Canadian employers will soon encounter stricter requirements when hiring foreign nationals for temporary positions in Canada. These workers play a vital role in keeping Canada competitive by filling short-term labor and skills gaps and providing practical experience to foreign nationals within the country.

Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, announced that certain time-limited measures within the Temporary Foreign Workers (TFW) Program Workforce Solutions Road Map will not be extended and will conclude earlier than planned this spring.

To hire through the Temporary Foreign Worker Program, employers in Canada must initially acquire a Labor Market Impact Assessment (LMIA) to demonstrate the unavailability of Canadian labor for the job. Effective May 1, 2024, new LMIA approvals will only be valid for six months, reduced from the previous 12 months, ensuring a more precise match with labor market needs.

As part of the 2022 Workforce Solutions Road Map, employers identified will see a reduction in their total workforce allowance from 30% to 20% through the Temporary Foreign Worker Program's low-wage stream, with exceptions for the construction and healthcare sectors.

Starting May 1, 2024, LMIA validity will be shortened to six months, offering foreign nationals less time to apply for work permits. Additionally, the cap for low-wage temporary foreign workers in specific sectors will decrease from 30% to 20%.

Employers will need to exhaust all options before seeking an LMIA, including considering asylum seekers with valid work permits in Canada. Since January 1, 2024, employers must annually review wages for temporary foreign workers to match prevailing wage rates for their occupation and region.

These reviews aim to ensure continuous payment at prevailing wage levels throughout employment, with most cases resulting in wage increases during reviews. The Canadian government will monitor labor market conditions to align the TFW Program with current economic needs, prioritizing Canadians for job opportunities while safeguarding the rights of temporary foreign workers.

These adjustments aim to decrease Canada's reliance on temporary foreign workers, facilitating job vacancy fulfillment through Canadian workers. The TFW Program remains adaptable to labor market changes, addressing temporary skill shortages without set limits on work permit issuance.