Sep 16

Changes to Canada's Temporary Foreign Worker Program Effective September 2024 (Low-Wage Positions)

Updated: Sep 26

Effective September 26, 2024, the Government of Canada will be implementing changes to the low-wage Labour Market Impact Assessment (LMIA) stream. Low wage LMIAs support work permits for temporary foreign workers who are offered a salary below the median provincial or territorial hourly wage. High wage LMIAs support work permits for a temporary foreign workers who are offered a salary above the median provincial or territorial hourly wage. Whether the wage offered is above or below the provincial or territorial median wage only determines the applicable LMIA stream. In order to be eligible for an LMIA, the foreign worker must still be paid at or above the median prevailing wage for their occupation (NOC).

The changes to the low-wage LMIA stream will include:

The maximum duration of employment for workers hired through the Low-Wage stream will be reduced to one year (from two years). In other words, the work permit issued for a low-wage LMIA will be issued for a maximum duration of 1 year. This measure will also apply to low-wage positions eligible for “simplified processing” in the province of Québec. It will also apply for LMIAs in support of permanent residence and a work permit.
Exemption for low-wage positions in the primary agriculture stream.
A refusal to process certain LMIAs in the low-wage stream in census metropolitan areas with an unemployment rate of 6% or higher.
Exemptions to the refusal to process will be granted for positions in seasonal (less than 270 days) and non-seasonal jobs in primary agriculture, food processing and fish processing (NAICS 311), construction (NAICS 23), healthcare (NAICS 622 and 623) and positions in support of only permanent residency (not a work permit). See below for further details.
How to determine the current unemployment rate
A reduction on the cap of low-wage temporary foreign workers to 10% of an employer's work force at a specific work location.

This total workforce size includes the vacant positions requested on the application and temporary foreign workers on previously approved LMIAs who have yet to start their employment.
Foreign workers on International Mobility Program (IMP) work permits, including open work permits are not counted towards the cap.
Exemptions to the cap will be granted for positions in seasonal (less than 270 days) and non-seasonal jobs in primary agriculture, food processing and fish processing (NAICS 311), as well as construction (NAICS 23) and healthcare (NAICS 622 and 623).
Employers with less than 10 employees will be deemed to have 10 employees for the purpose of the cap and will be allowed to apply for an LMIA to hire 1 temporary foreign worker. Employers will be limited to hiring 1 TFW (for industries with a 10% cap) or 2 TFWs (for industries with a 20% cap).

All of the aforementioned changes will also impact low-wage position applications submitted under the dual-intent stream in support of a foreign worker's permanent residence or permanent residence and a work permit. Effective September 26, 2024, Dual-intent LMIA applications in support of permanent residency that are for low-wage positions will be subject to the refusal to process measure, (unemployment rate of 6% in a CMA), the cap on the proportion of low-wage positions at a given worksite, and the one-year maximum duration for the period of employment.

The changes will only impact LMIAs for low-wage positions submitted on or after September 26, 2024. It is not believed that they will impact LMIA applications that were submitted prior to that date.

The sectors exempt from the refusal to process will be determined by classification code under the North American Industry Classification System (NAICS) Canada. The sectors exempt from the refusal to process are expected to be outlined on the ESDC Refusal to Process page closer to September 26, 2024.

The Government of Canada had previously announced a temporary freeze on approvals of new temporary foreign workers in the low-wage stream in Montreal effective September 3, 2024.

These changes also do not currently impact the high-wage LMIA stream.

The Government of Canada are also considering changes to the high-wage Labour Market Impact Assessment (LMIA) stream. As of yet, no changes to the high-wage stream have been announced. Additional possible changes to the Temporary Foreign Worker Program (TFWP) that are being contemplated by the government include:

Tightening of the High Wage LMIA Stream
Possible extension of the refusal to process changes beyond census metropolitan areas where unemployment exceeds 6% or higher
Eliminating the inventory of valid LMIAs that are older than six months (i.e. an employer who received an LMIA a year ago but has not yet hired anyone)
Currently exempt sectors (i.e. construction)

Exemptions to the Refusal to Process & Variation to the 10% Cap

Positions in support of permanent residency only (no work permit application) will be exempt from the refusal to process in census metropolitan areas with an unemployment rate of 6% or higher at the time of LMIA submission.

The following sectors are subject to a variation on the 10% cap on low-wage positions, and can hire up to 20% temporary foreign workers:

NAICS 23 – Positions in construction
NAICS 311 – Positions in food manufacturing
NAICS 622 – Positions in hospitals
NAICS 623 – Positions in nursing and residential care facilities
NAICS 61 – Educational services and NAICS 62 – Healthcare and social assistance – Specific positions in caregiving under:
- NOC 31301 – Registered nurse or registered psychiatric nurse
- NOC 32101 – Licensed practical nurse
- NOC 44100 – Home childcare providers
- NOC 44101 – Attendant for persons with disabilities, home support worker, live-in caregiver, personal care attendant
- this exemption applies to all in-home caregivers;

The following positions don't have any caps on the proportion of low-wage positions:

on-farm primary agriculture positions such as labourers, workers, managers, and supervisors in farming, livestock, harvesting, nurseries and greenhouses for NOC codes 80020, 80021, 82030, 82031, 84120, 85100, 85101 and 85103
caregiving positions for healthcare institutions (NAICS 62) for NOC positions 31301, 32101 and 33102
positions in support of permanent residency only (no application for work permit)
highly mobile or truly temporary positions (120 calendar days or less); this duration could be extended on a case-by-case basis if you can demonstrate that the peak season, project or event operates beyond 120 calendar days:
- highly mobile is defined as a workforce that regularly crosses inter-jurisdictional boundaries (for example, provincial or territorial and/or international) as part of the business' ongoing operations
- truly temporary is defined as a specific short-term period or singular event where the position won't be filled after the worker leaves the country
low-wage positions in seasonal industries that don't go beyond 270 calendar days:
- seasonal is defined as when both the industry and the occupation experience significant fluctuations in labour demand between "peak" and "off-peak" periods, usually occurring on or around the same dates every year
- exemption can only be used once per year in which the work is expected to begin, per work location. To utilize the one-time per year exemption for multiple applications, you must submit them all at the same time