The year 2025 will be a played in the development of marks that warns employers and creates new problems for foreign employees; the changes that come will mark quite a change in the history of the Canadian Temporary Foreign Worker Program (TFWP). The priorities are clean-cut-protecting jobs for Canadians, a prevention of the exploitation of foreign workers, and enforcement of the workers’ rights.
A businessman, foreign national seeking a job, or an immigration consultant, needs to take this article very seriously.
TFWP means Temporary Foreign Worker Program.
This program of Government of Canada allows local employers to bring foreign workers on a temporary basis to fill vacancies in Canada. However, in light of the above issues, a number of amendments are being implemented now more than ever.
Changes to take place in 2025 – Overview
- Policy Change Description Date of Enforcement
- Reduction of LMIA validity period from 12 months to 6 months 1 May 2025
- Restrictions of LMIA in areas of high unemployment An LMIA shall not be issued for low-wage employment in areas with unemployment rates higher than 6% (4 regions excluded). 26 September 2025
- Maximum duration for low-wage workers reduced from 2 years to 1 year. 26 September 2025
- Low-wage foreign cap reduced from 20% to 10% (20% exemption for construction and health sectors) 26 September 2025
- Wage increase for high-wage workers Above-specified payment amounts are to be mandated at 20% more than the provincial average wage; 8 November 2025
- Employer attestation obligations removed Detailed financial documentation and records are now mandatory; 28 October 2025
- Reasons for changed policies
- Reduce local unemployment: The most important concern of the government is the priority of those who are already unemployed in the country.
Prevent the exploitation of foreign workers: They keep those workers mostly in low wages and poor conditions for work.
Guaranteed fair wages:
Now on top of the average wages of the local area, employers have to pay more. Transparency through the process: Tax returns and bank statements are sought to prevent fake or incorrect documents.
Changes in LMIA process
Labour Market Impact Assessment-LMIA is the official process whereby it is shown that the employer needs to hire workers from abroad because no other suitable candidate is available in Canada. But LMIA will be valid for only 6 months.
For example: If a retail store in Toronto got LMIA in June 2025, the worker should be hired by December 2025; after which he will apply again.
LMIA bans in high unemployment areas
If an LMIA is applicable for low-waged women livings with 6% unemployment, those LMIs should not be granted. Agriculture, food processing, construction, and healthcare sectors are exempted, however.
For instance: If the city’s unemployment rate is 7%, then a restaurant there would no longer be able to get foreign workers for waiters or kitchen staff.
Maximum duration for low-wage workers:
It was earlier for 2 years but has now shrunk to just 1 year. Therefore, the process is to re-initiate every year by the employer.
Limit low-wage workers:
Previously, the number of low-waged foreign workers employed could be up to 20% of total employee count; it has been cut back to 10% (20% exemption for construction and health).
For example: If a hotel employs 100 people, only 10 can be foreigners in low-wage jobs.
Must Increase Salaries by 20% in High Salary Bracket
For high-paying jobs, companies must pay at least 20% above the provincial average wage.
The example would be used as: The British Columbia average wage is $25/hour; thus, the employer must pay at least $30/hour.
End of attestation of employer
No more certification by an accountant or lawyer would be accepted as proof; the following now become necessary:
- Tax Return
- Payroll Data
- Bank Statements
For example, “Now, a logistics firm should give its tax records and bank statements for the previous year along with the LMIA application.”
Some tips for employers
Start hiring early as LMIAs are now shorter period.
- Pay attention to the salary – fix high-paying jobs over 20% average.
- Ratios in staffing – minimum of 10% foreign low-paid workers.
- Keep all documents – tax filings, finances, salary slip.
- Seek other immigration alternatives – Express Entry, Provincial Nominee Program (PNP), or Global Talent Stream.
Conclusion:
Reforms to the TFWP in 2025 symbolize what arguably might become a most damning turning point in policy on labor. More than being a mere policy reform, it speaks of a change in direction of having the economy and labor market of Canada be more transparent, equitable, and in line with domestic priorities. To the stakeholders affected by these changes, there is an opportunity for planning, document preparation, and timely application for both waiting and winning in the business or career.
FAQs
Q1. What is the biggest change in the Temporary Foreign Worker Program for 2025?
A. The LMIA validity period has been reduced from 12 months to just 6 months, making the hiring timeline much shorter. Employers now have less flexibility and must act quickly to finalize hires. This change aims to encourage faster and more local recruitment.
Q2. Can employers still hire low-wage foreign workers in high-unemployment regions?
A. Not anymore, unless they fall under exempt sectors like agriculture, food processing, construction, or healthcare. If the local unemployment rate is above 6%, low-wage LMIAs are generally denied. This move prioritizes local Canadian workers for available jobs.
Q3. What documents do employers now need instead of an attestation?
A. Employers must provide concrete financial proof like tax returns, payroll summaries, and income statements. The government no longer accepts signed letters from accountants or lawyers. It’s all about transparency and verifying legitimate business need.
Q4. How much more do employers have to pay high-wage foreign workers now?
A. They must now offer at least 20% above the provincial median wage to qualify for high-wage positions. This ensures fair compensation and discourages undercutting local wage standards. It’s a big step toward leveling the playing field for all workers.
Q5. Can a low-wage foreign worker still stay in Canada for two years?
A. No, the maximum duration has been cut down to just one year. Employers must now reapply every 12 months if they want to retain the same worker. This adds more paperwork but also keeps the system updated and accountable.
