Canada updates regulations for hiring low-wage foreign workers.

Canada vừa cập nhật cách áp dụng giới hạn đối với việc tuyển lao động nước ngoài ở các vị trí lương thấp thông qua Temporary Foreign Worker Program (TFWP). Thay đổi này được Employment and Social Development Canada (ESDC) cập nhật trên trang chính thức ngày 18/08/2026.

New requirements for workplaces with fewer than 10 employees.

Theo ESDC, người sử dụng lao động có tổng số nhân viên dưới 10 người tại một địa điểm làm việc cụ thể phải hoàn thành phần “Cap for low-wage positions” trong đơn xin Labour Market Impact Assessment (LMIA).

Notably, when calculating the limit, ESDC specifies the size of personnel at that work location as including:

• Full-time and part-time employees are working at the location;
• Canadian citizens, permanent residents, and foreign workers employed at the location;
• The employee is on leave but is expected to return to work;
• These are vacant positions for foreign workers that businesses are applying to fill through the LMIA;
• Foreign workers who have had their LMIA approved but have not yet started working.

Part-time employees are counted as 0.5 employees when determining the staffing limit.

What is the maximum number of foreign workers a company can hire?

Đối với nhóm địa điểm làm việc có dưới 10 nhân viên, ESDC quy định công thức tính giới hạn sử dụng quy mô nhân sự là 10 nhân viên.

Therefore:

• If the position falls under the 10% quota category, the company can hire a maximum of one low-wage foreign worker.
• If the position falls under the 20% quota category, the company can hire a maximum of two low-wage foreign workers.

Industries subject to the 20% limit

The 20% limit applies to certain sectors, industries, and occupations as defined by ESDC, including:

• Construction
• Food production;
• Hospital
• Nursing and residential care facilities;
• Some home care positions.

The specific list is determined based on the NAICS system for industries and the NOC system for occupations.

What is LMIA?

The Labor Market Impact Assessment (LMIA) is an assessment of the impact of hiring foreign workers on the Canadian labor market.

Under the TFWP, businesses must normally apply for an LMIA before workers can be granted a work permit under the program. Businesses must meet recruitment, salary, and working conditions requirements and demonstrate that they have made reasonable efforts to recruit Canadian citizens or permanent residents before hiring foreign workers.

Additionally, businesses must pay a CAD 1,000 processing fee for each position listed in the LMIA application, except in cases where exemptions are granted. This fee is non-refundable to foreign workers.

Not all businesses are allowed to hire low-wage workers.

The ESDC's update to the limit calculation method does not mean that businesses can freely recruit foreign workers.

Some regions still apply regulations that reject LMIA applications for low-paying positions. Specifically, some LMIA applications for positions with salaries below the applicable threshold and located in urban areas with unemployment rates of 6% or higher will not be processed, except in exceptional circumstances.

Businesses in some rural areas may also be subject to separate temporary measures related to the proportion of low-wage foreign workers.

What should foreign workers be aware of?

This change could create more opportunities for foreign workers as businesses with smaller work locations need to hire staff. However, this is not a new work permit program.

Workers still need to have a valid job and meet the requirements of the TFWP program. In cases where an LMIA is required, the employer must complete the LMIA process as prescribed before the worker can use the results for a work permit application.

In particular, workers should be wary of job offers that require recruitment fees. The ESDC stipulates that employers or recruitment agencies acting on their behalf are prohibited from collecting or recovering recruitment fees from foreign workers.

Conclusion

The ESDC update of August 18, 2026, focuses on how to calculate the limit on low-wage foreign workers for workplaces with fewer than 10 employees. According to the new formula, the limit is converted to a maximum of 1 worker for the 10% group or 2 workers for the 20% group.

This is a significant change for small-scale businesses that employ or need to hire foreign workers through the TFWP. However, LMIA requirements, Canadian employment, wages, working conditions, and regional restrictions must still be met.