low-wage industries in urban areas with unemployment rates above 6%, except for the health care, construction and food processing sectors. This limit is revised every three months based on the results of the labor force survey.

The changes to the high wages branch were announced by Labor Minister Randy Boissonault and are aimed at supporting wage growth for Canadian workers. Also, as of October 28, employers will no longer be able to use certifications from professional accountants or lawyers to prove the legitimacy of their business. This change has been implemented to prevent abuse of the program and to ensure the authenticity of job offers.

These changes to the Temporary Foreign Worker Program (TFWP) follow new restrictions imposed on Canada’s international student program, including limits on the number of study permits issued.

Canada’s Immigration Minister Mark Miller is set to announce his latest immigration plan on Nov. 1, which for the first time will include targets related to the number of temporary residents.

What is a Labor Market Impact Assessment (LMIA) and why is it important?

The Labor Market Impact Assessment (LMIA) is a critical tool for protecting Canada’s labor market. This instrument ensures that the hiring of temporary foreign workers does not harm Canadian workers, such as by lowering wages or displacing local labor. Before hiring foreign workers, employers must apply for an LMIA and receive a positive assessment to demonstrate that there is a genuine need for foreign workers and that no suitable Canadian workers are available for the job.

What is the difference between the low wage branch and the high wage branch of the Temporary Workforce Program (TFWP)?

The Temporary Workforce Program (TFWP) has two branches:

• Low wage branch: Jobs with wages below the provincial/regional average plus 20%. Employers must provide repatriation costs, appropriate housing, and additional employment measures. Also, there is a 10% limit on the number of foreign workers per workplace (up to 20% for high-demand sectors).
• High salary branch: Jobs with wages higher than the provincial/regional average plus 20%. For this branch, there is no limit on the number of foreign workers and the unemployment rate is not considered in the LMIA assessment.

What is the impact of recent changes in the temporary workforce program on employers?

The changes implemented in 2024 will move 34,000 jobs from high-wage to low-wage jobs, subjecting employers to stricter requirements. These changes could lead to a reduction in the number of work permits for up to 20,000 people. Employers must ensure they comply with the new rules, including stricter limits on the number of foreign workers and limits based on local unemployment rates.

Source: immigration.ca as of October 23, 2024