New tightening measures for low-wage temporary foreign workers
Our two levels of government recently announced new measures for temporary foreign workers. These are in fact surprise announcements, which have generated concerns among foreign employers and employees. However, these measures are not necessarily new in terms of immigration in Canada. This article aims to dissect the new measures in order to better understand the impact on businesses. It should also be understood that we will have more details on the application of these measures in the coming days or weeks, as the various entities (Service Canada, the Ministry of Immigration, Francization and Integration of Quebec (MIFI) and Immigration, Refugees and Citizenship Canada (MIFI) and Immigration, Refugees and Citizenship Canada (IRCC) publish them. Our SII and SRI teams are closely monitoring the evolution of these files for you.
The new measures are as follows:
At the provincial level:
Freeze on the hiring of low-wage foreign workers in the Montreal region for a period of 6 months, beginning on September 3, 2024. This measure does not affect workers in health, education, agriculture, and food processing. In other words, the provincial government will not process applications for work permits (new recruitment or renewal) for workers on the Island of Montreal only, occupying low-wage positions, i.e. less than $27.47 per hour, for a period of 6 months beginning on September 3, 2024. This means that any application for an LMIA (Labour Market Impact Study) and a DST (Request for Temporary Selection, former Quebec Selection Certificate) for the workers concerned in Montreal will not be processed and Immigration Canada will therefore not be able to issue a work permit. The new measure should therefore not affect cases currently being processed, by September 3, 2024. If you are a business outside of Montreal Island, the new measure does not affect you.
At the federal level:
There are three measures that also affect low-wage temporary foreign workers, beginning on September 26, 2024; namely:
1) Reducing the percentage of low-paid foreign workers in a company to 10% of the workforce;
2) Reducing the duration of the work permit from 24 months to 12 months for low-wage temporary foreign workers;
3) Refusal to process LMIA applications for temporary foreign workers in urban areas when the unemployment rate exceeds 6%.
As of this date, any new LMIA and CAQ applications for low-wage positions (in Quebec, $27.47/hr) will not be processed unless the number of workers concerned accounts for the 10% within the company. During the pandemic, the percentage limit was increased to 20% and even $30 for some sectors. This measure would therefore not be new, because before the pandemic, the 10% limit was already the norm. It is therefore a return to pre-pandemic “normal”. On the other hand, any CAQ LMIA application for a low-wage position that meets the 10% limit will allow the issuance of a 12-month work permit, not 24 months. It is also a return to pre-pandemic provisions. Likewise, if your business is located in a metropolitan census area and the unemployment rate (as published by Statistics Canada every three months) exceeds 6%, the federal government will not process your LMIA application for low-wage foreign workers. Exceptions will be granted for seasonal and non-seasonal jobs in sectors related to food security (primary agriculture, food processing and fish processing), as well as for construction and health jobs;
To conclude, let me remind you that in Quebec, there is the LMIA CAQ category in simplified processing. This category concerns occupations severely affected by the shortage of labour. According to current standards regulating simplified processing, these positions are not subject to the 10% limit and they are processed according to the criteria of high-wage applications, even if the rate of pay is less than $27.47. Also, foreign workers within a company, having been recruited under the simplified treatment category, should not be considered low-wage workers when calculating the 10% limit. We do not know at this time whether the provincial government intends to change the simplified treatment provisions, as this was not mentioned in the press conference and no journalist asked the question. If no changes are made to the simplified treatment category, this category could certainly help businesses that have hired or want to hire workers for occupations included in this component. I also remind you that the list of occupations benefiting from simplified treatment is updated every February.
For more details: https://www.canada.ca/fr/emploi-developpement-social/services/travailleurs-etrangers.html
