Canada Work Permit Policy Change: Visitor Visa Holders No Longer Eligible to Apply from Within the Country

August 29, 2024
Canada Work Permit

Canada has shut down a program that allowed those here on visitor visas to apply for a work permit from within the country in what some are calling a major rethink of the country’s policies around temporary residents. The policy had been in place since the early days of the COVID-19 pandemic to help those visitors who became stranded. A new policy has since been axed in line with Canada’s general plan to maintain its immigration system while regulating the level of temporary foreign workers.

Overview of Canada's Work Permit Policy Change

For people in Canada on a visitor visa, this policy, effective from 2020, allowed them to apply for a work permit without leaving the country. This was particularly useful for those who could realise this opportunity and would not have to go home because of the border lockdown caused by the pandemic. As well, the policy allowed workers who, in the past 12 months from the time of holding a work permit and had altered their immigration status in Canada to “visitor,” to continue working legally in Canada pending a decision on the new work permit application.

It was first scheduled to sunset on February 28, 2025, but IRCC has recently put forward its early closure; it is effective immediately. Applications received prior to August 28, 2024, will continue to be processed, but no new applications will be received under this provision. The changes reflect Canada’s ever-evolving immigration policies that intend to adjust the inflow of temporary residents.

Why Canada Ended the Work Permit Policy for Visitor Visa Holders

The early axing of the policy comes at a time when there are concerns that this provision is being abused by “bad actors” who mislead foreign nationals into working in Canada without proper authorization. In its idea, to the IRCC, it was supposed to be a temporary relief during the pandemic, but this has turned out to create a loophole that would indeed act as a threat to the integrity of Canada’s immigration system.

This is some sort of balanced step for the Canadian government in embracing temporary workers while trying to maintain an orderly process of immigration. In addition, this will enable the government to curb unsanctioned individuals working within the country by revocating such policy in order to preserve the integrity of both the labour market and the immigration system of Canada.

Wider Changes by Canada to Temporary Foreign Worker Numbers

The early termination of the work permit policy is part of a larger shift in Canada’s approach to managing temporary foreign workers. On top of that, ESDC announced more measures to reduce the number of temporary foreign workers in Canada on August 26, 2024. These are accompanied by fundamental changes to the TFWP, especially the low-wage stream.

Pause of Processing Applications—As a result of the changes, Canada has temporarily stopped processing some LMIA applications in the low-wage stream for those applicants who fall under a Census Metropolitan Area with an unemployment rate of 6% or higher. The action would take effect on September 26, 2024, and would prioritise Canadians in regions with higher unemployment rates by reducing dependence on temporary foreign labour.

New maximum limits have been imposed by the government on the share of the percentage of temporary employees that Canadian employers can hire through the TFWP. Employers will be allowed a maximum of just 10% of their workforce as temporary foreign workers. It is in this background that further slashing of maximum time duration for the workforce in the low-wage stream has been done—from two to one year, thereby tightening the noose of dependency on the temporary foreign workers.

Impact on Employers and Migrant Workers

The rollback of the work permit policy and the wider changes to the TFWP will affect both employers and foreign nationals. Employers, especially in those industries that generally employ large numbers of foreign low-wage workers, are likely to face problems in maintaining the optimal staffing levels complemented by deft workers. The majority of the businesses are under limits to the numbers of temporary foreign workers to whom they can offer employment terms, which have been cut down in length; thus, they have to adapt to a more restrictive labour market.

These changes are indicative of a more demanding immigration scenario for foreign workers. Termination of the policy that enabled work permits to be applied for from inside Canada will mean that visa holders who hold visitor visas will have to return to their home country to apply for a work permit. The process will, therefore, become that much more cumbersome and expensive. Indeed, the TFWP has been further tightened overall, which indicates the shifting priorities towards domestic workers and increased immigration control within Canada.

Conclusion

The decision to terminate the policy of allowing visitor visa holders to apply for work permits from within the country is a strong indication that Canada is, indeed, going to keep its immigration system in a state of check and balance. As much as this policy was a relief during the pandemic, its early termination shows a greater plan directed toward level management on temporary foreign workers while protecting the Canadian labor market.

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