Written by: Sara Bahadori
The Canadian government has announced new changes to the Temporary Foreign Worker Program (TFWP), set to take effect in two phases on October 28, 2024, and November 8, 2024. These reforms are designed to enhance the integrity of the program and ensure that employers who rely on foreign talent adhere to stricter requirements. For employers, foreign workers, and the broader Canadian labour market, these changes could have significant implications.
Effective October 28, 2024: New Business Legitimacy Requirements
Starting October 28, 2024, employers using the TFWP will face new standards to prove the legitimacy of their business operations. Previously, businesses could submit attestations from accountants or lawyers to demonstrate their legitimacy. However, under the new rules, such attestations will no longer be accepted.
Instead, the government will rely on information-sharing agreements with provincial and territorial authorities, as well as existing employer registries, to verify whether a business is legitimate. This change is part of an effort to reduce misuse of the TFWP, prevent fraud, and ensure that only genuine employers with valid job offers are able to access foreign labour through the program.
For employers, this means increased scrutiny and a higher burden of proof to demonstrate compliance with the program requirements.
Effective November 8, 2024: Higher Wage Thresholds for the High-Wage Stream
As of November 8, 2024, employers seeking to hire foreign workers through the TFWP’s high-wage stream will need to offer significantly higher wages. The new wage requirement will mandate that employers pay foreign workers at least 20% higher than the current median wage in the relevant province or territory.
This change represents an hourly wage increase of between $5 and $8 per hour, depending on the region, and is aimed at ensuring that foreign workers in high-wage jobs are compensated more competitively to prioritize the hiring of domestic workers. Jobs that fall below this wage threshold will be reclassified under the low-wage stream, which comes with increased employer responsibilities related to housing, transportation, and the recruitment of workers already in Canada.
Employers relying on foreign talent should prepare for these new requirements to remain eligible under the TFWP and continue accessing the foreign labour necessary to meet their business needs.
