Temporary Foreign Worker Program: An Overview Temporary Foreign Workers Directorate Canada-China Forum May 14, 2012
Entry of Temporary Foreign Workers The Immigration and Refugee Protection Regulations (IRPR) regulates the entry of all temporary foreign workers into Canada. The Temporary Foreign Worker Program (TFWP) is jointly managed by Human Resources and Skills Development Canada (HRSDC)/Service Canada and Citizenship and Immigration Canada (CIC). The entry of foreign workers in Canada is driven by employer demand. There are no numerical limits/quotas. An employer can apply to HRSDC to hire a temporary foreign worker when Canadians/permanent residents are not available. Employers may hire foreign nationals from any country in the world to work in any legal occupation, provided that both the employers and the workers meet the requirements and regulations outlined in IRPA. Possible exemptions from the HRSDC labour market assessment, under specific circumstances, are due to international agreements such as NAFTA, GATS. 2
Employers determine where workers come from In 2010, the U.S is the number one source country for foreign workers. Followed by Mexico, France, Australia, Philippines, U.K, India, Jamaica, and Germany. In 2010, approximately 2,393 temporary workers from China entered Canada. Source: Facts and Figures 2011, Citizenship and Immigration Canada 3
TFWP and China Number of positions on labour market opinions for China workers from January 1, 2011 to December 31, 2011 by province Province High-Skilled Low-Skilled Total Newfoundland and Labrador 12 0 12 Quebec 20 4 24 Ontario 276 79 355 Alberta 161 83 244 British Columbia 87 83 170 Others 43 3 46 Total for Canada 599 252 851 4
Greater demand for higher-skilled workers, with demand for lower skill close behind 5
What is a Labour Market Opinion (LMO)? In most cases, an employer must apply to Service Canada and receive a positive LMO in order to hire a temporary foreign worker. The LMO provides an assessment as to whether a temporary foreign worker will have a positive, neutral or negative impact on the Canadian labour market. The foreign worker needs a copy of the positive LMO in order to apply to CIC for a work permit. The LMO issued by HRSDC/Service Canada is based on an examination of the potential effect on the Canadian labour market. 6
The Six Labour Market Factors Job creation or job retention for Canadian citizens or permanent residents. Creation or transfer of skills and knowledge for the benefit of Canadian citizens or permanent residents. Filling a labour shortage. Wages are consistent with the prevailing wage rate and the working conditions meet generally accepted Canadian standards. Employer has made or agreed to make, reasonable efforts to hire or train Canadian citizens or permanent residents. Employment of the foreign worker is likely to adversely affect the settlement of any labour dispute in progress or the employment of any person involved in the dispute. 7
Additional Requirements for Lower-Skill Occupations In cases where an employer is interested in hiring a foreign worker in a lower skilled occupation, there are additional conditions that the employer must be prepared to meet: Sign an employer-employee contract outlining wages, duties, and conditions related to the transportation, accommodation, health and occupational safety of the foreign worker. Cover all recruitment costs related to the hiring of the foreign worker. Consult with the local union if the position is covered under a collective agreement. Help worker(s) find suitable, affordable accommodation. Pay full airfare for the foreign worker to and from their home country. Provide medical coverage until the worker is eligible for provincial health insurance coverage. Register worker(s) under the appropriate provincial workers compensation/workplace safety insurance plans. 8
What is an Accelerated Labour Market Opinion? The A-LMO, launched on April 25, 2012, is a more streamlined process designed to better meet labour market demands and support economic recovery. A-LMO will: Reduce administrative burden on employees Be an attestation-based model Enable LMOs to be processed within 10 days Strengthen program integrity though random, in-depth employer compliance reviews Cover high-skilled occupations and skilled trades The same regulatory factors for the LMO will be assessed. To be eligible, an employer must: have at least one positive LMO in the last 2 years have a clean compliance history with the TFWP be considered low risk and not be the subject of an unresolved investigation or complaint 9
Protections/Services after Arrival Temporary foreign workers have the same labour-related, human rights and social protections as all Canadians. All temporary foreign workers must obtain, with help from employers, a Social Insurance Number in order to work. Under the Canadian Constitution, the initial entry of foreign workers into Canada falls under federal responsibility. However, a number of areas that impact on workers after arrival are under the jurisdiction of provincial governments (e.g. labour standards, occupational health and safety, labour relations, public health coverage). 10
Protections/Services after Arrival (cont d) Labour Standards In Canada, labour standards, occupational health and safety, and industrial relations fall under provincial jurisdiction for approximately 90% of Canadian labour market. Foreign workers are covered by labour standards, occupational health and safety, and industrial relations, similar to Canadians. Federal and provincial governments work to provide information to foreign workers on labour rights/responsibilities and contact points in the event of problems. - This information is provided in a number of languages. Some provinces are establishing contact offices specific for foreign workers on areas related to labour rights (e.g. Alberta TFW center). Federal and provincial governments are working on information agreements to allow for the sharing of employer information on previous breaches of labour standards to assist in future decisions. 11
Protections/Services after Arrival (cont d) Health Insurance In Canada, public health insurance falls under provincial jurisdiction. Foreign workers are generally eligible for public health coverage, but only after a set period of time (varies by province). To address this gap for low skilled workers, federal government requires employers to pay for private health insurance until foreign workers become covered by public health plans. Pension Plan Foreign workers contribute to, and are eligible to receive all benefits from Canada Pension Plan similar to Canadians, even after returning to their country of origin. Employment Insurance (EI) Foreign workers contribute to Employment Insurance plan, and may be eligible for sickness, maternity/parental, and compassionate care benefits, even after returning to country of origin. 12
Contact Information At HRSDC: Althea Williams, Director, Temporary Foreign Worker Program, Policy and Program Design Tel: 819-994-4476 E-mail: althea.williams@hrsdc-rhdcc.gc.ca http://www.rhdcc-hrsdc.gc.ca/eng/workplaceskills/foreign_workers/index.shtml At CIC: http://www.cic.gc.ca/english/work/index.asp Canadian Labour Market information: The Canadian Occupational Projection System (COPS) website includes detailed results of the COPS projections for the period 2011-2020, available by occupation and by industry, in table and graph formats: http://www23.hrsdc.gc.ca/w.2lc.4m.2@-eng.jsp Statistics Canada information on Canada's future labour force (summary) http://www.statcan.gc.ca/daily-quotidien/110817/dq110817b-eng.htm 13