Canada to End Closed Work Permits in 2024

In a recent report, the Standing Senate Committee on Social Affairs, Science, and Technology recommended that Immigration, Refugees, and Citizenship Canada (IRCC) discontinue the issuance of restricted work permits.

The report’s analysis focused on the Temporary Foreign Worker Program (TFWP), which was established in 1973 to help Canadian employers fill urgent employment vacancies when neither Canadians nor permanent residents were qualified or applied. The TFWP was initially intended to serve as the final alternative for Canadian businesses; however, the research asserts that it has since become an indispensable component of the nation’s labor market.

Standing committees, such as the Senate Committee on Social Affairs, Science, and Technology, submit their findings to the government for review and potential action, after conducting research and investigating topics that impact Canada. The Canadian Upper House of Parliament is comprised of the Senate, which functions as both the legislative and investigative branch.

How does the TFWP Work?

Permanent status has become a common pathway for numerous new immigrants through programs such as the TFWP. They travel to Canada to acquire work experience, which may be beneficial for the application of permanent residence through programs such as Express Entry and the Canadian Experience Class.

Employment and Social Development Canada (ESDC) is required to conduct a Labor Market Impact Assessment (LMIA) that is either positive or neutral for employers who wish to recruit under the TFWP. This document demonstrates to the Canadian government that the employment of a foreign national will not have a negative impact on the country’s labor market or economy.

Several conditions must be met by employers prior to filing an LMIA, such as advertising for a predetermined period and providing evidence that no Canadian or permanent resident is qualified for the position or that no applications have been received. A prospective employee may be provided with a valid LMIA by an employer in order to include it in their application for a work visa with the IRCC.

The employer is obligated to provide a safe, harassment-free work environment, provide accommodation and healthcare, and pay a set wage to an employee upon hiring.

The TFWP issues confined work permits, which restrict an employee’s employment options to a single position during their time in Canada. If they resign from their positions, their immigration status may be forfeited. This rule is not applicable to instances of employer maltreatment.

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Benefits of Canada to End Closed Work Permits:

• Increased Employee Mobility: Workers are granted the freedom to circulate between employers through open work permits. This allows foreign workers to pursue better job opportunities, enhanced working conditions, or higher wages without being obligated to a single employer. It increases the flexibility and mobility of jobs, thereby enhancing the dynamic nature of the labor market.
• Improved Working Conditions: Workers are less reliant on a single employer and have the autonomy to depart if they encounter exploitation, abuse, or unfair treatment with an open work permit. This would enhance the overall protection of labor rights in Canada and decrease the vulnerability of workers.
• Promotes Equitable Compensation: The capacity to freely transition between employment would motivate employers to provide competitive compensation and benefits in order to retain employees. This could lead to improved compensation and working conditions for foreign workers, as employers would be compelled to compete for their talents.
• Preventing Worker Exploitation: Exploitation may occasionally result from closed work permits, as employees are unable to change employers without jeopardizing their legal status in the country. The cessation of confined work permits would enhance the overall well-being of workers and safeguard them from unscrupulous employers.
• Efficiently Addressing Labor Market Gaps: The labor market would be rendered more efficient by permitting employees to change their occupations. In critical sectors such as healthcare, agriculture, and construction, workers can relocate to industries or sectors where they are most required, thereby facilitating the rapid resolution of labor shortages.
• Increase in Economic Productivity: Open work permits can enhance the productivity of the Canadian economy by enabling foreign workers to more effectively transition to positions that align with their talents and qualifications. This maximizes their potential and improves their economic contribution.
• Decreased administrative burden: Both the government and laborers benefit from simplified immigration processes. The elimination of closed work permits would alleviate the administrative burden of perpetually updating permits as workers transition between positions, thereby refining the system and saving time and resources for all parties.
• Attracting Additional Skilled Personnel: Due to its stable economy and high quality of life, Canada is an appealing destination for foreign laborers. The country would attract a broader pool of skilled talent by offering more open work permits, which would make it even more alluring by providing greater freedom and job security.
• Enhanced Emotional and Mental Health: Workers who are legally bound to a single employer under a closed work permit may experience tension and anxiety as they anticipate the possibility of losing their jobs and, consequently, their legal status. The cessation of confined work permits would provide foreign workers with a sense of tranquility and alleviate mental health stress.
• Support for Small and Medium-Sized Enterprises (SMEs): If foreign employees are restricted to larger, more established organizations by closed work permits, numerous lesser businesses in Canada may encounter difficulties in recruiting employees. SMEs are able to more effectively vie for skilled workers with open permits, which in turn contributes to their growth and innovation.

Improvements for Employers and Employees

The success report delineates a significant portion of the criticism that has been directed at the TFWP’s evolution. One of the recurring themes is the dissatisfaction of both employers and employees with the TFWP. The employer-specific work permit imposes structural barriers to the rights and protections of migrant laborers, rendering them more vulnerable to abuse by unscrupulous individuals.

A recent analysis by the Cooper Institute also underscores employers’ concerns regarding the program, with a particular emphasis on seasonal laborers. Employers’ frustration with the inability to adequately train or plan their years of work with a transient labor force was also addressed in the article, in addition to the pressures that arise from the almost paternalistic relationship that develops between employers and employees when the latter rely on the former for necessities such as housing and healthcare.

Furthermore, it is important to acknowledge that the Standing Senate Committee on Social Affairs, Science, and Technology has issued a report that emphasizes the importance of compliance and well-meaning. Employers are unable to extend service, relocate staff as required, or promote highly skilled personnel for excellent performance.

Phasing Out Closed Work Permits

The SOCI is advocating for the government to eliminate employer-specific work permits within the next three years in order to reduce the vulnerability of temporary foreign laborers. The Cooper Institute concurs, advocating for the IRCC to grant permanent resident status to all migrant laborers in lieu of employer-specific work permits.

When migrant workers lack full permanent citizenship status, their living and working conditions differ considerably from those of their Canadian counterparts, which would be advantageous, according to the Cooper Institute. They are classified as a distinct class of laborers due to their temporary immigrant status and encounter significant challenges in obtaining protection for their labor rights.

It is noted that the IRCC supports numerous Settlement Services that are inaccessible to TFW advocates in order to assist them in acclimating to life in Canada and understanding their rights. The success report recommends that the government investigate the sector under region-specific work permits as an alternative to the current TFWP.

It suggests that companies may benefit from this, as they are typically responsible for funding employee accommodation, transportation, and healthcare. The paper suggests that firms could assist workers in obtaining work permits that are specific to a sector or region by paying a regional authority to manage a portion of the administrative burden.

Improving Communication

The Standing Senate Committee on Social Affairs, Science, and Technology informed the Senate that inadequate communication is a significant program failure that has arisen. The TFWP is currently being managed by multiple departments, and there has been a lack of consistent communication among them.

For example, laborers are typically not informed of their rights. Due to the fact that certain employers are subject to duplicate workplace inspections, which are typically disclosed in advance, it is simpler for non-compliant firms to temporarily enhance work conditions. Furthermore, the absence of a data structure complicates the evaluation of program results.

The Standing Senate Committee on Social Affairs, Science, and Technology has responded by asserting that the Canadian government must establish a Migrant Work Commission. This panel would include commissioners for employers and migratory laborers, in addition to the Canadian government.

The commission would serve as a centralized point of contact for allegations of abuse and maltreatment through Employment and Social Development Canada (ESDC) and the IRCC, and it would advocate for the rights of TFWs. Furthermore, it would coordinate annual meetings with relevant stakeholders and endeavor to establish a research program that would collect, analyze, and disseminate data on the experiences of migrant laborers in Canada and their role in the market.

Improvements to the pre-arrival data for TFW workplace inspections and the expansion of the Provincial Nominee Program (PNP) to facilitate the permanent citizenship of a greater number of migrant and temporary workers were among the numerous other recommendations included in both reports.

According to Senate-outlined legislation, the government is required to provide a response or an explanation for the absence of a response within 150 calendar days of the standing committee’s report.

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