Temporary Foreign Workers: New Wage Review Rules and Maintained Status Restrictions (2025)

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Important Changes Employers and Workers Need to Know

In 2025, Canada’s Temporary Foreign Worker Program (TFWP) has introduced important regulatory updates that affect both employers and foreign nationals working under temporary status. These changes include new wage review requirements and updates on maintained status restrictions—both of which aim to ensure better labor protections, fair wages, and stricter compliance for employers hiring foreign workers.

Understanding these changes is essential for businesses, foreign employees, and anyone planning to apply under the TFWP.

What Is the Temporary Foreign Worker Program (TFWP)?

The Temporary Foreign Worker Program allows Canadian employers to hire foreign nationals to fill short-term labor and skill shortages when qualified Canadians are not available. It includes a variety of streams, such as:

• High-wage and low-wage positions
• Agricultural workers
• Caregivers
• Global Talent Stream (for specialized occupations)

To hire under this program, employers must usually obtain a Labour Market Impact Assessment (LMIA), proving the need to hire a foreign worker.

Key Changes in 2025

1. Mandatory Annual Wage Reviews

As of 2025, employers hiring temporary foreign workers are required to review and adjust wages annually to reflect the prevailing wage rate in their occupation and region. This is a significant shift from past years, where wage reviews were only required in limited scenarios.

Key Highlights:

• Employers must ensure that wages remain equal to or higher than the updated median wage for the same occupation and location.
• The review must be completed on the anniversary of the worker’s start date, and adjustments must be implemented immediately if required.
• Failure to comply may result in penalties, employer blacklisting, or cancellation of existing LMIAs.

This policy is designed to prevent wage stagnation and ensure that foreign workers are compensated fairly, especially in roles where wages rise due to labor shortages.

2. Restrictions on Maintained Status (formerly Implied Status)

Maintained Status allows foreign workers to legally stay in Canada and continue working while waiting for a decision on their new work permit application—provided they applied before their current permit expired.

In 2025, the government has tightened rules around maintained status:

• Foreign workers must remain in the same job and with the same employer while under maintained status.
• Border applications for new permits have been restricted—workers can no longer renew their permits at the port of entry in most cases.
• In-country renewals must be submitted well in advance to avoid disruption, as maintained status will not protect unauthorized job changes or employer switches.

These changes aim to ensure better monitoring of job roles and employer accountability during transitional periods between permits.

Why These Changes Matter

Both employers and foreign workers must pay close attention to these new policies to stay compliant and avoid serious consequences.

For Employers:

• Wage compliance is no longer optional—auditable, documented wage reviews are mandatory.
• Hiring processes may take longer due to the increased scrutiny on LMIAs and work permits.
• Employers should invest in proper HR systems and legal support to handle annual wage evaluations.

For Temporary Foreign Workers:

• Workers must be cautious about any job change, promotion, or relocation—even if internal—while under maintained status.
• It’s critical to submit renewal applications early and understand the limits of what is allowed while waiting for approval.
• Those considering long-term immigration should explore pathways like the Canadian Experience Class, PNPs, or employer-supported PR routes.

Common Scenarios in 2025

Example 1:
A food processing company in Ontario hires a foreign worker under a low-wage LMIA. In 2025, they must review the prevailing wage rate for that job annually and increase the worker’s pay if the median wage rises.

Example 2:
A foreign worker in Alberta applies to renew their work permit before expiry. While waiting for approval under maintained status, they receive a promotion to a new role. Under the 2025 rules, they cannot accept the promotion until their new permit is officially approved.

Staying Compliant in 2025 and Beyond

The updated policies reflect Canada’s commitment to protecting workers and maintaining the integrity of its immigration and labor systems. Employers must be proactive in understanding their obligations, while workers must be fully aware of their rights and responsibilities under changing conditions.

Both groups benefit from clarity, preparation, and professional guidance to avoid compliance issues.

Need Help Navigating TFWP Changes? Sun Consulting Is Here for You

Whether you’re an employer managing foreign hires or a temporary worker planning your next move, Sun Consulting provides expert immigration guidance and LMIA support. Our team helps you stay compliant with Canada’s evolving labor and immigration rules—ensuring smooth applications, proper documentation, and peace of mind.

Contact Sun Consulting today to make sense of the 2025 changes and build a secure future in Canada.