Canada has announced a major shift in its employment framework as authorities introduce a new Canada work licensing system that will significantly change how foreign workers and graduates access jobs.
Under the revised policy, the existing open work permit will be abolished from January 2026 and replaced with an employer linked work license system across the country.
The reforms will be implemented in phases until 2028 and will apply to foreign workers, international graduates, and other temporary residents currently working under flexible arrangements.
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At present, open work permit holders can work for any employer, which made the system attractive to international students, post-graduation permit holders, and spouses of foreign workers.
Canadian officials said the open system made it difficult to track labour market needs and monitor whether foreign workers were employed in priority or vulnerable sectors.
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From 2026, the new Canada work licensing system will restrict employment to specific employers, approved occupations, wage brackets, and defined industries for a fixed period.
Under the new rules, foreign workers will not be allowed to freely switch jobs, and changing an employer will require applying for a new work license.
Authorities say the new structure will help Canada better monitor labour demand, prevent worker exploitation, and identify real skill shortages across key economic sectors.
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International graduates are expected to be the most affected, as they currently enjoy broad job flexibility after completing studies in Canadian institutions.
Under the revised framework, post study employment will shift to a post-graduation work license, issued only if graduates secure jobs in approved or high demand fields.
Officials said the policy aims to align graduate employment with Canada’s long term economic goals, including healthcare, technology, construction, and skilled trades.
