Changes Announced for the Temporary Foreign Worker Program

New rules to strengthen Canada’s Temporary Foreign Worker Program came into effect on April 1, 2011. Citizenship and Immigration Canada (CIC) and Human Resources and Skills Development Canada (HRSDC) will be making significant changes to the current procedures impacting both foreign workers and Canadian employers.

As a general rule, the Temporary Foreign Worker Program allows employers to hire foreign workers when sufficient numbers of Canadian workers are not readily available. A Canadian employer who wants to hire a foreign worker may be required to apply to HRSDC for a Labour Market Opinion (LMO). An LMO is a document that HRSDC issues to employers confirming that hiring a foreign worker for a particular job will have a positive or neutral impact on Canadian workers. Employers must usually prove that they made reasonable efforts to hire a Canadian citizen or Permanent Resident before they offer the job to the foreign worker. In addition, Canadian employers must offer wages and working conditions to foreign workers that are consistent with standards for Canadian workers in their region.

With a genuine job offer and a positive LMO, the temporary foreign worker can apply for a work permit. It is important to note that some work permits do not require an LMO, such as Intra-Company work permits and work permits obtained under international agreements (eg. NAFTA).

To ensure that temporary foreign workers are protected while they are in Canada, CIC and HRSDC will be making the following changes to the Temporary Foreign Worker Program, which will affect those applying for LMO-based work permits and LMO-exempt work permits:

Genuineness of the Job Offer

To protect foreign workers and prospective immigrants from fraudulent job offers, CIC and HRSDC will be establishing additional criteria for determining whether a job offer is genuine, including job offers extended to Live-In Caregivers. They will be assessing:
  • The terms of the job offer (including the wages offered) and if the employer can reasonably fulfill those terms;
  • If the job offer is consistent with the employer’s labour needs;
  • If the employer previously complied with provincial and federal laws regulating employment or recruiting of workers.
Ban for Non-Compliant Employers

If a Canadian employer is found to be in violation of the regulations, the employer will be banned from hiring any foreign workers for two years. Employers can also receive the two year ban if they fail to fulfill the conditions given in the LMO and in the job offer. These non-compliant employers will have their name and address published on a list available to the public.

According to Immigration Attorney David Cohen, “Employers will want to get this right as the government has indicated that the consequences of non-compliance will be severe. Misinterpreting the new regulations may result in the employer being banned from hiring foreign workers for two years which can negatively impact a company’s brand and ability to meet staffing needs. The risks inherent in these consequences underscore the need for companies to secure professional legal representation to make sure that they comply with the new regulations.”

Maximum of Four Years for Canadian Work Permits

CIC will be limiting the number of years a foreign worker is permitted to hold a Canadian temporary work permit. A foreign worker will only be permitted to work in Canada for a total of four years. Once the four years has ended, the foreign worker will be required to wait at least four years before reapplying for a work permit. Certain workers will be exempt from this new rule:
  • Foreign workers who are working in Canada on a study permit;
  • Foreign workers who are working under an international agreement with Canada (eg. NAFTA, GATS, etc.); and
  • Foreign workers who are working in a Canadian job that creates or maintains significant cultural, economic, or social benefits for Canadian citizens or permanent residents.
Foreign workers also have the option of applying for Canadian Permanent Residency before or after their four years of Canadian employment have ended.
Source:Canada Immigration Newsletter.

Peter Schiff puts his money on Canadian resource sector

Peter Schiff, who failed to gain 15% of Republ...Image via Wikipedia
Iconoclastic U.S. investor, author and commentator Peter Schiff has long been fairly bullish on Canada, its resources and its prospects. The chief executive officer of Euro Pacific Capital Inc. of Westport, Conn., came to Toronto this week to publicize the launch of his first Canadian venture, Euro Pacific Canada, in which he holds a 20-per-cent stake, and to expound on his philosophy, which underpins the firm’s investment choices.



Q. What makes Canada so attractive to you?
A. I’m already investing in Canada. I personally have more money invested in Canada than I do in the U.S. Part of that is my interest in owning resources. There are a lot of resource names up here. Pretty much all the stocks I own in Canada are resource stocks.
Q. Precious metals?
A. Energy as well, and agriculture.
Q. Your outlook on the U.S. economy is rather dark. What about the Canadian economy?
A. I’m not nearly as pessimistic about Canada. … I like Canada for the resources. [Canadians] are certainly going to be impacted by the problems in the U.S., maybe more so than other countries. So that’s a negative. A lot of it depends on how Canada reacts.
Q. In fact, you argue that Canada needs higher interest rates right now.
A. Canada’s interest rates are still much too low. But they [authorities] feel that they can’t raise them, because they don’t want to see their currency rise too rapidly against the dollar. That’s a mistake. The longer they follow our lead, the more problems they’ll create for their own economy. We’re going to take a lot of countries down that have tethered their currency to the [U.S.] dollar.
Q. But we fear that a stronger loonie will cripple our already weakened manufacturers. Why is that not a legitimate concern?
A. Ultimately, they won’t get creamed, because if the Canadian dollar is strong, then that means capital costs for Canadian businesses will be lower. There will be confidence in the future purchasing power of the Canadian dollar. Higher interest rates will mean more Canadians are saving, which will bring down the cost of capital for businesses to invest in labour-saving devices to make them more competitive. Also, when your currency goes up, the cost of raw materials goes down. … In general, manufacturers are helped by a strong currency.
The policies that produce a strong currency are sound. The policies that produce a weak currency are bad. If you’re running up big deficits on social spending and cranking out money, that’s destroying your economy.
Q. How does this figure into your bond strategy?
A. As an investor, the most important thing for me is the strength of the currency where my yields are coming from. We have Canadian bonds in my bond fund. If I’m a bond investor, it’s the only thing that matters really. I’m not worried about Canada defaulting. But I would be worried about Canada inflating. When you’re a bond investor, you want purchasing power. … I have to make sure the currency that I own [for clients] is going to deliver that purchasing power in the future. So the currency value is paramount.
Q. Obviously, you’re no fan of the U.S. currency.
A. The dollar is losing value. Right now it’s losing value more slowly than the euro. If two people jump off of a building, and one is falling at 40 miles an hour and the other is falling at 30, the one that’s falling at 30 isn’t flying. He’s still going to hit the pavement.
Q. Yet money is still pouring into U.S. Treasuries.
A. Not my money. You’re seeing the Federal Reserve buy Treasuries. But none of my clients are buying. I can’t imagine the person dumb enough. I want to find that person.
Q. I guess you’re not rushing into European sovereign debt either.
A. The maturity on my bond fund … is two-point-something years. I don’t want long-term bonds, because the rates are too low. But a lot of people are being suckered into making that tradeoff, because you can’t get any yield on the short-term bonds. So some people are buying 10- and 20-year bonds, because they need the income. They don’t realize how much risk they’re taking. As an investment adviser, I’d rather tell my client: “Look, if you really want bonds, then just buy the short-term bonds and spend some of your principal now. Because you’ll lose a lot less of it that way.”
Q. What’s your own recommendation?
A. I still try to get my clients to go away from the fixed income [sector]. If you need income, buy stocks. There are stocks that are paying 5, 6, 7, 8, 9 per cent. So you can get all the income you need.

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