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On June 20, 2014 the Federal Government announced a major overhaul of Canada’s Temporary Foreign Worker Program. With stringent enforcement and compliance mechanisms, the overhaul increases the restrictions on Canadian employers’ use of temporary foreign workers – and Canadian employers will face additional challenges hiring temporary foreign workers going forward:
TWO PROGRAMS
Temporary foreign workers are currently administered under a single program: the “Temporary Foreign Worker Program” (TFWP). The overhaul will create a second, complementary program:
TEMPORARY FOREIGN WORKER PROGRAM
The streamlined TFWP will undergo a number of key changes:
LMO to LMIA. The “LMO” is now an “LMIA” under which an employer must:
Wage-Based Classification. The TFWP currently classifies foreign workers based on the National Occupational Classification; it will now classify based on wages: “Low-wage” and “High-wage”.
Low-Wage. Temporary foreign workers paid under the provincial median wage will be classified as “low-wage”. Employers seeking to hire low-wage temporary foreign workers will be subject to the following restrictions:
High-Wage. Temporary foreign workers paid at or above the provincial median wage will be classified as “high-wage”. With some exceptions, employers seeking to hire high-wage temporary foreign workers must provide transition plans with their LMIAs showing how they will reduce their reliance on temporary foreign workers. A new category for the highest-demand, highest-paid or shortest-duration workers with a 10 business day service standard will also be available for certain occupations.
Sectors. There are some sector-specific changes:
Provincial Agreements. The Federal Government will re-visit LMIA exemptions that exist by agreement with certain Provinces – meaning fewer jobs may qualify as LMIA-exempt. NS is the only Atlantic Canadian Province with such an agreement.
Additional Changes. There are a number of additional changes, including increased frequency and scope of inspections, expansion of the public employer blacklist, increased criminal investigation powers, significant monetary fines and an increased LMIA fee of $1000 for each temporary foreign worker position an employer requests.
INTERNATIONAL MOBILITY PROGRAM
The newly carved out IMP will cover all LMIA-exempt work permit applications and will also bring changes:
LMIA-Exempt Employees. Employers must now submit the job offer and other information to CIC – even when the employee is LMIA-exempt.
Compliance System. The IMP will be subject to a compliance system similar to the TFWP compliance system, funded by a new compliance fee.
Exemption Categories. CIC will undertake a comprehensive review of LMIA-exempt categories and will move the categories it decides don’t warrant exemption to the TFWP.
Intra-Company Transferee Restrictions. Effective immediately, the IMP will restrict intra-company transferees to ensure employers only use the LMIA exemption for temporary foreign workers who are highly skilled and bring specialized knowledge to Canada.
KEY DATES
There is no single effective date for the changes resulting from the latest overhaul of Canada’s TFWP: some are effective immediately, others at later dates. The Federal Government has provided a timeline outlining the effective dates of the changes to the TFWP.
Please contact your McInnes Cooper lawyer or any member of our McInnes Cooper Immigration Law Team to discuss this topic or any other legal issue.
McInnes Cooper has prepared this document for information only; it is not intended to be legal advice. You should consult McInnes Cooper about your unique circumstances before acting on this information. McInnes Cooper excludes all liability for anything contained in this document and any use you make of it.
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