Minister Boissonnault announces new measures to address fraud in Canada’s Temporary Foreign Worker Program

August 6, 2024             Gatineau, Quebec             Employment and Social Development Canada

Canada’s Temporary Foreign Worker (TFW) program is designed as an extraordinary measure to be used when a qualified Canadian is not able to fill a job vacancy. When an employer hires a temporary foreign worker, they are required to provide a healthy and safe workplace, and to treat employees with dignity and respect.

Today, the Honourable Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages, convened representatives from Canada’s largest business associations with one clear message: the TFW Program cannot be used to circumvent hiring talented workers in Canada, and the federal government will take further action to weed out misuse and fraud within the system.

During today’s meeting, Minister Boissonnault outlined the following actions that are being implemented to reduce the use of temporary foreign workers in Canada:

• Enforcing consistent application of the 20 per cent 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;
• Applying a stricter and more rigorous oversight in high-risk areas when processing Labour Market Impact Assessments (LMIAs) and when conducting inspections;
• 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).

Minister Boissonnault 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. Additionally, the Government is working on modernizing the TFW Program with a new foreign labour stream for Agriculture and Fish & Seafood Processing, as announced in Budget 2022.

The actions highlighted today 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.

While the majority of employers use the program for its intended purpose, more work is required to protect the Canadian labour market and hold bad actors accountable. The Minister will closely monitor employer demand for the TFW Program, as well as the employment rate, and is willing to take further tightening measures where required. Today’s meeting is indicative of the Government of Canada’s intent to strengthen its engagement with employers to ensure they have a clear understanding of their obligations under the program.