In July 2025, internal documents from Employment and Social Development Canada (ESDC), which oversees the Temporary Foreign Worker Program (TFWP), revealed six proposed reforms. These changes are aimed at easing employer concerns while offering limited improvements to worker mobility. Key proposals include allowing wage deductions, loosening housing standards, and introducing sector-specific work permits.
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The Migrant Rights Network, a national advocacy group, released a report on July 30 criticizing the reforms. The group described the new permits as a “cosmetic” change that preserves employer control while giving the appearance of increased worker freedom.
The TFWP plays a significant role in Canada’s labor market. It currently supports over 106,000 migrant workers and 7,400 employers. As the government reviews the proposed changes, workers, advocates, and industry leaders are voicing strong and often conflicting opinions.
Six Key Proposed Reforms to the TFW Program
The six proposals were revealed in internal documents obtained by the Migrant Rights Network through the government’s consultation process. Developed in response to feedback from employer associations and labor groups, the reforms address issues related to mobility, wages, housing, transportation, health care, and administration.
1. Sector-Specific Work Permits
One of the most significant proposals is the introduction of sector-specific permits for workers in agriculture and fish processing. Unlike current closed permits, these two-year permits would allow workers to change employers within the same sector, as long as they secure a new job offer. This is intended to improve mobility and reduce the risk of exploitation. However, critics argue that the requirement for a new job offer still places workers at the mercy of employers.
2. Wage Deductions
Employers in agriculture and fish processing would be permitted to deduct substantial amounts from workers’ wages for housing, transportation, and utilities. While the government describes this as a way to offset costs, workers could lose thousands of dollars each year from their pay, potentially worsening their financial vulnerability.
3. Relaxed Housing Standards
The proposed changes would eliminate indoor temperature regulations that were introduced to protect workers from extreme heat in environments such as greenhouses and processing plants. Advocates warn that removing these standards could compromise worker safety.
4. Flexible Transportation Requirements
Employers would have more freedom in how they arrange transportation to and from job sites. Critics are concerned this could lead to unreliable or unsafe transport options, especially in remote or rural areas.
5. Ambiguity in Health Care Obligations
The reforms include unclear language about employer responsibilities for providing health care access. Advocates fear this could result in fewer workers receiving adequate medical care, particularly in regions where health services are already limited.
6. Streamlined Administrative Processes
To reduce red tape, the government proposes simplifying procedures like the Labour Market Impact Assessment (LMIA). This is aimed at making the program more efficient for employers while still ensuring jobs are not being taken from Canadian workers.
According to ESDC spokesperson Mila Roy, the department conducted consultations throughout 2024 and 2025. These focused particularly on the new Agriculture and Fish Processing Stream. The consultation period has now ended, and ESDC is reviewing the feedback in collaboration with Immigration, Refugees and Citizenship Canada (IRCC). No timeline has been provided for when final decisions will be announced.
Migrant Rights Network: Reforms Are Superficial
The Migrant Rights Network has criticized the proposed reforms as insufficient and misleading. In its July 30 report, the organization argues that sector-specific permits do not meaningfully increase worker freedom, and may instead reinforce employer control.
Key concerns highlighted in the report include:
- Employer Blacklisting: Although workers could technically switch employers within the same sector, they must first secure a new job offer. Advocates say this creates a power imbalance, as workers who challenge poor conditions risk being labeled “troublemakers” and blacklisted by other employers.
- Lessons from Previous Programs: The report draws parallels to the government’s Open Work Permit for Vulnerable Workers program. Although this allows workers to leave abusive employers, many struggle to find new jobs due to employer bias. The same problem could affect sector-specific permits.
- No Pathway to Permanent Residency: The reforms do not include any provisions for permanent residency. Advocates argue that without a path to stay in Canada long-term, workers remain dependent on their employers and vulnerable to abuse.
Syed Hussan, executive director of the Migrant Rights Network, described the reforms as inadequate.
“These changes are likely to go ahead, but they do not fix the fundamental problems,” he said. “What we need is open work permits and a clear path to permanent residency. Anything less just reinforces the power imbalance.”
A Program Under Pressure
The Temporary Foreign Worker Program was launched in 1973 to fill labor shortages in industries where Canadian workers were unavailable or unwilling to take low-paying or seasonal jobs. It now operates through two main streams: one for low-wage jobs such as farming and fish processing, and another for high-wage skilled positions.
To hire foreign workers, employers must complete a Labour Market Impact Assessment (LMIA) that confirms there are no qualified Canadians available for the role.
During the COVID-19 pandemic, the government expanded access to the program to address labor shortages. As a result, the number of permits issued grew significantly between 2022 and 2024. More recently, Ottawa has begun tightening eligibility requirements in response to growing concern about the size of the temporary resident population.
A defining feature of the program is its use of closed work permits, which tie a worker to a single employer. If the worker is laid off or quits, they lose their legal right to remain in Canada. This system has contributed to numerous reports of abuse, wage theft, and poor living conditions.
In 2024, the United Nations Special Rapporteur on contemporary forms of slavery described the TFWP as a “breeding ground for modern slavery.”
Although the federal government introduced protections in 2022, including housing inspections and limits on deductions, the current reforms risk undoing some of those safeguards.
The Way Forward
As the government reviews public feedback, the future of the TFWP remains uncertain. Workers and advocates are calling for systemic changes, including:
- Open work permits that are not tied to a single employer
- Guaranteed pathways to permanent residency
- Stronger enforcement of labor standards
- Improved access to health care and transportation in rural areas
Employers, on the other hand, are urging the government to reduce costs and simplify the hiring process.
Some experts suggest creating a national task force that brings together workers, employers, unions, and policymakers. Pilot programs could test open permits or permanent residency pathways without disrupting the current labor market.
For workers like Javier, Ana, Maria, and Carlos, the stakes are personal. “We’re not asking for special treatment,” said Ana. “We just want to work with dignity and know that we matter.”
A Defining Moment for Canada
The proposed changes mark a turning point for Canada’s immigration and labor policies. The government now faces a critical decision: whether to pursue modest reforms that serve employers, or commit to deeper changes that protect workers and uphold human rights.
While sector-specific permits may offer limited flexibility, they fall short of addressing the program’s most serious problems. Without action on wage deductions, employer control, and permanent residency, the reforms risk being seen as a missed opportunity.
Migrant workers are not just laborers. They are people with families, ambitions, and rights. Employers, too, are essential to the Canadian economy and must be part of any fair solution.
Whether the government chooses to modernize the program or maintain the status quo will shape Canada’s reputation and labor market for years to come.
