The Government of Canada has recently overhauled the Temporary Foreign Worker Program (TFWP); re-organizing it into two distinct programs. The changes are designed to ensure Canadians are considered first for available jobs. Foreign workers should only be used to fill acute labor shortages on a temporary basis when qualified Canadians are not available. This overhaul comes on the heels of the 2012 reforms which included more focused on-site inspections to ensure compliance and making English and French the only languages that could be used as a job requirement when hiring temporary foreign workers. Ultimately, officials hope to achieve greater transparency as a result of the overhaul as well as compel employers to recruit and train Canadians, thereby improving the labor market.
Employment and Social Development Canada (ESDC) will be the lead department for the Temporary Foreign Worker Program and Citizenship and Immigration Canada (CIC) will be the lead department for new International Mobility Programs (IMPs).
Highlights of the reform include:
- Wage levels will take the place as the main criteria for administering the TFWP because they represent a more accurate reflection of occupational skill level and local labor market conditions. These were previously determined by the National Occupational Classification.
- Out with the old – the Labour Market Opinion is being replaced by the Labour Market Impact Assessment (LMIA) as the new screening method for those employers looking to hire temporary foreign workers. Under LMIA, employers will be required to provide specified information. This includes the number of Canadians that applied for particular jobs and interviewed by the employer as well as explanations if Canadian applicants were not selected for positions. Additionally, employers will be required to confirm they are aware of the rule that Canadian workers cannot have their hours reduced or be laid off because the employer employs temporary foreign workers.
- Employers are subject to new caps as to how many low-wage temporary foreign workers they can employ. Caps will phase in over the next couple of years.
- In areas where there is high unemployment, six percent or higher, applications for the lowest-wage and skill in entry level occupations (food service, accommodation and retail trades) will be barred from the TFWP.
- There will be a reduction in the amount of time a general low-wage temporary foreign worker can remain in Canada.
- Employers who brought temporary foreign workers to Canada through annex agreements with provinces and territories will now be subject to LMIA.
- Employers who wish to hire high-wage temporary foreign workers will be required to submit transition plans. These plans must demonstrate how the employer will increase efforts to hire Canadians. This includes through higher paying wages, investments in training and increased recruitment efforts within Canadian borders.
- Creation of a new Job Matching Service which will allow Canadians to apply for jobs directly through the Canada Job Bank.
- There will be funding for two new surveys to be conducted by Statistics Canada: A quarterly Job Vacancy Survey and an Annual National Wage Survey.
- There will also be stronger reform enforcement and tougher penalties for noncompliance.
- We will see a rise in number and scope of inspections.
- Increase in the number of program requirements that inspectors will be able to review increases from 3 to 21.
- Expansion of the TFWP Tip Line and new complaints website
- Expansion of publicly blacklisting employers who have been suspended, are under investigation or who have been LMIA revoked and are banned from using the program.
- More money will be allocated to the Canada Border Services Agency for criminal investigations
Compliance Poster Company’s HR Research and Compliance Team is still busy watching an important bill that relates to the changes made by these recent reforms. If the Budget Implementation Act, Bill C-31, is adopted, we could see significant monetary fines for noncompliance. We will keep you posted as developments occur.