Work in Canada,
with the right permit.

The Government of Canada has introduced significant changes to the Temporary Foreign Worker Program in recent years, with the most consequential affecting the low-wage stream. Visitors physically in Canada are now generally prohibited from applying for a work permit from inside the country, a measure designed to redirect such applicants through the standard overseas channels.

Looking ahead, several factors will continue to shape Canada's immigration policy: an increased emphasis on high-skilled workers, ongoing labour shortages in healthcare and skilled trades, and a focus on aligning temporary-worker selection with permanent-residence pathways.

The Temporary Foreign Worker Program (TFWP) is a vital tool for addressing labour-market shortages and supporting economic growth, but it has faced challenges that warrant tighter regulation. The reasons commonly cited for stricter rules include:

• Protecting the domestic labour market — ensuring Canadian citizens and permanent residents have priority access to jobs and fair wages.
• Preventing exploitation of foreign workers — strengthening compliance, audits, and worker-protection provisions.
• Upholding program integrity — clear standards reduce fraudulent LMIA applications and maintain public confidence in the system.

Stricter regulations promote fairness, integrity, and compliance — supporting both Canadian workers and the foreign workers the program is designed to protect.

Before exploring the streams in detail, three terms anchor everything else:

• Labour Market Impact Assessment (LMIA): a document issued by Employment and Social Development Canada (ESDC) that assesses the impact of hiring a foreign worker on the Canadian labour market. A positive LMIA shows that there is a need for a foreign worker to fill the role and that no Canadian or permanent resident is available — sometimes called a "confirmation letter." If the employer needs an LMIA, they must apply for one before the worker applies for a work permit.
• National Occupational Classification (NOC): the system used by IRCC and ESDC to organise jobs in the Canadian labour market.
• TEER (Training, Education, Experience and Responsibilities): introduced with NOC 2021, replacing the earlier NOC 2016 skill-type and skill-level system. TEER categorises occupations from TEER 0 (management) through TEER 5 (no formal education required).

Once an LMIA is issued, the employer provides the worker with a job-offer letter, an employment contract, a copy of the LMIA, and the LMIA number. The worker then applies to IRCC for a work permit using these documents.

NOC 2021 replaced the former skill types and levels with the more granular TEER system:

• TEER 0 — Management occupations. Planning, directing, and coordinating the work of others. Roles such as restaurant managers and senior managers.
• TEER 1 — Occupations typically requiring a university degree. Professionals such as doctors, dentists, architects, and registered nurses.
• TEER 2 — Occupations typically requiring a college diploma or apprenticeship of 2+ years, supervisory roles, or roles with significant safety responsibilities.
• TEER 3 — Occupations typically requiring a college diploma or apprenticeship of less than 2 years, or more than 6 months of on-the-job training.
• TEER 4 — Occupations typically requiring a high-school diploma or several weeks of on-the-job training.
• TEER 5 — Occupations typically requiring no formal education or only a high-school diploma.

The specific TEER required for an immigration program varies. Express Entry's federal programs focus on TEER 0-3; PNPs vary; and the proposed TEER 4/5 economic class would extend a federal pathway to lower-TEER essential workers. For the most current information, always refer to the Government of Canada's NOC search.

Effective September 26, 2024, significant changes were implemented for LMIA applications related to low-wage positions in Canada:

1. Processing restrictions in high-unemployment areas: LMIA applications for low-wage positions are no longer processed in regions with an unemployment rate of 6% or higher.
2. Reduced cap on low-wage positions: the cap on the number of low-wage positions for which an LMIA can be obtained was reduced from 20% to 10% of an employer's total workforce. A company with 10 employees can hire only one foreign worker for a low-wage position.
3. Shorter maximum employment duration: the maximum employment duration for low-wage positions was shortened from 2 years to 1 year.
4. Additional processing restrictions: LMIA applications exceeding the new cap are not processed; in-home caregiver positions requiring live-in arrangements are no longer eligible; and employers who have had an LMIA revoked within the past two years cannot submit new low-wage applications.

From September 3, 2024 to March 3, 2025, an additional six-month pause applied to LMIA applications in the Montreal area for positions paying below the Quebec median hourly wage of CAD $27.47.

Together these measures reflect a clear policy direction: protect domestic job opportunities, route foreign-worker hiring to genuine shortages, and tighten compliance throughout the program.

The International Mobility Program (IMP) enables Canadian employers to hire temporary foreign workers without an LMIA. While most foreign-worker hiring requires an LMIA, the IMP applies where the role offers:

• Broader economic, cultural, or other competitive advantages for Canada; or
• Reciprocal benefits enjoyed by Canadians and permanent residents (e.g. trade-agreement workers under CUSMA, intra-company transferees, working-holiday participants).

To hire through the IMP, a Canadian employer must:

1. Confirm that the position or worker qualifies for an LMIA exemption.
2. Pay the employer compliance fee of CAD $230.
3. Submit the official job offer through the IMP Employer Portal.

The IMP is a meaningful unlock for sectors where the LMIA process is impractical and for positions tied to international agreements or specific employer relationships.

Spouses and common-law partners of certain temporary residents may be eligible for an open work permit. This generally applies when the principal applicant is:

• A full-time student at a public post-secondary institution, including a college, university, or CEGEP in Quebec — or at a private post-secondary institution that operates under the same rules and receives at least 50% of its operating funds from public sources.
• The holder of a valid study permit (in which case the spouse's open work permit is valid for the same period as the study permit).

Accompanying spouses or common-law partners of qualifying foreign students do not need a job offer or a separate labour-market opinion to receive the open work permit.

Mercan Group has assisted Canadian employers and foreign workers for over three decades. Our team manages the full LMIA / TFWP lifecycle — from labour-market analysis and job-posting compliance to LMIA submission, work-permit applications, and post-arrival settlement support.

If you are a Canadian employer looking to hire foreign workers, our recruitment consultants will assess your workforce needs and recommend the right channel — LMIA, IMP, or PNP-aligned hire. If you are a foreign worker seeking placement, our pool connects qualified candidates with employers across multiple regulated industries.