What are Canada’s Temporary Foreign Worker Program reforms

Gatineau – Canada’s Temporary Foreign Worker (TFW) Program is designed as an extraordinary measure to be used when a qualified Canadian is not able to fill a job vacancy.   In recent months, the Government of Canada has taken steps to strengthen the integrity of the TFW Program, and on August 26, 2024, committed to completing further reviews over the following 90 days to ensure that the TFW Program remains responsive to labour market needs, while also helping to protect temporary foreign workers from fraud and abuse.

Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages, announced targeted reforms to one of the TFW Program streams. Effective November 8, 2024, the starting hourly wage for workers coming into Canada through the high-wage stream will be increased to 20% higher than its current level, which is the median wage in the applicable province or territory of work. This represents an increase to the existing threshold of between $5 and $8 per hour, depending on the province or territory of work.

As a result, a greater number of jobs are expected to be subject to the stricter rules of the low-wage stream, including additional employer requirements related to housing, transportation and recruitment of workers already in Canada.

This reform is also designed to prioritize the hiring of domestic workers, in keeping with the TFW Program’s goal of protecting Canada’s economy and Canadian workers. As noted by Minister Boissonnault in a speech at the 21st Century Workforce Summit on October 17, 2024, Canadian employers have access to untapped pools of talent in Canada, including youth, among whom the unemployment rate is more than double the annual average. Similar circumstances also exist for other under-represented groups, including Indigenous persons, women and persons with disabilities.

Minister Boissonnault also announced that, starting on October 28, 2024, employers will no longer be able to use attestations from professional accountants or lawyers to prove their business legitimacy. He added that the TFW Program will further build on existing information sharing agreements with provincial and territorial partners, as well as existing employer registries, to enhance data sharing. These measures will help to ensure that only genuine and legitimate job offers are approved, helping prevent misuse of the program and ensuring stronger worker protection.

While the majority of employers use the TFW Program as intended, the Government of Canada is continuing to carefully monitor for misuse and fraud, as well as for shifts in labour market conditions. Further adjustments will be made, if needed, to help ensure that only compliant employers with demonstrable labour needs can access the TFW Program.