August 12, 2024
LMIA Updates: New Measures to Strengthen Canada’s Temporary Foreign Worker Program
The Temporary Foreign Worker (TFW) Program is an important measure in Canada’s labour market, designed to address short-term labour shortages when qualified Canadian workers are unavailable. On 6 August 2024, the Minister of Employment, Workforce Development and Official Languages, announced significant steps to reaffirm the program’s integrity and effectiveness.
Minister Boissonnault outlined several key actions aimed at refining the TFW Program and enhancing the program integrity:
- Consistent Application of the 20% Cap Policy: The cap policy limits the percentage of temporary foreign workers. This includes new guidelines for those using the “dual intent sub-stream,” which applies to workers who intend to apply for permanent residency.
- Stricter Oversight of Labour Market Impact Assessments (LMIAs): Increased rigor in processing LMIAs and conducting inspections in high-risk areas will help prevent misuse.
- Potential Fee Increases for LMIAs: To support additional integrity and processing activities, the government is considering raising LMIA fees.
- Future Regulatory Changes: The government is contemplating changes to employer eligibility, including factors like a minimum number of years in business or history of layoffs.
- Refusal to Process in Low-Wage Streams: Minister Boissonnault is considering implementing a refusal to process applications under the low-wage stream in certain areas and industries.
- Modernization Efforts: The government is working on modernizing the TFW Program, particularly through a new foreign labour stream for Agriculture and Fish & Seafood Processing, as announced in Budget 2022.
The government’s efforts to enhance the TFW Program are not new. Recent changes have already led to improved quality and timeliness of employer inspection, and a 36% increase in fines for non-compliance in the 2023–2024 fiscal year. Employers who fail to meet the TFW Program conditions could face substantial penalties, ranging from warning letters to fines of up to $1 million annually. Severe violations could result in temporary or permanent bans.
The news release indicates that these changes are “being implemented”, although a specific date for their implementation has not been provided.
This article is prepared for information only and it is not intended to be legal advice. Should you have any inquiries, please do not hesitate to contact our team.
Lijing Cao
Lijing’s practice encompasses a broad range of Canadian immigration matters, including all categories of work permit applications under the Temporary Foreign Worker Program and the International Mobility Program, citizenship, labour market impact assessments, study permits, temporary resident permits, and sponsorship applications. She also advises entrepreneurs, business owners, international students and skilled workers on the options for permanent residence to Canada, including provincial nominee programs, Start-up Visa, Federal Skilled Worker, and Canadian Experience Class programs.
Lijing graduated from the University of Toronto with a Master of Laws (LL.M.) and holds a Juris Doctor degree from Hong Kong. She is fluent in Mandarin and Cantonese Chinese. Prior to joining Bellissimo Law Group, Lijing worked as an associate lawyer at a boutique business immigration firm, where she provided advice to corporate clients to fulfill their workforce mobility and labour shortage needs.