Three New Canada LMIA Rules Are Already in Effect

2 October 2024 | Canada

Three New Canada LMIA Rules Are Already in Effect

With the implementation of the new Labour Market Impact Assessment (LMIA) regulations in Canada, the Temporary Foreign Worker (TFW) Program undergoes a significant change.

The original announcement of these changes was made on August 26, 2024, and they went into effect last September 26, 2024.

In order to prioritize Canadian workers and reduce an excessive reliance on foreign labor, this initiative targets metropolitan regions with unemployment rates of 6% or higher.

Significant Changes to the Temporary Foreign Worker Program Now in Effect

The following changes have been made to the TFW Program:

1. Suspension of LMIAs in High Unemployment areas

In census metropolitan areas with unemployment rates of 6% or above, the government will no longer process LMIAs under the low-wage stream.

Critical sectors, such as primary agriculture, food processing, fish processing, construction, and healthcare, will, nevertheless, be exempt.

2. 10% Cap on Foreign Worker

Previously, employers could hire up to 20% of their personnel through the TFW Program; this maximum has been reduced to 10%.

Important sectors such as construction, food processing, agriculture, and healthcare will be exempt from this cap.

3. Reduced Employment duration

Previously a two-year maximum, the term of employment for workers hired through the Low-Wage stream is now limited to one year.

Previous Improvements Made to Reduce LMIA Fraud

On August 6, 2024, the Canadian government implemented a number of strict rules in response to increasing concerns about fraud and abuse within the Temporary Foreign Worker (TFW) Program.

These adjustments were made to improve the program’s integrity and guarantee that it is applied as intended to address actual labor shortages in situations where there is a dearth of competent Canadian labor.

Regulatory Changes

To examine employer eligibility more thoroughly, the government is also preparing new regulations.

With these modifications, employers who take advantage of the program will be subject to harsh consequences, such as fines and denials of entry to the TFW Program.

Enhanced Oversight

Monitoring and inspections have been greatly intensified, particularly in locations and industries regarded as high-risk for TFW Program abuse.

This action is a part of the government’s larger campaign to punish companies that take use of the program in order to avoid hiring Canadian labor.

Fee Increase

The government is thinking of raising the Labour Market Impact Assessment (LMIA) charge to more accurately represent the expenses incurred in processing LMIAs and to deter bogus or pointless applications.

The purpose of this proposed fee increase is to discourage employers from filing many or frivolous applications.

Monitoring and Future Adjustments

The Canadian government will keep an eye on these changes and will take further action if necessary.

A thorough assessment of the TFW Program is scheduled to occur within the next sixty days. The evaluation may result in additional modifications to the high-wage stream, exceptions tailored to certain industries, and improvements to the way current LMIA applications are processed.

Ensuring Proper Utilization of the TFW Program

The new LMIA regulations demonstrate Canada’s dedication to preserving employment opportunities for its citizens and making sure the TFW Program accomplishes its goals.

More changes are anticipated as the economy continues to change in order to preserve a fair and balanced labor market.

With these modifications now in place, the government is demonstrating its commitment to giving Canadian talent top priority and making sure the TFW Program adapts to the nation’s changing requirements.

For more details & questions, Kindly contact us and one of our Immigration Consultants & Immigration Lawyers will respond to you.

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