The federal government is taking further steps to prevent misuse of and fraud within the Temporary Foreign Worker (TFW) program.

Applying a stricter and more rigorous oversight in high-risk areas when processing Labor Market Impact Assessments (LMIAs) and when conducting inspections will help reduce the use of temporary foreign workers, according to a news release.  

When an employer in Canada is unable to find an employee – a Canadian or permanent resident – with a certain skill set for their business, they can file an LMIA application to hire a foreign worker.  

“Bad actors are taking advantage of people and compromising the program for legitimate businesses. We are putting more reforms in place to stop misuse and fraud from entering the TFW program,” employment minister Randy Boissonnault told representatives from Canada’s largest business associations.

Boissonnault outlined actions that are being implemented to reduce the use of temporary foreign workers:

• Enforcing consistent application of the 20% cap policy for temporary foreign workers. This includes the policy for the “dual intent sub-stream”, which applies to temporary foreign workers who intend to apply for permanent residency. Employers using this stream will be subject to more stringent guidelines;
• Considering LMIA fee increases to pay for additional integrity and processing activities; and,
• Looking to implement future regulatory changes regarding employer eligibility (factors such as a minimum number of years of business operations or history of lay-offs by the employer).

The minister also informed business associations that he is considering implementing refusal to process under the low wage stream. If implemented, this would prevent employers in certain areas and industries from using the TFW program.

The actions highlighted are in addition to previous changes to this program that have directly resulted in an improvement in the quality, timeliness, and reach of employer inspections conducted, and a 36 per cent increase in fines issued in 2023-2024, compared to the previous fiscal year.

The minister says he will closely monitor employer demand for the program, as well as the employment rate, and is willing to take further tightening measures where required. Industry groups such as Trucking HR Canada were present for the announcement.