Canada, like many countries, is experiencing a labour shortage after the pandemic. One solution is bringing in temporary foreign workers where there are no Canadians available to fill jobs. The Government of Canada is therefore relaxing Temporary Foreign Worker Program (TFWP) rules so employers can fill urgent gaps more efficiently.
What changed on April 4, 2022?
- Employers can hire up to 30% of their workforce through the TFWP (sector-dependent).
- Labour Market Impact Assessments (LMIA) are now valid for 18 months (previously 9).
- The maximum employment duration for high-wage and Global Talent Stream (GTS) workers increases from 2 years to 3 years.
- The Seasonal Cap Exemption is permanent; maximum duration for low-wage seasonal positions rises from 180 days to 270 days.
Additional changes from April 30, 2022
- Seven sectors may hire 20% of their workforce via TFWP: food manufacturing, wood product manufacturing, accommodation & food services, construction, hospitals, and nursing & residential care facilities (expanded from 10%).
- Employers in demonstrated labour-shortage sectors may hire up to 30% of their workforce via TFWP.
- Canada ended the policy that automatically refused LMIAs for low-wage jobs in accommodation & food services and retail trade in regions with unemployment ≥ 6%.
Sectors with the highest vacancies (Q3 2021, Statistics Canada)
- Accommodation & Food Services: 130,070 vacancies
- Health Care & Social Assistance: 119,590 vacancies
- Retail Trade: 103,990 vacancies
- Manufacturing: 81,775 vacancies
The TFWP accounted for roughly 60% of foreign workers entering under the TFWP stream at that time.
What this means for employers
These adjustments give employers more flexibility and time: longer LMIA validity, longer work durations, and higher caps in key sectors. Employers must still meet prevailing wage, compliance, and worker protection obligations under the TFWP.
To Know More About the Application Process and Your Eligibility
Please get in touch with our expert consultants at +91-9019-400-500 or email [email protected].
FAQs
1) Do employers still need an LMIA under the TFWP? Yes. Most TFWP hires require a valid LMIA. The update extends LMIA validity to 18 months, giving more time to complete hiring and work permit steps.
2) Does this make it easier for workers to get PR? Not directly. These changes target work permits and employer flexibility. However, Canadian work experience gained can strengthen future Express Entry/PNP applications for Canada PR.
3) What’s the difference between low-wage and high-wage streams? Stream assignment depends on the offered wage relative to the provincial/territorial median. High-wage roles now allow up to 3-year durations; low-wage caps and durations vary by sector and seasonality.
4) How does the Global Talent Stream fit in? The Global Talent Stream (GTS)—a part of the TFWP—offers streamlined LMIA processing for certain tech/STEM roles and now benefits from the 3-year maximum employment duration.
