Canada announces additional changes to temporary residence programs

On 18 September 2024, the Government of Canada announced that it would be tightening certain components of the Temporary Foreign Worker, International Student, and Post-Graduation Work Permit (PGWP) Programs. These additional measures are being implemented in an effort by the government to reduce the number of temporary residents in Canada, reinforce the integrity of the PGWP, and to protect vulnerable foreign nationals working temporarily in Canada. These measures are expected to come into effect later in 2024. In March 2024, the Government of Canada announced its intent to reduce the number of temporary residents in Canada from its current level of 6.5% of the population to 5% by 2027. The government stated that this is in response to changing economic conditions following the pandemic and the misuse of certain temporary residence programs. As a result, IRCC tightened the eligibility requirements for Study and Work Permits, as well as the Labour Market Impact Assessment that is required to support some Work Permits.

A Tax Alert prepared by EY Law LLP group, and attached below, provides additional details.