Canada May Phase Out Closed Work Permits

Report Highlights Need for Change

A recent report by the Standing Senate Committee on Social Affairs, Science and Technology (SCSAST) suggests that Immigration Refugees and Citizenship Canada (IRCC) should stop issuing closed work permits.

Background on the Temporary Foreign Worker Program (TFWP)

The Temporary Foreign Worker Program (TFWP) was created in 1973 to help Canadian employers fill urgent job vacancies when no suitable Canadian workers were available. Originally intended as a last resort, the TFWP has become a key part of the Canadian labor market.

How the TFWP Works

The TFWP allows foreign workers to come to Canada to gain work experience, which can help them apply for permanent residence. Employers who want to hire through the TFWP must get a Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC). This document shows that hiring a foreign worker won’t negatively affect the Canadian labor market.

Employers must prove they tried to hire a Canadian worker first. If they get a positive or neutral LMIA, they can share it with the foreign worker, who then applies for a work permit from IRCC.

Issues with Closed Work Permits

Closed work permits only allow workers to work for one employer. If they leave their job, they may lose their right to stay in Canada. This situation can make workers vulnerable to abuse. The SCSAST report notes that the TFWP doesn’t work well for employers or workers, creating power imbalances and making it hard for workers to access their rights.

Recommendations for Improvement

The SCSAST recommends phasing out closed work permits over the next three years. Instead, they suggest sector or region-specific work permits, which would offer more flexibility for both workers and employers. This change could help reduce workers' vulnerability and make it easier for employers to manage their workforce.

Need for Better Communication

The report highlights poor communication between the different departments involved in the TFWP. It suggests establishing a Migrant Work Commission to improve communication and protect workers' rights. This commission would serve as a central point for reporting abuse and ensuring that workers are informed about their rights.

Moving Forward

Both the SCSAST and the Cooper Institute, another organization that supports ending employer-specific work permits, agree that migrant workers should have better protections and more pathways to permanent residency. These changes aim to create a fairer and more effective system for both workers and employers.

By phasing out closed work permits and improving communication, Canada can better support its temporary foreign workers and strengthen its labor market.