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October 22, 2024

Canada’s TFW Program Updates 2024: New Wage Requirements & Employment Restrictions Ontario (Coming November 2024)

Major Changes to Canada’s Temporary Foreign Worker Program: What Ontario Employers Need to Know

The Canadian government has announced significant reforms to the Temporary Foreign Worker (TFW) Program, set to take effect in November 2024. These changes aim to strengthen program integrity and protect both Canadian workers and temporary foreign workers. Here’s what Ontario employers and foreign workers need to understand about these critical changes.

Key Program Updates:

New High-Wage Stream Requirements

  • Effective November 8, 2024, the minimum wage requirement for the high-wage stream will increase by 20% above the provincial median wage
  • This represents a $5-8 per hour increase, depending on the province
  • An estimated 34,000 positions will shift from high-wage to low-wage stream classification

Enhanced Business Verification Process

  • Starting October 28, 2024, professional accountant or lawyer attestations will no longer be accepted for business legitimacy proof
  • Increased information sharing between provincial and federal authorities
  • Stricter verification processes for employer compliance

Low-Wage Stream Implications

  • More positions will fall under stricter low-wage stream requirements
  • Mandatory employer provisions for:
    • Return transportation costs
    • Suitable accommodation
    • Additional recruitment efforts within Canada
    • 10% cap on TFW workforce complement (up to 20% for high-demand sectors)

Impact on Employment Markets:

The reforms aim to prioritize domestic hiring, particularly targeting underrepresented groups:

  • Youth (13.5% unemployment rate as of September 2024)
  • Indigenous persons (7.7% unemployment rate)
  • Persons with disabilities (65.1% employment rate)

Employer Compliance Requirements:

Labour Market Impact Assessment (LMIA)

  • Mandatory positive LMIA before hiring temporary foreign workers
  • Enhanced scrutiny of business legitimacy
  • Stricter assessment criteria for job offers

Workforce Restrictions

  • New limitations on TFW hiring in areas with high unemployment
  • Additional recruitment requirements for Canadian workers
  • Enhanced monitoring of program compliance

For employers and foreign workers seeking assistance with these new requirements or guidance on TFW Program compliance, please contact our immigration law office for expert consultation.

[Source: Employment and Social Development Canada – October 21, 2024 News Release]


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