Contribution & distribution of temporary foreign workers across industries in Canada

Temporary foreign workers (TFWs) have been an integral part of the Canadian labour market. This is evident from the significant surge in the number of foreign nationals with effective work permit over the recent years. Around 4,70,000 foreign nationals have a work permit that became effective in 2019 as compared to 3,40,000 in 2017 and 3,90,000 in 2018.

Nevertheless, their contribution to the labour market could be severely impacted by the COVID-19 pandemic and the measures taken by governments at all levels to contain the spread of the virus. Even though TFWs are allowed to enter Canada, there is a high probability of downsize or delay in the availability of new TFWs due to travel restrictions in some source countries, their unwillingness to travel due to the fear of virus infection, and the mandatory 14-day self-isolation policy upon arrival. Additionally, many businesses are temporarily closed or are operating considerably below their full capacity, which could lead to disproportionate layoffs among temporary foreign workers.

The possible shortages of TFWs, in the sectors with significant employment share, may have a substantial impact on the performance and survival of the firms during and after the pandemic period.

Proportion of temporary foreign workers, selected industries

Note: NAICS = North American Industry Classification System
Source: Statistics Canada, Canadian Employer–Employee Dynamics Database

TFWs are more concentrated in specific subsectors. For example, 27.4% of employees in crop production where TFWs accounted for 41.6% of the agricultural workers in Ontario, and over 30% of the agricultural workers in Quebec, British Columbia and Nova Scotia during 2017.

Some non-agricultural industries that are continuing to operate during the COVID-19 pandemic also have a relative high share of TFWs such as private household services (9.8%), gasoline stations (8%), warehousing and storage (4.3%), and food manufacturing (3.4%).Therefore, possible shortages of TFWs may have a significant impact on the performance and survival of these firms during and after the pandemic period.

Though, it is too early to understand the implications of COVID-19 pandemic on the supply and demand for TFWs, the analysis provides important implications for the possible delays in the inflow of new TFWs that could affect essential services during the pandemic and the upcoming economic recovery period. This may have a particularly strong effect on the agriculture sector, given that the timing of pandemic coincides with the period of highest demand for seasonal agricultural foreign workers who primarily come to Canada in the spring and early summer.

Need help for LMIA application and hiring foreign workers!

The LMIA rules, regulations and requirements are subject to frequent changes. These changes deal with different categories of jobs, duration, exemptions etc. Continuous research, attention to detail and painstaking hard work is required to obtain a positive LMIA. We help in assessment of our client’s profile and advice them on their eligibility to get an LMIA. We help Canadian employers for applying LMIA application and legally representing them before ESDC during the process.We help clients to apply for their Work Permit which authorizes them to legally work in Canada.

ESDC has currently waived the advertisement requirements for agriculture stream LMIA applications and hence the applications are being processed on expedite and priority basis.

Contact us for consultation and assistance

Temporary Foreign Worker Program updated with increase in Median Hourly Wages

The wage and the location for the position determines if the employer needs to apply for a Labour Market Impact Assessment under the Stream for High-wage Positions or the Stream for Low-wage Positions, each with their own requirements. Median hourly wages have gone up in most Canadian provinces and territories w.e.f.  May 11, 2020.

                                                                                               Source: Statistics Canada, Labour Force Survey, 2018 and 2019

Hiring TFWs amid Coronavirus outbreak and travel restrictions

The Government of Canada is also taking measures to improve flexibility and reduce the administrative burden for employers. The following measures are being applied to all existing and new LMIA applications as they are received:

  • employers are not required to submit minor administrative changes to the LMIA that would not change the terms and conditions
  • recruitment requirements for LMIAs in key occupations related to the agriculture and agri-food sectors are being waived until October 31, 2020.
  • LMIAs in key occupations related to the agriculture and agri-food sectors will be prioritized for processing.
  • the maximum duration of employment under LMIAs is increased from 1 to 2 years for employers of workers in the low-wage stream as part of a three-year pilot
  • employers applying under the Agricultural stream or Seasonal Agricultural Worker Program can submit a previously valid Housing Inspection Report (HIR), and
  • the name changes processes for employers wishing to change the name of already identified foreign worker, for reasons related to COVID-19, has been expedited

In response to economic downturn caused by COVID-19, the federal government has announced broad measures to protect Canadian jobs and facilitate funding to Canadian businesses.

Large Employer Emergency Financing Facility (LEEFF) program will provide bridge financing of at least $50 million to large employers in order to keep running their operations.

In addition to LEEFF, government also launches Business Credit Availability Program (BCAP) providing support of more than $10 billion to small and medium sized business under Business Credit Availability Program (BCAP).

Need help for LMIA application and hiring foreign workers!

The LMIA rules, regulations and requirements are subject to frequent changes. These changes deal with different categories of jobs, duration, exemptions etc. Continuous research, attention to detail and painstaking hard work is required to obtain a positive LMIA. We help in assessment of our client’s profile and advice them on their eligibility to get an LMIA. We help Canadian employers for applying LMIA application and legally representing them before ESDC during the process.We help clients to apply for their Work Permit which authorizes them to legally work in Canada.

ESDC has currently waived the advertisement requirements for agriculture stream LMIA applications and hence the applications are being processed on expedite and priority basis.

Need help staying in Canada!

The COVID-19 pandemic has led to challenging times in Canada and around the world. Many people are under distress and anxiety. We understand! Can-X is here to help you figure it out, so you can have peace of mind. You could be an international student, worker, or visitor looking to extend your stay in Canada. You may be seeking a pathway to permanent immigration. Or you may be looking to reunite with a loved one. Whatever the reason, contact us to discuss your immigration needs, and we’ll provide our insights and help as much as we can during these difficult times.

We Care!

 

Compliance obligations for employers hiring temporary foreign workers during COVID-19

Employers hiring foreign workers in this current COVID-19 pandemic situation have a specific responsibility in helping to prevent the introduction and spread of the coronavirus. The Government of Canada has introduced new public health and safety requirements and guidance to facilitate the entry of temporary foreign workers (TFW’s). New regulations in the Immigration and Refugee Protection Regulations (IRPR) have also created additional obligations for employers considering COVID-19 pandemic. The compliance inspections can be random, based on suspected non-compliance or previous non-compliance. According to the Regulatory Impact Analysis Statement of the Regulations Amending the Immigration and Refugee Protection Regulations (Emergencies Act and Quarantine Act): SOR/2020-91, new measures allow inspections to be initiated in other situations: when a communicable disease presents at the workplace of a foreign worker or when a foreign worker is or was required to comply with an order of the Quarantine Act.

Compliance obligations related to COVID-19

  • The foreign worker must self- quarantine for a 14- day period upon entering. Forcing a foreign worker to show up to a workplace during the 14-day period would be considered to be a violation of the new requirement.
  • The employer cannot authorize the foreign worker to work during the quarantine period, even if requested by the worker. There are exceptions for those deemed as providing an essential service by the Chief Public Health Officer. In addition, the employer cannot ask the worker to perform other duties during that period, such as building repairs or administrative tasks.
  • The foreign worker’s employment period begins upon their arrival to Canada, and includes the initial 14 – days of mandatory quarantine period.
  • The employer must pay regular wages and benefits to the foreign worker for the quarantine period based on the hourly wage indicated on the LMIA and/or offer of employment.
  • The employer is asked to monitor the health of foreign workers who are in quarantine, as well as any employee who becomes sick after the quarantine period. If a foreign worker becomes symptomatic at any time, the employer should contact local public health officials.

Additional criteria for employers providing accommodations to TFW

  • The employer is required to house quarantining foreign workers in accommodations that are separate from those not subject to quarantine. This may require finding alternate accommodations (for example hotel) if this requirement cannot be met.
  • Self-isolating/quarantined foreign workers are separate from other foreign workers and remain at least 2 meters away from another person.
  • Cleaning products for the purpose of cleaning and disinfecting the accommodations regularly are provided to workers who are in isolation or quarantine.
  • For the duration of the quarantine period, the employer is asked to ensure that the accommodations do not prevent the worker from avoiding contact with older adults (65+) and those with medical conditions who are at risk of developing serious illness.

Penalties for non-compliance

If employer is found to be non-compliant as a result of a Service Canada inspection, specifically to the new IRPR requirements related to COVID-19, the department has the authority to apply the most severe consequences possible.

  • Administrative monetary penalties
  • A ban of one, two, five or ten years, or permanent bans on new LMIAs/work permits for the most serious violations
  • The publication on a list of non-compliant employers
  • The revocation of existing LMIAs/work permits

Implications for foreign workers

Under the Quarantine Act, temporary foreign workers (TFW’s) will be penalized if their actions are found to compromise public health. TFW’s convicted of violating an order would be unable to enter Canada for a year without permission through an Authorization to Return to Canada request.

The COVID-19 situation is rapidly evolving with new measures being adopted or modified at both the federal and provincial level. It is a challenging time for everyone, and employers and foreign workers are no exception. With new regulations and compliance, there are tools to protect public health and wage security amid COVID-19 pandemic. However, time will tell how the compliance regime deals with rapidly changing economic circumstances that are likely to impact employers.

Need help for LMIA application and hiring foreign workers!

The LMIA rules, regulations and requirements are subject to frequent changes. These changes deal with different categories of jobs, duration, exemptions etc. Continuous research, attention to detail and painstaking hard work is required to obtain a positive LMIA. We help in assessment of our client’s profile and advice them on their eligibility to get an LMIA. We help Canadian employers for applying LMIA application and legally representing them before ESDC during the process.We help clients to apply for their Work Permit which authorizes them to legally work in Canada.

ESDC has currently waived the advertisement requirements for agriculture stream LMIA applications and hence the applications are being processed on expedite and priority basis.

Need help staying in Canada!

The COVID-19 pandemic has led to challenging times in Canada and around the world. Many people are under distress and anxiety. We understand! Can-X is here to help you figure it out, so you can have peace of mind. You could be an international student, worker, or visitor looking to extend your stay in Canada. You may be seeking a pathway to permanent immigration. Or you may be looking to reunite with a loved one. Whatever the reason, contact us to discuss your immigration needs, and we’ll provide our insights and help as much as we can during these difficult times.

We Care!

Faster processing of Temporary Foreign Worker Program (TFWP) for 10 occupations

As a part of the Temporary Foreign Worker Program (TFWP) requirements, employers must conduct recruitment efforts to hire Canadians and permanent residents before offering a job to a temporary foreign worker.

However, effective March 20, 2020, the TFWP is offering priority processing of occupations related to agriculture, food processing and trucking.

Minimum recruitment requirements for these positions will be waived until October 31, 2020. This applies to pending and future Labour Market Impact Assessments (LMIA) for the following 10 key occupations:

  • 6331 – Butchers, meat cutters and fishmongers-retail and wholesale
  • 7511 – Transport Truck Drivers
  • 8252 – Agricultural service contractors, farm supervisors and specialized livestock workers
  • 8431 – General Farm Workers
  • 8432 – Nursery and Greenhouse Workers
  • 8611 – Harvesting labourers
  • 9463 – Fish and seafood plant workers
  • 9617 – Labourers in food, beverage and associated products processing
  • 9618 – Labourers in fish and seafood processing
  • 9462 – Industrial butchers and meat cutters, poultry preparers and related workers

For positions under National Occupational Classification (NOC) 7511 that are situated in a province that has a Mandatory Entry Level Training requirement or equivalent, the foreign national must be in possession of this training certification at the time of work permit issuance.

Also, employers can now email the LMIA applications to Service Canada for processing to the appropriate address based on the stream and job location.