Low‑wage positions: how to hire a temporary foreign worker in Quebec?

In the face of persistent labour shortages across several sectors, the Temporary Foreign Worker Program (TFWP) remains a key mechanism for meeting certain operational needs. However, the low‑wage stream is subject to strict rules at both the federal and provincial levels. Employers must therefore navigate these requirements carefully in order to continue meeting their recruitment needs while remaining compliant.

What is a low‑wage position?

Under the TFWP, a position is considered “low wage” when the hourly wage offered is below the provincial or territorial median wage threshold. In Québec, this threshold is set at $34.62/hour. In Ontario, it is $36.00/hour.

This classification determines whether a Labour Market Impact Assessment (LMIA) application must be submitted under the high‑wage or low‑wage stream. The wage level also dictates the employer’s compliance obligations.

If the wage offered is below the median threshold, the employer must apply under the low‑wage stream, and vice versa.

Periodic increases in wage thresholds are reclassifying an increasing number of positions into the low‑wage stream, which impacts the renewal of work permits associated with an LMIA.

The LMIA: a mandatory step for low‑wage positions

To hire a temporary foreign worker under the low‑wage stream, the employer must obtain a positive or neutral LMIA.

The employer must demonstrate that no Canadian citizen or permanent resident is available to fill the position. As part of this process, the employer must prove local recruitment efforts, including job advertising for at least 30 consecutive days within the three months preceding the LMIA application, and continue recruitment throughout the LMIA processing period.

In Quebec, the employer must also include a Quebec Acceptance Certificate (CAQ) with the LMIA application. Applications are submitted simultaneously to the Ministère de l’Immigration, de la Francisation et de l’Intégration (MIFI) and Employment and Social Development Canada (ESDC).

General obligations imposed on employers

To hire a low‑wage Temporary Foreign Worker (TFW), employers must comply with several general requirements:

• The job offer must be full‑time, with a minimum of 30 hours per week;
• The employer is responsible for round‑trip transportation between the worker’s country of origin and the place of work, typically airfare;
• The employer must provide or facilitate access to suitable and affordable housing. Affordable housing refers to accommodation that is financially manageable for the worker based on their wage;
• The employer must provide private health insurance coverage from the worker’s arrival in Canada until they become eligible for the provincial healthcare system (RAMQ in Québec). This coverage must offer benefits equivalent to the provincial plan.

Recent federal restrictions on the low‑wage stream

In recent months, the federal government has tightened the regulatory framework governing this stream.

• LMIA applications under the low‑wage stream are no longer processed in regions where the unemployment rate is 6% or higher;
• The maximum duration of work permits issued following an LMIA has been reduced to 12 months;
• Employers must retain all documentation evidencing local recruitment efforts;
• Employers must also comply with the 10% cap on low‑wage temporary foreign workers within their workforce. Exemptions apply to certain labour‑shortage sectors, such as healthcare.

Quebec‑specific rules

Quebec applies additional constraints that reinforce federal requirements.

Until December 31, 2026, a moratorium suspends the processing of low‑wage LMIA applications for jobs located on the Island of Montreal and in Laval. This effectively makes it impossible to use the low‑wage LMIA stream in these regions.

In addition, regardless of the LMIA type, companies with 25 employees or more must comply with French‑language compliance requirements under the Charter of the French Language in order to obtain a positive or neutral LMIA.

Alternatives for employers facing restrictions

When restrictions make it difficult to obtain a low‑wage LMIA, employers may consider alternative options.

• The International Mobility Program (IMP) allows employers to recruit foreign workers without an LMIA, under certain conditions;
• Employers may also hire workers who are already in Canada, including holders of open work permits, such as participants in International Experience Canada (IEC) on a Working Holiday Permit (WHP). Employers may also recruit individuals on a pathway to permanent residence, such as holders of a valid Quebec Selection Certificate (CSQ);
• Increasing the offered wage may allow the position to exceed the median threshold and shift into the high‑wage stream. Employers must still ensure compliance with pay equity obligations and salary scales by occupation (in Quebec). Under the high‑wage stream, the maximum work permit duration is 36 months, offering a more stable timeframe for transitioning to permanent residence and reducing renewal costs;

Where feasible, employers may also consider changing the work location to a region not subject to restrictions in order to submit a low‑wage LMIA. Proper procedures must be followed when changing employment conditions to remain compliant.

Conclusion

The low‑wage stream of the TFWP remains essential to addressing certain labour shortages, but its strict and evolving regulatory framework requires a thorough understanding of applicable rules. Employers must anticipate renewal processes and adapt their recruitment strategies—and, in some cases, their compensation policies—to overcome the constraints associated with low‑wage positions.

Contact our professionals to answer your questions and/or support you in identifying the best options for your temporary foreign workers.