Beginning in Fall 2024 and continuing into January 2025, the Canadian government implemented its plan to effect measures addressing the increasing volume of temporary residents in Canada. These measures impact not only the foreign workers seeking to apply, but also the employers seeking to hire them, and will require Canadian employers to revisit their immigration strategies. Here's a look at four of the key Canadian immigration law developments effected in furtherance of that plan.
1. Temporary Foreign Worker Program (TFWP) – High/Low Wage LMIA Applications
As of September 26, 2024, the Canadian government implemented additional measures for certain LMIA applications submitted for low-wage positions. These measures include:
Processing Restrictions. Low-wage positions in census metropolitan areas with an unemployment rate of 6% or higher will not be processed, with exceptions for certain industries.
Cap on Low-Wage Positions. In some sectors, the previous 20% cap on the proportion of low-wage positions is reduced to 10%, limiting the use of foreign workers in low-wage positions to 10% of the workforce.
Employment Duration: The maximum employment duration for low-wage positions is reduced from 2 years to 1 year.
Additionally, effective November 8, 2024, the wage threshold used to determine the high-wage or low-wage stream increased: to be considered a high-wage stream LMIA, employers must now meet a higher wage threshold of 20% above the provincial median.
2. International Mobility Program (IMP) – Intra-Company Transferee Work Permits
On October 3, 2024, the Canadian government announced extensive updates to the intra-company transferee (ICT) program impacting those who apply under the general ICT category as compared to those who apply under Free Trade Agreements. These updates provide much more restrictive requirements for those looking to access the general ICT program. Key changes include:
Eligibility for Multinational Corporations (MNCs). ICT will now be limited to "multinational corporations" (MNC). MNC is defined as a company with business operations in at least one country other than its home country that generates revenue beyond its borders. At minimum, MNC's must have revenue generating operations in at least two countries before establishing an enterprise in Canada.
Work Experience Requirements. Applicants must have been in continuous employment at a foreign enterprise of an MNC, in a similar position outside Canada, for at least one year (full time) in the previous three-year period from the date of initial application.
Temporary Transfer & Position Availability. Applicants must be transferring temporarily in the same capacity from the foreign enterprise of an MNC to the Canadian enterprise. Additionally, their position in the foreign enterprise must remain available for them to return to at the end of their assignment in Canada.
Economic, Social, or Cultural Benefits. Applicants must demonstrate that their work will generate significant economic, social or cultural benefits, or opportunities for Canadian citizens or permanent residents within the validity period of the work permit being sought.
Specialized Knowledge Requirement. Applicants looking to access ICT as specialized knowledge workers must meet strict eligibility requirements. Specifically, specialized knowledge workers are required to demonstrate knowledge that is unique and uncommon among the enterprise's general work force and can therefore only ever be held by a small number of a given enterprise's employees. They must demonstrate that they are key personnel with unique product knowledge or skills, not simply highly skilled. An employee with specialized knowledge is required to possess both advanced proprietary knowledge and an advanced level of expertise. Advanced proprietary knowledge alone or advanced expertise alone, does not qualify the foreign national for this work permit category.
3. Post-Graduation Work Permit (PGWP) Eligibility
Effective November 1, 2024, the Canadian Government introduced new rules for the Post-Graduation Work Permit (PGWP). These rules impose significant restrictions on international students' ability to apply for a PGWP upon completing their studies. Key updates include:
Graduation From Specified Fields. Depending on the program of study and institution a student attended, certain field of study requirements may apply. For example, there are no field of study requirements for university graduates with a bachelor's degree, master's degree or doctoral degree. However, students graduating from a college program or other non-university program who have submitted their study permit application on or after November 1, 2024, must graduate from programs linked to certain occupations in long-term shortage areas. Eligible fields of study are divided into five broad categories:
- Agriculture and agri-food.
- Education, including certain programs related to early childhood education and development service workers.
- Health care.
- Science, technology, engineering and mathematics (STEM).
- Trade and transport.
Proof of Language Ability. Applicants must now submit an approved language test as part of their PGWP application. The minimum language level varies based on the program of study.
4. Spousal Work Permits
Effective January 1, 2025, eligibility for accompanying spousal open work permits (OWPs) are limited to:
Spouses of Students. Spouses of international students enrolled in master's programs of 16 months or longer, doctoral programs, or select professional and eligible programs.
Spouses of Workers. Spouses of foreign workers employed in management or professional occupations (TEER 0 or 1) or select TEER 2 or 3 occupations in sectors with labor shortages, and who hold work permits valid for at least 16 months at the time their spouses apply for their OWPs.
These changes don't impact spouses of workers covered by free-trade agreements and those transitioning to permanent residency.
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.
