How changes to TFWP will help with recruitment

Ottawa has announced major changes to the Temporary Foreign Worker (TFW) Program “to meet the labour market needs of today.”

And the revisions are much needed considering more than half (55 per cent) of smaller employers are affected by labour shortages — including 64 per cent in Quebec and 59 per cent in British Columbia — says Jasmin Guenette, VP of national affairs at the Canadian Federation of Independent Business (CFIB).

“It shows that the government understands the seriousness of labour shortages and the role that immigration can play. Now, it's not… like a silver bullet… that suddenly labour shortages will disappear, but it certainly provides the help that many businesses need.”

Industries such as food services and accommodation has been severely hit by COVID-19 closures, says Veena Gupta, an immigration lawyer at Nanda & Associate Lawyers in Mississauga, Ont., so they will “tremendously benefit” form the government’s changes, along with seasonal workers.

“The program is designed to be carefully monitored and implemented by the government, and they've also promised to continually review these policies to ensure that they are addressing real labour shortage without displacing Canadian workers. And that seems to be the priority in ensuring that Canadian workers will always be given the priority. And that these programs will benefit employers who are really facing an acute shortage, and, in turn, hiring the foreign worker will benefit the Canadian workforce in the long run to by improving the strength of their business.”

There are five major policy changes planned for the TFWP, with the first three effective immediately:

Limits lifted for seasonal workers

There will no longer be a limit on the number of low-wage positions that employers in seasonal industries can fill through the program. Also, the maximum duration for these positions will be increased from 180 days to 270 days per year.

It was already 270 days for some businesses on a temporary basis but now that exemption is permanent, says Guenette.

“It allows businesses to keep those workers longer which for many businesses is quite important,” he says, citing as an example lobster fishing, which can happen twice per year.

“Having the 270-day exemption as permanent means that the business owner can schedule things more in advance. That provides certainty, and certainty is key because then you [can] show to your clients and customers that you will be able to fulfill your contract, your engagement and so on. And so having seasonal workers stay longer can be quite beneficial.”

It’s a welcome change, says Gupta.

“A longer duration will give them the necessary timeframe to deal with work permit processing, for them to accommodate those delays in processing for them to be here, so they're able to get the maximum time to work.”

In December, Ottawa promised further changes after a scathing report from the auditor general about the treatment of temporary foreign workers in Canada’s agricultural sector.

And in July, the feds announced they were looking to provide better protections for temporary foreign workers with new regulations.

Labour market assessments

Ottawa also announced that Labour Market Impact Assessments (LMIAs) will now be valid for 18 months instead of nine months. Before the pandemic, these assessments were valid for six months.

This change is important because once an LMIA is valid, it can take quite a bit of time to process everything, find the workers, and get all the paperwork in order, says Guenette.

“[It] will make sure that those businesses will have all the time that they need to bring those workers to Canada. And also, it will allow businesses to evaluate their need and act more based on the longer-term approach rather than always being caught up on a tight deadline.”

LMIA validity is very important for an employer because the foreign national involved has to submit their work permit prior to the date of expiry, says Gupta, and this new change “gives them that extra flexibility to… apply for the work permit and have that validity period.”

Ottawa has also announced that it is adding on staff to expedite the LMIA process, she says.

“That's a very key area because we do see a lot of delays in processing Labour Market Impact applications, especially during the pandemic and then post-pandemic, we are seeing delays… this move to increase capacity and processes into LMIA applications in an expeditious manner would really benefit a lot of employees.”

Just recently, Ottawa also announced changes to Quebec’s TFW program. In November, the province also added over 30 new occupations that will be eligible for simplified processing under the TFWP.

High-wage streams

The maximum duration of employment for High-Wage and Global Talent Streams (GTS) workers is increasing to three years from two years. This extension will help workers access pathways to qualify for permanent residency, enabling them to contribute to our workforce for the long-term, according to the government.

“This is also important because the foreign nationals who come under these specialized programs are highly skilled and work in various industries and infrastructure-based industries, which is very critical to the effective functioning of our various industries,” says Gupta.

“I think a lot of employers, especially in the GTS streams, would welcome that change.”

More than half (55 per cent) of Canadian small and medium-sized employers are struggling to hire the workers they need, according to a previous report from the Business Development Bank of Canada (BDC).

Capacity limits and employment rates

By April 30, two other policy changes will take effect, involving capacity limits and employment rates.

For one, employers in several sectors with demonstrated labour shortages — food manufacturing, wood product manufacturing, furniture and related product manufacturing, accommodation and food services, construction, hospitals and nursing and residential care facilities — will be allowed to hire up to 30 per cent of their workforce through the TFW Program for low-wage positions. This will be valid for one year.

All other employers will be allowed to hire up to 20 per cent of their workforce for low-wage positions until further notice, up from a 10 per cent cap.

The new threshold of 30 per cent is an important measure as many businesses are struggling, says Guenette.

“If you can increase the number of TFWs in your business, maybe you will be getting those staff that you desperately need to get things going,” he says. “We have to remember that in some of those sectors, the pandemic has been even harder because many people left… because they were out of a job like people in restaurants, and so we welcome this higher cap for low-wage employers.”

Also, the government is scrapping the policy that automatically refuses LMIA applications for low-wage occupations in the accommodation and food services and retail trade sectors in regions with an unemployment rate of six per cent or higher.

It doesn’t make sense that just because of a regional unemployment rate, a business could be declined or approved for a temporary foreign worker, says Guenette.

“The merit of the request should not be based on regional unemployment rates; the merit of the request should be based on the business need. Whether or not a business is in a region where the unemployment rate is high or low, it doesn't change the fact that some businesses in all regions of the country are having a really hard time finding people to work,” he says.

“It's good procedure to say that they have been posting the position, advertising the position, that they have done everything that they can to hire someone already in Canada. That's fair. But once you have proved that you should have access to a TFW even though you are in a region where the unemployment rate is low, it should be based on business needs.”