New Restrictions on “Low-wage” Stream of Temporary Foreign Workers Program
August 28, 2024 | Sherrard Kuzz LLP
On August 26, 2024, the Government of Canada announced rule changes to the Temporary Foreign Workers (“TFW”) Program. These changes will increase restrictions on an employer hiring “low-wage” TFWs, meaning TFWs in jobs that pay below the median hourly wage for the province in which the job is based.
Effective September 26, 2024 the following changes will be implemented:
- The government will refuse applications for low-wage TFWs in regions with an unemployment rate of 6% or higher. Note, the current overall unemployment rate in Canada is 6.4%. Exceptions will be granted in food processing, agriculture, construction and healthcare.
- An employer will not be allowed to hire more than 10% of its total workforce through the TFW Program. Note, in March 2024, this maximum was reduced from 30% to 20%. Exceptions will be granted in food processing, agriculture, construction and healthcare.
- The maximum duration of employment for workers hired through the low-wage stream will be reduced to one year (from two years).
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