Reforms to the Temporary Foreign Worker Program Amid Growing Scrutiny

By Asheesh Moosapeta | Published: August 20, 2024

The Temporary Foreign Worker Program (TFWP) is under intense scrutiny, prompting both Canada’s Immigration Minister and the Minister of Employment, Workforce Development, and Official Languages to take action against employers who exploit the system. The ministers are considering several reforms aimed at curbing abuses and improving protections for foreign workers.

On August 6th, Employment Minister Boissonnault announced a series of measures designed to address these concerns. These measures include enforcing a 20% cap on the number of temporary foreign workers a company can employ, especially those applying under the dual intent sub-stream for permanent residency. Employers using this stream will be subject to more stringent guidelines. In addition, the government plans to increase oversight of Labour Market Impact Assessment (LMIA) processes, particularly in industries with high abuse risks, and introduce a foreign labour stream dedicated to agriculture and seafood processing.

The Minister also mentioned potential future reforms, such as increasing LMIA fees to fund integrity and processing activities, enforcing stricter employer eligibility criteria (including minimum business operation years and a history of layoffs), and limiting or rejecting applications from employers in specific industries with a history of mistreating foreign workers.

These measures follow a joint press conference in March 2024, where both Ministers Boissonnault and Miller highlighted the importance of using the TFWP as a last resort, to prevent the displacement of Canadian workers. Further attention to the issue was drawn by a UN report in July 2024, which labeled the TFWP as a “breeding ground” for abuse, particularly within the low-wage stream.

Minister Miller acknowledged the need for TFWP reforms, noting that the program itself is not fundamentally flawed but requires careful review, especially the low-wage stream, which may be negatively impacting wages for both foreign and domestic workers.

Temporary foreign workers in Canada are entitled to various rights under Canadian law, including clear communication of their rights from employers, a signed employment agreement, fair pay, protection from abusive work environments, and access to healthcare. They are also protected from being forced to work in unsafe conditions, from exploitation or harassment, and from having their passports or work permits seized.

As the government takes steps to tighten regulations, the focus remains on creating a more balanced and fair system that ensures the rights and welfare of all workers in Canada.

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