Big changes are shaking up how Canadian employers hire temporary foreign workers in 2025. With tighter Labour Market Impact Assessment (LMIA) rules, reduced validity periods, wage hikes, and stricter employer requirements, the Temporary Foreign Worker Program (TFWP) has never been more regulated.
These updates are designed to protect Canadian jobs, ensure fair wages, and hold employers accountable. Whether you’re a business owner, job seeker, or immigration consultant, it’s important to know what’s changing—and how to stay compliant.
Overview
The 2025 TFWP reforms introduce several key policy shifts. Here’s a summary of what’s new:
| Policy Change | Details | Effective Date |
|---|---|---|
| LMIA Validity Period | Reduced from 12 months to 6 months | May 1, 2025 |
| LMIA Limits in High-Unemployment Areas | No LMIAs for low-wage jobs in areas with 6%+ unemployment (except 4 sectors) | Sept 26, 2025 |
| Max Duration for Low-Wage TFWs | Reduced from 2 years to 1 year | Sept 26, 2025 |
| Cap on Low-Wage Foreign Workers | Reduced from 20% to 10% (construction & healthcare capped at 20%) | Sept 26, 2025 |
| Wage Increase for High-Wage TFWs | Must offer 20% above provincial median wage | Nov 8, 2025 |
| Employer Attestations Eliminated | Replaced with detailed business records and financial documentation | Oct 28, 2025 |
Reasons
Why did Canada reform the TFWP in 2025?
- To lower unemployment and give Canadians first access to available jobs
- To prevent abuse and exploitation of temporary foreign workers
- To encourage employers to offer better wages and hire locally
- To ensure businesses follow proper hiring practices with stronger documentation
LMIA
The Labour Market Impact Assessment is a document employers must get to prove there’s no Canadian available to fill a job. It’s a key requirement for most TFWP applications. The LMIA confirms the need to hire a foreign worker, but as of 2025, getting one just got a lot tougher.
Changes
Let’s break down the new TFWP policies and what they mean in real terms.
LMIA Validity Cut in Half
Before: LMIAs were valid for 12 months
Now: Valid for just 6 months
Example: If a retail business in Toronto receives an LMIA in June 2025, they must hire the foreign worker by December 2025. After that, they’ll need to reapply.
No LMIAs in High-Unemployment Regions
LMIAs for low-wage jobs will not be processed in regions with unemployment above 6%.
Exempt Sectors: Agriculture, food processing, construction, healthcare.
Example: A fast-food restaurant in a city with 7% unemployment can no longer hire foreign workers for front-line positions.
One-Year Limit on Low-Wage TFWs
Before: TFWs in low-wage jobs could stay up to 2 years.
Now: Maximum stay is 1 year.
Example: A cleaning company must now renew its LMIA and reapply for workers annually instead of every two years.
10% Cap on Low-Wage TFWs
Before: Employers could have up to 20% of staff as low-wage foreign workers.
Now: Capped at 10%, except in construction and healthcare (20%).
Example: A restaurant with 60 employees can now only employ 6 foreign workers in low-wage roles.
20% Wage Hike for High-Wage Jobs
Employers must offer 20% more than the median wage for high-wage TFW positions.
Example: If Alberta’s median wage is $30/hour, employers must pay at least $36/hour to foreign workers in high-wage jobs.
Employer Attestations Removed
You can no longer submit a letter from your accountant or lawyer to prove business legitimacy.
Now required:
- Tax documents
- Financial records
- Payroll data
Example: A trucking company must now submit income statements, T4 summaries, and bank statements when applying for an LMIA.
Tips
How can employers manage these changes?
- Start hiring early. With shorter LMIA windows, there’s less time to delay.
- Adjust wages. Pay at least 20% above the median for high-wage jobs.
- Watch workforce ratios. Keep foreign low-wage staff under the cap.
- Keep documentation ready. Store updated tax filings, financial records, and payroll.
- Explore other pathways. Look into Express Entry, PNPs, or Global Talent Stream if TFWP isn’t a fit.
The 2025 TFWP reforms are reshaping Canada’s foreign worker hiring landscape. While they raise the bar for employers, they also push for fairer wages and better opportunities for Canadians. Staying ahead means planning smarter, paying fairly, and ensuring full compliance.
FAQs
How long is an LMIA valid now?
Only 6 months from the approval date.
What is the new TFW cap for low-wage jobs?
Only 10% of total staff, 20% for construction & healthcare.
Are wages for TFWs increasing?
Yes, 20% above the provincial median is now required.
Can attestations still be used for LMIA?
No, full business records must be submitted instead.
Which sectors are LMIA exempt in high-unemployment areas?
Agriculture, food processing, construction, healthcare.
