2022-04-06-KPMG_Global-Canada_–Temporary_Foreign_Worker_Program_Workforce_Solutions_Road_Map_Introduced_4页_228kb

Canada Announces Temporary Foreign Worker Program Updates

Background

Canada introduced the Temporary Foreign Worker Program (TFWP) Workforce Solutions Road Map to improve the program for employers and foreign workers amid economic recovery post-pandemic. The initiative aims to address labor shortages and enhance workforce flexibility.

Key Policy Changes

• Effective immediately:
  • Increased maximum work permit duration for High-Wage and Global Talent Stream workers from two to three years, enabling longer-term residency contributions.
  • Extended Labour Market Impact Assessment (LMIA) validity from nine to eighteen months.
  • Removed limits on low-wage positions for seasonal industries (e.g., fish processing), increasing work permit duration from 180 to 270 days and making seasonal exemptions permanent.
• Effective April 30, 2022:
  • Allowed employers in sectors with low-wage labor shortages (e.g., Accommodation and Food Services) to hire up to 30% of their workforce through TFWP for one year; other employers can hire up to 20%.
  • Ended automatic rejection of LMIA applications for low-wage occupations in Accommodation and Food Services and Retail Trade sectors in regions with unemployment rates of 6% or higher.

Rationale

These changes enhance employer flexibility, support worker access to permanent residency, and address critical labor shortages in specific industries.

Additional Measures

Service Canada improved the processing of LMIA applications through enhanced service standards and increased staffing to facilitate timely hiring of foreign workers.

KPMG Note

Key benefits include greater predictability for employers and employees, easier retention of low-wage workers, and the ability to plan for labor needs. Employers with questions should consult KPMG Law LLP for guidance.