Canada-Ontario Immigration Agreement – Annex B: Foreign Workers 2025

Preamble

Pursuant to the Department of Employment and Social Development Act (hereinafter referred to as “DESDA”), the powers, duties and functions of the Minister of Employment and Social Development (hereinafter referred to as the “Minister of Jobs and Families”) extend to all matters relating to employment and skills development in Canada or the social development of Canada over which Parliament has jurisdiction and which are not by law assigned to any other Minister; and whereas the Minister of Jobs and Families is authorized, pursuant to section 10 of the DESDA to enter into agreements with provinces or territories for the purposes of facilitating the formulation, coordination and implementation of programs and policies related to the powers, duties and functions conferred by that Act.

Pursuant to powers conferred to the Minister of Employment and Social Development Canada under the IRPA and to Employment and Social Development Canada under the IRPR, the Department of Employment and Social Development (“ESDC”) provides Labour Market Impact Assessments (LMIAs) to employers and to the Department of Citizenship and Immigration (hereinafter referred to as “IRCC”) in respect of offers of employment to foreign nationals.

Whereas subsection 8(1) of the IRPA and 5(1) of the Department of Citizenship and Immigration Act (hereinafter referred to as the “DCIA”) authorize the Minister of Citizenship and Immigration (hereinafter referred to as the “Minister of Immigration, Refugees and Citizenship Canada”), with the approval of the Governor in Council, to enter into agreements with provinces for the purpose of the IRPA and for the purpose of facilitating the formulation, coordination and implementation - including the collection, use and disclosure of information - of policies and programs for which the Minister is responsible; and whereas paragraph 204(c) of the IRPR authorizes the issuance of work permits under section 200 of the IRPR to foreign nationals who intend to perform work pursuant to an agreement entered into by the Minister with a province.

For the purposes of this Annex, “Canada” is represented by the Minister of Immigration, Refugees and Citizenship and the Minister of Jobs and Families, unless otherwise indicated.

1.0 Purpose and Objectives

1.1 The overarching purpose of this Annex is to allow Canada and Ontario to better work together to ensure that the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP) operate in the national interest while supporting provincial priorities, and that employers consider Canadians first for available jobs, where applicable.

1.2 More specifically, the objectives of this Annex are to:

1. 1.2.1 Outline the roles and responsibilities of Canada and Ontario in support of the TFWP and the IMP;
2. 1.2.2 Provide a mechanism for Ontario to recommend LMIA exemptions in accordance with this Annex, or any Schedule to this Annex, and recommend occupations eligible to receive priority LMIA processing in accordance with section 7 of this Annex; and
3. 1.2.3 Increase federal-provincial collaboration in the administration of the TFWP and the IMP through the implementation of common principles with respect to the protection of Foreign Workers.

2.0 Shared Principles

2.1. Canada and Ontario agree that:

1. 2.1.1 The key objectives of the TFWP and the IMP are to enable Canada to pursue the maximum economic, social, and cultural benefits of immigration and to ensure that the work performed by Foreign Workers continues to promote Canada’s economic and labour market interests;
2. 2.1.2 Collaboration is required to support Ontario’s key provincial economic development priorities and address Ontario’s unique labour market needs in a manner that is consistent with the overall national objectives of the TFWP and IMP;
3. 2.1.3 Enhanced cooperation and coordination between Canada and Ontario will support the common goals of protecting Foreign Workers, improving the integrity of the TFWP and the IMP in Ontario and advancing Ontario’s economic interests and priorities;
4. 2.1.4 Measures to strengthen the LMIA process are required to ensure the robustness and integrity of the TFWP;
5. 2.1.5 Proactive communication between Canada and Ontario should be undertaken, when possible, on any changes to the TFWP or IMP that will impact Ontario’s economy;
6. 2.1.6 An enhanced role for Ontario to recommend occupations for priority LMIA processing will help support regional economic goals;
7. 2.1.7 Increased protection of Foreign Workers, which is essential to their successful participation in workplaces and communities and to maintaining the integrity of TFWP and the IMP; and
8. 2.1.8 Information sharing between Canada and Ontario is required to administer, enforce, and maintain the integrity of the TFWP and the IMP, including the protection of Foreign Workers.

3.0 Definitions

3.1 In addition to the terms defined in the Canada-Ontario Immigration Agreement (2025) and any amendments thereto, the following definitions apply to the terms of this Annex:

1. Exceptional and Unforeseen Event is a temporary situation during or following an event that poses a significant risk to people’s lives, health, general safety, property and/or the environment;
2. Foreign Worker means a foreign national who has been authorized to work temporarily in Canada under the IRPA and the IRPR;
3. Highly Mobile Capital is uncommitted corporate funds that can easily move across provincial, territorial and/or national boundaries and is subject to a corporate positive investment decision;
4. High Wage Occupation means a position for which the wage offered is equal to or above the TFWP threshold in Ontario;
5. In-Demand Occupation means High Wage Occupations, recommended by Ontario and approved by ESDC, and which have been identified using the methodology developed as per section 7.3 of this Annex;
6. International Mobility Program or IMP means the functions under the IRPA and the IRPR that allow Canada to authorize foreign nationals to work temporarily in Canada, without the requirement for a LMIA;
7. Labour Market Impact Assessment or LMIA is the opinion provided by ESDC to employers or IRCC in accordance with section 203 of the IRPR. The LMIA is used to support the application of a foreign national for a work permit when required under the IRPR;
8. Significant Investment Project means a new endeavour in an existing firm’s operations, or the entrance of a firm that is beginning operations in Ontario, that will result in a substantial improvement to the provincial labour market or economy, without displacing jobs for Canadian citizens and Permanent Residents; and
9. Temporary Foreign Worker Program or TFWP refers to the ESDC program under which an employer who wishes to hire a Foreign Worker must obtain an LMIA.

4.0 Roles and Responsibilities

4.1 IRCC is responsible for:

1. 4.1.1 Administering the IMP and issuing work permits under the TFWP in accordance with the IRPA and the IRPR and any amendments thereto; and
2. 4.1.2 Assessing and rendering decisions on proposals by Ontario for Significant Investment Projects or Exceptional and Unforeseen Events in accordance with the criteria outlined in sections 5.0 and 6.0 of this Annex.

4.2 ESDC is responsible for:

1. 4.2.1 Administering and enforcing the TFWP in accordance with the IRPA and the IRPR and any amendments thereto;
2. 4.2.2 Supporting the assessment of recommendations by Ontario for LMIA exemptions under Significant Investment Projects and/or Exceptional and Unforeseen Events as outlined in sections 5.0 and 6.0 of this Annex; and
3. 4.2.3 Assessing and rendering decisions on recommendations by Ontario for occupations to be eligible for priority LMIA processing and reviewing the list of occupations as outlined in section 7.0 of this Annex.

4.3 Ontario is responsible for:

1. 4.3.1 Submitting proposals with recommendations for LMIA exemptions for Significant Investment Projects in accordance with identified criteria in section 5.0 of this Annex.
2. 4.3.2 Recommending LMIA exemptions to address urgent labour needs, not already provided for under the IRPR, on a temporary basis, as a result of an Exceptional and Unforeseen Event, in accordance with identified criteria in section 6.0 of this Annex.
3. 4.3.3 Recommending High-Wage, In-Demand Occupations that would be eligible for priority LMIA processing, in accordance with identified criteria in section 7.0 of this Annex.
4. 4.3.4 Reviewing and proposing updates to the list of occupations eligible for priority LMIA processing, on an annual basis in accordance with section 7.0 of this Annex.
5. 4.3.5 Identifying and communicating policy and program considerations to Canada that address gaps in the design and regional operation of the TFWP and IMP impacting Ontario’s economy.

5.0 Significant Investment Projects

5.1 A Significant Investment Project must involve a situation that is not well-suited to the LMIA process and is not captured by existing LMIA exemptions and/or work permit exemptions under the IRPR.

5.2 Proposals for LMIA exemptions for Significant Investment Projects must be submitted in writing by Ontario to the IRCC and ESDC Focal Points identified in section 13.0 of this Annex.

5.3 Proposals for LMIA exemptions for Significant Investment Projects must meet the elements outlined in Schedule A to this Annex.

5.4 Proposals for Significant Investment Projects shall be assessed by Canada in accordance with Schedule A to this Annex, and shall be subject to ongoing bilateral discussion between Canada and Ontario.

5.5 Successful proposals for Significant Investment Projects and any amendments thereto shall be approved at the Assistant Deputy Minister level for IRCC and Ontario in a timely manner, subject to operational and resource constraints and balancing multiple competing priorities.

5.6 The review of Significant Investment Projects approved pursuant to this Annex shall take place at least one year prior to the expiry of the Agreement, or as per the schedule agreed to by Ontario and IRCC.

5.7 The Parties may, upon mutual Agreement, renew or modify a Significant Investment Project.

6.0 Exceptional and Unforeseen Events

6.1 Ontario may recommend LMIA exemptions that are not otherwise covered under existing LMIA exemptions or work permit exemptions in the IRPR to address urgent labour needs, on a truly temporary basis, as a result of an Exceptional and Unforeseen Event, such as a natural or industrial disaster.

6.2 Requests for LMIA exemptions to address urgent labour needs must be provided in writing by Ontario to the IRCC and ESDC Focal Points identified in section 13.0 of this Annex.

6.3 Requests for LMIA exemptions to address urgent labour needs must meet the elements described in Schedule B to this Annex.

6.4 Requests for LMIA exemptions to address urgent labour needs shall be assessed by Canada in accordance with Schedule B to this Annex, and shall be subject to bilateral discussion between Canada and Ontario.

6.5 Requests for LMIA exemptions to address urgent labour needs, and any amendments thereto, shall be approved at the Assistant Deputy Minister level for IRCC and Ontario.

7.0 Provincial Involvement in the Labour Market Impact Assessment Process

7.1 ESDC and Ontario shall develop a process to allow Ontario to recommend High Wage, In-Demand Occupations for priority LMIA processing (10-day processing service standard).

7.2 Under this process, Ontario agrees to respect federal TFWP principles and objectives, and Canada’s responsibility in delivering the TFWP pursuant to the IRPA and the IRPR.

7.3 Ontario and ESDC shall jointly establish an evidence-based methodology to support the identification of a list of In-Demand Occupations for priority LMIA processing. The methodology must include the following criteria:

1. 7.3.1 Available information that provides evidence of labour market shortages for the occupation; and
2. 7.3.2 Wage offered for the occupation is equal to or above the TFWP threshold in Ontario.

7.4 Requests for recommended occupations eligible for priority LMIA processing shall be provided in writing by Ontario to the ESDC Focal Point identified in section 13.0 of this Annex.

7.5 ESDC reserves the right to limit the number of occupations on the list of In-Demand Occupations based on its operational ability to meet the ten (10)-day processing service standard.

7.6 ESDC and Ontario shall meet at least once annually to review recommended updates to the list of occupations for priority LMIA processing.

7.7 The list of occupations for priority LMIA processing shall be approved once annually at the Director General level for ESDC and Director level for Ontario.

7.8 All approved High Wage, In-Demand Occupations for Ontario shall be posted on ESDC’s website.

8.0 Foreign Worker Protection

8.1 Canada and Ontario agree to collaborate on programs and initiatives to enhance the knowledge of, and access to, provincial services for Foreign Workers in Ontario.

8.2 Canada and Ontario agree to collaborate to inform employers hiring Foreign Workers about their obligations under the applicable federal and provincial laws, including those that regulate employment and recruitment of employees.

8.3 Canada and Ontario agree to collaborate to inform Foreign Workers about their rights under applicable federal and provincial laws, including those that regulate employment and recruitment in Ontario.

8.4 Canada and Ontario shall jointly identify and assess current challenges and best practices with respect to Foreign Worker protection and shall collaborate in the development of principles, measures, and mechanisms to address challenges and increase Foreign Worker protection, and to identify actions to be undertaken should a substantial risk be identified, subject to federal or provincial laws or regulations.

8.5 Canada acknowledges that measures, activities or mechanisms relating to Foreign Workers protections shall be developed in collaboration with Ontario and may be limited by applicable laws or regulations.

9.0 Dispute Management and Resolution Procedures

9.1 Canada and Ontario are committed to working together to implement this Annex. Both parties contribute with their respective policies, programs, capacity, and expertise and recognize and respect each party’s different roles and responsibilities under this Annex.

9.2 In the case of a Dispute under this Annex, the Focal Points identified in section 13.1 of this Annex shall attempt to resolve the matter through information sharing, communications and informal discussions.

9.3 In the event that the Focal Points are unable to resolve the Dispute expeditiously, it shall be referred to Assistant Deputy Ministers, accompanied by relevant facts and steps taken to reach resolution. Such procedures shall provide equal opportunities for representation by each signatory, establish clear time limits, and ensure clarity for the implementation of final decisions. Further, in the event resolution is not reached within thirty (30) days of being raised with Assistant Deputy Ministers, the parties shall jointly determine next steps.

9.4 IRCC, ESDC or Ontario may refer the matter to Deputy Ministers by providing a written notice to the signatories.

9.5 IRCC, ESDC and Ontario shall exchange all relevant information and engage in bilateral discussions in an attempt to clarify and resolve the Dispute. Deputy Ministers shall:

1. 9.5.1 Provide equal opportunities for representation;
2. 9.5.2 Attempt to resolve Disputes within thirty (30) days; and
3. 9.5.3 Ensure clarity for the implementation of final decisions.

9.6 Should the Dispute be resolved, Deputy Ministers shall oversee the drafting of a short report identifying the issues that have been resolved, specific actions and timelines required to implement the resolution.

9.7 If Deputy Ministers are unable to resolve the Dispute within thirty (30) days from the date of its referral to them, they shall determine the appropriate course of action for its resolution, including elevating the Dispute to Ministers.

9.8 Ministers shall provide advice and direction to their officials on an appropriate course of action to resolve the Dispute.

9.9 This Dispute management process shall not in any way limit the final authority of the Ministers or the designated officers of IRCC or of ESDC respecting the interpretation and administration of the IRPA or the IRPR in accordance with their respective authorities/responsibilities.

10.0 Information Sharing

10.1 IRCC and ESDC may develop separate mechanisms to facilitate information sharing with Ontario, including the sharing of personal information, as required.

10.2 To support collaboration, Canada and Ontario agree to share, in accordance with and subject to their respective privacy laws, Foreign Worker information for the purpose of planning and development, program administration, and monitoring and evaluation.

11.0 Governance

11.1 Canada and Ontario agree to:

1. 11.1.1 Establish a Canada-Ontario Foreign Worker Working Group to discuss areas of potential collaboration with respect to the TFWP and the IMP, and to oversee the implementation of this Annex;
2. 11.1.2 Terms of Reference for this Working Group shall be developed and agreed to by Canada and Ontario; and
3. 11.1.3 Meet annually to review this Annex. More frequent discussion or consultation regarding this Annex may take place among the Focal Points, or delegates, as needed and as mutually agreed to by Canada and Ontario.

12.0 Duration and Amendments

12.1 Upon the mutual written consent of IRCC, ESDC and Ontario, the terms and conditions of this Annex can be extended at any time prior to its expiry, subject to any required approval or authorization including the approval of the Governor in Council and the Lieutenant Governor in Council.

12.2 This Annex may be amended at any time by the mutual written consent of IRCC, ESDC and Ontario, subject to any required approval or authorization including the approval of the Governor in Council and the Lieutenant Governor in Council.

12.3 IRCC, ESDC or Ontario may terminate this Annex at any time by providing at least twelve (12) months’ notice in writing to the other signatories.

13.0 Focal Points

13.1 Focal Points for the purpose of communication and notification pursuant to this Annex are:

1. For IRCC: the Senior Director, Temporary Workers, Economic Programs Branch, 365 Laurier Avenue West, Ottawa, Ontario, K1A 1L1;
2. For ESDC: the Director, Policy and Program Design, Temporary Foreign Worker Program Branch, Policy, Workers Protection, and Stakeholders Relations Directorate, 140 Promenade du Portage, Gatineau, Quebec, K1A 0J9; and
3. For Ontario: the Director, Global Talent and Settlement Services Division, 400 University Avenue, Toronto, Ontario, M7A 1T7.

14.0 Notices

14.1 The Focal Points referenced in section 13.1 of this Annex undertake to give one another notice of any change in policy, regulations or legislation relating to their respective programs that is likely to affect this Annex.

14.2 In addition to those identified in section 13.1 of the General Provisions of the Agreement, and the Focal Points referenced in section 13.1 of this Annex, any notice to be delivered under this Annex should also be sent to the signatory concerned as follows:

1. Deputy Minister
   Employment and Social Development Canada
   140 Promenade du Portage
   Gatineau, Quebec K1A 0J9

2. Deputy Minister
   Citizenship and Immigration Canada
   365 Laurier Avenue West
   Ottawa, Ontario K1A 1L1

3. Deputy Minister
   Ministry of Labour, Immigration, Training and Skills Development and Immigration
   400 University Avenue
   Toronto, Ontario, M7A 1T7

 

Schedule A. Proposals for Significant Investment Projects

A proposal for Significant Investment Project LMIA exemptions must include the following information:

1. Objectives
2. Description of the project activities, including a description as to whether and how they meet each of the following criteria:
   1. Involve Highly Mobile Capital whose labour is drawn from a global talent pool;
   2. Result in a quantifiable significant investment in the Ontario economy;
   3. Demonstrate local government support;
   4. Limited to High Wage Occupations;
   5. No significant displacement of employment of Canadians and permanent residents;
   6. Employers participating in the project must remain in compliance with any applicable federal or provincial laws; and
   7. Result in knowledge transfer to Canadians and permanent residents (where applicable).
3. Description of the proposed occupations to be eligible for LMIA exemptions within the Significant Investment Project, the duration of the proposed LMIA exemptions, the anticipated number of positions required, and the specific locations in which Foreign Workers would be hired to work.
4. Expected Outcomes/Benefits
5. Implementation Plan
6. Evaluation Plan

Schedule B. Elements for Exceptional and Unforeseen Events

1. Canada and Ontario agree that request(s) for LMIA exemptions to address urgent labour needs in the case of an Exceptional and Unforeseen Event must include the following elements:
   1. Purpose/Rationale, including a description of how the LMIA exemptions demonstrate that:
      1. Foreign Workers are needed for work in response to an Exceptional and Unforeseen Event where restoration/reconstruction of a community or area is required due to significant loss/damage; and
      2. Reasonable efforts have been made to reach out to other provincial or territorial jurisdictions for available workers.
   2. Description of the proposed occupations to be eligible for LMIA exemptions, the anticipated number of positions required, and the specific locations in which Foreign Workers would be hired to work.
   3. Expected Outcomes
2. Work permits issued in response to Exceptional and Unforeseen Events shall generally not exceed 120 days in duration in order to address short-term and urgent labour needs, and shall be issued within the first twelve (12) months following the occurrence of the Exceptional and Unforeseen Event. In rare circumstances under which the response to the Exceptional and Unforeseen Event is ongoing and the LMIA process would hinder restoration/reconstruction efforts, work permits may be renewed according to terms agreed to by IRCC and Ontario.
3. Canada and Ontario shall review the use of LMIA exemptions for any Exceptional and Unforeseen Event according to timelines appropriate to the situation.