Stricter Canada Work Permit Rules Raise Deportation Fears for Foreign Workers

Canada’s Immigration Shift: Tighter Work Permit Rules Shake the TFW Landscape

Once known for its balanced approach to skilled migration, Canada is now facing mounting criticism over its new Temporary Foreign Worker (TFW) Program regulations. Recent reforms—effective late 2024—are placing skilled foreign workers at risk of deportation while employers scramble to meet stricter hiring and wage rules.

What Is the TFW Program?

Canada’s Temporary Foreign Worker Program allows businesses to hire international workers when no qualified Canadians are available. It operates through two streams:

• High-wage stream

• Low-wage stream

Employers must obtain a Labour Market Impact Assessment (LMIA) to prove hiring a foreign national won’t negatively impact local job opportunities.

Key Changes to the Program (As of Nov 2024)

● Wage Hike in High-Wage Stream

As of November 8, 2024, employers must now pay 20% more than the regional median wage. This could mean an increase of $5 to $8 per hour, making hiring Canadians more attractive—but also increasing pressure on employers reliant on foreign professionals.

● Cap on Foreign Hiring

Starting September 26, 2024, companies may employ foreign nationals in only 10% of low-wage roles. This drastically reduces hiring flexibility, especially in hospitality, retail, and logistics.

● Job Reclassification Impact

● An estimated 34,000 positions are shifting from high-wage to low-wage, where rules are stricter, inspections are frequent, and benefits for foreign workers are fewer.

Why Foreign Workers Are at Risk of Deportation

The new rules are pushing employers into tough choices:

• Many may let go of foreign staff if they cannot meet the new wage requirements.

• Work permit renewals are stalling, leaving skilled workers with no pathway to legal stay.

• The 10% cap restricts new hires, worsening job insecurity in sectors traditionally filled by international workers.

Employers in Crisis: Canadian Businesses Sound the Alarm

Canadian companies—especially in food processing, construction, healthcare, and agriculture—are voicing concerns. They're facing the loss of trained, dependable staff while trying to comply with sudden regulatory burdens.

B2B agents and HR-focused travel planners must now advise clients on risk mitigation strategies, visa expiry timelines, and relocation options.

What This Means for B2B Travel Professionals

Travel advisors, relocation consultants, and immigration partners should take note:

• Proactively review TFW permit expiration dates for affected clients

• Assist employers in alternative staffing routes or transitions to permanent residency if eligible

• Monitor sector-wise visa trends for future-proof planning

• Offer relocation or cross-border support to clients seeking better immigration stability
  

Will Canada Remain a Top Destination for Skilled Migrants?

With higher wages, restrictive caps, and increased deportation risks, Canada may lose its edge as a preferred migration destination. Prospective foreign workers may now consider Australia, Germany, or the UAE, where policy is more stable and pathways to residency are clearer.

Conclusion: Stricter Rules, Higher Stakes

Canada’s 2025 TFW Program updates are reshaping the country’s labour landscape. While intended to protect domestic employment, these reforms come at the cost of stability for thousands of foreign workers and the companies that depend on them.

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