Temporary foreign workers: Understanding the new rules and planning ahead

Since autumn 2024, the rules governing temporary foreign workers (TFWs) have been tightened at both federal and provincial levels.

Two levels of government are involved in this matter. The federal government is primarily responsible for work permits and the Temporary Foreign Worker Programme (TFWP). The Quebec government is primarily involved in pathways to permanent residence, notably through the Skilled workers selection programme (PSTQ) and the Quebec Experience Programme (PEQ).

In the current pre-election climate, businesses must understand the new rules, identify workers at risk and quickly document the operational impacts so that they can take action before the next round of political decisions.

Key developments

• On March 13, 2026, the federal government announced a 12-month extension for certain closed work permits. A closed work permit is tied to a specific employer.
• Since April 2026, the rules for the PTET have been tightened, particularly regarding job postings and recruitment.
• On May 13, 2026, the Quebec government announced that certain applications would be prioritised under the PSTQ, which is now the main route to permanent residence for many workers.
• On May 14, 2026, the Conseil du patronat du Québec and 18 sectoral associations called for greater flexibility. Premier Christine Fréchette also promised the return of the PEQ before June 12, 2026.
• By the end of 2029, the Quebec government plans to reduce the number of temporary immigrants in the programmes it manages by approximately 13%. This policy shift could alter workforce planning in several sectors.
• Ahead of the election on October 5, the parties’ positions diverge: the CAQ proposes an overall tightening of policy with a transitional return of the PEQ; the PQ wants to significantly reduce temporary immigration and replace closed permits with regional and sectoral permits; the PLQ advocates for higher thresholds and a grandfather clause; QS proposes a more open model and the end of the closed permit.

What are the implications for businesses?

Understanding immigration programmes

The priority is to distinguish between matters under federal jurisdiction and those under Quebec jurisdiction. Businesses need to know which employees are affected by federal work permits, and which employees may be eligible for the PSTQ or PEQ. It is important to identify cases where employees may require rapid, or even immediate, action.

Putting together a strong business case

Simply citing labour shortages is no longer enough. Businesses must demonstrate in concrete terms what reduced access to temporary foreign workers means for their operations: unfilled positions, reduced output and impacts on investment.

You must be able to produce a case backed up by figures, broken down by sector and region. It must show why certain workers are essential to maintaining operations and why exceptional or transitional measures are necessary.

Taking action ahead of the general election on October 5

As October 5 approaches, businesses should get involved in initiatives organised in collaboration with their sectoral association, chamber of commerce or local council to engage with political parties.

Targeted approaches to ministerial offices and the civil service may also be necessary. The timing will be crucial, particularly with the announced return of the PEQ, developments regarding the PSTQ, and the preparation of election manifestos.

Need guidance with your procedures?

NATIONAL can support you in monitoring and analysing federal and provincial announcements, identifying at-risk workers and roles, conducting sector-specific impact assessments, preparing economic case studies, and coordinating engagement with associations, coalitions and public decision-makers.

The aim is simple: to enable you to anticipate upcoming changes, safeguard your operations and make your needs heard ahead of the next policy decisions.