New federal government measures regarding the temporary foreign worker program (TFWP)

This week, the federal government announced a series of new measures aimed at tightening the conditions of the Temporary Foreign Worker Program (TFWP). These changes come shortly after the provincial government of François Legault announced a six-month moratorium on Labour Market Impact Assessment (LMIA) applications for businesses located on the Island of Montreal, with a few notable exceptions.

Tightening of conditions in metropolitan areas

The new federal measures specifically target applications for low-wage positions in metropolitan areas where the unemployment rate is 6% or higher. This means that businesses located in these zones will now face stricter criteria to justify hiring temporary foreign workers. Exceptions to this rule include the agricultural, construction, healthcare, and food processing sectors, aligning with the exemptions already announced by the provincial government.

The most recent data, compiled for the period from August 11, 2024, to September 7, 2024, shows the following unemployment rates in key economic regions of Quebec:

• Gaspésie–Îles-de-la-Madeleine : 9.2%
• Quebec City : 3.8%
• Trois-Rivières : 6.4%
• Centre-sud du Québec : 2.7%
• Sherbrooke : 4.4%
• Montérégie : 3.9%
• Montreal : 6.6%
• Centre-du-Québec : 4.8%
• Nord-ouest du Québec : 5.6%
• Bas-Saint-Laurent-Côte-Nord : 5.1%
• Hull : 6.1%
• Chicoutimi-Jonquière : 3%

These statistics, available on the Government of Canada website, indicate that several metropolitan areas in Quebec, particularly Montreal with an unemployment rate of 6.6%, will be directly impacted by these new restrictions.

Reduction of maximum duration and TFWP employee limit

In addition to tightening eligibility conditions, two other major changes have been announced:

• Reduction of the maximum duration of work permits: The maximum duration for temporary foreign workers under the low-wage stream of the TFWP will be reduced from two years to one year.
• Limitation to 10 % of employees under the TFWP : Employers will now be able to hire up to 10% of their total workforce under the program. This limit was previously set at 20% in most industries and even 30% in certain sectors like hospitality. However, healthcare and agriculture remain exempt from this cap across Canada, and in Quebec, 267 professions, some of which are low-wage, are also exempt. It is important to note that the exemption for seasonal jobs, which affects many of our partners, does not appear to have been modified at this time.

The high-wage stream of the TFWP is also under review, with a 90-day accelerated examination to assess the possibility of adjusting targets concerning the number of permanent residents.

Implementation and impact on businesses

The new rules will take effect at the end of September 2024. Businesses operating in metropolitan areas where the unemployment rate exceeds 6% will need to quickly adapt to these new realities.

These new federal measures aim to prioritize Canadian workers and ensure that the TFWP addresses the needs of the national economy. However, for businesses that rely heavily on temporary foreign workers, these changes may present significant challenges. It will be crucial for these businesses to prepare for these new requirements and explore solutions to maintain their operations.