Changes to Temporary Foreign Worker Program

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Recent changes to Canada’s Temporary Foreign Worker (TFW) Program have introduced several important measures affecting both employers and foreign workers, particularly in Ontario. These updates, which took effect on September 26, 2024, are part of a broader strategy to recalibrate the program and reduce reliance on temporary workers in favor of Canadian talent.

Key Changes Include:

  1. Restrictions on Low-Wage Jobs: Labour Market Impact Assessments (LMIAs) for low-wage positions will not be processed in regions where the unemployment rate exceeds 6%. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primarily agriculture, food processing and fish processing), as well as construction and healthcare.
  2. Workforce Caps: Employers can now only hire a maximum of 10% of their workforce through the TFW Program under the low-wage stream, which is down from previous caps. This change aims to reduce dependency on foreign workers and encourage hiring locally. Exceptions will be granted for seasonal and non-seasonal jobs in the food security sectors (primarily agriculture food processing and fish processing), as well as healthcare and construction.
  3. Shorter Employment Duration: The maximum period a low-wage temporary foreign worker can be employed has been reduced from two years to one, tightening the flexibility for employers relying on temporary foreign labour.

In Ontario specifically, new rules require staffing agencies and recruiters to be licensed, with penalties imposed for engaging with unlicensed entities. This aims to protect vulnerable foreign workers and ensure fair labour practices. Additionally, changes to the Ontario Immigrant Nominee Program (OINP) have expanded eligibility for in-demand skills, allowing more opportunities for foreign workers in critical sectors like healthcare and construction.

These adjustments reflect the government’s ongoing effort to address challenges such as rising unemployment and housing shortages, while balancing the need for foreign workers in certain industries​.