Canada | Extension of the temporary refusal to process certain low-wage LMIA applications

The Canadian government announced an extension of the temporary refusal policy that applies to certain Labor Market Impact Assessment (LMIA) applications for low-wage positions in Montréal and Laval.

Key Points:

• In September 2024, the government announced the suspension of receipt of LMIA applications under the Temporary Foreign Worker (TFW) Program (low-wage stream) until March 3, 2025, for certain applicants.
• The suspension will now be extended to Nov. 30, 2025, for LMIAs for positions with a wage below the Quebec wage threshold and with a work location in the economic region of Montréal (island of Montréal) or Laval.
• Exemptions previously granted for certain sectors remain in effect, including strategic and essential sectors like agriculture, construction, education, food processing, health and social services.

Additional Information: As BAL reported, the Canadian government currently has a policy in place that refuses to process requirements for low-wage positions in areas with an unemployment rate of 6% or higher — now including the Montréal census metropolitan area. Authorities provided more information on the refusal process here, including any exemptions that may apply and municipalities included in the economic region of Montréal.

The Canadian government has updated the TFW Program recently to ensure it remains responsive to labor market needs and to protect temporary foreign workers from fraud and abuse. This includes a recent 20% increase to the median wage for workers in the high-wage stream for specific provinces or territories of work, as well as new measures for the low-wage stream. Officials stated the TFW Program is designed as an extraordinary measure to be used when a qualified Canadian is not able to fill a job vacancy, and further adjustments will be made if needed to help ensure that only compliant employers with demonstrable labor needs can access the TFW Program.

This alert has been provided by the BAL Global Practice Group.

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