SPRING 2023 UPDATES TO THE TEMPORARY FOREIGN WORKER PROGRAM: EXTENDED MEASURES TO HELP ADDRESS LABOUR SHORTAGES IN CANADA

The Temporary Foreign Worker Program (TFWP) allows employers in Canada to hire foreign workers when Canadians or permanent residents are not available. The TFWP involves an employer in Canada making an application to Employment and Social Development Canada (ESDC)/Service Canada for a Labour Market Impact Assessment (LMIA). If ESDC/Service Canada determines that the hiring of a foreign worker will have a neutral or positive impact on the Canadian labour market, a positive LMIA may be issued to the employer, which a foreign national can then use in support of their application to work in Canada.

The TFWP Workforce Solutions Road Map was initially announced on April 4, 2022, and resulted in the implementation of various initiatives to address Canada’s post-COVID-19 labour market needs, including labour shortages, enhancing foreign worker protections, and building a stronger workforce.

In a recent news release, the Minister of Employment, Workforce Development and Disability Inclusion, Carla Qualtrough, announced an extension of some of the temporary measures which were introduced last year under the TFWP, in an effort to continue to combat labour shortages across Canada.

The extended measures include:

  • Permitting employers in seven sectors with demonstrated labour shortages (such as accommodation and food services, construction, hospitals, and food manufacturing) to hire up to thirty percent of their workforce through the Low-Wage Stream of the TFWP;
  • Maintaining a two-year maximum duration of employment for foreign workers under the Low-Wage Stream of the TFWP; and
  • Keeping the validity period of Labour Market Impact Assessments at up to eighteen months (allowing foreign nationals 18 months to use the LMIA to apply for a work permit).

As unemployment remains at a near-record low of 5%, these extended measures will continue to aid with Canada’s economic recovery and fill labour shortages in key sectors.  These measures will remain in place until October 30, 2023, and the Government will continue to monitor and review these policies in order to address labour shortages while protecting the needs of workers in Canada.

The Government also hopes to establish a Trusted Employer Model to streamline the application process for repeat Canadian employers seeking to hire foreign nationals under the TFWP.

Please contact us if you are looking to hire a temporary foreign worker or to see if you may be eligible to apply to work in Canada as a temporary foreign worker.

Authors

  • Michael Hughes

    Michael Hughes is an Associate Lawyer at Green and Spiegel LLP in Toronto.

  • Komal Pervez

    Komal Pervez is an Articling Student at Green and Spiegel LLP in Toronto. Komal assists clients with all aspects of immigration law in Canada. Komal is particularly interested in the intersection of immigration law and public policy.

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