Good Practices for Employers Dealing with Ongoing Changes in Immigration

The immigration-related negotiations between the federal and provincial governments have led to a brand new immigration plan, which, for the first time, aims to reduce the number of temporary residents, including temporary foreign workers (TFWs).

The new plan is being rolled out against a backdrop of increased emphasis on employer compliance and a growing number of inspections. As a result, employers must manage both new restrictions and current obligations under the Temporary Foreign Worker Program (TFWP).

About the Newly Announced Measures

The provincial government proactively announced a moratorium, effective September 3, 2024, on all requests for Labour Market Impact Assessments (LMIAs) for low-wage jobs on the Island of Montreal. It is worth noting that in Québec low-wage jobs are characterized by a basic wage less than $27.47 per hour. Only the health, education, construction, agriculture, and food-processing sectors are exempt from this moratorium.

A few days later, the federal government announced measures, effective September 26, 2024, also aimed at reducing the number of TFWs. As of that date, the government will no longer process applications for LMIAs for low-wage jobs in metropolitan areas where the unemployment rate is 6% or higher, with the exception of jobs in the agriculture, food-processing, health, and construction sectors. In addition, the authorized percentage of low-wage temporary foreign workers will be reduced from 20% to 10% of the workforce per employment site. Also, the period during which work permits are valid will be reduced from two years to one year.

Overview of Best Practices to Implement

Strategic planning of TFWs and management of the immediate impact of restrictive measures – The new measures will have an immediate impact on many employers. It is crucially important to identify all TFWs who will be affected and whose work permits expire in the next six months. Whether due to the provincial moratorium or the federal measures, many work permits cannot be renewed. These departures must be planned for, and measures must be taken to ensure business continuity. Also, while the current situation provides employers with very few short-term solutions for retaining these workers, it is important to consider a number of avenues. A salary increase for the targeted positions may be a solution in cases where the margin between the current pay rate and the median salary is small.

For certain positions, the International Mobility Program may be considered, depending on the nature of the position, the employee’s citizenship and level of training or the status of the employee’s spouse, as applicable. Switching to different work sites may also be a short-term solution. Retaining certain experienced and skilled workers in the country may be worth the cost of a new workpermit application. In the medium and long term, strategic and precise planning will be increasingly important. The 10% calculation is not static: it needs to be adjusted according to recruitment and departures of both resident and foreign workers. Expiry dates and renewals must be planned with painstaking care and must take the new restrictive measures into account.

Implementing measures to foster access to permanent residence – It is increasingly important to consider access to permanent residence for temporary foreign workers, from the recruitment and hiring phase onward. Certain qualifications, in particular French-language proficiency and level of training, will have a significant effect on access to the various permanent residence programs in Quebec. A new permanent immigration system will also come into effect in the province in November 2024; as a result, it will be essential for almost all applicants to have good knowledge of French. Requirements will vary according to job positions, but it will be crucial for companies to assess this factor and consider the deployment of French-language learning programs to meet government policies. Businesses will also be able to continue to take an active role in fostering access to permanent residence by filing validated job offer applications with the Ministère de l’Immigration de la Francisation et de l’Intégration (MIFI).

Internal audit – Faced with the significant obligations placed on employers who use the TFWP and the increasing number of inspections, employers would do well to perform an internal audit of their TFWs and management practices. The penalties for non-compliance may be substantial, ranging from financial sanctions to expulsion from the TFWP.

Inspections may be conducted for a variety of reasons, whether by random selection or where there is reason to believe that an employer is non-compliant or where an employer has a history of non-compliance. Inspection powers are broad and may cover TFWs up to six years after the start of their period of employment, even if they are no longer employed. An internal audit may be used to confirm that all important information has been kept for this period for each foreign worker. Inspections are designed to ensure that the employer complies with all the conditions set out  in the LMIA. Changing jobs, workplaces, and, in certain circumstances, salaries requires a new work permit.

What is more, an internal audit enables employers to ensure that all mechanisms are in place for compliance with their main obligations, including the following:

• Cover travel costs and provide or help to find suitable and affordable housing
• Provide temporary health coverage during any period when provincial plans do not ensure coverage and provide required health care in the event of an occupational injury or illness
• Pay government processing fees and recruitment costs without any invoicing or recovery
• Provide workers with the information guide on employee rights on their first day at work and make it available to them in both official languages at all times
• Provide a signed employment contract describing the occupation, salary, and working conditions, no later than the first day of employment
• Make reasonable efforts to ensure a workplace that is free of violence, including any unwarranted reprisals. 

 

Conclusion

In light of the above, it is essential for employers to implement effective management mechanisms to monitor their TFWs’ progress and ensure compliance. Employers must also adopt systems for storing relevant information for any period subject to inspection.