The Canadian government is making changes to the Temporary Foreign Worker Program (TFWP), specifically targeting low-wage positions. Prime Minister Justin Trudeau announced these updates, emphasizing the need to prioritize Canadian workers on Aug 26, 2024. Let's break down what this means for foreign workers and employers.
Understanding LMIA and the Temporary Foreign Worker Program
The Labour Market Impact Assessment (LMIA) is a document that Canadian employers need to obtain before hiring foreign workers. It shows that there is a need for a foreign worker to fill the job and that no Canadian worker is available to do it.
The Temporary Foreign Worker Program allows employers to hire foreign nationals to fill temporary labor shortages.
Key Changes to the Low-Wage LMIA Program
Stricter Hiring Rules
Employers in regions with an unemployment rate of 6% or higher will face restrictions. Applications for low-wage temporary foreign workers in these areas will be refused. This move encourages businesses to hire locally.
Reduced Workforce Quota
The percentage of low-wage temporary foreign workers that employers can hire is now capped at 10% of their workforce, down from the previous 20%. This change aims to ensure more job opportunities for Canadians.
Shortened Work Permit Duration
Foreign workers hired under the low-wage stream can now work for a maximum of one year, reduced from two years. This aligns with pre-pandemic regulations.
Why These Changes?
During the pandemic, the rules were relaxed to help businesses cope with labor shortages. However, as the economy stabilizes, the government is shifting focus back to boosting local employment.
What This Means for You
For Foreign Workers
If you're renewing your work permit, be aware of the new one-year limit. Plan accordingly and explore other pathways to extend your stay in Canada.
For Employers
Review your hiring strategies. Consider training and hiring local talent to meet your workforce needs.
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Stay Informed and Prepared đ
These changes, effective September 26, 2024, reflect Canada's commitment to balancing economic recovery with local employment opportunities.
Stay informed and adapt to these new regulations to ensure compliance and success in your employment journey.
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