Alberta employers warn of red tape with proposed immigration changes

‘This looks like duplication and more burdensome paperwork on the backs of employers’

Alberta employers warn of red tape with proposed immigration changes

Alberta employers are warning that proposed provincial immigration changes could add red tape and delay hiring in sectors already struggling with labour shortages.

Bill 26, the Immigration Oversight Act, was introduced on April 1, 2026, by the Ministry of Jobs, Economy, Trade and Immigration. The legislation would create a provincial registry for employers using federal temporary foreign worker (TFW) programs, introduce licensing for immigration consultants and foreign worker recruiters, and expand enforcement powers to target fraud, illegal fees and worker exploitation, according to government and HRD reports.

The Alberta government is presenting the bill as a response to what it calls the federal government’s “loss of control over immigration,” which it links to “unsustainable population growth, pressure on public services and cases of abuse by bad actors,” HRD reported. But some employers say they are concerned about duplication of federal processes, longer timelines and added administrative costs.

Hospitality sector fears impact on staffing

Some of the strongest criticism has come from restaurant and tourism operators who rely heavily on TFWs to stay open, particularly in resort communities and during peak travel seasons, CBC reported.

Michael Leslie, general manager of the Iron Goat Pub in Canmore, told CBC that Canadians are often reluctant to take on many of the roles currently filled by foreign workers. “Canadians aren’t jumping up to do these jobs,” he said, pointing to hospital cleaning work and farm labour, and adding that temporary foreign workers “are happy to be part of a team, and their dedication is unsurmountable.”

Leslie said that with increased travel “due to the world turmoil right now,” businesses are seeing a lot more European and U.S. travellers but are being asked to “deliver with fewer staff,” which he described as challenging, CBC reported. He warned that if the province wants to grow tourism, it must ensure employers can still access foreign workers quickly enough to meet demand.

Calgary restaurateur Ernie Tsu, owner of Trolley 5 and a board member of the Alberta Hospitality Association, told CBC the added registration step risks lengthening already slow processing times. “It’s another step that creates some time,” he said. Referring to a similar provincial process in British Columbia, he said some restaurants there have waited up to 90 days — three months — and are still not getting an answer.

Tsu also questioned how much the province consulted with industry before tabling the bill, saying there had been only “light dialogue,” according to CBC.

Small business groups see duplication and paperwork

Business advocates are echoing concerns from the hospitality sector. The Canadian Federation of Independent Business (CFIB) has warned that more than half of Alberta small businesses rely on foreign workers to stay in operation, especially in agriculture, and fears the new oversight system could add administrative burdens, HRD reported.

“This does not look like red tape reduction,” said Keylil Loeppky, CFIB’s director for Alberta and interprovincial trade. “This looks like duplication, more burdensome paperwork on the backs of employers who are just trying to survive, employ Albertans and support the economy,” HRD reported.

The framework would, in practice, duplicate some work already done by Ottawa. However, Jobs, Economy, Trade and Immigration Minister Joseph Schow told CBC the process is needed to “prioritize and address Alberta’s unique labour market needs, particularly in agriculture and manufacturing.” He did not specify how Alberta’s criteria would differ from federal rules, saying details would be set in regulations if the bill passes, CBC reported.

Fraud and abuse crackdown

The Alberta government says Bill 26 is intended to give the province “more provincial oversight of immigration, increase transparency and reduce mistreatment of newcomers”. It argues that Alberta currently “does not have adequate authority to hold those who represent the immigration industry accountable when they mistreat or take advantage of foreign workers.”

Under the bill, any employer wishing to access federal TFW programs would have to register with the province before applying for tools such as a Labour Market Impact Assessment. A new licensing regime for immigration consultants and foreign worker recruiters would be created, giving Alberta powers already in place in jurisdictions like Saskatchewan and British Columbia, the province said, as cited by HRD.

The government says the majority of employers and intermediaries follow the rules but that new legislation is needed to define and prohibit specific misconduct, including “misrepresented or fraudulent employment opportunities,” “paid‑for job offers and collection of unauthorized fees,” and other activities that exploit a foreign worker’s “inexperience, fear, discomfort or lack of knowledge in the immigration system,” HRD reported.

Officials would gain authority to investigate suspected contraventions, impose monetary penalties, suspend or revoke licences and registrations, and in severe cases seek terms of imprisonment through the courts.

Schow has framed the bill as part of a broader push to align immigration more closely with provincial labour priorities and to ensure domestic candidates are considered first. “What this comes down to is addressing things like unemployment in Alberta (and) making sure that Albertans have first crack at Alberta jobs,” he told reporters ahead of introducing the bill, CBC reported.

He insisted the proposal is “absolutely not” about restricting the number of TFWs entering Alberta, but about ensuring employers turn to foreign hires only “because they cannot find the employees in Alberta,” CBC reported.

Currently, Ottawa is moving to streamline Canada’s core immigration pathways in a series of regulatory changes that will affect how employers recruit, retain and manage foreign talent.

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