TFWP Canada: A Comprehensive Guide to the Temporary Foreign Worker Program

Written by

Sukanta Bera

Fact check by

Divyansh Chaudhari

Updated on

Jan 30,2025

TFWP Canada: Your Guide to the Temporary Foreign Worker Program - TerraTern

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The Temporary Foreign Worker Program TFWP Canada is an essential initiative to solve labour shortages across Canada through permits for employers to hire foreign workers temporarily. This program has an appreciable impact on the Canadian economy, particularly regarding sectors with critical labour shortages. This well-structured guide will cover the important components of the Foreign Temporary Worker Program Canada, its eligibility criteria, recent updates, and the rights and protections available for foreign workers within this program. TFWP is a critical undertaking for employers seeking a temporary foreign worker and individuals pondering working in Canada but under this program.

Latest Facts and News

Now is the time for the Federal TFWP Canada to go through many changes to tune with Canadian labour market needs, which are mainly aimed at protecting the rights of both Canadian workers and foreign nationals. Updates in this regard are much noteworthy,

  • As of September 26, 2024, the government of Canada set new rules regarding the admission of low-wage temporary foreign workers; therefore, the limit is reduced to 10% nationwide.

  • Critical sectors: Healthcare and Construction have exemptions to take on a 20% cap on hiring low-wage foreign workers.

  • Duration of Labour Market Impact Assessments (LMIAs) are lowered for low-wage positions to one year.

  • The government will fine noncompliance with the TFWP to more than 4 million dollars in 2024.

  • The 2025 Immigration Plan seeks to reduce the number of temporary migrants to only 5% of Canada's total population, down from a staggering 6.5%.

  • These recent developments come as testimony to the continuous reevaluation by the government in matters relating to the TFWP, aimed at restructuring the structure to manage the intake of foreign workers while protecting the interests of their Canadian workers.

The ongoing changes are improving and implementing the TFWP in Canada. You can find more information on such recent developments that will keep both employers and foreigners informed in this complete guide. 

 

Understanding the TFWP Canada Program

The program allows Canadian employers to recruit foreign nationals to fill positions until Canadian citizens are found temporarily. However, in cases where you could not find a qualified Canadian worker, you could apply for a foreign worker within a reasonable period. It is co-run by ESDC and IRCC. The Canadian federal government handles an LMI process that assesses the labour resources that meet certain requirements.

The TFWP Canada can be of indispensable significance to certain sectors, including agriculture and horticulture, hospitality, health, construction, etc. Thus, Canada can rely on TFW to meet its seasonal or temporary employment shortfall, even as it gains from the expertise and skill set of foreign nationals.

Elements of the TFWP

It is indispensable for employers and foreign workers to understand the major components of TFWP Canada, which include the following:

  • The labour market, in-Impact Assessment (LMIA): The role of this document is to assure ESDC that the hiring of foreign workers will in no way negatively affect the workflow of the Canadian job market.

  • Work permits: After a positive LMIA, the foreign worker proceeds to apply for a work permit to come work in Canada.

  • Employer compliance: The employer must follow all the regulations according to TFWP, such as paying reasonable salaries, paying attention to ways of ensuring safe working conditions for them, etc.

  • Worker rights and protection: Whilst working in Canada, any foreign worker acquires Canadian work rights. These rights include fair wages, a safe working environment, and access to certain national benefits. 

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Eligibility Criteria for the Canada TFWP Program

Both employers and foreign workers must meet specific eligibility criteria to participate in the Canada TFWP program. Here’s a breakdown of these criteria:

Employer Requirements

To be eligible to hire foreign workers under the TFWP Canada, employers must meet several requirements:

  1. Demonstrate a Genuine Labor Shortage: Employers must show that they have tried to fill the position with Canadian workers but were unsuccessful.

  2. Obtain a Positive LMIA: A positive LMIA proves that hiring a foreign worker will not negatively affect the Canadian job market.

  3. Comply with Program Regulations: Employers must follow all rules outlined by ESDC and IRCC, including fair wage practices, safety standards, and working conditions.

Foreign Worker Qualifications

Foreign workers must also meet specific qualifications to work in Canada under the TFWP Canada:

  1. Possess Required Skills and Experience: Workers must have the necessary skills and qualifications for the job.

  2. Meet Language Proficiency Standards: Some positions may require foreign workers to demonstrate proficiency in either English or French.

  3. Obtain Necessary Work Permits: Workers must secure a work permit once their employer has obtained a positive LMIA.

The LMIA Process: A Crucial Step in TFWP Canada

Being a critical process in the application for the TFWP Canada, the Labour Market Impact Assessment assesses the impact that the hiring of a foreign worker may have on the Canadian labour market, thus assuring that the employer will consider Canadian candidates first for the TFWP Canada.

The steps to an LMIA:

1. Job Posting and Recruitment Efforts: Employers must prove that they have undertaken sufficient recruitment efforts to hire a Canadian by advertising the position and considering applicants.

2. Submission of the LMIA Application: The employer sends the application to ESDC, which contains documentation related to recruitment efforts and the job offer.

3. ESDC Assessment: ESDC assesses the application and also determines whether the hiring on a foreign worker will be harmful to the local labour market.

4. Receipt of the LMIA Decision: If it is approved, that permits the employer to offer the job to a foreign worker, who then applies for a work permit. 

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Recent Changes to the Canada TFWP Program

There have been major modifications to the TFWP Canada lately. The new changes bring into effect measures to be sure that foreign workers are hired only where there is a peculiar demand and also would be sufficiently protected.

2024 Canada TFWP Program Updates

  • New Ceiling for Low-Wage Foreign Workers: Starting in 2024, the cap for low-wage foreign workers will be lowered to a mere 10% of the total workforce, while some select sectors will be honoured with a ceiling of 20%, remaining largely in the healthcare and construction sector.

  • Shortened LMIA for Low-Wage Workers: The duration of LMIA for low-wage workers has been reduced to a single year instead of two years; this is benevolent for employers who want to respond to labour supply changes.

  • Sector-Specific Exemptions: Certain critical sectors will be allowed to hire more foreign workers as there is heightened labour demand.

Potential Implications for Employers and Workers

These changes promise both good things and things that might not make so much sense to either employers or the hired workers. For employers, the shortened LMIA terms and stricter caps on the number of low-skilled workers point to them having in-depth strategy formulation and compliance with the new advisory edits. For workers, such changes might mean fewer low-skill job availabilities yet have other parallel gains in terms of better protection or enhanced hiring regulation.

Rights and Protections for Temporary Foreign Workers

Canada TFWP program are under the same rights and protections as those enjoying similar workers' status in Canada. This ensures equity in worker treatment as well as adaption and equitable workplace standards irrespective of the worker's nationality.

Key Worker Protections

1. Fair wages and working hours: Foreign workers may not be paid less than the rest with similar work. They may not work in conditions worse than Canadian workers.

2. Workplace safety standards: Despite being temporary, foreign workers have to work in conditions that are safe according to Canadian labour laws.

3. Access to health and social services: Temporary foreign workers are entitled to health care and other social services while in Canada. 

Employer Responsibilities in the TFWP Canada Program

There are many duties that an employer involved in the TFWP Canada must fulfil to ensure that the program operates equitably and efficiently.

Compliance Requirements

  • Proper and Accurate Record Keeping: The employer must keep proper and accurate records of all regular hours worked, wages paid, and other associated employment information.

  • Paying Wages and Benefits as agreed: The employer has to stick to the terms agreed upon in the employment contract.

  • Providing a Safe Working Environment: TFWP Employers must comply with health and safety regulations to keep their workers safe.

Consequences of Non-Compliance

Non-compliance with TFWP Canada regulations can lead to penalties ranging from fines to a ban on hiring foreign workers. In 2024, over $4 million in government fines were imposed for violations.

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Transitioning from Temporary to Permanent Residency

The ultimate goal for many foreign workers arriving in Canada is to transition to permanent residency. Thankfully, there are many options in place to help with the smooth transition of TFWP Canada.

Some Popular Immigration Programs:

1. Canadian Experience Class (CEC): A program for foreign workers with Canadian work experience to apply for permanent residency.

2. Provincial Nominee Program (PNP): This is a program that allows provinces or territories to nominate applicants for permanent residency based on their labour needs.

3. Express Entry System: A points-based system whereby foreign workers can apply for permanent residency based on skills and work experience. 

Challenges and Criticisms of the TFWP Canada

Although the TFWP Canada holds a position of utmost importance in providing a cushion for labour shortages, it has historically come under some criticism.

Common Concerns:

1. The possibility of exploitation of workers: Some employers may become tempted to underpay or otherwise exploit foreign workers.

2. Effects on wages and job opportunities for Canadians: Critics claim that TFWP Canada has the potential to undercut wages and hurt the job opportunities available to Canadian workers.

3. Abuse of the program by employers: Some employers may abuse the program by using it as an excuse to avoid hiring normally qualified Canadian workers in favour of cheaper foreign workers.

Government Responses and Ongoing Reforms

The Canadian government has striven to address these concerns by introducing stricter protections for migrant workers and enforcing labour standards for employers in regard to TFWP Canada. Objectives of ongoing reforms are designed to enhance program transparency, tighten penalties for non-compliance, and promote ethical recruitment.

 

Conclusion

The Temporary Foreign Worker Program (TFWP Canada) is a vital instrument in addressing portrait labour shortages across various Canadian industries. As the program continuously evolves, both employers and workers need to have the latest updates on their rights and responsibilities. The latest arrangements allow for a constant flow of information enabling successful occupation in Canada TFWP program and thereby, the smooth integration of both employers and foreign labourers into a dynamic and diverse Canadian workforce. To know more about Canadian immigration visit Terra Tern.

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Frequently Asked Questions

How long can a temporary foreign worker stay in Canada under the TFWP Canada?

The duration depends on the work permit, typically ranging from a few months to several years, with the possibility of extensions.

Can TFWP Canada bring their families to Canada?

Yes, in many cases, workers can apply for accompanying family members to join them in Canada.

What is the difference between the TFWP Canada and the International Mobility Program (IMP)?

The main difference is that the TFWP Canada requires a Labour Market Impact Assessment, while the IMP does not.

Are there any restrictions on where TFWP Canada can work?

Yes, workers are typically limited to working for the employer specified on their work permit.

How does the TFWP Canada affect Canadian workers and the job market?

The TFWP Canada aims to fill labor shortages without negatively impacting job opportunities for Canadians, but its effects on the job market are often debated.