Canada Introduces New Steps to Prevent LMIA Work Permit Fraud

The Canadian government has announced new measures to address misuse and fraud in the Temporary Foreign Worker (TFW) Program. This move, disclosed by Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, aims to ensure fair practices and protect both Canadian and foreign workers.

The new measures come amid growing concerns about the program's integrity, especially following a record number of Labour Market Impact Assessments (LMIAs) approved despite rising unemployment rates.

Key Changes Announced:

1. 20% Cap Enforcement: The government will enforce a cap limiting low-wage temporary foreign workers to 20% of an employer’s workforce. This is intended to prevent excessive use of foreign workers for lower-wage jobs and safeguard opportunities for Canadian residents.
2. Enhanced Oversight: Increased monitoring and inspections will be implemented in regions and industries identified as high-risk for TFW Program misuse. This step is designed to identify and address violations more effectively.
3. Fee Increase: The government is considering raising fees for Labour Market Impact Assessments to better cover processing costs and deter fraudulent or frivolous applications.
4. Regulatory Changes: Upcoming regulations will impose stricter scrutiny on employer eligibility and ensure that those who misuse the program face significant consequences.

Future Plans:

1. Application Refusal: A policy may be introduced to refuse processing applications under the low-wage stream to prevent misuse.
2. New Labour Stream: The program will be modernized with a specialized labour stream for the agriculture and fish & seafood processing sectors to address their unique needs.

Minister Randy Boissonnault highlighted the government’s commitment to eradicating fraud and abuse within the TFW Program. He underscored that these measures are essential for maintaining the program's integrity and protecting workers.

While these changes mark a significant step towards addressing concerns, critics argue that existing loopholes and workarounds may still undermine the effectiveness of the reforms. Ongoing monitoring and potential further adjustments may be necessary to ensure the program’s fair operation.