Archived – Overhauling the Temporary Foreign Worker Program

Using wage instead of National Occupation Codes

The TFWP is administered based on wage instead of the National Occupational Classification (NOC). Wage is a more objective and accurate reflection of skill level and labour need in a given area. Temporary Foreign Workers being paid under the provincial/territorial median wage will be considered low-wage, while those being paid at or above the provincial/territorial median wage will be considered high-wage.

The primary categories under the former TFWP were:

• High-skilled workers: includes occupations that typically require post-secondary education and/or formal certification, specifically managerial, scientific, professional and technical positions as well as the skilled trades. These occupations are coded at NOC skill type 0 or NOC skill level A or B
• Low-skilled workers: includes occupations that usually require lower levels of formal training, such as a high school diploma or a maximum of two years of job-specific training, such as general labourers, food counter attendants, and sales and service personnel. These occupations are coded at the NOC C or D skill level. It is important to note that not all low-skilled occupations classified according to NOC codes are low-paying (for example oil and gas drilling workers)
• Seasonal Agricultural Worker Program: allows for the entry of foreign workers from Mexico and a number of Caribbean countries to meet the temporary, seasonal needs of agricultural producers when there are shortages of available Canadians
• Agricultural Stream: allows employers to hire temporary foreign workers from any country for on-farm primary agricultural positions for a maximum of 24 months when Canadian citizens are not available. Many of the requirements of the Agricultural Stream mirror the Seasonal Agricultural Workers Program since working conditions for the temporary foreign workers are similar
• Live-in Caregiver Program: enables qualified temporary foreign workers to come to Canada when Canadians are not available to provide unsupervised and full-time care for children, seniors or people with disabilities in the private residence of those persons for whom they are hired to care

The primary categories under the new TFWP are:

• High-wage: positions where the wage offered is at or above the provincial/territorial median wage; examples of high-wage occupations include managerial, scientific, professional and technical positions as well as the skilled trades
• Low-wage: positions where wage offered is below the provincial/territorial median wage; examples of low-wage occupations include general labourers, food counter attendants, and sales and service personnel
• Primary Agricultural Stream: includes positions related to on-farm primary agriculture such as general farm workers, nursery and greenhouse workers, feed lot workers and harvesting labourers, including under the Seasonal Agricultural Workers Program, which enables the entry of foreign workers from Mexico and a number of Caribbean countries to meet the temporary, seasonal needs of agricultural producers
• Highest-demand, highest-paid or shortest-duration: Labour Market Impact Assessments for in-demand occupations (skilled trades), highly paid occupations (top 10%) or short-duration (120 days or less) entries will be provided within a 10 business day service standard. As for all requests to hire temporary foreign workers, LMIAs would only be granted after a rigorous review of all of the elements of the employer’s application in each of these cases
• Live-in Caregiver Program: no change

New Labour Market Impact Assessment

The labour market test that allows employers to bring temporary foreign workers to Canada is being transformed from a Labour Market Opinion (LMO) to a new Labour Market Impact Assessment (LMIA) process that is more comprehensive and rigorous. Employers must provide additional information, including the number of Canadians that applied for their available job, the number of Canadians the employer interviewed, and explain why those Canadians were not hired. Employers must now also attest they are aware of the rule that Canadians cannot be laid-off or have their hours reduced at a worksite that employs temporary foreign workers.

New and better sources of labour market information will be used to determine if there are Canadians who could fill these positions.

LMIAs are conducted and processed by Employment and Social Development Canada (ESDC). ESDC will refuse to process applications when there are concerns that temporary foreign workers may or will have a significant negative effect on the Canadian labour market.

Cap on low-wage positions

The Temporary Foreign Worker Program (TFWP) was created as a last and limited resort to allow employers to bring foreign workers to Canada on a temporary basis to fill jobs for which qualified Canadians are not available. However, since there was no specific limit on the number of temporary foreign workers that a company could hire, over time many employers built their business model on the program.

For example, of the 12,162 employers who used the TFWP in 2013, 2,578 employers have a workforce of over 30 percent temporary foreign workers. Perhaps most striking, 1,123 employers have a workforce composed of 50 percent or more temporary foreign workers.

Percentage of Employer Workforce that is Temporary Foreign Workers:

These numbers clearly show that the TFWP is no longer being used as it was intended to be used — as a last and limited resort to allow employers to bring foreign workers to Canada on a temporary basis to fill jobs for which qualified Canadians are not available. Reforms are needed to end the growing practice of employers building their business model on access to the TFWP.

Accordingly, the Government of Canada is introducing a cap to limit the proportion of low-wage temporary foreign workers that a business can employ. The cap will significantly restrict access to the TFWP, while ensuring that Canadians are always considered first for available jobs, reducing employer reliance on the program and increasing wages offered to Canadians. It is expected that this measure alone will cut in half the number of low-wage temporary foreign workers once fully implemented.

Employers with 10 or more employees applying for a new LMIA are subject to a cap of 10 percent on the proportion of their workforce that can consist of low-wage temporary foreign workers. This cap will be applied per worksite of an employer and is based on total hours worked at that worksite.

To provide employers who are above the 10 percent cap time to transition and adjust to this new cap, it will be phased in over the next couple of years . For those employers that currently have a low-wage temporary foreign worker workforce that is above the cap, effective immediately, when those employers apply for a new LMIA they will be limited at 30 percent or frozen at their current level, whichever is lower . The Government may consider lowering the cap further in the future.

This transition measure will be further reduced to 20 percent beginning July 1, 2015 and reduced again to 10 percent on July 1, 2016 . Temporary foreign workers currently working at work sites over the cap will be allowed to continue working at those sites until their existing work permits expire.

This ensures that large employers with multiple locations cannot be over their limit for low-wage temporary foreign workers at any one of their locations. For example, a large employer with an overall national workforce comprised of 5 percent temporary foreign workers cannot justify bringing in larger volumes of foreign workers at specific locations and having the temporary foreign worker staff at those locations exceed the cap.

The cap sends an important message — temporary foreign workers cannot be used as a business model and employers must do more to recruit, hire and train Canadians. This measure will help drive down the overall number of low-wage temporary foreign workers in Canada and end the distortion in the labour market caused by their prevalence in some sectors and regions.

Refusing applications in areas of high unemployment

Employment and Social Development Canada refuses to process certain Labour Market Impact Assessment applications in the Accommodation, Food Services and Retail Trade sectors. Specifically, any applications for positions that require little or no education or training will not be processed in economic regions with an unemployment rate at or above six percent.

For many youth, these jobs are their first opportunity to participate in the labour market and each time an employer hires a temporary foreign worker in one of these jobs it potentially deprives a Canadian from that all-important first job. This measure will reduce the number of temporary foreign workers by approximately 1,000 each year.

Employer applications will not be processed if they meet all of the following criteria:

• applying for an LMIA in a Statistics Canada economic region with an annual unemployment rate over 6% or higher;
• seeking an LMIA in a specific occupation identified under North American Industry Classification System as Accommodations & Food Service or Retail Sales (NAIC 72, 44, 45); and
• seeking an LMIA in an occupation in one of the selected National Occupational Classification Codes (see below table) skill level “D” occupations.

The labour market information used to identify unemployment rates in economic regions is based on annual data from the Labour Force Survey (LFS) from Statistics Canada and will be posted on the Temporary Foreign Worker Program website.

Reducing the duration of work permits set out in Labour Market Impact Assessments

The duration of work permits set out in Labour Market Impact Assessments (LMIAs) are limited to a maximum of one year for all low-wage positions, rather than the 2 year duration that existed previously. Employers of temporary foreign workers must reapply every year for an LMIA, better-accommodating for changes in labour market conditions that might have occurred.

Reducing the length of time a temporary foreign worker can work in Canada

To ensure foreign workers are coming in on a truly temporary basis and that the program is used as a last and limited resort, and to encourage employers to make even greater efforts to hire and train Canadian workers before seeking temporary foreign workers, the Government has reduced how long a temporary foreign worker in the low-wage stream can work in Canada. This measure does not apply to temporary foreign workers currently in Canada on valid work permits.

Changing the provincial/territorial temporary foreign worker annexes

Five provincial/territorial governments (Alberta, British Columbia, Ontario, Nova Scotia and Yukon) currently have annexes to their immigration agreements with the Government that establish Labour Market Impact Assessment (LMIA) exemptions in their jurisdiction. In these cases, the provinces and territories may propose LMIA exemptions for certain occupations and pilot projects involving exemptions to the LMIA process can be initiated.

The purpose of these annexes was never to create a scenario where employers could hire temporary foreign workers without seeking to hire Canadians first. However, over time there has been a significant increase in the number of temporary foreign workers coming to Canada through these agreements and a number of cases have come to light where companies have used these provisions to bring in temporary foreign workers without giving Canadians the first chance at available jobs.

Accordingly, the Government has given notice that it is changing the existing agreements. As a result, more employers will be subject to the new, more rigorous LMIA before being able to hire TFWs. Any new agreements with provinces and territories will be much more limited in scope and better ensure that Canadians are always given first chance at available jobs.

Transition plans for high-wage positions

Employers who want to hire temporary foreign workers in high-wage occupations will be required (with limited exceptions) to submit transition plans with their Labour Market Impact Assessment (LMIA) application to ensure that they are taking steps to reduce their reliance on temporary foreign workers over time. This underscores the purpose of the program — which is to operate as a last and limited resort to address immediate labour needs on a temporary basis when qualified Canadians are not available.

The transition plans are in addition to the existing recruitment and advertising requirements that employers must meet to ensure that Canadians are given the first chance at available jobs. Transition plans will oblige employers of high-wage temporary foreign workers to help Canadians obtain in-demand skills through activities like investing in skills training or taking on more apprentices, or an employer can provide proof that they are helping a high-skilled temporary foreign worker transition to becoming a permanent resident of Canada.

Employers will also be required to undertake additional recruitment activities, including reaching out to organizations serving groups traditionally under represented in the workforce (for example new immigrants, Aboriginal people, youth, Canadians with disabilities) to fill available jobs. Employment and Social Development Canada will assist employers by providing them with contacts at these organizations.

Employers will need to report on the success of their transition plan should they ever reapply to hire high-wage temporary foreign workers. Employers must also report on the results of their transition plan if they are selected for an inspection.

By requiring employers to undertake measures that go above and beyond previous requirements to hire Canadians, the number of high-wage temporary foreign workers is expected to decrease.

Highest-demand, highest-paid and shortest-duration occupations

LMIAs for highest-demand occupations (skilled trades), highest-paid (top 10 percent) occupations or short-duration work periods (120 days or less) will now be provided within a 10-business-day service standard. As is the case for all requests to hire temporary foreign workers, LMIAs would only be granted after a rigorous review of all of the elements of the employer’s application in each of these cases. This service standard will be met by processing these applications first, not by reducing the thoroughness of these LMIAs.

Foreign pilots in Canada

In recent years, concerns have been raised that some airlines are excluding Canadian pilots from seasonal jobs by requiring job applicants to already be trained on specific types of planes (type rating) before they are hired, which is counter to general industry standards of airlines paying for and ensuring pilots obtain their training on the specific airline’s planes after they have been hired.

The Government of Canada consulted widely on this issue, and most stakeholders agreed that seasonal variations in fleet capacity should not stop airlines from training pilots for specific aircraft. It was noted that many airlines successfully contract flight time, pilot training and other training elements, such as flight simulator time, with other airlines or with aircraft manufacturers in order to meet their training requirements. There was a consensus that there is no shortage of Canadian commercial pilots who could be trained to fly specific types of aircraft.

Based on stakeholder consultations, the following changes are being made for airlines requesting foreign pilots through the Labour Market Impact Assessment (LMIA) process.

Effective July 1, 2014, airlines must:

1. meet the minimum advertising requirements for high-wage occupations
2. specify the following criteria in their job postings:
   • no more than a maximum of 4,000 flight hours for a First Officer and 5,000 hours for a Captain as required experience
   • possess a valid commercial pilots' licence
   • require English and/or French language proficiency
   • include industry standard medical testing requirements for commercial flight
   • state both the legal and common names of the airline operating in Canada
3. not include as an essential or asset requirement the necessity of holding a type rating for a specific type of aircraft. However, requiring applicants to have experience flying equipment that is similar in configuration and complexity to the airline’s fleet is considered acceptable
4. indicate when training bonds will be applied and they must cover a minimum of two years employment
5. negotiate a transition plan with ESDC documenting the airline’s future efforts and commitment to decrease the reliance on foreign pilots while increasing its complement of Canadian/permanent resident pilots. The transition plan will be reviewed by ESDC for progress and can affect the outcome of future LMIA applications
6. submit LMIA applications a minimum of three months before the first day of work to ensure Service Canada officers can thoroughly review the application. Any exception to this timeline must be requested prior to the LMIA being submitted

New job matching service

A new enhanced Job Matching Service will allow Canadians to apply directly through the Canada Job Bank for jobs that match their skills and experience. As employers applying for temporary foreign workers must post their jobs on the Job Bank website, the new Job Matching Service will be able to match unemployed Canadians with employers offering available jobs that match their skills in their region. Furthermore, program officers are better aware of the number of potential applicants and how closely their skills align with the available job, which will allow for more rigorous assessment of LMIA applications.

Statistics Canada Quarterly Job Vacancy Survey

To provide better information on job vacancies in Canada, Statistics Canada is conduction a new Quarterly Job Vacancy Survey at a cost of $8 million per year. This survey will collect information on occupations in-demand, job openings, the duration of job vacancies, educational requirements for occupations and other pertinent data.

The new Job Vacancy Survey collects data from up to 100,000 employers compared to 15,000 employers under the current Job Vacancy Survey. The data is available at the provincial/territorial level and by Statistics Canada Economic Region unlike the current survey, which provides data only by province/territory. Additionally, the new survey will provide quarterly job vacancy estimates by occupation and skill level required.

This information contributes to research on emerging skills shortages. This survey will be launched in spring 2015.

Statistics Canada Annual National Wage Survey

Statistics Canada is also conducting a new annual National Wage Survey at a cost of $6 million per year. The data is being collected from up to 100,000 employers, compared to 56,000 households previously. The previous survey’s information is only accurate at the provincial level; however, the new Wage Survey includes a sample size large enough to provide reliable data broken down by province/territory and by Statistics Canada Economic Region.

The new Wage Survey helps program officers better assess whether wages being advertised to Canadians are consistent with the prevailing wage for that occupation. This ensures that the position is offered to Canadians at a wage that is attractive to Canadians. The annual National Wage Survey was launched in spring 2015.

Better use of existing government data

The survey data will be supplemented by information from the Employment Insurance (EI) program and other internal sources to accurately determine the availability of qualified Canadian workers. For example, program officers will know if employers requesting temporary foreign workers have recently laid-off Canadian workers. Additionally, program officers will be able to determine if employers are requesting temporary foreign workers in regions where there are unemployed Canadians with the appropriate skills. Furthermore, EI data can be used to help match unemployed workers with available jobs.

Increasing the number and scope of inspections

Given concerns over abuse of the Temporary Foreign Worker Program (TFWP), the Government is making a significant investment in its TFWP inspection regime.

Despite the fact that the Low Skill TFW Pilot Project was created in 2002, no inspections were done at that time. In recent years, the Government began conducting inspections, and there is now a dedicated team of inspectors for the TFWP at Employment and Social Development Canada (ESDC). Nevertheless, an additional investment into the TFWP inspection regime is required to ensure stronger enforcement.

Effective immediately, the Government is massively increasing the number of inspections so that one in four employers using temporary foreign workers will be inspected each year. These inspections will be as a result of tips, employers being deemed high-risk and random audits.

In addition to massively increasing the number of inspections, the Government has recently significantly expanded the authority of inspectors to better catch employers who are breaking the rules. As of December 31, 2013, ESDC and Citizenship and Immigration Canada (CIC) were granted additional inspection powers to:

• immediately inspect complaints of possible rule breaking
• conduct warrantless on-site visits
• interview temporary foreign workers and other employees with their consent
• strengthen the criteria as part of the Labour Market Impact Assessment (LMIA) process by, for example:
  • extending from two to six years the period during which ESDC and CIC can verify the wages, working conditions and occupations provided to previously employed temporary foreign workers at the time of a new LMIA or work permit application
• compel employers to provide documents for the purposes of verifying their compliance with the rules of the program
• impose a new condition on employers to make reasonable efforts to provide a workplace free from abuse
• ban employers who break the rules

Under these expanded and strengthened authorities, employers must also keep all documents related to their applications, including recruitment documents like résumés, for six years. This allows the Government to verify whether the employer followed the rules of the program both at the time they applied and after the temporary foreign worker arrived. Furthermore, as of fall 2014, ESDC will be able to compel banks and payroll companies to provide bank records and payroll documents to help inspectors verify that employers are complying with the rules of the TFWP.

The Government has also recently significantly increased the scope of its inspections. In the past inspectors were only able to review whether employers were compliant with 3 of the 21 program requirements. Since December 31, 2013, inspectors can now review all 21 program requirements when conducting their inspections.

The three program requirements inspected prior to December 31, 2013, were:

• have provided each foreign worker with employment in substantially the same occupation as stated in the offer of employment
• have provided each foreign worker with wages that are substantially the same as those in the offer of employment
• have provided each foreign worker with working conditions that are substantially the same as those in the offer of employment

The additional 18 program requirements being inspected since December 31, 2013, are:

• have provided accurate information in the context of an LMIA application
  • This means that if employers are found to have provided false or misleading information on any part of the LMIA application they will be found non-compliant. This includes all the answers to questions provided on the form as well as more than a dozen attestations.
• are actively engaged in the business for which the offer of employment was made, unless the offer was made for employment as a live-in caregiver
• are in compliance with federal and provincial/territorial laws that regulate employment and recruitment in the province/territory in which the foreign worker is employed
• have met any specific agreed-to commitments, as set out on the positive LMIA, made at the time the LMIA was issued in relation to job creation for Canadians and permanent residents
• have met any specific agreed-to commitments, as set out on the positive LMIA, made at the time the LMIA was issued in relation to job retention for Canadians and permanent residents
• have met any specific agreed-to commitments, as set out on the positive LMIA, made at the time the LMIA was issued in relation to hiring Canadians and permanent residents
• have met any specific agreed-to commitments, as set out on the positive LMIA, made at the time the LMIA was issued in relation to training Canadians and permanent residents
• have met any specific agreed-to commitments, as set out on the positive LMIA, made at the time the LMIA was issued in relation to development of skills and knowledge for the benefit of Canadians or permanent residents
• have met any specific agreed-to commitments, as set out on the positive LMIA, made at the time the LMIA was issued in relation to transfer of skills and knowledge for the benefit of Canadians or permanent residents
• have made reasonable efforts to provide a workplace that is free of abuse which includes:
  • physical abuse
  • sexual abuse
  • psychological abuse
  • financial abuse
• retain any document that relates to compliance with these conditions for a period of six years, beginning on the first day of employment of the foreign national
• report at any specified time and place to answer questions and provide documents
• provide any documents required as part of an inspection.
• attend any inspection that is on premises
• give all reasonable assistance to the person conducting the inspection and provide that person with any document or information the person requires
• employers of live-in caregivers must also ensure the foreign worker resides in a private household and provides child care, senior home support care or care of a disabled person in that household without supervision
• employers of live-in caregivers must also provide the foreign worker with adequate furnished and private accommodations in the household
• employers of live-in caregivers must also have sufficient financial resources to pay the foreign worker the wages offered

Increased detection of abuse

The Government launched a Confidential Tip Line in April 2014 for Canadians to report abuse of the Temporary Foreign Worker Program (TFWP). More than 1,000 tips had been received to date.

In addition to the tip line, a new Complaints Web page has been launched to allow the public to submit tips easily and securely online.

The Government will continue to follow up on each and every complaint to make sure that employers who are breaking the rules are caught and face the consequences.

We encourage all Canadians who have concerns or information to call our anonymous and confidential tip line. Any allegation of abuse will be investigated.

To report abuse of the Temporary Foreign Worker Program, contact:

Service Canada Confidential Tip Line

1-866-602-9448 or

use the Online Fraud Reporting Tool

More criminal investigations

Employers suspected of criminal activities under the Immigration and Refugee Protection Act (IRPA) are referred to the Canada Border Services Agency (CBSA).Investigations in the Temporary Foreign Worker Program could lead to charges under the following sections of the IRPA:

• s. 124 – employing a foreign national that is not authorized to work in Canada
• s. 126 – counselling misrepresentation
• s. 127 – misrepresentation

The CBSA is receiving new financial resources to increase its capacity to investigate suspected cases of offenses by employers under the IRPA. The new financial resources for the CBSA will allow additional criminal investigations to be conducted every year. This will better ensure that employers suspected of criminal activities under the IRPA face the full legal consequences of their actions. There are very serious criminal sanctions including fines and jail time for employers found to be in violation of the IRPA. For example:

• employers who employ “a foreign national in a capacity in which the foreign national is not authorized … to be employed (s. 124)” can be fined up to $50,000 and imprisoned for up to two years or both.
• employers who intentionally misrepresent or withhold information or provide false information to contravene the IRPA (for example lie on their Labour Market Impact Assessment application about their efforts to hire Canadians) can be fined up to $100,000 and imprisoned for up to five years or both.

Furthermore, employers found guilty of human trafficking can be fined up to $1 million and imprisoned for up to life, or both. These penalties are not only applicable to the employer, but also may be applied to persons who aid or abet individuals in coming into Canada in contravention with the Act.

An example of a case that resulted in a conviction occurred after a CBSA investigation revealed that an individual produced fraudulent employment offers and worked as an immigration consultant without a licence between September 2008 and June 2009. He continued to commit immigration fraud between October 2011 and June 2012 by using several aliases. He purported himself as a representative for a number of Winnipeg-based companies, made fraudulent job offers to foreign nationals and issued forged Government of Canada documents. In October 2012, he was sentenced to four years and six months in prison and also ordered to pay more than $380,000 in restitution.

Improved information sharing

The Government is improving its ability to collect and share information between government departments and other levels of government to make sure that employers who break the rules are caught.

The Minister of Employment and Social Development wrote to all provincial and territorial governments requesting that existing information sharing agreements be strengthened, or that new information sharing agreements are quickly concluded where none currently exist.

Better information sharing between the Canada Border Services Agency and other federal government departments will help ensure that EDSC is aware of employers that are not complying with the Immigration and Refugee Protection Act or related Regulations (IRPR), for example are under investigation by a law enforcement agency. Employment and Social Development Canada will not process any LMIAs for employers that are under investigation until the investigation is complete and the employer is found to have not broken any rules.

The federal government is also taking steps to significantly improve the level of information sharing between different levels of government. While the federal government is responsible for determining whether an employer is facing a legitimate labour shortage and is justified in hiring a temporary foreign worker, the provinces and territories have primary responsibility for establishing and enforcing health and labour standards, such as safe working conditions, for all workers, including temporary foreign workers. Provinces also have primary responsibility for laws governing recruiting of workers.

The benefits of information sharing agreements between the federal government and the provinces and territories are clear. For example, employers who violate provincial labour laws, health and safety standards or recruiting laws will face greater scrutiny and oversight from Temporary Foreign Worker Program (TFWP) inspectors as these would be considered high-risk employers. Likewise, the federal government will share information with the provinces and territories on employers who break the rules of the TFWP to allow provinces and territories to follow up and prioritize their investigations on matters, namely labour laws, health and safety standards and laws governing recruiting.

Further, in order to be allowed to employ temporary foreign workers, employers must comply with provincial laws that regulate employment, and the recruiting of employees, in the province in which the foreign national works. Better information sharing between the federal government and the provinces/territories will result in the federal government being better informed when employers are in violation of provincial/territorial laws and prevent them from accessing temporary foreign workers.

ESDC has information sharing agreements with Alberta, Manitoba, British Columbia and Saskatchewan. These existing agreements will be strengthened and new agreements will be put in place with the remaining provinces and territories.

The Government will also continue to encourage provincial and territorial initiatives to crack down on unscrupulous recruiters. The issue of legal recruitment is primarily a matter of provincial/territorial jurisdiction and passing on recruitment fees to temporary foreign workers is a violation of labour laws in some provinces. Provinces with existing laws on unscrupulous recruiters are Nova Scotia, Ontario, Manitoba, Saskatchewan, Alberta and British Colombia. The Minister has expressed that all provinces and territories are expected follow suit.

Blacklist, Suspension and Revocation

If an employer breaks the rules, or is suspected of breaking the rules, of the Temporary Foreign Worker Program (TFWP), Employment and Social Development Canada has the authority to suspend or revoke the employer’s Labour Market Impact Assessment (LMIA). LMIAs are suspended when an employer is suspected of breaking the rules and LMIAs are revoked when, following an investigation, an employer is in fact found to have broken the rules.

Employment and Social Development Canada (ESDC) will not process any LMIAs for employers that are under investigation until the investigation is complete and the employer is found to have not broken any rules.

In addition to revocation, if an employer breaks the rules of the program, they will be banned from the TFWP and fined.

Monetary fines for employers who break the rules

Beginning in fall 2014, the Government will impose fines of up to $100,000 (depending on the severity of the offence) on employers who break the rules of the Temporary Foreign Worker Program (TFWP). As part of the Government’s efforts to improve the transparency and accountability of the TFWP, the Government will publicly disclose the names of employers who have been fined and the amount of that fine on the Blacklist.

These new significant fines will help ensure that the TFWP is used as intended — as a last and limited resort when Canadians are not available. These new fines would be in addition to fines that can already be imposed on employers convicted of offences under the Immigration and Refugee Protection Act (IRPA).

The following provides examples of the penalties that can be applied based on the nature and severity of the offence; this is not an exhaustive list:

Labour Market Impact Assessment Fee of $1,000

Employment and Social Development Canada made significant changes to the Temporary Foreign Worker Program (TFWP), which substantially increased the cost of delivering the program. The costs for administering the TFWP, including all of the reforms outlined above are borne entirely by employers who use the program, not by taxpayers. As a result, the LMIA fee is increasing from $275 to $1,000 for every temporary foreign worker position requested by an employer.

The following chart illustrates the increase of the fee over the past few years:

The fee will be evaluated on an ongoing basis, and necessary adjustments will be made to ensure that it continues to fully cover the costs of the TFWP.

Additionally, Employment and Social Development will be seeking the authority to impose an estimated $100 privilege fee on employers applying for LMIAs to offset the costs of Government of Canada investments in skills and job training.

New Fee and Employer Compliance System for the International Mobility Programs

Many foreign nationals can apply for work permits without requiring an assessment of the labour market. However, employers are not required to submit any information directly to the Government of Canada regarding job offers made to LMIA-exempt foreign workers, limiting CIC’s ability to monitor employers.

Under the reforms, employers hiring through IMP will be required to submit the job offer and other relevant information to CIC. Foreign nationals will not be able to apply for a work permit until their employer has done so.

A robust compliance system, featuring inspections of thousands of employers hiring LMIA-exempt foreign workers each year, will also be put in place to monitor employers. Inspections could lead to penalties being levied against employers who are not following the rules, as well as bans from hiring foreign nationals and even criminal investigation when warranted.

This system will be made possible by the collection of a new compliance fee of $230 per work permit, once authorities are in place. The fee will apply in cases where the work permit is employer specific and LMIA-exempt. This ensures that those using the program will pay its costs, rather than Canadian taxpayers.

New Privilege Fee for Open Work Permit Applicants

Some LMIA exemptions allow for foreign nationals to apply for open work permits. This includes, for example, young people entering Canada through the International Experience Canada (IEC) initiative, international students who have graduated and received a post-graduation work permit, and some foreign nationals who are working in Canada while they wait for their application for permanent residence to be finalized. Having an open work permit is a unique privilege, as it does not tie the foreign national to one specific employer in Canada.

There is, however, often inadequate information available about the types of jobs open work permit holders take while in Canada and what effect they may have on the labour market.

To respond to this, Citizenship and Immigration Canada will be imposing a $100 privilege fee on holders of open work permits as soon as possible. These fees will allow for improved data collection on the employment of open work permit holders. In addition, the funds collected will be used to increase awareness among and promote participation of Canadians in opportunities to live and work abroad, and to provide information to foreign nationals with open work permits and their employers to promote the transition to permanent residence through the new Express Entry system that is coming online in 2015.

With these measures, the Government of Canada will be able to compile better information and develop an improved understanding of the role of open work permit holders in the Canadian labour market. Increased awareness and participation of Canadians in reciprocal opportunities will enhance the economic and social benefits of the International Mobility Programs.

Changes to Specific Exemptions

The Government of Canada is undertaking a comprehensive review of the IMP programs, with a view to ensuring that all streams under this program should remain LMIA-exempt. Streams that do not warrant an exemption will be reclassified under the Temporary Foreign Worker Program and workers will require an LMIA. Additionally, the Government is making the below changes to specific exemptions; these changes involve adjusting several specific exemptions to ensure they continue to operate as intended and in Canada’s best interests.

Canada–Quebec Accord

The Canada-Quebec Accord has governed Quebec’s role in the selection of foreign nationals destined for the province since 1991.The Accord states, “Québec’s consent is required in order to admit into the province any temporary foreign worker whose admission is subject to Canada’s requirements relating to the availability of Canadian workers.” These reforms will be implemented in Quebec; however, as the TFWP is jointly administered, it may take longer to implement some of the reforms.

Live-in caregivers

Measures currently in place to protect vulnerable workers under the Live-in Caregiver Program (LCP) include:

1. assessing of the genuineness of the job offer to foreign live-in caregivers related to the employer’s ability to pay the wages offered, the need for caregiving and the suitability of accommodations
2. putting in place a standardized LCP employment contract with mandatory clauses and more scrutiny of non-standard LCP employment contracts
3. establishing program requirements through the LMIA process related to hours of work, overtime and maximum deductions for room and board
4. requiring employers to pay foreign live-in caregivers’ one-way airfare to Canada
5. requiring employers to review and adjust foreign live-in caregivers’ wages at least annually to ensure they continue to meet the prevailing wage for the occupation
6. urgent LMIA and WPs processing for foreign live-in caregivers who are working in abusive and/or exploitive situations