Canada Extends Low-Wage Foreign Worker Access to Multi-Worksite Employers

Canada has introduced an essential clarification to the Temporary Foreign Worker Program (TFWP) to provide additional flexibility for permanent employers operating multiple work locations. The subject of the amendment is how the low-wage foreign worker cap applies to employers with fewer than 10 employees near certain workplaces.

On August 18, 2026, Employment and Social Development Canada (ESDC) announced a substitute on the government website, allowing affected employers to employ up to 10% or 20% more of the same seniors in their workforce as low-wage temporary workers.

The update is especially relevant to businesses that operate several smaller locations, such as restaurants, retail businesses, service companies, care facilities, and other employers with a distributed workforce.

ESDC now allows employers to employ one or two low-wage short-term employees depending on the work zone with fewer than 10 employees, with the two-worker limit used by employers when on duty in the zones.

The update primarily applies to organizations that operate across multiple small worksites, such as restaurants, retail businesses, transport companies, care homes, and other employers with distributed teams of workers. For employers looking to understand how these changes may affect their LMIA options, Idea Immigration can provide professional guidance on the applicable requirements and application process.

Key Takeaways

• Canada’s updated guidance provides specific rules for employers with fewer than 10 employees at a particular work location.
• Certain eligible small worksites may hire one low-wage temporary foreign worker, while designated in-demand sectors may have access to up to two, subject to the applicable rules.
• The low-wage cap is generally assessed at the specific work location.
• The standard cap is generally 10%, with a 20% variation for certain sectors and occupations.
• Employers must continue to meet recruitment, wage, advertising, workplace, and LMIA requirements.
• Low-wage positions generally require at least 30 hours of work per week.
• Employers should check unemployment-rate restrictions and other location-specific requirements before submitting an LMIA.
• Multi-site employers should assess every work location carefully rather than assuming that all locations can be combined.

What Has Changed?

The key point is that the calculation is tied to the specific work location, rather than simply looking at the employer’s entire business.

For businesses with multiple locations, this distinction can be significant.

For example, imagine a company operates five restaurants, with each restaurant having fewer than 10 employees. The employer cannot simply assume that the workforce at all five locations will be combined for the low-wage cap. The applicable rules must be assessed for each work location.

The federal government requires employers to complete the relevant cap section of the LMIA application and may request supporting documentation, such as payroll records, to verify the workforce calculation.

This means multi-location employers should carefully review each location before submitting an LMIA application.

How the Low-Wage LMIA Cap Works

The Temporary Foreign Worker Program is designed to help Canadian employers address genuine labour shortages when qualified Canadians and permanent residents are not available.

For low-wage positions, the general cap is currently 10% of the workforce at a specific work location. Some sectors and occupations have different rules, including a 20% cap for certain construction, food manufacturing, hospital, and nursing/residential-care positions. Some positions have no cap at all.

Employers should therefore avoid assuming that every low-wage position is treated in exactly the same way.

The correct assessment depends on factors such as

• The number of employees at the specific work location
• The occupation and duties
• The wage offered
• The sector in which the employer operates
• Whether a specific exemption or variation applies
• Whether the work location is subject to other TFWP restrictions

Why This Matters for Multi-Location Businesses

The clarification may be particularly important for employers that have many small worksites.

A business could have a relatively large workforce when all locations are considered together but still have individual locations with fewer than 10 employees.

For such employers, understanding the work-location rules can help determine how many low-wage temporary foreign workers may potentially be hired.

 

However, this does not mean employers can automatically move workers between locations or use multiple locations to avoid the TFWP requirements. Employers must accurately identify the work location and comply with all LMIA requirements.

The government continues to assess employer compliance closely. Recent federal data shows that between April 1, 2025, and March 31, 2026, the TFWP finalized 1,488 compliance inspections, with 12% of inspected employers found to be non-compliant. More than $10.2 million in monetary penalties were issued, and 30 employers were banned from the program.

 

Other Low-Wage LMIA Requirements Still Apply

The updated approach for smaller worksites does not eliminate the other requirements of the Low-Wage TFWP.

Employers must still demonstrate that they have made reasonable efforts to recruit Canadians and permanent residents before turning to temporary foreign workers.

Current rules require low-wage employers to conduct the required recruitment and advertise the position for at least eight consecutive weeks within the three months before submitting an LMIA application.

The position must also generally be full-time, meaning at least 30 hours of work per week.

Employers must provide legitimate employment, meet wage requirements, comply with workplace standards, and satisfy other TFWP conditions.

The LMIA processing fee is currently $1,000 per position requested, subject to applicable exemptions, and this cost cannot be recovered from the temporary foreign worker.

Temporary Rural Measures

There are also temporary measures for positive rural employers.

From 1 April 2026 to 31 March 2027, eligible employers in rural areas in participating provinces and territories may receive measures that maintain their current percentage of low-wage short-term aliens or, in certain cases, in preference to standard a 10% cap

Participation varies by province and region, so employers should confirm whether their specific region qualifies.

Conclusion

Canada’s updated approach to low-wage foreign workers at smaller worksites could provide meaningful flexibility for businesses operating across multiple locations. The change is particularly relevant to employers whose individual locations have small workforces and ongoing labour shortages.

At the same time, employers should not view the change as a relaxation of the entire LMIA system. Canada’s Temporary Foreign Worker Program continues to emphasize recruitment of Canadians and permanent residents, proper wages, legitimate job offers, and strong employer compliance.

Because the rules can vary according to the work location, sector, wage. and workforce size, careful planning is essential before submitting an LMIA application.

If you are an employer considering hiring temporary foreign workers or a foreign worker exploring an LMIA-supported opportunity, professional guidance can help you understand how the current rules apply to your situation.

Contact idea migration

Contact Idea Immigration for help with LMIA applications, work permits, and Canadian immigration opportunities. Idea Immigration provides Canadian immigration consulting services and has locations in Surrey, Kelowna and Regina. His business contact details are listed for inquiries at +1 (604) 597-1119 and info@ideaimmigration.com

Frequently Asked Questions

Can a business with multiple locations hire low-wage foreign workers at each location?

Potentially, yes. The cap is generally assessed based on the specific work location. However, each position must meet all applicable TFWP and LMIA requirements, and employers should not assume that simply having multiple locations automatically creates additional hiring capacity.

How many foreign workers can a small worksite hire?

For worksites with fewer than 10 employees, the current rules provide a specific cap calculation. Recent reporting indicates that eligible employers may hire one low-wage temporary foreign worker, while certain in-demand sectors may be able to hire two. The precise result depends on the employer, sector and applicable rules.

How long can a low-wage LMIA employment period be?

Under the current low-wage TFWP rules, employers may generally request employment for a maximum of one year, provided the duration aligns with the employer’s reasonable employment needs.

What is a Low-Wage LMIA job?

It is a position where the offered wage falls below the applicable provincial or territorial LMIA wage threshold. The employer must meet low-wage stream requirements.

Can I apply for an LMIA myself?

No. The Canadian employer submits the LMIA application. You apply for the job first and then apply for a work permit if the employer selects you and gets an LMIA.

Are all multi-site employers eligible for the updated rules?

No. The rules do not guarantee approval. Employers must satisfy the TFWP’s requirements, including recruitment, wage, business legitimacy and workplace obligations. Other restrictions can also apply depending on the work location and occupation.