Changes to Canada’s Temporary Foreign Worker Visa Explained

By Visa Jobs CanadaAugust 21, 2025August 21, 2025Policy & Government AnnouncementsCanadian immigration, immigration changes, Temporary Foreign Worker Program, visa sponsorship, work permits

Understanding Changes to Canada’s Temporary Foreign Worker Program

Canada has recently moved to enhance its Temporary Foreign Worker (TFW) program to tackle misuse and fraud. Spearheaded by Honourable Minister Boissonnault, these reforms aim to support Canadian employers while ensuring job opportunities for local talent. If you’re an international job seeker eyeing opportunities in Canada, it’s essential to grasp how these changes may shape your journey. The TFW program is particularly relevant for those exploring visa sponsorship and employment in Canada.

The TFW Program: An Exceptional Option

The new policies clarify that the TFW program should be considered an “extraordinary measure.” This means it’s designed for situations where Canadian citizens or permanent residents cannot fill vacancies. As a result, employers need to make genuine efforts to recruit locally first. This shift encourages businesses to rethink their hiring strategies, emphasizing local talent over foreign hires unless there’s a strong justification.

Stricter Oversight and Compliance

To address issues of non-compliance, the government plans to apply stricter regulations:

20% Cap Consistency: A uniform cap limiting foreign hires to 20% across all sectors is being introduced. This replaces previous exceptions that existed for sectors like construction and healthcare.
Dual Intent Scrutiny: Employers participating in the dual intent stream, which allows foreign workers to pursue both temporary work and permanent residency, will face more stringent guidelines to ensure the program remains a temporary solution.
Enhanced LMIA Processing: The government will perform closer examinations during Labour Market Impact Assessments (LMIA) and will conduct surprise workplace inspections more frequently. An LMIA assesses the impact of hiring a foreign worker on the Canadian job market.

These enhancements aim to ensure the TFW program is used correctly and eliminate fraudulent practices.

LMIA Fee Increases

Another notable proposal is increasing LMIA application fees from the current $1,000 to potentially $1,500 or more. This increase aims to fund enforcement initiatives but could also strain employers, especially those hiring many foreign workers. Companies looking to onboard multiple foreign hires could see their expenses escalate dramatically, prompting them to consider local hiring as a priority.

Restrictions on Low-Wage Positions

One of the proposed changes that could create challenges is the potential restriction on the low-wage stream of the TFW program. The government is contemplating halting processing applications for foreign workers in low-wage jobs. Industries like agriculture and hospitality, which often depend on this stream, could face critical labour shortages. This shift aims to compel employers to improve wages and working conditions, which is a positive step but could affect business operations significantly.

New Foreign Labour Streams for Sector-Specific Needs

In response to enduring labour shortages in agriculture and seafood processing, new foreign labour streams may be introduced. These specialized streams would help meet seasonal and fluctuating workforce demands while maintaining a check on improper use of the TFW system. By balancing labor needs with regulatory compliance, Canada can continue to support vital sectors.

Preparing for the Changes

For Canadian employers who regularly hire foreign workers, preparing for these reforms is crucial:

Engage with Industry Associations: Collaborate with local industry groups to remain updated and express your views on policy adjustments.
Consult Immigration Experts: Seek guidance from immigration professionals to align your hiring methods with new TFW regulations. They can simplify complex changes and help navigate compliance.
Develop Contingency Plans: Consider various outcomes, from exploring alternative labour sources to increasing wages for local talent.
Revise HR Policies: Update your hiring practices and documentation in line with TFW requirements to maintain compliance.
Stay Flexible: Keep abreast of government announcements and remain adaptable to changes in policies and procedures.

Support for International Job Seekers

At VisaJobsCanada.com, we focus on connecting international applicants with Canadian jobs that offer visa sponsorship. Every listing on our site includes important information on visa pathways, ensuring you have the support you need as you explore employment opportunities in Canada.

Conclusion

The recent changes to Canada’s TFW program are significant and will reshape how employers approach hiring foreign workers. By understanding these reforms and preparing adequately, businesses can navigate these changes successfully while still addressing their workforce needs. For international job seekers, staying informed about these adjustments can guide you in securing employment in Canada.