Canada To Impose Stricter Work Permit Rules From October 28, 2024

Under the Temporary Foreign Worker Program (TFWP), the Canadian government has implemented more strict work permits to improve its foreign worker program which will go into effect on October 28, 2024, and November 8, 2024. These new regulations will directly affect the TFWP and International Mobility Program (IMP), which aim to protect employers as well as foreign workers while encouraging domestic hiring and ensuring fairer treatment of workers.

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This Story also Contains

1. Tougher Verification Procedure for Employers
2. Wage Threshold Adjustments for Foreign Workers
3. Emphasis on Worker Protection
4. Encouraging Domestic Hiring
5. Impact on Employers and Workers
6. Conclusion

Tougher Verification Procedure for Employers

The Canadian government hopes to reduce the risk of exploitation and strengthen the integrity of the labour market as a whole with this new rule, which will go into effect on October 28, 2024.

Earlier, to get their business verified, the employers used to submit attestations from the lawyers. But starting October 28, employers in Canada will need to submit official business documents, like financial statements, along with existing employer registries for the verification of the legalities of the business when applying for work permits for foreign workers.

This change in the overall sector is to make sure that only the companies that have proper infrastructure and financial stability are allowed to hire foreign workers so that they can get a secure environment.

Wage Threshold Adjustments for Foreign Workers

Another major change taking place on November 8, 2024, is the adjustment in the wage thresholds. The wage levels (high-wage to low-wage) that fall under TFWP will see a significant rise.

For High-Wage Jobs

For foreign workers hired under the high-wage stream, the hourly rate will be 20% more than the province or territory's current median wage, representing an hourly income rise of $5 and $8.

With this change, jobs that do not meet this wage threshold will be reclassified as low-wage roles. As a result, around 34,000 positions are expected to shift from high-wage to low-wage.

For Low-Wage Jobs

Low-wage jobs face stricter rules as employers need to make sure that appropriate housing is provided to foreign workers. They also need to guarantee return transportation for the workers to their origin country. Also, the provision to hire only a limited number of foreign workers through TFWP exists except for the high-demand industries like healthcare and agriculture.

These adjustments in the high-wage stream and the low-wage streams aim to lower their dependency on foreign workers and prioritize and increase domestic labour.

Emphasis on Worker Protection

One of the key objectives behind these new rules and regulations is to protect the rights and well-being of foreign workers. Employers who fail to obey the new regulations or exploit foreign workers might face heavy fines or potential bans from hiring through TFWP or IMP.

Also, there is so much emphasis on worker protection, as the Canadian government wants fair treatment for both foreign as well as domestic workers.

Encouraging Domestic Hiring

The central theme of all these new regulations is to encourage Canadian employers to prioritize hiring domestic workers rather than foreign workers.

The Canadian government wants to create a more favourable market for permanent residents and domestic labour by making it more difficult and expensive to hire foreign workers for low-wage positions.

The increase in wage thresholds and strict laws will push employers to hire domestic workers, helping reduce unemployment among the Canadian workforce.

Impact on Employers and Workers

Employers and workers will both be equally affected by the TWFP’s adjustments.

• Increased Costs for Employers: To adhere to the new wage thresholds, employers in the high wage stream will have to raise wages, which could affect their profitability.

• Reduced Program Access: The more demanding requirements for the low-wage stream may lead to fewer LMIA approvals, especially in sectors that aren't high-demanding.

• Encouragement of Domestic Employment: By implementing such rules, the Canadian government wants businesses to employ more domestic workers.

Conclusion

In addition to providing numerous opportunities for employment for Canadian workers, Canada's 2024 work permit updates also ensure that international workers are supported. By enacting stronger work protection, revised wages, and more rigorous employer verification procedures, the Canadian government is attempting to establish a more open and equitable labour market. Businesses will no longer focus on acquiring foreign workers as a result of these updates; instead, they will prioritise hiring domestic workers while maintaining access to international talent if necessary.