Can employers simultaneously use the TFWP and the Immigrant Wage Subsidy for the same position or worker?
Executive summary
Available federal guidance says the Temporary Foreign Worker Program (TFWP) is a distinct route that requires employers to secure a positive Labour Market Impact Assessment (LMIA) and meet prevailing‑wage and recruitment rules; wage‑subsidy programs exist separately and are often time‑limited and available to Canadians as well as newcomers [1] [2] [3]. Fact‑checks by AFP and The Canadian Press found claims that employers routinely get a large “kickback” (e.g., 30%–60%) for hiring migrants are misleading; wage‑subsidy programs cited in coverage are program‑specific and not a universal supplement to TFWP wages [4] [3].
1. Two different policy buckets: TFWP is an employer‑authorization system, subsidies are programmatic
The TFWP is a mechanism for employers to hire non‑Canadians when Canadians are not available; it requires LMIA processes, recruitment evidence and adherence to prevailing‑wage rules [1] [2]. Wage‑subsidy programs — such as provincial employer wage supports or student placement subsidies — are separate initiatives that fund part of an employee’s pay or training for policy goals like integration or youth employment; these programs are administered independently from LMIA decisions [3] [4].
2. Nothing in the cited reporting shows a blanket rule allowing simultaneous use
Available sources do not identify any single federal rule that automatically allows employers to combine a TFWP LMIA‑supported hire with a federal wage subsidy that tops up the worker’s pay. Fact checks stress that “consistent government kickbacks” for hiring migrants are inaccurate and that subsidies are program‑specific and also available to citizens [4] [3]. The government pages for hiring TFWs focus on wages employers must pay and LMIA compliance, not on blanket wage‑top‑up programs tied to every TFWP hire [1] [2].
3. Where overlap can appear: program eligibility and administrative details matter
Some federally or provincially funded wage supports explicitly allow employers to hire immigrants or international students as eligible participants — for example, student work placement subsidies that can cover internships for immigrants as well as citizens — which creates the appearance of a subsidy “for” newcomers but is not limited to TFWP positions [4]. The Canadian Press notes multiple provincial programs (e.g., JobsNL, WorkBC) that provide employer wage subsidies and may include immigrants among eligible hires; eligibility, duration and percentage support vary by program and are temporary [3].
4. Legal and policy constraints: prevailing‑wage and program rules constrain “double dipping”
TFWP rules impose prevailing‑wage requirements and recruitment obligations; employers must pay the wage posted in the LMIA and meet program conditions, including reporting wage changes where required [5] [2]. Simultaneously, many wage‑subsidy programs require documentation of hiring, limits on amounts and conditions on payroll treatment. The interaction between an LMIA wage obligation and subsidy program rules determines whether an employer can accept a subsidy while meeting TFWP obligations — that interaction is administrative and program‑specific rather than an across‑the‑board entitlement [5] [2].
5. Misinformation risk: social posts conflate distinct programs and exaggerate numbers
AFP fact‑checking and The Canadian Press both found social media claims that employers receive a 30%–60% “kickback” for hiring migrants are misleading; reporters could not find programs offering that universal rate and warned that subsidies cited are not exclusive to immigrants [4] [3]. The risk is conflation: isolated subsidies (often temporary and available to citizens) get presented as a systemic, permanent government rebate for hiring foreign workers [4] [3].
6. Practical takeaway for employers and journalists
Employers should treat TFWP compliance and wage‑subsidy applications as separate administrative processes and check each program’s rules for compatibility — federal TFWP pages and LMIA guidance spell out wage obligations and reporting requirements, while subsidy programs list eligibility and allowable uses [1] [5] [2]. Journalists and consumers should expect program‑by‑program answers: available reporting shows no single federal subsidy that universally tops up TFWP wages; specifics depend on the particular wage‑subsidy program and whether its rules permit use alongside an LMIA‑based hire [4] [3].
Limitations: sources assembled here include federal program pages, policy summaries and fact checks; they do not provide exhaustive guidance about every provincial subsidy or the administrative letters that might permit an exception. For any concrete case, consult the specific subsidy’s terms and TFWP/LMIA guidance linked by Employment and Social Development Canada [1] [2].