Further TFWP Restrictions – Low-Wage LMIAs Halted in the Montréal Region

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The Government of Québec, with the cooperation of the Federal Government, has announced that beginning September 3rd, 2024, there will be a six (6) month pause of low-wage Labour Market Impact Assessment (LMIA) applications in the Montréal region. Low-wage LMIAs are applications where the wage for the position falls below the provincial median wage, which is $27.47 per hour in Québec.

The Temporary Foreign Worker Program (TFWP) under which LMIA applications are assessed has come under increased scrutiny and criticism for various reasons, including fraud and misuse, poor working conditions, abuse of workers, a housing crisis in much of Canada, and inflation in the past few years that significantly raised the cost of living. In addition, the United Nations Special Rapporteur on contemporary forms of slavery recently released a scathing report in which the low-wage and agricultural-stream LMIAs were said to be a “breeding ground for contemporary forms of slavery” due to many reports of poor working conditions, abuse, wage theft, and a system in which employers effectively have control of workers’ immigration status[1].

Québec is the only province in Canada which requires temporary and permanent residents to be approved through an additional process administered by the province. This announcement, in addition to the implications on the TFWP, may be a sign that further control of immigration is being provided by the Federal Government to Québec.

Earlier this month, the Federal Government also announced they are considering further measures to address concerns over the TFWP:

  • The 20% cap of temporary foreign workers for each employer will be consistently enforced.
  • LMIA applications in high-risk areas such as the low wage and agricultural streams will be scrutinized further and employers with workers in these streams will be subject to rigorous government inspections.
  • LMIA fees may be increased.
  • Regulatory changes regarding employer eligibility may be implemented with factors such as a minimum number of years of business operations or a history of lay-offs.

Given the negative media attention that the TFWP has received in the last few months, it would not be surprising to see similar changes coming to other provinces or such changes, expanding into other areas of the program.  Additionally, such announcements and the negative press do have an impact on decision makers so we can expect to see stricter processing of LMIA applications. The speed at which these changes are being announced will have significant impact on businesses that need to rely on the TFWP for talent.  The changes to the TFWP are ongoing and consequences of non-compliance with the conditions of the TFWP can be significant. If you have any questions about these measures or employer compliance inspections or need guidance on other options to fill you labour needs, feel free to reach out to us for a consultation. Our Canadian immigration legal professionals can be reached by phone (416-368-1111) or via email: caruso@cilf.ca; fagan@cilf.ca; bonisteel@cilf.ca; ali@cilf.ca; mukherjee@cilf.ca; garciafialdini@cilf.ca.

[1] https://www.ohchr.org/en/press-releases/2023/09/canada-anchor-fight-against-contemporary-forms-slavery-human-rights-un