Breaking Down the 2024 Changes to Canada’s Temporary Foreign Worker Program

The Temporary Foreign Worker Program (TFWP) underwent several significant updates in 2024, impacting employers and foreign workers alike. Below is a structured overview of these changes, including their implementation timelines and key details.

Major Changes to the TFWP in 2024

Change	Summary	Effective Date
Reduction in LMIA Validity	Labour Market Impact Assessment (LMIA) validity reduced from 12 months to 6 months.	May 1, 2024
Visitors Cannot Apply for Work Permits	Visitors with temporary resident status no longer eligible to apply for job-offer-supported work permits within Canada.	August 28, 2024
Suspension of Low-Wage LMIAs	Processing of LMIAs for low-wage streams halted in regions with unemployment rates of 6% or higher.	September 26, 2024
Employment Duration Reduced	Maximum employment duration for low-wage stream workers reduced from two years to one year.	September 26, 2024
Workforce Cap Lowered	Percentage of low-wage workers allowed under the TFWP reduced to 10% (from 20%) for most sectors.	September 26, 2024
Removal of Attestations	Employers must provide alternative documentation instead of attestations from lawyers, CPAs, or financial officials.	October 28, 2024
Increased Wage Requirements	Minimum hourly wage for high-wage stream raised to 20% above the median wage or within the range of existing employee wages for the same role.	November 8, 2024
Annual TFWP Work Permit Targets	Annual target set for 82,000 net new work permits under the TFWP, aligning with broader immigration objectives.	Announced October 24

Detailed Insights into Key Changes

Reduction in LMIA Validity

The validity of LMIAs was reduced from 12 months to six months as of May 1, 2024. This adjustment ends the pandemic-era policy intended to address labor market shortages. Employers in the Recognized Employer Pilot program remain exempt from this change.

Restrictions on Visitor Work Permit Applications

As of August 28, 2024, visitors to Canada can no longer apply for work permits while within the country. This marks the end of a temporary COVID-19 policy introduced in 2020, which had allowed greater flexibility in addressing labor needs.

Suspension of Low-Wage Stream LMIAs

LMIAs for low-wage streams are no longer processed in areas with unemployment rates of 6% or higher. Exceptions are made for critical sectors such as agriculture, healthcare, and construction. Quebec has implemented similar measures with added wage restrictions in certain regions.

Revisions to Workforce Caps and Employment Duration

Employers in most sectors can now hire only 10% of their workforce through the low-wage stream, down from 20%. Additionally, the maximum employment duration for workers in this category has been reduced to one year.

Attestations No Longer Accepted

Employers must provide alternative proof of service provision, replacing attestations from legal, accounting, or financial professionals. This change, effective October 28, 2024, emphasizes stricter documentation standards.

Increased Wage Requirements for High-Wage Stream

On November 8, 2024, wage requirements for high-wage positions were elevated, ensuring higher pay standards for foreign workers.

Annual Work Permit Targets Introduced

The Immigration Levels Plan introduced an annual target of 82,000 net new TFWP work permits for 2025–2027. These numbers align with the government’s aim to reduce temporary resident levels relative to the overall population.

Looking Ahead

In 2024, the Standing Committee on Citizenship and Immigration (CIMM) conducted reviews and proposed recommendations for future TFWP reforms. This reflects the government’s ongoing commitment to optimizing the program while addressing labor market needs.

By implementing these changes, Canada continues to refine its immigration policies, ensuring a balance between economic growth and domestic labor market stability.