ARTICLE
15 October 2024

Unlocking Opportunities: Key Changes To Canada's Post-Graduation Work Permit (PGWP) Program

MT
McCarthy Tétrault LLP

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McCarthy Tétrault LLP provides a broad range of legal services, advising on large and complex assignments for Canadian and international interests. The firm has substantial presence in Canada’s major commercial centres and in New York City, US and London, UK.
In an increasingly globalized economy, attracting and retaining skilled talent is paramount for national competitiveness. Canada, known for its high-quality education system and diverse job market, offers the Post-Graduation Work Permit (PGWP) program to provide an opportunity to international students to transition smoothly from academic life to the workforce.
Canada Immigration

Unlocking Opportunities: Key Changes to Canada's Post-Graduation Work Permit (PGWP) Program

In an increasingly globalized economy, attracting and retaining skilled talent is paramount for national competitiveness. Canada, known for its high-quality education system and diverse job market, offers the Post-Graduation Work Permit (PGWP) program to provide an opportunity to international students to transition smoothly from academic life to the workforce. This initiative not only benefits graduates by providing them with valuable work experience but also aids Canadian employers in filling critical skill gaps with talented and educated professionals.

The PGWP program in Canada is about to undergo significant changes, with new eligibility criteria regarding proof of language skills, as well as level/field of study, coming into effect on November 1, 2024. These adjustments aim to ensure that graduates possess the necessary language skills to integrate successfully into the Canadian workforce, and to better address labor market needs in Canada. This article will outline the key changes and what they mean for prospective applicants and Canadian employers.

Reminder: General PGWP Eligibility Criteria (Preexisting Rules)

Under the current rules, to apply for a PGWP, international students must have completed an eligible study program at a designated learning institution and met specific program requirements. Applicants must also have maintained full-time student status in Canada during each semester of their program, though there are exceptions to this requirement, including studying part-time during their final semester, taking an approved leave from studies, or having to stop studying or change to part-time studies between March 2020 and the fall semester of 2020 for reasons related to COVID-19. Moreover, the study permit must have been valid within the last 180 days preceding the PGWP application.

Preliminary Note: the November 1, 2024, Cutoff Date

The cutoff date of November 1, 2024, marks a significant transition point for the PGWP program. Indeed, the new measures detailed below may apply in whole or in part to PGWP applicants depending on (1) the date they submit their PGWP application; and (2) the date they applied for their study permit.

As of November 1, 2024, PGWP applicants who had already applied for or received their study permit prior to the cutoff date will only be subject to the new language requirement (detailed below).

However, PGWP applicants who had applied for their study permit on or after November 1, 2024, will not only be subject to the new language requirement, but also to the new level/field of study requirement (detailed below).

The only general exception to the November 1, 2024, cutoff date is for PGWP applicants who graduated from a PGWP eligible flight school. The new language and level/field of study eligibility criteria will not apply to these applicants.

PGWP applications submitted before November 1, 2024, will not be subject to the new measures, even if they are still in processing on this date.

Breakdown of the New Eligibility Requirements: Language and Level/Field of Study

The two main changes to the PGWP eligibility criteria are the addition of a language requirement and a level/field of study requirement. Both are detailed below.

Language Requirement

  • Applies to: all PGWP applications submitted as of November 1, 2024, regardless of the date the study permit was applied for

As of November 1, 2024, all PGWP applicants will be required to provide proof of their English or French language skills with their application.

Graduates with a bachelor's, master's or doctoral degree, or graduates with any other university degree, will be required to demonstrate at least a Canadian Language Benchmarks (CLB) Level 7 in English or a Niveaux de competence linguistique canadiens (NCLC) Level 7 in French, in all four language areas (speaking, listening, reading and writing).

College graduates and graduates of other programs not listed above will be required to show a minimum CLB Level 5 or NCLC Level 5, also in all four language areas.

Applicants will need to provide proof of their language abilities by way of an officially recognized test result when submitting their PGWP application. Accepted language tests include CELPIP, IELTS and PTE Core (English), and the TEF Canada and TCF Canada (French). Test results must be less than two years old at the time of application submission.

Level/Field of Study Requirement

  • Applies to: PGWP applicants who applied for their study permit on or after November 1, 2024

PGWP applicants who applied for their study permit on or after November 1, 2024, will only be eligible for a PGWP if they obtained a university bachelor's degree, master's degree or doctoral degree program, regardless of their field of study, or if they graduated from another program that is in an eligible field of study linked to certain occupations in long-term shortage.

Eligible fields of study are divided into five broad categories:

  • Agriculture and Agri-Food
  • Healthcare
  • Science, Technology, Engineering, and Mathematics (STEM)
  • Trade
  • Transport

The complete list of programs of study according to Classification of Instructional Programs (CIP) code can be found here: https://www.canada.ca/en/immigration-refugees-citizenship/services/study-canada/work/after-graduation/eligibility/study-requirements.html#wb-auto-5

PGWP applicants will also be required to meet the language requirement detailed above.

We anticipate that this new measure will have little to no impact on PGWP applicants in the next few months, as these PGWP applicants will have applied for their study permit prior to November 1, 2024. The full impact of this new requirement will likely be felt in the next few years.

Conclusion

These new changes to the PGWP program highlight Canada's commitment to ensuring that international graduates are well-equipped to succeed in the Canadian labor market, but also that they meet the labor market's needs.

For employers, being aware of these upcoming changes will allow better planning with regards to hiring strategies. Knowing that graduates will need to meet certain language benchmarks enables employers to tailor their recruitment and training processes accordingly. Moreover, as the new eligibility criteria are phased in, employers currently employing international students must recognize that future hires will be subject to different standards. This awareness ensures that hiring practices remain compliant with the latest regulations, avoiding any potential legal or administrative complications. By proactively adapting to these changes, employers can continue to benefit from the diverse talents and perspectives that international graduates bring to their organizations.

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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.

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