Canada Temporary Foreign Worker Program 2025 Alert: Find Out If You Are Affected
- Tiffany Chia
- Oct 8
- 6 min read
Updated: Oct 9
Canada is reshaping the Temporary Foreign Worker Program (TFWP).
On October 6, 2025, the federal government announced stricter rules, higher fines, and stronger worker protections — keeping jobs for Canadians first.
If you’re an international worker, student, or employer, these updates affect you directly. Here’s what you need to know.
📊 What the New Announcement Says
The Government of Canada shared some big numbers:
Only 1% of Canada’s workforce are temporary foreign workers.
TFWP applications are down 50% overall.
Low-wage applications have dropped 70%.
In 2024–2025, there were 1,435 employer inspections, and 10% failed to comply. Penalties rose from $2 million to $4.9 million, and 36 employers were banned from the program.
Employers can now face penalties of up to $1 million per year or even permanent bans.
To stay compliant, employers must:
Keep hiring Canadians while their LMIA is under review.
Pay fair wages and follow all labour laws.
Provide safe and respectful workplaces.
All banned or fined employers are publicly listed on the IRCC Non-Compliant Employer List.
The government also says it will now focus the TFWP on key sectors and regions that truly need workers.
📰 Other Key Updates for 2025
1️⃣ A “Focused Approach” from Prime Minister Mark Carney
Prime Minister Mark Carney confirmed a more targeted approach to filling genuine labour shortages. Canada expects around 82,000 new TFWs in 2025, mainly in agriculture, construction, food processing, and health care.
2️⃣ Fewer Low-Wage Jobs for Temporary Foreign Worker Program
Areas with 6% or higher unemployment can no longer hire low-wage TFWs. This rule comes from ESDC’s official refusal policy and ensures Canadians get first priority for available jobs.
3️⃣ Higher Wage Rules for Temporary Foreign Worker Program
Employers must now pay at least 20% above the regional median wage to qualify for the high-wage stream.
At this time, there are no limits (caps) on how many high-wage TFWs an employer can hire.
ESDC has confirmed this in its latest update:
“There is no limit on the number of workers an employer can hire under the high-wage stream.”
However, CIC News reports that the government is reviewing this structure and may consider lowering employer-wide caps in future reforms to reduce overall reliance on temporary labour.
4️⃣ Fewer Open Work Permits for Spouses
In January 2025, IRCC tightened eligibility for Open Work Permits (OWPs) for family members of temporary workers and students. (Official IRCC notice)
Now, only the following are eligible for Spousal open work permits under the Temporary Foreign Worker Program:
Spouses or common-law partners of workers in TEER 0–1 or select TEER 2–3 shortage jobs
Workers who have at least 16 months left on their current work permit
Dependent children are no longer eligible for OWPs under this policy.
This change helps Canada control temporary resident numbers while keeping pathways open for families working in priority fields like STEM, construction, and health care.
5️⃣ Fewer Temporary Residents by 2026
Under the 2025–2027 Immigration Levels Plan, Canada will:
Reduce temporary residents (workers, students, and others) from 7% to 5% of the population by end of 2026.
Balance housing, jobs, and infrastructure pressures.
Manage the reduction by limiting study permits, tightening PGWP eligibility, and encouraging transitions to PR.
This does not mean fewer immigration opportunities — it means a more sustainable balance between temporary and permanent residents.
💡 What These Changes Mean for You
👷♂️ For Temporary Foreign Workers
If you already work in Canada under the TFWP, plan carefully.
Fewer low-wage jobs:
Canada is cutting back on low-wage positions, especially in high-unemployment regions.
Check your NOC code and provincial median wage. If your hourly wage is less than 120% if the provincial median wage, your job is considered a low-wage job.
Check your employer’s record. Always verify that your employer is NOT on the IRCC Non-Compliant List. If they appear, you may need to find a new employer quickly.
Spousal permits:
As of 2025, only spouses of workers in TEER 0–1 or select TEER 2–3 roles qualify for OWPs.
Apply early:
Ask your employer to start the Labour Market Impact Assessment application 6 months before your work permit expiry. Processing times are longer, and refusals are harder to appeal.
Start your PR plan:
Fewer temporary slots mean more competition. Use your TFW experience to build a strong Express Entry or PNP profile now.
🏢 For Employers
If your business depends on foreign workers, the 2025 updates are critical.
1️⃣ New “Direct Apply” Rule on Job Bank
Starting September 2025, all LMIA ads must have the “Direct Apply” feature turned on at the Government of Canada Job Bank.
You must accept and review every application submitted through Job Bank. Disabling or ignoring “Direct Apply” can result in an LMIA refusal.
2️⃣ Stronger proof of local recruitment
You must post jobs for at least 4 weeks on Job Bank plus 2 other sites (e.g., LinkedIn or your company site). Keep all interview records and proof that no qualified Canadians were available.
3️⃣ Wage and job-offer rules
High-wage positions must offer pay ≥ 20% above the median wage for your region. Double-check the latest rates before applying.
4️⃣ Tougher inspections and penalties
ESDC is increasing workplace inspections. Fines can reach $1 million per year, and employers may face permanent bans. Keep copies of all contracts, payrolls, job ads, and worker housing details (if applicable).
5️⃣ Regional limits on hiring In areas where unemployment is 6% or higher, low-wage LMIAs won’t be processed.
Consider switching to high-wage hires or investing in training local staff.
6️⃣ Build long-term workforce plans
Employers who help foreign workers transition to Permanent Residence under Express Entry or PNP gain more stable teams and better retention.
🎓 For International Students & Future Applicants
If you’re studying or planning to study in Canada, strategy matters more than ever.
1️⃣ Pick a Designated Learning Institution (DLI)
Only DLIs with PGWP eligibility can help you gain work experience toward PR. Check your school on the Official DLI List.
2️⃣ Choose in-demand programs
STEM, health care, construction, and trades lead to stronger PR pathways. Avoid general programs with limited career outcomes.
3️⃣ Expect smaller quotas
IRCC is capping international students and PGWPs as part of its 5% population goal. Competition will increase.
4️⃣ Use your PGWP wisely
Work in TEER 0–3 jobs to gain points for Canadian Experience Class under Express Entry.
5️⃣ Get professional help early
IRCC rules change fast. A licensed Regulated Canadian Immigration Consultant (RCIC) can help you design your full study-to-PR plan.
🧭 Professional Tips
The new rules are complex — and one small mistake can cost you time, money, or your status.
Here are 5 professional tips:
1️⃣ Know your region before you apply
ESDC now refuses LMIAs for low-wage jobs in regions with 6%+ unemployment. We can check your region and advise the best route for your situation.
2️⃣ Keep full records
Employers and workers must now maintain proof of job ads, wages, and working conditions. We will show you exactly what documents ESDC inspectors request.
3️⃣ Apply early and plan ahead
Processing times are longer. We help you build clear timelines and backup options for extensions or refusals.
4️⃣ Verify employers and offers
Before accepting any role, confirm your employer is not on the IRCC non-compliant list. We can review your LMIA and contract to ensure it’s legitimate.
5️⃣ Explore better pathways
TFWP is only one route to PR. You may qualify faster through Express Entry, PNPs, or Open Work Permits. A short consultation can help you find the right strategy.
👉 Book your 30-mins Zoom consultation here and start your plan with confidence.
📅 Summary of Key Changes
Category | What Changed in 2025 | Why It Matters |
Applications | Down 50% overall | Harder for employers to hire TFWs |
Low-Wage Stream | Down 70% | Fewer entry-level jobs |
Penalties | Up to $1M/year | Bigger fines and bans |
Inspections | 1,435 / 10% failed | Stricter monitoring |
Spousal Permits | Limited to key jobs | Family rules tighter |
Regional Rules | 6% unemployment cut-off | Some areas blocked |
Temporary Resident Target | 7% → 5% by 2026 | Fewer study and work permits. |
💼 What to Do Next
The Temporary Foreign Worker Program is now stricter than ever.
Employers face tougher rules.
Foreign workers and students have fewer — but clearer — options.
If you’re unsure how this affects your future, don’t guess. Get professional advice from a Regulated Canadian Immigration Consultant (RCIC).
We can:
✅ Review your case
✅ Explain your best options
✅ Help you stay legal and compliant
👉 Book your professional consultation here
Canada is building a stronger, fairer labour system. For both employers and workers, success now depends on compliance, preparation, and proper planning.
Stay informed.
Stay protected.
Be ready.
Comments