The Canadian government is introducing new measures to address misuse and fraud within the Temporary Foreign Worker (TFW) Program. In the 2023-2024 fiscal year, fines related to the TFW program increased by 36% compared to the previous year.

Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault unveiled these changes during a meeting with major business associations on August 6, 2024.

Key Actions to Address TFW Program Misuse

1. Enforcement of 20% Cap Policy: Consistent application of the 20 percent cap policy for temporary foreign workers, where temporary foreign workers cannot exceed 20% of the total company workforce..
2. Enhanced Oversight: Stricter oversight for high-risk areas during Labour Market Impact Assessments (LMIAs) and inspections.
3. Fee Increases: Potential rise in LMIA fees to ensure program integrity.
4. Regulatory Changes: Consider future regulatory changes to employer eligibility,  including criteria such as a minimum number of years in business or a history of layoffs.

Refusing low-wage stream applications

The government is also considering refusing low-wage stream applications for certain sectors and developing a new labor stream for Agriculture and Fish & Seafood Processing.

This applies to jobs with an hourly median wage below the threshold in various provinces and territories, ranging from $24 per hour in Prince Edward Island and Nova Scotia to $39.24 per hour in the Northwest Territories.

Minister Boissonnault emphasized the need to end program abuse and ensure worker safety.

The Minister will keep a close watch on both employer demand for the program and overall employment rates, ready to implement stricter measures if necessary.

For more details, please visit the official news release on the Canadian Government’s website.

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