Canada Temporary Foreign Worker Program 2026

Canada has overhauled its Temporary Foreign Worker Program (TFWP), making significant changes to how employers hire foreign workers. Wage assessments under the TFWP have been removed, and Labour Market Impact Assessments (LMIA) are now the only way to hire temporary foreign workers. These changes aim to protect Canadian workers, ensure fair wages, and prevent misuse of the program.

Here’s a practical guide to help employers and foreign workers navigate the updated system.

What is an LMIA?

A Labour Market Impact Assessment (LMIA) is an official document from Employment and Social Development Canada (ESDC). It confirms that no qualified Canadian citizen or permanent resident is available for a specific job. In simple terms, it’s the government’s “green light” for employers to hire foreign workers.

Why LMIA Matters

• Proves Labour Shortages: Employers must show they tried to hire Canadians first.
• Ensures Fair Wages: A positive LMIA confirms that hiring a foreign worker won’t hurt local wages or employment conditions.

A positive LMIA is mandatory before a foreign worker can apply for a work permit.

How to Get an LMIA?

Step 1: Assess Job Requirements

• Determine if a foreign worker is necessary.
• Document all recruitment efforts targeting Canadians.
• Identify if the job falls under exempt sectors (e.g., healthcare, agriculture, food processing).

Step 2: Prepare Your LMIA Application
Include:

• Job offer letter and employment contract
• Recruitment proof and advertising results
• Proposed wage information aligned with market rates

Step 3: Submit LMIA to ESDC

• ESDC reviews your application.
• A positive LMIA allows you to hire a foreign worker.

Step 4: Foreign Worker Applies for Work Permit

• Must submit job offer, contract, LMIA copy, and LMIA number.
• Keep accurate records of all documents to stay compliant.

Check Also: Canada 2-Year Temporary Work Permit

Temporary Foreign Worker Program (TFWP) Overview:

The TFWP helps employers fill temporary job vacancies when local talent is unavailable. Recent audits found some misuse, with employers bypassing Canadian workers. The new rules aim to:

• Address labour shortages in key sectors
• Protect Canadian worker rights and wages
• Support businesses while ensuring fairness

Key Changes to the TFWP:

• Wage Assessments Removed
  • Employers no longer undergo separate wage evaluations. LMIA now handles wage verification.
• LMIA-Only Work Permits
  • All TFWP work permits require a positive LMIA.
• Sector-Specific Exceptions
  • Agriculture, healthcare, food processing, and construction remain eligible.
• Low-Wage Stream Restrictions
  • No LMIA applications in metro areas with unemployment over 6% (exceptions for essential sectors).
  • Employers can hire max 10% of the workforce for low-wage roles.
  • Maximum duration for low-wage work is reduced to 1 year.
• Regional and Cap Adjustments
  • LMIA validity reduced from 18 months → 6 months
  • Workforce cap lowered from 30% → 20%
  • Example: In Montreal, LMIA applications for low-wage jobs under $27.47/hour paused temporarily

Tips for Employers to Comply:

• Plan Recruitment Carefully: Document all efforts to hire Canadians.
• Double-Check Eligibility: Ensure jobs aren’t restricted by new rules.
• Maintain Records: Keep contracts, LMIA copies, and proof of recruitment for audits.
• Stay Updated: Rules can change, so check ESDC regularly.

Implications for Foreign Workers:

• Higher Scrutiny: Work permits depend on LMIA approval.
• Reduced Job Security: Low-wage positions now have stricter duration limits.
• Sector-Specific Opportunities: Demand remains high in healthcare, agriculture, and food processing.

Key Takeaways:

• LMIA is now central to hiring foreign workers.
• Employers must document recruitment and comply with sector rules.
• Foreign workers should target essential sectors and ensure complete documentation.
• Stay updated to avoid delays or rejected applications.

Conclusion:

Canada’s Temporary Foreign Worker Program now relies entirely on LMIA approvals to ensure fair hiring and protect Canadian workers. Employers must document recruitment efforts, follow sector rules, and maintain compliance, while foreign workers should focus on essential sectors and complete documentation. Staying informed on updates is key for both employers and workers to navigate the new system successfully.

Frequently Asked Questions: