The Government of Canada has updated and reinforced requirements under the Temporary Foreign Worker Program (TFWP) for employers seeking to hire workers in low-wage positions. The program is designed to help employers address labour shortages when qualified Canadians or permanent residents are not available, while ensuring strong protections for workers and maintaining the integrity of the labour market. Employers must meet strict eligibility, recruitment, wage, and compliance requirements when applying for a Labour Market Impact Assessment (LMIA).

The updated guidance also highlights measures to prioritize Canadian workers, including restrictions on LMIA applications in regions with high unemployment rates and limits on the number of low-wage temporary foreign workers that can be employed at a work location. These requirements are intended to balance labour market needs with opportunities for Canadian job seekers

What Employers Need to Know

Key requirements for employers hiring workers through the low-wage stream of the Temporary Foreign Worker Program include:

• Employers must obtain a positive Labour Market Impact Assessment (LMIA) before hiring most temporary foreign workers.
• Positions must be full-time, with a minimum of 30 hours of work per week.
• Employers are responsible for LMIA processing fees and cannot recover these costs from workers.
• Recruitment and placement fees cannot be charged to temporary foreign workers, directly or indirectly.
• Employers must demonstrate that their business and job offer are legitimate and comply with federal program requirements.

Workforce and Compliance Impact

The Temporary Foreign Worker Program continues to emphasize employer accountability and worker protection. Employers using recruiters or third-party representatives remain responsible for ensuring compliance with program rules, including prohibitions against charging recruitment fees to workers. New employers may also be subject to reviews to demonstrate their ability to provide a workplace free from abuse and comply with program obligations.

In addition, low-wage LMIA applications may not be processed in certain census metropolitan areas where unemployment rates are at or above 6%, unless an exemption applies. The government has also introduced temporary measures for eligible rural communities facing workforce shortages.

Quick Facts

• LMIA applications for low-wage positions require a $1,000 processing fee per position.
  Employers must pay the fee when applying for a Labour Market Impact Assessment, and the cost cannot be passed on to temporary foreign workers. Certain caregiver and primary agriculture applications may be exempt.
• A 10% cap applies to most low-wage temporary foreign worker positions.
  The cap limits the proportion of low-wage temporary foreign workers that employers can hire at a specific work location, helping ensure Canadians and permanent residents are considered first for available jobs
• Some sectors are eligible for a higher 20% cap.
  Construction, food manufacturing, hospitals, nursing and residential care facilities, and certain caregiver occupations may hire up to 20% of their workforce through low-wage temporary foreign worker positions.
• Certain LMIA applications may not be processed in areas with unemployment rates of 6% or higher.
  This measure applies to many low-wage positions and is intended to prioritize employment opportunities for local workers in regions experiencing higher unemployment.
• Small employers face specific workforce limits.
  Employers with fewer than 10 employees at a work location may generally hire a maximum of one low-wage temporary foreign worker under a 10% cap or two workers under a 20% cap.
• Some occupations are exempt from caps.
  Certain agricultural positions, healthcare-related caregiving roles, permanent residency support applications, and qualifying short-duration positions are not subject to the low-wage cap.

Conclusion

Canada’s updated requirements for low-wage Temporary Foreign Worker Program applications reinforce the government’s focus on labour market integrity, worker protection, and employer accountability. By maintaining strict recruitment standards, limiting low-wage temporary worker proportions in many sectors, and prioritizing Canadian workers where possible, the program seeks to address genuine labour shortages while supporting a fair and balanced workforce across the country.

Source: canada.ca