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Federal Budget Changes make Temporary Foreign Worker programs harder on employers

April 2, 2013:

The release of the Canadian federal government’s 2013 budget several weeks ago had outlined several reforms to the temporary foreign worker program, which are expected to come in the following months.

The changes to the temporary foreign worker program were designed to increase employment opportunities for Canadian workers. While no specific information regarding has been released regarding the implementation as of yet, such information is expected very soon.

These changes involve requiring greater clarity of employers’ inability to fill positions within the Canadian labour market, through labour market opinion (LMO) demonstrations. This will be done with greater local recruitment requirements in terms of both length and geographical coverage. It should be noted that these changes will make it harder for employers to fill positions through the global market. Those that are dependent on foreign workers will work with the federal government to transition to a Canadian workforce.

Additionally, higher fees will be charged to employers for LMO filings in order to have employees bear a greater share of the costs involved in administering the temporary foreign worker program.

In effect, these reforms to the temporary foreign worker program will translate into greater costs for employers, greater efforts to obtain foreign workers, and ultimately lower levels of foreign employment overall. Also, for employers looking to hire from overseas, the recruiting process will be longer than it has been to date.

This Relo-lert is intended for informational use only. If you have any questions regarding the impact of this information on your organization, please contact All Points Relocation at [email protected].

Posted on April 2, 2013 in Relolert

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