Employment and Social Development Canada updated its Global Talent Stream requirements on September 18, 2026. The updated guidance clarifies who is considered an employer and confirms that temporary foreign workers cannot be classified as independent contractors under the program.
The Global Talent Stream is part of the Temporary Foreign Worker Program. It allows eligible Canadian employers to apply for a Labour Market Impact Assessment to hire highly skilled temporary foreign workers. Employers must qualify under Category A or Category B and comply with the applicable program requirements.
Who Is Considered an Employer?
Under the guidance, an employer is the entity that hires the temporary foreign worker, establishes the working conditions, and directly pays the worker. The entity may be a person, business, corporation, or organization.
When reviewing an LMIA application, Service Canada may consider several factors to determine whether the applicant is the employer. These include:
- Who benefits directly from the work
- Who decides where, when, and how the work is performed
- Who pays wages and other compensation
- Who establishes the worker’s duties and monitors performance
- Who has the authority to dismiss the worker
- Who signs the employment agreement
- Who administers payroll deductions and statutory benefits
The assessment therefore considers the substance of the working relationship, rather than relying only on the name appearing on an application or contract.
Can Staffing Agencies Qualify as Employers?
The guidance states that staffing or employment agencies that recruit workers for other businesses are not considered employers under the Temporary Foreign Worker Program. They cannot be approved to hire a temporary foreign worker for another business where the required employer-employee relationship does not exist.
This distinction may be important when different businesses are involved in recruiting, placing, supervising, or paying a worker. The entity submitting the LMIA application must demonstrate that it is the actual employer and is responsible for meeting the program’s requirements.
Can a Temporary Foreign Worker Be an Independent Contractor?
Employers cannot classify temporary foreign workers hired through the program as independent contractors.
An employer-employee relationship exists when the employer hires the worker, directs the worker’s duties, and pays the worker for their services. The relationship must also be reflected in the approved LMIA and the employment agreement signed by the employer and worker.
After receiving a positive LMIA, an employer cannot reclassify the worker as an independent contractor or structure the relationship to avoid payroll, compensation, or program requirements. According to the government, misclassification can weaken wage protections, avoid required deductions, and violate federal or provincial employment laws.
What Are the Consequences of Non-Compliance?
Employers that misclassify temporary foreign workers may face administrative monetary penalties and bans from the Temporary Foreign Worker Program. Their names may also be published on federal or provincial government websites.
Employers must comply with the approved occupation, wages, and working conditions. They must also maintain complete employment records documenting compliance with the employment agreement throughout the employment period.
Conclusion
The updated guidance emphasizes that the applicant seeking an LMIA must be the worker’s genuine employer. Businesses should carefully review their recruitment, supervision, payroll, and contracting arrangements before submitting an application or changing an existing employment relationship.
Contact Jain Immigration Law
Jain Immigration Law assists employers and foreign workers with Canadian work permits, Labour Market Impact Assessments and employer-compliance matters. To discuss your circumstances, contact us:
Jain Immigration Law
Phone: +1 (416) 548-5533
Email: [email protected]
Website: www.jainimmigrationlaw.com