Significant changes to the Temporary Foreign Worker Program (“TFWP”) took effect on September 26, 2024. These changes are predicted to impact various sectors, particularly those employing low-wage workers such as the agribusiness and food sector.
Key changes to the TFWP
- Temporary foreign workers in the low-wage TFWP stream are now limited to a work permit with maximum duration of one year. This is a reduction from the previous two-year maximum, requiring employers to seek Labour Market Impact Assessments (“LMIAs”) more frequently.
- The Primary Agriculture stream will continue to be exempt from the 20% foreign worker cap. This means that employers in this sector can hire temporary foreign workers without being subject to the same restrictions on temporary foreign workers comprising a percentage of their workforce as other sectors.
- Employers in the food processing sector will continue being subject to a 20% foreign worker cap when seeking low-wage workers, while almost all other employers will see their cap reduced to 10%.
In light of the above, the changes to the TFWP will most significantly impact the low-wage jobs and workers. Under the TFWP, a low-wage job is one which pays below the median hourly wage for the province in which the position is based. Although this will impact various agriculture-related industries, such as manufacturing and commodity processing, primary agricultural positions remain unaffected.
Understanding the Primary Agriculture stream
Canada’s Primary Agriculture stream allows employers to hire temporary foreign workers when Canadians or permanent residents are unavailable or unwilling to fill certain agriculture industry positions. To qualify, employers must meet two criteria:
- Production of an agricultural product must be in specific commodity sectors (see the National Commodity List below).
- The activity must be related to on-farm primary agriculture.
The federal government defines primary agriculture as follows:
“Work duties that must: be performed within the boundaries of a farm, nursery or greenhouse and involve at least one activity, such as:
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- operation of agricultural machinery
- boarding, care, breeding, sanitation or other handling of animals, other than fish, for the purpose of obtaining raw animal products for market, or activities relating to the collection, handling and assessment of those raw products, or
- planting, care, harvesting or preparation of crops, trees, sod or other plants for market.”
The National Commodity List includes the following commodity sectors: apiary products; fruits and vegetables (including canning/processing if grown on the farm); mushrooms; flowers; nursery-grown trees (including Christmas trees); pedigreed canola seed; seed corn; grains; oil seeds; maple syrup; sod; tobacco; and bovine, dairy, duck, horse, mink, poultry, sheep and swine.
Employers can request an employment duration of up to two years for positions under the Primary Agriculture stream. For high-wage positions, work permits can be issued for up to three years as long as this aligns with the employer’s reasonable employment needs.
This considered, the availability of the Primary Agriculture stream provides ongoing benefits for employers struggling to fill jobs, and for food security and economic well-being in Canada as a whole.
Key takeaways for employers
The changes to the TFWP will require agribusiness and food sector employers to adapt quickly and alter hiring and immigration strategies accordingly. While the Primary Agriculture stream remains relatively unaffected, other sectors, particularly food processing and equipment manufacturing, will need to navigate new workforce caps and shorter work permit durations applied to low-wage workers. These reforms may pose challenges but also offer opportunities for employers to reassess their workforce strategies and ensure compliance with these changes.
For more detailed information on Canada’s primary agriculture stream and how to hire for high-skilled and low-skilled positions, please reach out to our agribusiness & food or immigration practice groups.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.