Canada announced today the following changes in the Temporary Foreign Worker Program (TFWP):

1.    The Temporary Foreign Worker Program (TFWP) is being re-organized into two distinct programs. This will reduce confusion and better reflect the major differences between the various streams.

The TFWP will now refer to only those streams under which foreign workers enter Canada at the request of employers following approval through a new Labour Market Impact Assessment (LMIA) which replaces the old Labor Market Opinion. The new International Mobility Programs (IMP) will include those streams in which foreign nationals are not subject to an LMIA, and whose primary objective is to advance Canada's broad economic and cultural national interest, rather than filling particular jobs. These new categories will improve accountability, with Employment and Social Development Canada (ESDC) being the lead department for the TFWP, and Citizenship and Immigration Canada (CIC) the lead department for the IMP.

2.    To further increase transparency and accountability beginning in fall 2014, EDSC will publicly post data on the number of temporary foreign workers approved through the TFWP on a quarterly basis and will post the names of corporations that receive positive LMIAs.

3.    The TFWP will now be administered based on wage instead of the National Occupational Classification (NOC). Wage is a more objective and accurate reflection of skill level and labour need in a given area. Temporary foreign workers being paid under the provincial/territorial median wage will be considered low-wage, while those being paid at or above will be considered high-wage.

4.    Canada is introducing a cap to limit the proportion of low-wage temporary foreign workers that a business can employ. The cap will significantly restrict access to the TFWP, while ensuring that Canadians are always considered first for available jobs, reducing employer reliance on the program and increasing wages offered to Canadians. It is expected that this measure alone will nearly cut in half the number of low-wage temporary foreign workers once fully implemented.

Employers with 10 or more employees will be subject to a cap of 10 percent on the proportion of their workforce that can consist of low-wage temporary foreign workers. This cap will be applied per worksite of an employer and is based on total hours worked at that worksite. To provide employers time to transition and adjust to this new cap, it will be phased in over the next couple of years.

Effective immediately, employers applying for a new LMIA will be limited at 30 percent or frozen at their current level, whichever is lower. This transition measure will be further reduced to 20 percent beginning July 1, 2015 and reduced again to 10 percent on July 1, 2106. The Government may consider lowering the cap further in the future. Temporary foreign workers currently working at work sites over the cap will be allowed to continue working at those sites until their existing work permits expire.

5.    Employment and Social Development Canada will refuse to process certain Labour Market Impact Assessment applications in the Accommodation, Food Services and Retail Trade sectors. Specifically, any applications for positions that require little or no education or training will not be processed in economic regions with an unemployment rate at or above six percent.

6.    Five provincial/territorial governments (Alberta, British Columbia, Ontario, Nova Scotia and Yukon) currently have annexes to their immigration agreements with the Government that establish Labour Market Impact Assessment (LMIA) exemptions in their jurisdiction. In these cases, the provinces and territories may propose LMIA exemptions for certain occupations and pilot projects involving exemptions to the LMIA process can be initiated.

Accordingly, the Government has given notice that it is changing the existing agreements. As a result, more employers will be subject to the new, more rigorous LMIA before being able to hire TFWs. Any new agreements with provinces and territories will be much more limited in scope to better ensure that Canadians are always given first chance at available jobs.

7.    The duration of work permits set out in Labour Market Impact Assessments (LMIAs) will be limited to a maximum of one year for all low-wage positions, rather than the 2‑year duration that existed previously. Employers of low-wage temporary foreign workers must reapply every year for an LMIA, better-accommodating for changes in labour market conditions that might have occurred.

8.    To ensure foreign workers are coming in on a truly temporary basis and that the program is used as a last and limited resort, and to encourage employers to make even greater efforts to hire and train Canadian workers before seeking temporary foreign workers, the Government will reduce how long a temporary foreign worker in the low-wage stream can work in Canada. This measure will not apply to temporary foreign workers currently in Canada on valid work permits.

9.    The costs for administering the TFWP, including all of the reforms outlined above, will be borne entirely by employers who use the program, not by taxpayers. As a result, the LMIA fee is increasing from $275 to $1,000 for every temporary foreign worker position requested by an employer. Additionally, Employment and Social Development will be seeking the authority to impose an estimated $100 privilege fee on employers applying for LMIAs to offset the costs of Government of Canada investments in skills and job training.

10. A new enhanced Job Matching Service will allow Canadians to apply directly through the Canada Job Bank for jobs that match their skills and experience. As employers applying for temporary foreign workers must post their jobs on the Job Bank website, the new Job Matching Service will be able to match unemployed Canadians with employers offering available jobs that match their skills in their region. Furthermore, program officers will be better aware of the number of potential applicants and how closely their skills align with the available job, which will allow for more rigorous assessment of LMIA applications.

11.    Canada is massively increasing the number of inspections so that one in four employers using temporary foreign workers will be inspected each year. These inspections will be as a result of tips, employers being deemed high-risk and random audits.

All Filipino workers bound for Canada are advised to seek prior clearance from their employers to avoid any unnecessary inconvenience at the port of entry.

 

Ottawa, 20 June 2014

 

Full details on the TFWP reform can be found in: http://www.esdc.gc.ca/eng/jobs/foreign_workers/index.shtml