Main Modifications to Low Wage LMIA & Short-term International Employee Program


LMIA Changes

The Short-term International Employee (TFW) Program was initially created as a rare measure for use solely when certified Canadians and everlasting residents have been unable to fill job vacancies. Nonetheless, latest considerations have highlighted that the TFW Program has at instances been misused, bypassing the hiring of proficient employees already accessible in Canada.

In response to those considerations, Minister Randy Boissonnault of Employment, Workforce Improvement, and Official Languages lately met with enterprise organizations to tell them of potential reductions in entry to the TFW Program, alongside stronger compliance measures. These adjustments mirror the Authorities of Canada’s dedication to making sure that Canadian employees are prioritized and that the TFW Program is used as meant.

New Modifications Efficient September 26, 2024

Given the present labour market circumstances, the Authorities of Canada is taking decisive motion to scale back employers’ reliance on the TFW Program. The next adjustments will probably be carried out, efficient September 26, 2024:

1. Refusal to Course of LMIAs in Sure Areas:

Labour Market Affect Assessments (LMIAs) within the Low-Wage stream will now not be processed in census metropolitan areas the place the unemployment fee is 6% or larger. Exceptions will probably be made for important sectors equivalent to major agriculture, meals processing, fish processing, building, and healthcare.

2. Restriction on Hiring By means of TFW Program:

Employers will now be allowed to rent not more than 10% of their whole workforce via the TFW Program, particularly within the Low-Wage stream. It is a additional discount from the earlier cap set in March 2024. Exceptions will apply to important sectors as talked about above.

3. Discount in Most Period of Employment:

The utmost period of employment for employees employed via the Low-Wage stream will probably be diminished from two years to at least one yr.

Employers’ Accountability to Canadian Staff

Canadian employers have a vital function in fostering the nation’s workforce. This entails investing within the huge pool of accessible employees, together with younger individuals, newcomers, and individuals with disabilities, who are sometimes underutilized. Employers should additionally deal with retraining and upskilling their present workers to adapt to the evolving economic system.

The Authorities of Canada stays dedicated to supporting companies to find the employees they want whereas guaranteeing that Canadian employees have entry to the alternatives they deserve. This consists of offering help for coaching and training initiatives.

Ongoing Monitoring and Future Changes

The Authorities will proceed to watch labour market circumstances and make additional changes to the TFW Program as vital. Over the subsequent 90 days, a complete evaluate of the Program will probably be carried out, which can end in adjustments to the Excessive-Wage Stream, present LMIA purposes, sectoral exceptions, or the processing of different LMIA purposes, together with these in rural areas.

Minister Boissonnault’s Assertion

Minister Boissonnault emphasised the significance of prioritizing Canadian employees, stating:

“The Short-term International Employee program was designed to deal with labour market shortages when certified Canadians weren’t capable of fill these roles. Proper now, we all know that there are extra Canadians certified to fill open positions. The adjustments we’re making in the present day will prioritize Canadian employees and guarantee Canadians can belief this system is assembly the wants of our economic system.”

These adjustments signify a vital step towards guaranteeing that the TFW Program aligns with its authentic intent and that Canadian employees are given the precedence they deserve in in the present day’s job market.

For extra data or to debate how these adjustments could influence your online business or immigration plans, be happy to achieve out to our crew of consultants.

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