In a significant move to combat labour shortages and bolster the Canadian workforce, Randy Boissonnault, the Minister of Employment, Workforce Development, and Official Languages, has announced changes to the Temporary Foreign Workers.
This initiative aims to assist employers in addressing labour gaps through the Temporary Foreign Worker Program (TFWP).
Temporary Foreign Workforce Solutions Road Map
The Temporary Foreign Workforce Solutions Road Map serves as a dynamic mechanism to empower employers to adapt to Canada’s ever-changing labour and economic conditions. It provides the flexibility needed to adjust the TFWP as required.
Key Changes Introduced for Temporary Foreign Workforce
Today’s announcement introduces or maintains several crucial changes to the Temporary Foreign Workforce Solutions Road Map:
1. Sector-Specific Hiring Provisions
Employers in seven selected sectors, including Food Manufacturing, Wood Product Manufacturing, Furniture and Related Product Manufacturing, Accommodation and Food Services, Construction, Hospitals, and Nursing and Residential Care Facilities, may continue to hire up to 30% of their workforce for low-wage positions through the TFWP.
2. Duration Cap for Low-Wage Positions
A two-year cap on employment duration will be upheld for positions paid under the provincial or territorial minimum wage.
3. Reduced Validity for LMIs
Labor Market Impact Assessments (LMIAs) will now have a reduced validity, shifting from an 18-month maximum to a 12-month maximum.
4. Annual Wage Reviews
Starting January 1st, 2024, employers will be required to perform annual reviews of their temporary foreign workers’ wages to ensure they are in line with prevailing wage rates for their specific occupation and work region.
All of these extended measures are set to be in place until August 30, 2024, with the provision to adjust them according to labour market and economic conditions as needed.
The unemployment rate in Canada was 5.5% in September, a figure which has held steady for the last three months despite record levels of immigration. Employer demand for the TFWP has increased by approximately 40% compared to the same time last year, further indicating persistent vacancies.
Employer Compliance
Employer compliance is a key part of the TFWP. The government of Canada maintains online records of employers who have been found non-compliant with TFWP standards (relating to wages, working conditions, workers’ rights, etc.). It has also instituted a safety program for vulnerable workers who are part of the program.
IRCC has additionally launched the Recognised Employer Pilot (REP) to streamline LMIA procedures for trusted employers who have an excellent track record with the program.
Understanding the Temporary Foreign Worker Program (TFWP)
The TFWP, one of Canada’s two primary work permit programs, is administered by Immigration, Refugees, and Citizenship Canada (IRCC) to address domestic labour shortages through immigration. The program encompasses various streams, including agriculture, live-in caregivers, and high and low-wage foreign workers.
Foreign nationals can be hired by Canadian companies under the TFWP, subject to obtaining a Labor Market Impact Assessment (LMIA). The LMIA is an official process used by the Canadian government to determine whether a Canadian Permanent Resident or citizen could have filled the same role.
A positive or neutral LMIA result enables the hiring of a foreign worker, while a negative result leads to a work permit application rejection. LMIA-supported work permits are specific to an employer and industry.
Conclusion
The extension of these special measures will help Canadian employers to address key labour shortages and support economic growth. The government of Canada is committed to ensuring that the TFWP is fair and ethical for both employers and workers.
Credit: Travel Biz
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