【Apr 2022】Changes to the TFW Program

Hello World! Today we would like to share changes to the Temporary Foreign Worker Program (TFW Program) announced by the Government of Canada on April 04, 2022.

If you are applying for a Labour Market Impact Assessment (LMIA) based Work Permit, please be sure to read it!

For an article related to a LMIA exempt Work Permit, please click here.

What is LMIA?

LMIA is a document that an employer in Canada may need to get before hiring a foreign worker.

A positive LMIA will show that there is a need for a foreign worker to fill the job. It will also show that no Canadian worker or permanent resident is available to do the job. A positive LMIA is sometimes called a confirmation letter.

You can check if you need an LMIA or not for your Work Permit through the following link.

https://www.canada.ca/en/immigration-refugees-citizenship/services/work-canada/hire-temporary-foreign/find-need-labour-market-impact-assessment.html#do_you_nedd_LMIA

5 Key Changes to TFW Program

The Government of Canada announced the following 5 changes to the TFW Program to respond to current labour shortages across Canada.

Effective April 4, 2022:

  • Remove restrictions on the number of foreign workers (CAP) in seasonal industries such as fish and seafood processing. The maximum duration of these positions is increased from 180 days to 270 days per year.
  • Labour Market Impact Assessments (LMIAs) are valid for 18 months, up from 9 months. (Before the COVID-19 pandemic, LMIA’s were valid for 6 months.)
  • The maximum duration of employment for High-Wage and Global Talent Streams (GTS) workers is extended from 2 years to 3 years.

Effective April 30, 2022:

  • For 7 sectors with demonstrated labour shortages, such as Accommodation and Food Services, employers will be allowed to hire up to 30% of their workforce through the TFW Program for low-wage positions. All other employers will be allowed to hire up to 20% of their workforce through the TFW Program for low-wage positions until further notice. (Former 10% cap for many employers.)
  • The Government will end the current policy that automatically refuses LMIA applications for low-wage occupations in the Accommodation, Food Services and Retail Trade sectors in regions with an unemployment rate of 6% or higher.

For more information on these key changes, please visit the following website.

https://www.canada.ca/en/employment-social-development/news/2022/04/government-of-canada-announces-workforce-solutions-road-map–further-changes-to-the-temporary-foreign-worker-program-to-address-labour-shortages-ac.html

Background of TFW Program Changes

Canada’s labour shortage is tighter than before the COVID-19 pandemic, and the job vacancy rate reached a historic peak in the 3rd quarter of 2021. Many employers are now struggling to find the workers they need. The change is aimed at supporting Canada’s economic growth and recovery from the COVID-19 pandemic and meeting its labour market needs.

According to Statistics Canada, in November 2021, the following sectors were facing the highest number of vacancies:

  • Accommodation and Food Services
  • Health Care and Social Assistance
  • Retail Trade
  • Manufacturing

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These changes to the TFW Program are good news for those who are considering applying for a LMIA based Work Permit.

While it is important to understand the new rules for granting applications, the program is complex with many regulations and categories.

If you have any questions about this topic or need assistance in the LMIA process, please feel free to send your form from here.

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