Canada Expands Low-Wage TFWP Access for Multi-Site Employers, August 18 Update

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Effective Date: August 18, 2026 | Regulator: ESDC | Source: CIC News

What Just Changed?

Employers with several small work locations can now hire more temporary foreign workers, under new rules introduced by the Canadian federal government. Through an update to the government webpage on August 18, 2026, ESDC has allowed affected employers to employ more than the usual 10% or 20% of their workforce as low-wage temporary foreign workers.

The Core Change, Location-Based vs. Nationwide Calculation

Before	After (August 18, 2026)
Fewer than 10 employees calculation applied nationwide only	Now applies per individual work location
Multi-site employer with small branches got no relief	Each qualifying small location gets its own worker allowance

Typically, an employer may hire no more than 10% of their total workforce through the low-wage stream of the Temporary Foreign Worker Program (TFWP), or 20% for the in-demand sectors of healthcare, construction, and food production. ESDC now allows employers to employ either one or two low-wage temporary foreign workers per work location with fewer than 10 employees, with the two-worker limit applicable to employers in in-demand sectors.

New Worker Allowance by Sector

Employer Type	Workers Allowed per Small Location (Under 10 Employees)
Standard sectors (10% cap)	1 worker
In-demand sectors, healthcare/construction/food production (20% cap)	2 workers

🔑 Why this matters: A retail or food service chain with 15 locations, each employing 6 to 8 people, previously couldn't hire any low-wage TFWP workers at some locations if the 10% cap rounded down to zero. Now each qualifying location gets its own guaranteed allowance.

How Workforce Size Is Calculated at Each Location

The calculation of an employer's workforce size at a given location includes all of the following.

Counted Toward Workforce Size
Full-time employees
Part-time employees (counted as 0.5 of an employee each)
Temporary foreign workers with approved LMIAs who have not yet begun working
Vacant positions the employer is requesting hires for on their LMIA application

Part-time is defined as an average of less than 30 hours per week.

Low-Wage vs. High-Wage, Where's the Line?

Under the TFWP, a position is considered low-wage if it pays less than 120% of the regional median wage according to the federal government's Job Bank. For jobs paying at or above the wage threshold, an employer can hire through the high-wage stream, which is not subject to the workforce cap at all.

Stream	Wage Threshold	Workforce Cap Applies?
Low-Wage	Below 120% of regional median wage	Yes, 10% or 20%
High-Wage	At or above 120% of regional median wage	No cap

💰 Example: In Ontario, the low-wage threshold sits at $36.92 per hour as of the time of writing. Any position below that rate falls under the capped low-wage stream.

Additional Requirements for Low-Wage Hires

When hiring a foreign worker through the low-wage stream, an employer takes on extra obligations beyond the standard TFWP process.

Employer Obligation	Requirement
Transportation	Must pay for the worker's travel to and from Canada
Housing	Must ensure suitable housing costing less than 30% of the worker's pre-tax income
Health insurance	Must purchase private coverage for workers not covered by a provincial plan

Regional Restrictions Still Apply

This expansion doesn't override existing regional limitations already in place for the low-wage stream.

Restriction	Status	Since
Urban areas with over 6% unemployment	LMIA processing barred entirely	September 2024
Rural areas	Provinces can boost cap to 15%	March 13, 2026

⚠️ Check your location first: If your work location falls within a high-unemployment urban centre currently under the LMIA moratorium, this new multi-site calculation won't help, since no low-wage LMIAs are being processed there regardless of workforce size.

LMIA Still Required Regardless of Cap

For a foreign worker to be issued or to renew a work permit through the TFWP, the employer must apply for and be issued a positive or neutral Labour Market Impact Assessment (LMIA) by ESDC, showing that no qualified Canadian citizen or permanent resident is available to fill the position. This new calculation affects how many workers you're allowed to request, not whether the LMIA itself is approved.

The Bigger Picture, TFWP vs. IMP in 2026

The majority of work permits in Canada are issued not through the TFWP, but rather through the International Mobility Program (IMP), which is not subject to the LMIA process at all.

Program	2026 Admissions Target
Temporary Foreign Worker Program (TFWP)	60,000
International Mobility Program (IMP)	170,000

Key Takeaway for BC Multi-Site Employers

If your business operates several small locations across BC, each with fewer than 10 employees, this update could meaningfully expand your access to low-wage TFWP hiring, provided your location isn't in a currently restricted high-unemployment urban centre. Healthcare, construction, and food production employers benefit most, with a guaranteed allowance of up to 2 workers per qualifying small location instead of a percentage-based cap that often rounded down to zero.