Canada: Government Announces Significant Reforms To Canada’s Temporary Foreign Worker Program

Last Updated: May 10 2013
Article by Brian Dingle

Most Read Contributor in Canada, September 2016

As part of its Economic Action Plan 2013, the Federal Government signalled that it would be taking action in the coming months to reform the Temporary Foreign Worker Program (TFWP) to ensure that Canadians citizens and permanent residents were given the first chance at available jobs.

Subsequently, on April 29, 2013, the Minister of Human Resources and Skills Development and Minister of Citizenship and Immigration, announced sweeping changes that has effectively reversed the course of the program and will make it more difficult and expensive, for Canadian employers to employ Temporary Foreign Workers (TFWs).

The reforms include the following legislative, regulatory and administrative changes:

  • Prevailing Wage – effective immediately, employers are now required to pay TFW at the prevailing wage. Previously, the TFWP allowed employers to pay TFWs wages up to 15% below the prevailing wage for high-skilled occupations, and 5% below the prevailing wage for lower-skilled occupations, where it could be demonstrated that Canadian employees were receiving the wage in the same job and in the same location.

    This change is significant because the labour market information used by Human Resources and Skills Development Canada (HRSDC) and Citizenship and Immigration Canada (CIC) to assess labour market information, including wage rates, has often been cited by employers as being incomplete or unrepresentative of the labour market, particularly where a role does not fit squarely within a specific National Occupational Classification.
  • Accelerated-Labour Market Opinion (A-LMO) Process Suspended – effective immediately, the A-LMO process has been suspended temporarily while bureaucrats determine whether it is meeting its original objectives. Designed for employers with a clean compliance records (no complaints or violations), A-LMO applications were to be processed within 10 business days of application.

    This change is significant because regular Labour Market Opinion (LMO) applications often take in excess of two months to process, if not more, depending on the circumstances of the case.
  • Increase Government Authority to Suspend and Revoke Work Permits and LMOs – the Government has proposed legislative amendments as part of the Budget Implementation Bill, Bill C-60 (Economic Action Plan 2013 Act, No.1), that would allow HRSDC and CIC to suspend, revoke or refuse to process an LMO application if it was determined by an officer that the TFWP was being abused based on public policy considerations specified in Ministerial Instructions from the Minister of Human Resources and Skills Development or the Minister of Citizenship and Immigration. This amendment requires parliamentary approval.

    While it may be desirable for an officer to be able to revoke a work permit if an LMO is gained by fraud, the proposed changes further erode transparency and accountability by granting the Ministers the authority to issue instructions that are not subject to review without prior public debate.
  • New Questions on LMO Forms to Ensure that Canadian Jobs are Not Being Outsourced – the Government will require additional information from employers and their "partner companies" before issuing an LMO, including questions about outsourcing and whether Canadian employees are to be replaced by TFWs.

    The Government has not indicated what constitutes a partner company and what information would be required from it to adjudicate an LMO. Companies may be unwilling to share information that is confidential regardless of whether they are "partners". It is difficult to assess what impact this change will have on employers, other than additional administrative burden demonstrating what impact the TFWs will have on the Canadian labour market.
  • Transition Plan to a Canadian Workforce – the Government will require employers that rely on TFWs to develop and implement a plan to transition to a Canadian workforce as part of the LMO application process. The announcement did not specify what criteria HRSDC would use to determine whether an employer was reliant on TFWs, nor is it clear whether this requirement would apply to employers whose employees obtained work permits on a LMO-exempt basis, such as the intra-company transferee category.

    Employers that use a Global Delivery Model, especially those in the IT consulting and services delivery sector, are likely to face significantly increased scrutiny of LMO applications. Similarly, employers that rely on LMO-exempt work permits, especially intra-company transferees who possess specialized knowledge, are likely to find the threshold for establishing specialized knowledge significantly higher than before.
  • Fees – Bill C-60 proposes to introduce fees for LMO applications and increase the fees payable for work permit applications. These amendments require parliamentary approval. If approved, the fees for the various application types will be set by regulation at a later date.

    The proposed changes will make it more expensive for employers to access the TFWP. At present, there is no fee payable by employers to file an application for an LMO. Employers may gladly accept the increased fees, if the proposed fees were used to be used for the processing of LMO and work permit applications expeditiously.
  • Language – the Government has indicated that English and French will be the only languages that can be used as a job requirement.

These reforms are designed to ensure that TFWs are used by employers only when Canadians are genuinely not available for jobs. Not mentioned in the announcement is the fact that Government will be seeking to increase the mandatory minimum recruiting requirements that an employer must take when seeking to hire a TFW, including increased length and reach of advertising.

For more information on the announced changes to the TFWP, contact your regional Business Immigration Leader. The Federal Government's news release on the changes can be found here.

About BLG

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.