On August 26, 2024, the Government of Canada announced rule changes to the Temporary Foreign Workers (“TFW”) Program. These changes will increase restrictions on an employer hiring “low-wage” TFWs, meaning TFWs in jobs that pay below the median hourly wage for the province in which the job is based.
Effective September 26, 2024 the following changes will be implemented:
- The government will refuse applications for low-wage TFWs in regions with an unemployment rate of 6% or higher. Note, the current overall unemployment rate in Canada is 6.4%. Exceptions will be granted in food processing, agriculture, construction and healthcare.
- An employer will not be allowed to hire more than 10% of its total workforce through the TFW Program. Note, in March 2024, this maximum was reduced from 30% to 20%. Exceptions will be granted in food processing, agriculture, construction and healthcare.
- The maximum duration of employment for workers hired through the low-wage stream will be reduced to one year (from two years).
Within the next 90 days, the government will undertake a further review of the TFW Program. This review may result in changes to: (a) the “High-wage” Stream of the TFW Program; (b) the processing of existing applications for which positions have not been filled and/or (c) sectoral exceptions. The government may also stop accepting some applications, potentially for rural areas.
To learn more or for assistance, contact your Sherrard Kuzz lawyer or our team at info@sherrardkuzz.com.
The information contained in this presentation/article is provided for general information purposes only and does not constitute legal or other professional advice, nor does accessing this information create a lawyer-client relationship. This presentation/article is current as of August 28, 2024 and applies only to Ontario, Canada, or such other laws of Canada as expressly indicated. Information about the law is checked for legal accuracy as at the date the presentation/article is prepared, but may become outdated as laws or policies change. For clarification or for legal or other professional assistance please contact Sherrard Kuzz LLP.