Canada shortens LMIA validity for temporary foreign workers from May 2024

Canada will soon impose tougher requirements on employers hiring foreign nationals for temporary jobs.

Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages, has announced the discontinuation of certain time-limited measures under the Temporary Foreign Workers (TFW) Program Workforce Solutions Road Map. These measures will end earlier than scheduled, this spring.

Starting May 1, 2024, Labour Market Impact Assessment (LMIA) validity will be shortened to 6 months, reducing the timeframe for foreign nationals to apply for work permits.

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Additionally, the cap for low-wage temporary foreign workers in certain sectors drops from 30% to 20%. Employers must exhaust all options, such as recruiting asylum seekers with valid Canadian work permits, before seeking an LMIA.

These workers were crucial in addressing short-term labor shortages and skill gaps, contributing to Canada’s competitiveness and providing practical experience for international individuals within the country.

As of January 1, 2024, employers must annually reassess the wages of temporary foreign workers to align with prevailing wage rates for their specific occupation and work region.

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These reviews aim to maintain payment at prevailing wage levels throughout the workers’ employment period. In most instances, wages are increased during reviews; however, they cannot decrease and must remain unchanged if not increased.

The Canadian government will persist in monitoring labor market conditions to align the Temporary Foreign Worker Program with current economic demands, prioritizing job opportunities for Canadians while safeguarding the rights of temporary foreign workers.

These efforts seek to diminish Canada’s dependence on temporary foreign workers and facilitate job vacancy fulfillment through support for Canadian workers. The program remains adaptable to labor market fluctuations, aiding employers in addressing temporary labor and skills shortages when Canadian citizens and permanent residents are unavailable.

Read also: Canada set to reduce intake of temporary residents

The Temporary Foreign Worker Program (TFWP) operates without limits on the number of work permits requested or issued annually, responding to demand for temporary skills. Co-administered by Employment and Social Development Canada (ESDC) and IRCC, it addresses temporary skill shortages.

In 2022, the TFWP saw increased demand amid post-pandemic economic recovery, low unemployment rates, and record job vacancy levels, prompting the adoption of several policy adjustments to tackle labor shortages.

Adapting to the shifting labor market dynamics and reduced job vacancies, the Government is modifying the Temporary Foreign Worker Program to ensure its usage only when no Canadian workers are available for te required roles.