Hiring temporary foreign workers: What you need to know

There are three ways in which Canadian franchises can employ foreign workers on temporary contracts:

1. Via the Temporary Foreign Worker Program [1]
2. By obtaining an International Student Work Permit [2]
3. Via the International Mobility Program [3]

History and Statistics

The Temporary Foreign Worker Program was introduced in 1973 as a last-resort method to fill jobs and has historically been popular among agricultural industries that require manual labor during specific times of the year.

However, since the effects of the COVID pandemic stifled the economy and created vast labor shortages across many industry sectors, including healthcare and food service, the program has seen a rapid resurgence. Work permit data shows that in 2023, the number of temporary foreign workers in Canada hit its highest levels since records began.

This is partly due to the relaxation of the ruling that restricted how many temporary foreign workers a business could employ, allowing businesses to staff up to 30% of their workforce with temporary foreign workers in some sectors.

Benefits and drawbacks of temporary foreign workers

Many temporary foreign workers are drawn to Canadian employment opportunities because of a lack of domestic opportunities and the reasonably high potential that their residency could become permanent.

Businesses benefit from stability when they hire temporary foreign workers as their permits are tied to that business and prevent the worker from finding alternative employment once they are in the country.

Businesses are required by law to offer their temporary foreign workers an equivalent salary to that earned by local workers, but foreign workers are typically more willing to accept a lower income for a better quality of life, thus inadvertently harming the economy and driving local workers away from the very vacancies they should be attracted to.

There is a belief that growth in all three temporary foreign worker programs is a strong indicator that foreign workers wish to obtain permanent residency in Canada, which may have far-ranging implications for housing and the economy.

Should you hire temporary foreign workers?

This is a decision that can only be made by an individual business based on its specific circumstances, needs and future growth plans.

There are many seasonal franchises that could benefit from experienced foreign workers for short and specific times of the year, and many food service franchises may find that foreign workers have a greater appetite for the work hours and earning potential than their local counterparts.

Ultimately, all of these avenues should only be used when attempts to recruit from the local talent pool have been exhausted and the business cannot operate to its full potential without bolstering its workforce.

Resources:

[1] https://www.canadim.com/work/temporary-foreign-worker-program/#:~:text=The%20TFWP%20helps%20Canadian%20employers,High%2DWage%20Workers

[2] https://www.canada.ca/en/immigration-refugees-citizenship/services/study-canada/work.html

[3] https://www.canada.ca/en/immigration-refugees-citizenship/services/work-canada/hire-temporary-foreign/international-mobility-program.html