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How Canada’s Next Change Affects Low and High-Wage Foreign Workers

Foreign Workers

Most big economies look for workers across international borders because they cost less than their local counterparts. Companies from developed countries either take their operations to developing countries or hire people from these countries to reduce their expenditures. This has been the phenomenon so far. However, it now looks like the river will flow in the opposite direction. The Canadian government will pay foreign workers more than the local workers if they can meet their requirements. It is difficult to believe that, but, here is how things are developing.

The Temporary Foreign Worker Programme (TFWP) is designed as an extraordinary measure to fill job vacancies only when qualified Canadians and permanent residents are not available. Changes to TFWP have been announced recently to reduce Canadian employers’ reliance on the programme under current market conditions.

Temporary Foreign Worker Programme’s New Look 

The year 2024 has been a happening year till now for those applying for Canada’s work permit. The work permits issued are of two types, low wage and high wage. The Canadian government has already announced changes in low-wage work permits in September, and changes in high-wage work permits will become effective in November. Changes about high-wage work permits are also out now.

A high-wage work permit from Canada presumes that you have a degree and are working in a profession in high demand in Canada. An employer in Canada will send you an invitation based on your degree and experience in that profession. Till now the prospective employer had to get their accounts attested with an accountant and a lawyer and submit it to the government. This was done to show that the employer has sufficient revenue generation to hire employees from overseas. The Canadian government will not accept such attested applications, making things tough for employers. Recently some work permit applications were refused reasoning that things had not been properly disclosed or presented before the government. 

Prove Your Capability and Get Paid More

Starting from November 8, 2024, employers will have to pay foreign workers 20% more than the median salary given to local workers. The immediate response to the rule is that Canada wants to discourage its companies from hiring foreign workers. On the first look, it may look negative, but Canada wants only good and capable workers in the country. It can be a gold mine for people wanting to work in Canada, provided they can legibly fulfil the requirements of the company that wants to hire them.

We can take an example here, the median hourly wage in Ontario is CAD28 for the high wage bracket. After the changes become effective an employer will be required to pay CAD34 per hour. According to an estimate from the Canadian government, nearly 34,000 workers under the work permit high-wage stream will be affected by the change. Existing work permits will not see this change, however, it will apply to applications coming for renewal. 

The new ruling is an effort to stop people from misusing the system. Rules about low-wage and high-wage work permits will be successful in putting an end to the misuse. It is the latest in a series of moves to tighten eligibility rules to limit temporary workers, including international students. The message is clear from Canada, it wants to put an end to the ‘everyone is invited’ policy that it has been following till now. 

Changes Expected from Work Permit Applicants in Future

The first message is to acquire mastery in anything you do. Your competency both in terms of qualifications and work experience should be exceptionally good. Search for sectors that are actively hiring in Canada and tailor your applications accordingly. Transparency is more critical, as can be understood from the recent rejections of work permit applications. Both you as an employee and the prospective employer should make sure that all the documents are accurate and thorough.

The new regulation will accept fewer and higher-quality candidates for work permits. This means that the process will be competitive and it becomes important to evaluate and find things that make you special and different. The work permit process can be complex and the new rules increase the need to seek professional guidance. Consider speaking with immigration consultants in Chandigarh who specialise in work permit applications. 

The Takeaway

Changes in work permits reflect Canada’s evolving approach to workforce management and immigration. There are challenges, but it presents an opportunity to prospective foreign workers. Qualifying for a work permit will become difficult, however, if you can prove your worth, you will be paid more than the local workers. On the part of employers, a higher level of transparency and fairness will be required to hire internationally.

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