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Canada — Committee recommends 21 changes to TFWP

September 23, 2016

A Canadian federal committee this week issued a report outlining recommendations to improve the Temporary Foreign Worker Program. The report — issued by the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities —  recommends 21 changes to TFWP.

“The TFW Program was created in 1973 to allow employers to hire foreign nationals to fill gaps in their workforces on a temporary basis,” the report states. “The program has grown and been updated over the years to respond to Canadian labour market conditions. However, employers and temporary foreign workers have expressed long-standing concerns over various aspects of the program. Significant reforms announced in June 2014 have also had an impact on them.”

The report recommends eliminating the “four-in-four-out” rule, enacted in 2011, which requires temporary foreign workers who have been working in Canada for four years or more to leave the country, and also bans them from returning to work in Canada for an additional four years.

“The committee heard that these are often individuals who have already integrated into Canadian society, filling a permanent labour need, and who have established roots in their adopted communities,” the report stated. “As a result of the “cumulative duration” rule, temporary foreign workers whose work permits have expired have had to leave the country before being able to secure permanent residency status.”

The committee also recommended eliminating the requirement for an employer-specific work permit and providing an exemption on the Transition Plan requirement for 5% of the business’ workforce consisting of high-wage temporary foreign workers.

Additionally, the committee recommended the cap on the percentage of temporary foreign workers a business can employ at a given time be set at a minimum of 20%, and suggested further review sector and geographic considerations.

Another suggestion was the implementation of a “Trusted Employer Program” aimed at reducing labor market impact assessment processing timelines for employers that have demonstrated trustworthiness in their use of the TFWP.

“During the course of the study, we had the opportunity to hear from employers, temporary foreign workers and various organizations about the impact that certain aspects of the TFW Program, along with recent reforms, have had on them,” the report states. “We heard, for example, about labour shortages across different sectors of the Canadian economy, including the high-tech, hospitality, seafood, meat processing as well as the agriculture and agri-food industries, despite significant efforts to recruit and retain Canadians first.”

The committee also heard stories of temporary foreign workers themselves, who spoke about how various program-related factors are contributing to abuse and to perpetuate their precarious position within Canadian society, and considered the views of various labor and youth organizations.

Minister of Immigration John McCallum and Minister of Employment, Workforce Development and Labour, MaryAnn Mihychuk will review the report and respond to the recommendations within the legislated timeframe of 120 days.

The full report with the 21 recommendations is available online.