Understanding Canada’s Temporary Foreign Worker Program: Recent Changes and Their Impact
What Is The TFW Program?
The Temporary Foreign Worker (TFW) Program allows Canadian employers to hire foreign workers for temporary jobs when no qualified Canadians are available. It plays a vital role in industries facing labour shortages, especially in agriculture, hospitality, and healthcare.
To hire a foreign worker, Canadian employers must obtain a Labour Market Impact Assessment (LMIA). This ensures that hiring a foreign national will not negatively impact Canadian workers. The LMIA considers local labour market conditions, wages, recruitment efforts, and the potential for transferring skills to Canadians.
New Restrictions Introduced
In 2024, the federal government introduced stricter limits on the TFW Program, particularly targeting low-wage job applications in regions with an unemployment rate of 6% or higher. Applications for such positions are no longer being processed in these areas, in an effort to encourage businesses to hire locally.
Key Changes:
Applications for low-wage TFWs will be refused in areas with 6% or higher unemployment
Employers are limited to a 10% cap of low-wage TFWs in their workforce
Maximum employment duration reduced from two years to one
However, primary agriculture, healthcare caregiving, and seasonal positions remain exempt from these changes.
Impact on Employers
These restrictions have raised concerns among Canadian businesses, especially in rural areas where local labour is limited. Employers argue the new rules could worsen labour shortages, increase costs, and create new administrative burdens.
Industries that rely on foreign labour say the changes may hinder productivity, especially in regions already struggling to attract Canadian workers.
While these changes are said to support the Canadian workforce, critics argue that they fail to address the exploitation of migrant workers already in Canada. Many foreign workers are issued closed work permits, tying them to a single employer. This can lead to unsafe working conditions and a power imbalance, as workers depend on their employer for income, housing, and immigration status.
Worker Rights and Protections
In response to ongoing concerns, Employment and Social Development Canada (ESDC) has rolled out new measures in 2025 to improve worker protections. These include:
Increased inspections and penalties for non-compliant employers.
A 24/7 confidential tip line for reporting abuse.
Publicly listing employers who violate program rules.
While efforts to safeguard migrant worker rights are a step in the right direction, the simultaneous tightening of entry requirements may undermine these protections. Employers across multiple sectors warn that these policies may worsen labour shortages, making it harder to sustain economic growth.
The Bigger Picture
Although the government says the changes support the Canadian labour market, many employers and advocates believe they may do more harm than good. At the same time, worker protection efforts, though welcome, seem limited in reach if fewer workers are allowed into Canada in the first place.
A more balanced approach is needed—one that supports economic needs while ensuring fair treatment and rights for the temporary foreign workers who help power Canada’s economy.
Questions to Consider
If you're an employer or a foreign worker navigating the TFW Program, here are some key questions to reflect on:
Does your region’s unemployment rate impact your eligibility to hire foreign workers?
Are you aware of your rights as a foreign worker or your obligations as an employer under the new rules?
Could alternative immigration programs be a better fit for your hiring or work needs?
Need Help Navigating These New Changes?
Ayodele Law represents both employers and workers navigating the TFW program and related work-permit pathways.
📞 Contact us today for a consultation and find out how we can help you bring your business to Canada.