New Canadian Policies to Tackle LMIA Work Permit Fraud

In response to growing concerns about misuse and fraud within Canada’s Temporary Foreign Worker Program (TFWP), the Canadian government has unveiled a series of stringent new measures.
The announcement was made today by Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, who oversees the issuance of LMIA – Labour Market Impact Assessments.
According to Randy Boissonnault, these new initiatives aim to safeguard both Canadian and foreign workers by ensuring that practices within the program remain fair and lawful. This announcement comes at a time when questions have been raised about the record number of LMIA approved, particularly in light of the recent increase in unemployment.

Canada’s Latest Efforts to Tackle Fraud in the Temporary Foreign Worker Program

Here are the new measures announced today:

1. 20% Cap Enforcement: Strict adherence to the existing policy that limits the number of low-wage temporary foreign workers to 20% of an employer's total workforce.
2. Enhanced Oversight: Increased monitoring and inspections will be implemented in regions and industries deemed high-risk for misuse of the Temporary Foreign Worker Program.
3. Fee Increase: The government is considering raising the fees for LMIA to better align with the costs of processing applications and to discourage frivolous or fraudulent submissions.
4. Regulatory Changes: New regulatory changes will impose stricter scrutiny on employer eligibility and ensure that misuse of the program results in substantial penalties.

Upcoming Plan

• Refusal to Process: The government is considering a policy to halt the processing of applications under the low-wage stream to prevent misuse.
• New Labour Stream: Plans are underway to modernize the Temporary Foreign Worker Program (TFW) Program by introducing a specialized labour stream for the agriculture and fish & seafood processing sectors. This new stream aims to address the specific needs and challenges of these industries.
• Ongoing Monitoring: Although most firms use the program as intended, additional measures are necessary to protect the Canadian labour market and hold unscrupulous employers accountable. The Minister will continuously monitor employer demand for the TFW Program and employment rates, with a readiness to implement further tightening measures if needed.
• Minister’s Statement: Minister Randy Boissonnault emphasized the government’s firm commitment to combating fraud and abuse within the TFW Program. He underscored the importance of these measures for maintaining the program’s integrity and safeguarding workers.
• Implications: These changes represent a strong stance by the Canadian government to protect the labour market and ensure that the TFW Program functions fairly and effectively. Legitimate businesses will benefit from a more regulated environment, while those involved in fraudulent activities will face severe consequences. However, today’s announcements appear politically motivated and may not be fully effective, given the existing loopholes and workarounds in the current TFW Program.

What is the temporary foreign worker program?

Temporary Foreign Worker Program enables employers to hire workers from other countries for a limited duration to address specific labor shortages.

How does the program work?

Temporary Foreign Worker Program permits employers to hire foreign workers temporarily to fill specific job vacancies when qualified Canadian citizens or permanent residents are not available. Employers must first obtain a Labour Market Impact Assessment (LMIA) to show that hiring a foreign worker will not adversely affect the Canadian labor market. Once the LMIA is approved, the employer can extend a job offer to the foreign worker, who can then apply for a work permit.

English version: https://ttnimmigration.ca/vi/chinh-sach-moi-cua-canada-de-doi-pho-voi-gian-lan-giay-phep-lao-dong-lmia/