On April 4, the Canadian government announced the Temporary Foreign Worker (TFW) Program Workforce Solutions Road Map, which is intended to improve the TFWP for both employers and foreign workers.
Why This Matters?
This announcement demonstrates that the Canadian Government is acknowledging the need to adjust the TFW Program to achieve the actual needs of the current labor market. Additionally, these changes will likely increase employer flexibility in meeting business needs by extending the duration of some work permits, assisting those with a path to permanent residence to lengthen the time needed to get permanent residence status, and expanding the number of low-wage jobs in certain industries.
The Temporary Foreign Worker Program Workforce Solutions Road Map announces five key policy changes that will be implemented in the coming weeks to focus on labor shortages, enhance worker protection, and build a stronger workforce.
Effective Immediately:
- The maximum work permit duration for High-Wage and Global Talent Streams (GTS) workers is increased to three years.
- Labour Market Impact Assessments (LMIA) will be valid for 18 months.
- There will be no limit to the number of low-wage positions that employers in seasonal industries (e.g., fish and seafood processing) can fill through the TFWP, and the maximum work permit duration for these positions will be increased to 270 days per year.
Effective April 30, 2022:
- Employers in seven sectors with demonstrated labor shortages will be allowed to hire up to 30 percent of their workforce through the TFWP for one year. All other employers will be allowed to hire up to 20 percent of their workforce.
- The government will end the current policy that automatically denies LMIA applications for low-wage positions in the Accommodation, Food Services, and Retail Trade sectors in areas with an unemployment rate of six percent or higher.
Source: Kranc Associates, Canadian Corporate Immigration Counsel
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