LMIA Changes. New Measures to Combat Fraud in Canada’s Temporary Foreign Worker Program

On August 6, 2024, Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault, announced a series of enhanced measures to address fraud in the Temporary Foreign Worker (TFW) Program, which issues Labour Market Impact Assessment (LMIA) opinions. These measures aim to reduce misuse and fraud of the TFW program.

Key Actions and Measures:

1. 20% Cap Enforcement: The government is reinforcing the policy limiting the use of TFWs to 20% of an employer’s workforce for low-wage LMIAs. This cap aims to ensure that Canadian workers are given priority for job opportunities. Employers applying for dual Labour Market Impact Assessments (LMIAs), which applies for employment in low-wage LMIAs, will now be subject to this cap. A dual LMIA refers to an application that requests a work permit and is also in support of the TFWs permanent residence application.
2. Stricter Oversight: Enhanced scrutiny will be applied in high-risk areas for Labour Market Impact Assessments (LMIAs) and employer inspections. This involves closer monitoring of employers who have previously shown non-compliance or operate in sectors known for higher risks of abuse. By increasing oversight, the government aims to deter fraudulent practices and ensure that the TFW Program is used correctly.
3. LMIA Fee Increases: The government is considering increasing LMIA fees to fund additional integrity and processing activities. Higher fees will help cover the costs associated with more thorough inspections and verifications, thereby strengthening the program’s overall integrity.
4. Employer Eligibility Criteria: New regulatory changes are being considered, including requirements for minimum years of operation and layoff history. These criteria aim to ensure that only reputable and established employers can participate in the TFW Program, reducing the risk of fraud and abuse.
5. New Foreign Labour Stream: The TFW Program will be modernized with the introduction of a new foreign labor stream for Agriculture and Fish & Seafood Processing. This stream is intended to address specific labor shortages in these critical sectors while maintaining rigorous standards to prevent exploitation.
6. Increased Penalties: There has been a 36% increase in fines for non-compliant employers in 2023–2024 compared to the previous year. This significant increase in penalties is part of the government’s strategy to deter fraudulent activities and ensure compliance with program regulations. Non-compliant employers face penalties ranging from warning letters to fines up to $1 million annually and potential bans from the program.
7. Public Reporting and Awareness: The government continues to collaborate with international organizations and runs public fraud awareness campaigns. These efforts are aimed at educating both employers and workers about their rights and responsibilities, as well as the consequences of engaging in fraudulent activities.

The press release states that these changes are “being implemented”, with the exact date of implementation not explicitly set out.