Many industries in Canada share a common problem: there’s plenty of work to do but too few Canadians to do the work. This could be due to a shortage of local skills in a given region, an unwillingness to work for certain wages or to perform certain job tasks. In these cases, employers turn to Canada’s Temporary Foreign Worker program, where Canadian firms hire temporary foreign workers from abroad to fill vacancies in crucial industries experiencing labour shortages.
Why do employers hire temporary foreign workers?
There are various reasons behind the decision to hire temporary foreign workers, but generally speaking, it’s due to labour shortages.
Some industries, such as manufacturing or technology, rely on highly specialized skillsets. Sometimes, there aren’t enough skilled workers in a given region to supply this demand. Employers look province-wide, and sometimes Canada-wide, to fill these vacancies but come up short. In these cases, they turn to temporary foreign workers.
Other industries, such as agriculture or food processing, feature seasonal work, long hours, physically challenging work and low pay that most Canadians outright refuse. Tasks such as slaughtering animals or working all day in a field are common forms of labour in many places in the world. However, in Canada, few Canadians wish to perform these tasks, resulting in labour shortfalls that can affect important parts of life like the nation’s food supply. Temporary foreign workers fulfill these needs and help keep the grocery shelves stocked.
In both cases, employers must first attempt to staff these positions with Canadian talent before they’re allowed to look to the global talent marketplace.
How to hire temporary foreign workers?
In order to participate in the Temporary Foreign Worker Program, employers must complete a Labour Market Impact Assessment. This is a formal process administered by the government that ensures there is no negative impact on Canada’s labour market by hiring a temporary foreign worker.
Additionally, there are specific rules regarding job requirements, wages, advertising the role in question and enforcing any exceptions for these roles. Once you are confident that a candidate meets these requirements, you must arrange a work permit for the temporary foreign worker before they can come to Canada and officially begin working.
What happens if a candidate’s work permit expires?
As the name suggests, “temporary” foreign workers in Canada only stay in the country for a limited period of time and must return to their home country once their work permit expires. They are not considered citizens and therefore are not entitled to government programs such as Employment Insurance, CPP or WSIB. If they commit a crime or are fired while in Canada, they are no longer legally admissible in the country and must be deported (unless they find another employer willing to hire them as a temporary foreign worker, in which case, the application and permitting process begins again). However, if a candidate has an ideal profile and you would like them to continue working with you and vice versa, they can apply for a work permit extension.
Understanding employee “streams”
Another thing to keep in mind when deciding to hire temporary foreign workers is which “stream” applies to your company and the job in question.
As of 2022, there are four different streams employers can apply under:
High-wage stream
You must apply for the high-wage stream if the job you intend to fill with a temporary foreign worker pays equal to or more than your provincial median hourly wage. This number changes every year, so make sure to check the latest number with the Government of Canada. These positions are often highly-skilled, or in rural or remote locations, owing to their higher pay.
Low-wage stream
If the job in question pays lower than your provincial median hourly wage, you will have to apply for the Temporary Foreign Worker Program under the low-wage stream. These jobs are typically seasonal or do not require a specialized skillset, owing to their lower pay.
Primary agriculture stream
The primary agriculture stream is a bit more nuanced. The Canadian government maintains a list of designated countries from which employers can hire under this stream, such as Jamaica, Mexico and numerous Caribbean countries. It is specifically used to hire produce pickers, animal handlers and other agricultural labourers in situations where the volume of work exceeds the local, often rural or remote workforce.
Permanent residency stream
Finally, the permanent residency stream allows employers to hire someone as a temporary foreign worker while simultaneously sponsoring their application for Permanent Residency in Canada. The Federal Skilled Worker Program and the Provincial Nominee Program fall under this stream. The difference between the two lies in your responsibilities as an employer. Here’s how:
