Canada is introducing new rules and regulations for foreign workers and employers. These new rules and regulations will come into effect from 28 October 2024 and 8 November 2024.
The new rules and regulations are provided to save the jobs of the citizens of Canada and solve the labor shortage issue. For more information, please read the whole article.
Key Changes in Work Permit
Through The Temporary Foreign Worker Program, the Canadian government is introducing the latest changes for work permits according to the conditions of the country and working for the welfare of its citizens. These are:
- New Business Legitimacy Requirements (From 28 October 2024)
Commencing from 28 October 2024, there is a change in stricter business verification process. There is no requirement for the attestations from accountants or attorneys to prove business legitimacy.
The government’s existing database of employer’s registration and agreements with provincial and territorial authorities to verify business organization. This is to eliminate fraudsters so that only legal and authentic businesses can hire foreign workers.
- High Wage Limits for High Pay Jobs (From 8 November 2024)
Another big change will feel foreign workers who are to be hired under the high-wage stream. As of November 8, 2024, the minimum wage must be 20 percent above the median in a province or territory in which a worker is employed. For regions, this will equate to an increase from $5 to $8 in the hourly wage.
This shift will make foreign workers less competitive on the ground compared to incentives of using Canadians. The change should see as many as 34,000 jobs taken away from the high -wage stream and send them into the lowwage stream, thereby moving 20,000 lower in the total number approved under TFWP.
- Strict Rules For Low Wage Workers
More strict rules will also be faced by the low-wage stream of the TFWP. In this stream, employers are supposed to provide decent housing and make return transportation arrangements for their workers. Businesses also have to show more significant recruitment efforts to hire Canadian workers before seeking foreign talent.
The TFWP allows employers in non-core industries to hire 10% of their workforce less than in high-demand areas including health care and agriculture. Applications for low-wage occupations in areas with 6%+ unemployment, for example, in high unemployed CMAs, will be rejected to give way for domestic workers.
Unemployment Statistics and Labour Market
Here are some statistics of unemployment and labour market:
- As of September 2024, the unemployment rate among the youth was standing at 13.5%, far above the national average of 6.5%.
- In 2023, the unemployment rate for the Indigenous population was at 7.7%, while for non-Indigenous people aged 25–54, it was 4.5%.
- In 2022, while 65.1% of people with a disability were employed, 80.1% of others were employed.
- This will decrease dependence on foreign labor and encourage hiring and job creation for the underrepresented.
Effect on Workers and Employers
- Increased cost for employers- For the high-wage stream, this would increase wages by 20% above the median provincial wage, raising labor costs yet further. Being concerned that reduced profitability imperils thin-margin firms, one may also suspect that some firms are heavy users of foreign workers, in which case the relative cost of imported talent to local labor eats into their profit margins.
- Reduced Access to Low-Wage Industries: The new restriction on the low-wage stream severely restricts access to the sectors that include retail, hospitality and food service by foreign labor. Some employers in regions of high unemployment will face an outright ban on presenting TFWP applications.
- Encourage more domestic hiring: These reforms will drive the hiring of Canadians – youth, Indigenous people and persons with disabilities included – as higher wage requirements and more stringent foreign labor rules come into effect, so there is greater economic inclusion and less reliance on temporary foreign workers.
Conclusion
Upcoming Changes to Canada’s TFWP Effective Date: October 28 and November 8, 2024 This change will reduce dependence on foreign laborers, bolster Canadian recruitment, enforce stricter restrictions on employers for conducting business and higher wage standards and higher compliance checks. Foreign workers hold fewer opportunities in low-wage sectors, so fewer employment will be created for the underrepresented majority and a shift in labor market balance.
