Maple News reports that the Standing Senate Committee on Social Affairs, Science and Technology (SCSAST) has released a significant report calling on the federal government to eliminate the use of closed work permits for temporary foreign workers. The report recommends Immigration, Refugees and Citizenship Canada (IRCC) take steps to phase out these permits in favour of more flexible, worker-friendly alternatives.
The Temporary Foreign Worker Program (TFWP), which began in 1973 as a stopgap solution for Canadian employers to fill labor shortages where no qualified Canadians or permanent residents were available, has shifted dramatically from its original intent. According to the committee’s findings, it has evolved into a core component of Canada’s labor market, rather than remaining a last-resort tool.
Closed work permits, which tie a foreign worker to a single employer, have faced growing criticism for increasing workers’ vulnerability to abuse, exploitation, and insufficient protections. The Senate committee argues that such work arrangements undermine the rights of foreign workers and recommends the government adopt more open forms of work authorization that promote mobility and equity.
Under the existing TFWP, employers must secure a positive or neutral Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada. This LMIA confirms that hiring a foreign worker will not negatively impact the Canadian labor force. Once approved, the foreign worker can apply for a work permit that is typically employer- and job-specific, restricting their flexibility.
Beyond recruitment, employers are required to ensure safe working and living conditions, including providing housing, health coverage, and fair wages. However, the Senate report raises concerns that the restrictive nature of closed permits can trap workers in precarious situations where they feel unable to report abuse or seek better employment opportunities.
Many participants in the TFWP use the program as a stepping stone to permanent residency. By gaining Canadian work experience, they improve their eligibility under programs such as the Canadian Experience Class, a stream of the Express Entry system. However, the Senate suggests that this route must be more transparent and attainable in order to truly serve as a viable pathway to immigration.
The report’s release could influence future reforms in Canada’s immigration policies. It aligns with wider public conversations around labor rights, economic fairness, and better integration pathways for foreign workers. If implemented, the committee’s recommendations would not only enhance the dignity of temporary foreign workers but also better align Canada’s immigration system with its humanitarian and economic goals.