New Canada Work Permit Policy May 2025

New Canada Work Permit Policy May 2025

On May 27, 2025, Canada introduced a transformative temporary public policy aimed at streamlining the process for temporary foreign workers (TFWs) on work permits seeking to change jobs or employers.

This policy, enacted under section 25.2 of the Immigration and Refugee Protection Act (IRPA), addresses critical labor market needs while offering greater flexibility and financial stability for workers already in Canada.

With labour shortages persisting across industries and growing calls for immigration reform, this policy is poised to make waves in Canada’s employment landscape.

Here’s everything you need to know about this groundbreaking change, its implications, and how it could impact workers, employers, and the Canadian economy.

What Is the New Canada Work Permit Policy?

The new temporary public policy, effective May 27, 2025, allows temporary foreign workers in Canada with valid work authorization to start new jobs while their work permit applications are pending.

This policy replaces a previous temporary measure introduced during the COVID-19 pandemic on May 6, 2020, and is designed to be more robust and adaptable to current economic needs.

Previous to COVID policy, TFWs faced significant delays—often weeks—when transitioning to new employers or roles due to the requirement to wait for a new work permit to be fully processed.

This delay could lead to prolonged unemployment, financial instability for workers, and frustration for employers eager to fill labor gaps.

Under the new policy, eligible foreign nationals can begin working for a new employer or in a new role as soon as they apply for a work permit, provided they meet specific eligibility criteria.

This change aligns with Canada’s broader goal of reducing the inflow of new temporary workers while maximizing the skills and contributions of those already in the country.

Key Objectives of the Policy

• • Reduce Employment Gaps: Enable TFWs to transition seamlessly to new jobs without prolonged breaks in employment.

• Support Employers: Allow businesses to hire skilled workers already in Canada without unnecessary delays.
• Enhance Worker Stability: Provide financial security for workers by minimizing income disruptions.
• Optimize Labor Resources: Leverage the skills of TFWs to address labor shortages in key sectors like healthcare, agriculture, and technology.

Why Was This Policy Introduced?

Canada’s economy relies heavily on temporary foreign workers to fill labor and skills shortages in sectors such as agriculture, healthcare, construction, and technology.

According to Statistics Canada, TFWs accounted for approximately 2.3% of the Canadian workforce in 2024, with over 240,000 workers employed under the Temporary Foreign Worker Program (TFWP) and International Mobility Program (IMP).

However, rigid work permit conditions often tied workers to specific employers or roles, limiting their ability to adapt to changing circumstances, such as:

• Layoffs or Job Loss: Economic shifts or company downsizing could leave workers without employment.
• Workplace Challenges: Conflicts or incompatibilities in the workplace sometimes necessitated a job change.
• Career Advancement: Workers seeking better compensation or professional growth opportunities were often stuck waiting for new permits.
• Role Changes: Even transitioning to a new role with the same employer required a new work permit, causing delays.

These challenges not only affected workers’ financial stability but also frustrated employers who struggled to recruit from the existing TFW pool.

The new policy addresses these pain points by allowing greater flexibility, ensuring that workers can remain productive and employers can fill vacancies faster.

Who Is Eligible for the New Work Permit Policy?

The policy targets temporary foreign workers already in Canada who meet specific eligibility criteria.

Below is a breakdown of the conditions outlined in the policy:

Eligibility Requirements

To qualify for the exemption, a foreign national must:

1. 1. Be in Canada with Valid Temporary Resident Status: The worker must be legally residing in Canada at the time of application.
   2. Meet Regulatory Requirements: Comply with paragraphs 199(a) or 199(b) of the Immigration and Refugee Protection Regulations (IRPR), which outline conditions for work permit eligibility.
   3. Have Submitted a Work Permit Application:
      • A renewal application under subsection 201(1) of the IRPR for work described in subparagraphs 200(1)(c)(ii.1) or 200(1)(c)(iii), or
      • A new work permit application for work under the same subparagraphs, with no final decision yet made.
   4. Intend to Work for a New Employer or Role: The worker must have a job offer specifying the new employer or occupation.

1. Apply for the Exemption: Submit an application for the public policy exemption using the electronic means provided by Immigration, Refugees and Citizenship Canada (IRCC), or an alternate format if unable to use electronic means.
2. Request Temporary Authorization: Seek permission to work until a decision is made on their work permit application.

Who Benefits?

New Canada Work Permit Policy May 2025

The policy benefits several groups of foreign nationals, including:

• Workers on maintained status who are authorized to work but restricted to their current employer or occupation.
• Workers with valid work permits limited to a specific employer but seeking to transition due to layoffs, better opportunities, or other reasons.
• Work-permit-exempt individuals who require a work permit for a new role or employer.

What Exemptions Are Granted?

The policy grants exemptions from several provisions of the IRPR to facilitate quicker job transitions. These include:

• Paragraph 183(1)(b): Removes the condition that a temporary resident cannot work unless authorized under Part 9 or 11 of the IRPR.
• Subparagraph 185(1)(b)(i) to (iv): Waives obligations related to the type of work, employer, and periods of work a temporary resident is permitted to engage in.
• Section 196: Eliminates the requirement for a work permit to work in Canada during the application processing period.

These exemptions remain in effect until a decision is made on the work permit application or the application is withdrawn.

How Does the Policy Work in Practice?

Here’s a step-by-step look at how the policy benefits temporary foreign workers:

1. 1. Job Offer Secured: A worker in Canada receives a job offer from a new employer or for a new role under the TFWP or IMP.
   2. Work Permit Application Submitted: The worker applies for a new work permit or a renewal, including details of the new job or employer.

1. Exemption Application Filed: The worker submits an application for the public policy exemption through IRCC’s designated electronic platform (or an alternate format if needed).
2. Start Work Immediately: Once the exemption is granted, the worker can begin their new job without waiting for the work permit to be processed.
3. Pending Decision: The worker continues working under the exemption until IRCC makes a final decision on their work permit application.

This streamlined process eliminates the weeks-long wait times that previously disrupted workers’ livelihoods and employers’ operations.

Potential Challenges and Criticisms

While the policy has been widely praised, some challenges remain:

• • Administrative Delays: Although the policy allows workers to start new jobs, delays in processing exemption applications could still create bottlenecks.
  • Awareness Gaps: Some TFWs, particularly those with limited access to information or language barriers, may struggle to navigate the application process.

• Employer Compliance: Employers must ensure that job offers comply with TFWP or IMP requirements, which may require additional documentation.

Critics also argue that the policy doesn’t go far enough to address systemic issues, such as the dependency of certain industries on TFWs or the need for pathways to permanent residency.

Canada’s new work permit policy, effective May 27, 2025, is a game-changer for temporary foreign workers and employers alike.

By removing bureaucratic barriers and enabling faster job transitions, the policy addresses critical labor market needs while promoting worker stability and rights.

Whether you’re a TFW seeking new opportunities or an employer looking to hire skilled talent, this policy offers practical solutions in a challenging economic landscape.

For the latest updates, visit the IRCC website. Share this article to spread the word and help Canada’s temporary foreign workers thrive!