On September 18, 2026, Employment and Social Development Canada (ESDC) updated the employer eligibility requirements for high-wage positions under the Temporary Foreign Worker (TFW) Program, which require a Labour Market Impact Assessment (LMIA).
The update emphasizes that an employer-employee relationship exists “when an employer hires a worker, directs their duties and pays them for their work. The employer must make an offer of employment and provide employment for a specified period of time to the temporary foreign workers who will provide labour in return for compensation.
“This relationship is further confirmed in the employment agreement that’s signed by both parties on or before the first day of work.”
Notably, “Staffing or employment agencies who recruit workers for other businesses aren’t considered employers under the TFW Program. They can’t be approved to hire a temporary foreign worker for other businesses since an employer-employee relationship doesn’t exist.”
Moreover, ESDC stresses that employers may not misclassify temporary foreign workers as independent contractors, but must ensure that a worker’s status reflects the employer-employee relationship identified in the approved LMIA and the employment agreement. Misclassification can lead to administrative monetary penalties, bans from the TFW Program and/or naming and shaming of non-compliant employers on government websites.
Erickson Insights & Analysis
Erickson Immigration Group will continue to monitor developments and share updates as more news becomes available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or if you have case-specific questions.