Canada is famous for its welcoming stance to foreigners, and this certainly extends to foreign workers. In fact, local politicians have repeatedly lauded the strengths of diversity – especially when it comes to attracting skilled employees who may have more experience and qualifications than local Canadians. In 2023, Canada brought in almost a quarter of a million temporary foreign workers. This represents double the amount of temporary foreign workers welcomed in 2019. If you are thinking about adding to your Canadian workforce with foreign workers, you can take advantage of numerous programs and incentives. You should know that hiring foreign workers in Canada may require you to navigate the country’s immigration system – and this is something a Canadian immigration lawyer can assist with.
New Restrictions on Foreign Workers Explained
In 2024, Canada “scaled back” its temporary foreign worker program – sparking considerable controversy from both supporters and critics. The government has announced plans to reduce the number of temporary residents in Canada by 2027, and part of this plan involves limiting the number of low-wage workers that a single company can hire. Prior to this change, companies could have workforces with up to 30% low-wage foreign workers. In May of 2024, that number was cut to just 20%. However, many industries are exempt from this change – including healthcare and construction. Tourism, fishing, and agriculture are also exempt – but only during peak seasons.
Critics have raised concerns about the temporary worker program for years. Canada’s ministers for employment and immigration have lamented that their nation has become “addicted” to foreign workers, and Amnesty International called Canadian foreign worker programs “modern slavery” back in 2023. Some say that workers in this program cannot report abuse because they fear deportation.
Others say that foreign temporary workers are occupying positions that were previously taken by Canadian workers. These critics argue that foreign temporary workers may be more willing to accept poor conditions and lower wages compared to “homegrown” Canadians. New statistics indicate that the majority of foreign workers take low-paying jobs in Canada. All of these concerns help explain why Canada is now more reluctant to accept foreign workers – and Canadian companies should be aware of these changes.
Which Canadian Companies Can Hire Foreign Workers?
Most Canadian companies are eligible to hire foreign workers. However, there are a few important requirements to consider. First, your company must be “operational,” which means you must be actively selling goods or services in Canada. You cannot hire a foreign worker if your company is still in its “planning stages.”
In addition, you must show that you are experiencing a serious shortage of labor. Alternatively, you can show that your company is struggling to find workers with the right skills. These requirements are meant to protect local Canadian workers. In other words, you need to show that hiring local Canadians is not possible or feasible.
Finally, you must show that you are capable of paying the workers you intend to hire. You can do this by showing that your company is profitable and that you have enough cash flow to pay wages on a reliable basis. As long as you comply with the necessary labor laws in your province or territory, you should be able to hire foreign workers.
Understanding Labor Market Impact Assessments
In most cases, Canadian employers must go through Labor Market Impact Assessments before hiring foreign workers. Also known simply as “LMIAs,” these tests help determine whether it is truly impossible to hire local Canadians for the same roles. If your LMIA establishes that you cannot find suitable workers locally, you will get permission to hire a foreign worker instead.
Your immigration lawyer can help you navigate this process. Although you could attempt it on your own, a lawyer could help you convincingly prove that your target employees are not available in Canada. This could represent the difference between approval and denial.
If you gain approval, the Canadian government will inform you of various conditions as you hire foreign workers. They might specify how long a foreign worker is allowed to remain employed at your business. The government might also provide guidance regarding their hourly wages. Some LMIA confirmation letters specify the level of education that a foreign worker should have or perhaps their language proficiency.
You must adhere to these conditions if you want to continue employing your foreign workers. Any deviation from these requirements might cause various consequences. You should also know that the government might conduct random inspections to determine whether you are following the conditions set forth in your LMIA confirmation letter.
Hiring Skilled Permanent Foreign Workers in Canada
Employers in Canada can also hire skilled foreign workers on a more permanent basis. The two relevant positions are the Federal Skilled Trades Program (FSTP) and the Federal Skilled Worker Program (FSWP).
According to the Canadian government, you may be able to hire a foreign worker or tradesperson via “Express Entry.” This option allows you to qualify for a free LMIA.
Provincial Nominee Programs for Foreign Workers
You might also want to review the various Provincial Nominee Programs when hiring foreign workers in Canada. Also known as “PNPs,” these programs are highly specific to each jurisdiction, and they reflect the unique needs of each local economy. An experienced immigration lawyer in Canada may be able to help you review the various PNPs to determine opportunities for hiring foreign workers.
Contact Ackah Law Today
If you need help hiring foreign workers in Canada, contact Ackah Law at your earliest convenience. Our experienced immigration lawyers in Canada can guide you through this process with ease. Although employers need to assist foreign workers with certain applications, they can delegate these tasks to lawyers. This frees up more time for what matters most: Running your business and striving for higher profits. Ackah Law can help you take advantage of an international talent pool – whether you’re looking for manual laborers or skilled STEM graduates. Reach out today to get started with an action plan.
