Canada has recently introduced significant changes to its Temporary Foreign Worker Program (TFWP), leaving many employers rethinking their strategies for hiring and retaining foreign talent. As of September 2024, the federal government has implemented new measures that affect Labour Market Impact Assessment (LMIA) applications, particularly within the Low-Wage stream. This blog aims to provide workers and employers with updated insights on these changes and offer alternative strategies to help you navigate this new landscape effectively.
Key Changes to TFWP Policies
Starting from September 3, 2024, Canada has suspended the processing of new LMIA applications under the Low-Wage stream for jobs within the Montréal economic region. However, certain exceptions apply, including:
- Jobs outside the Montréal economic region
- Jobs offering a wage of $27.47/hour or higher (the current median wage in Quebec)
- Applications submitted before September 3, 2024
- Jobs in agriculture, construction, food processing, education, and healthcare sectors
Additionally, as of September 26, 2024, new Low-Wage LMIA applications will face further restrictions:
- LMIAs will not be processed in census metropolitan areas with an unemployment rate of 6% or higher (with exceptions for key industries: agriculture, construction, food processing, education, and healthcare)
- Employers must limit foreign workers in low-wage positions to 10% of their workforce (with exceptions for key industries: agriculture, construction, food processing, education, and healthcare)
- The maximum employment duration for Low-Wage LMIA work permits is reduced from two years to one year
For more details, please refer to the official guidelines on the Government of Canada website.
Strategies for Employers: Adapting to the Changes
To remain competitive in recruiting foreign workers, Canadian employers need to explore alternative immigration strategies. Below are several approaches to help you adapt:
- Consider the International Mobility Program (IMP)
The IMP offers a flexible alternative to the TFWP by allowing employers to hire foreign workers without needing an LMIA. This program is designed to support broader social, economic, and cultural objectives and includes various streams like Francophone immigration, post-graduation work permits, and youth mobility programs.For employers outside of Quebec, the Francophone Mobility work permit may be a viable option. This stream allows for the hiring of French-speaking foreign workers without an LMIA, providing a great opportunity to access international talent. Additionally, for businesses with global operations, the Reciprocal Employment stream could be used to bring in foreign talent while offering reciprocal opportunities for Canadians abroad.More information about the IMP can be found on the International Mobility Program webpage.
- Promotions and Pay Increases
If your employee’s wage is near the provincial median, consider offering a promotion or pay raise to shift their application into the High-Wage stream. This stream has not yet been affected by the latest restrictions, though this might change. Always ensure internal pay equity before implementing such a strategy. - Support Permanent Residency Pathways
One of the most effective ways to retain foreign workers is to assist them in their pathway to permanent residency. Employers can support their employees by:- Offering on-site language courses in English or French
- Covering the costs of permanent residence application fees
- Participating in Provincial Nominee Programs (PNPs) to boost employees’ chances of obtaining permanent residency
Supporting foreign workers in their transition to permanent residency can save your business time and resources by reducing reliance on temporary work permit renewals.
- Compliance with Employment Laws
Employers should also be mindful of employment laws and labour standards, especially in unionized environments. While developing workforce strategies, ensure compliance with these laws to protect your business and your employees. If your employees are unionized, consider proposing agreements that support foreign workers’ integration into the permanent workforce.
Looking Ahead
Canada’s immigration policies are constantly evolving, and it’s essential for employers to stay informed and adapt to these changes. By adopting flexible hiring strategies and supporting your foreign workforce in achieving permanent residency, you can ensure long-term success for your business.
For personalized immigration support and tailored strategies for your organization, contact Pivot North Immigration today. Let’s navigate Canada’s dynamic immigration landscape together!
Are you a foreign worker in Canada looking to navigate the recent changes to immigration policies? Whether you’re seeking a work permit extension or aiming for permanent residency, Pivot North Immigration is here to guide you through the process. Contact us today for personalized advice and take the next step toward securing your future in Canada! Learn More
