Canada relaxes temporary foreign worker program rules to address labour shortages

Canada has taken steps to make it easier for Canadian firms to hire foreign workers on a temporary basis. These actions, which were announced on April 4, are in reaction to a nationwide labour shortage. At the same time, Canada has a low unemployment rate and a large number of job openings.

Bringing in temporary foreign workers to fill occupations where there are no Canadians available is one way to overcome labour shortages. According to a government press release, the modifications to the Temporary Foreign Worker Program (TFWP) are intended to assist Canada to develop its workforce.

There are five major changes coming for the TFWP.

1. Labour Market Impact Assessments (LMIAs) will be valid for 18 months, up from nine.

2. The maximum length of employment for High-Wage and Global Talent Stream employees will be increased from two to three years.

3. The Seasonal Cap Exemption, which has been in effect since 2015, will be made permanent.

4. Employers in industries with demonstrable labour shortages will be able to use the TFWP to hire up to 30% of their workers for low-wage positions for a year.

5. Finally, Canada will eliminate its existing policy of automatically rejecting LMIA applications for low-wage occupations in the lodging and food services and retail trade sectors in locations with a 6% or higher unemployment rate.