FAQ: Rural Temporary Foreign Workers Increase
While Restaurants Canada sees the increase to 15% for Temporary Foreign Workers (TFWs) in rural areas as a positive step, we know that operators have many questions about how these changes will work in practice.
We have received additional clarity and insights from federal and provincial officials, including direct engagement with TFW Program officials following Friday’s announcement. Below is the latest information.
The federal government has increased the allowable share of “low-wage” TFWs from 10% to 15% for employers in eligible rural regions.
- This measure is temporary (anticipated April 1, 2026 to March 31, 2027).
- It is not automatic and must be requested by provinces and territories.
- Employers may retain their current number of TFW positions.
“Rural” is defined as any location outside of a Census Metropolitan Area (CMA).
- CMAs are areas with populations of 100,000+, including a core of at least 50,000.
- Employers must verify location eligibility using postal code tools from Statistics Canada before applying.
Yes.
- Provinces must submit a formal request to the federal government.
- Provinces will then determine:
- Which sectors are included.
- Which rural regions are eligible.
Provinces may choose to apply the measure broadly or limit it to specific sectors and regions, meaning implementation could vary significantly across Canada.
No.
Employers must:
- Apply for a new Labour Market Impact Assessment (LMIA).
- Continue to demonstrate efforts to hire Canadians and permanent residents.
- Employers retain their overall TFW allocation, not specific individuals.
- If a worker’s permit expires, a new LMIA and work permit are required.
- In some cases, workers may continue working under maintained status, depending on IRCC rules.
No.
- Spouses and family members are not eligible under these measures unless they independently qualify through their own LMIA-supported work permit.
We are actively engaging provinces across the country. Early discussions indicate the following:
- Provinces are at very early stages of decision-making and are still analyzing the announcement.
- Municipalities, particularly in rural areas, are beginning to apply pressure on their provincial governments.
- It is likely that not all provinces will opt in.
- Early movers could influence broader national momentum
- Engaging every province and territory to advocate for participation.
- Urging provinces to opt in, prioritize the restaurant sector, and apply the full 15% cap.
- Continuing to provide federal and provincial decision-makers with data and evidence to support labour needs.
Bottom line:
This is a positive, but limited, step forward.
The real impact will depend on:
- Whether provinces opt in.
- How they define eligible sectors and regions.
- How quickly implementation occurs.
The Restaurants Canada team is working diligently to advocate for our industry on this specific issue, and we will continue to keep members informed as more details become available.
Related Articles
- Changes to the Temporary Foreign Workers Program – FAQs
- Opinion – Temporary workers can help save struggling rural restaurants (Hamilton Spectator – April 9, 2026)
- Restaurants Canada encouraged by changes to Temporary Foreign Worker Program for rural communities
- Restaurants Canada says supply of Temporary Foreign Works represents only a small but critical percentage of the total workforce.
- Restaurants Canada calls on provinces to urgently opt-in to temporary TFW cap increase for rural regions
