A Canada-based company that makes pollution control equipment is requesting that Ottawa reevaluate loosening new regulations of the Temporary Foreign Worker (TFW) Program since the work permits of seven of its employees are about to expire, reported CTV News.
Many more skilled workers working in Canadian firms may face risk of deportation under new immigration regulations that were implemented in November 2024.
Last year, Canada tightened hiring restrictions for temporary foreign workers, making it more difficult for them to find a job and settle in the country.
Canada’s Temporary Foreign Worker Program (TFW) was modified to ensure fair labor market conditions and reduce reliance on foreign workers. The Program permits Canadian employers to employ foreign workers for temporary positions when qualified Canadians are unavailable.
Starting November 8, 2024, the hourly pay criteria for the high-wage stream were increased by 20% above the median hourly salary—between $5 and $8 per hour, depending on the province or territory. This was done to ensure Canadian firms prefer to hire domestic workers than paying higher wages for temporary foreign workers.
Also, beginning September 26, 2024, firms were limited to hiring no more than 10% of their total staff through the Temporary Foreign Worker Program.
The revisions to the Temporary Foreign Worker Program are likely to shift 34,000 jobs from the high-wage stream to the lower-wage stream, which has stricter requirements.
Many Canadian companies may now have to decide whether to pay the higher rate per hour, which might not be financially viable, or risk losing the employees to deportation, which would leave a gap in their workforce.
The Temporary Foreign Worker Program’s new rules are expected to decrease Canada’s appeal as a job-attracting country.