Canada foreign worker rules have changed, with staffing and employment agencies no longer being treated as employers under the Temporary Foreign Worker Program when they recruit workers for another business.
The revised requirements took effect on September 18, 2026.
The change affects how employers can seek a Labour Market Impact Assessment (LMIA), a key part of the process for hiring temporary foreign workers in Canada.
Under the revised rules, the business that actually employs and controls the worker must meet the programme requirements.
What Canada Foreign Worker Rules Change
Under the new requirements, an employer is the entity that hires the temporary foreign worker, sets the person’s working conditions and directly pays the worker.
Canadian authorities can examine who controls the employment relationship when assessing an LMIA application.
Staffing or employment agencies that recruit workers for another business are not considered employers under the Temporary Foreign Worker Program when there is no direct employer-employee relationship.
As a result, they cannot be approved to hire a temporary foreign worker on behalf of another company.
The rules also apply to arrangements involving Employers of Record, or EORs, when the worker will ultimately be employed and controlled by another business.
The company actually responsible for the employment relationship must meet the applicable requirements.
How the New LMIA Rules Work
Canadian authorities will look at factors such as who decides where, when and how the employee works, who determines job duties, who supervises performance and who pays wages.
The assessment is intended to establish which entity is the actual employer.
Employers also cannot classify a temporary foreign worker as an independent contractor when an employer-employee relationship exists.
The Canadian government says such misclassification can weaken wage protections and avoid required payroll deductions.
Non-compliant employers may face administrative monetary penalties and bans from the Temporary Foreign Worker Program.
The rules are therefore relevant to businesses as well as foreign workers whose employment arrangements involve intermediaries.
What the Change Means for Foreign Workers
For foreign workers, the change means that the company actually employing and controlling them must be responsible for meeting the relevant LMIA and Temporary Foreign Worker Program requirements.
A staffing agency cannot simply serve as the employer for another business where the required employment relationship does not exist.
Canada’s rules also prohibit employers from charging or recovering recruitment fees from temporary foreign workers.
Employers must meet requirements covering legitimate job offers, wages, working conditions and employment agreements.
Canada Tightens Temporary Worker Compliance
The revised employer definition is part of Canada’s broader compliance framework for the Temporary Foreign Worker Program.
The government says the employer must have a genuine employment relationship with the foreign worker and remain responsible for the conditions attached to the approved employment arrangement.
For Indian students and professionals considering temporary work opportunities in Canada, the change makes it important to understand who the actual employer is and whether the job arrangement meets the programme’s requirements.
The specific eligibility and application requirements can vary depending on the employment situation.
