Quick Answer
A June 2026 report by the Institute for Canadian Citizenship proposes a federal Fair Licensing Act to enforce foreign credential recognition (FCR) nationwide. If passed, the legislation could add 27,000 nurses and 16,000 physicians to Canada’s workforce by eliminating provincial barriers for internationally trained professionals.
What the Fair Licensing Act Proposes and Why It Matters
The Institute for Canadian Citizenship (ICC) published Ready to Contribute in June 2026, authored by immigration policy researcher Kareem El-Assal. The report argues that Canada’s foreign credential recognition (FCR) system is failing skilled workers due to a lack of enforcement, not awareness. The proposed solution is a binding federal Fair Licensing Act, modeled after the Canada Health Act, which would tie federal funding to provinces meeting enforceable licensing standards.
Currently, only 41% of internationally trained physicians and 37% of internationally trained nurses work in their respective fields in Canada. The proposed legislation would standardize credential recognition across all professions and provinces, unlike previous piecemeal reforms. If implemented, the Act could unlock 43,000 healthcare jobs—addressing critical shortages in nursing and medicine while reducing the $50 billion annual economic loss attributed to FCR barriers.
The Fair Licensing Act would use financial levers, such as the Canada Fair Licensing Transfer, to ensure compliance. Provinces that fail to meet national standards would risk losing federal funding, similar to how the Canada Health Act operates. This approach aims to replace voluntary provincial reforms with legally binding, nationwide enforcement.
| Before (Current System) | After (Proposed Fair Licensing Act) |
|---|---|
| Provincial licensing bodies set their own rules, leading to inconsistent standards and timelines. | Federal enforcement of national standards, with financial penalties for non-compliance. |
| Only 41% of internationally trained physicians and 37% of nurses work in their fields. | Potential addition of 27,000 nurses and 16,000 physicians to the workforce. |
| Canadian work experience requirements create a catch-22 for newcomers. | Binding legislation to eliminate discriminatory practices like Canadian experience requirements. |
| $50 billion annual economic loss due to underemployment of skilled immigrants. | Reduction in economic losses by integrating skilled professionals into their fields. |
Key Numbers: The Impact of FCR Barriers in Canada
26%
of degree-holding newcomers are overqualified for their jobs, compared to 11% of Canadian-born workers.
43,000
healthcare professionals (27,000 nurses + 16,000 physicians) could enter the workforce if FCR barriers are eliminated.
$50B
annual economic loss due to underemployment of internationally trained professionals.
700,000
skilled tradespeople set to retire by 2028, exacerbating labor shortages in construction.
Who This Affects: Skilled Immigrants and Canada’s Workforce
The Fair Licensing Act would have the most significant impact on the following groups:
1. Internationally Trained Healthcare Professionals
Physicians, nurses, and other regulated healthcare workers face the most severe FCR barriers. Currently, only 41% of internationally trained doctors and 37% of nurses work in their fields. Many are forced into lower-skilled jobs, such as security guards or ride-share drivers, despite their qualifications. The Act would standardize licensing processes, reducing assessment timelines and eliminating discriminatory requirements like Canadian work experience.
For example, Ontario’s 2013 Human Rights Commission ruling declared Canadian experience requirements discriminatory, yet many licensing bodies still enforce them. The Fair Licensing Act would make such practices illegal nationwide, potentially doubling the number of internationally trained healthcare workers in their professions.
2. Skilled Tradespeople and Engineers
Canada faces a critical shortage of skilled tradespeople, with 700,000 set to retire by 2028. The construction sector alone needs to double its workforce to meet housing demand. Many internationally trained tradespeople and engineers are already in Canada but underemployed due to FCR barriers. The Act would streamline licensing for trades like electricians, plumbers, and welders, ensuring their skills are utilized.
Engineers, in particular, face lengthy and costly re-credentialing processes. The Act would standardize these processes, reducing the financial burden on newcomers and accelerating their entry into the workforce.
3. Express Entry Candidates and Permanent Residents
Skilled workers in the Express Entry pool, particularly those in regulated professions, would benefit from faster credential recognition. Currently, many candidates accept job offers below their skill level due to licensing delays. The Act could improve job matching, increasing Comprehensive Ranking System (CRS) scores for candidates with recognized credentials.
Permanent residents (PRs) already in Canada would see reduced wait times for licensing. For example, internationally trained nurses currently face assessment timelines of up to two years. The Act would enforce maximum processing times, ensuring PRs can work in their fields sooner.
4. International Students on PGWPs
International students graduating from Canadian institutions often struggle to transition into regulated professions due to FCR barriers. The Act would align licensing standards with Canadian education, making it easier for PGWP holders to obtain professional licenses. This could improve retention rates for international graduates, addressing Canada’s labor shortages in high-demand fields.
Your Action Plan: Steps to Take Now
- Start the credential assessment process early. Even if the Fair Licensing Act passes, provincial licensing bodies will need time to adapt. Begin gathering documents (transcripts, work experience letters, and professional references) as soon as possible. Use resources like the IRCC’s pre-arrival services for guidance.
- Explore bridging programs and financial aid. Many provinces offer bridging programs for internationally trained professionals. For example, Ontario’s Bridging Programs help newcomers meet licensing requirements. Additionally, the federal government’s Foreign Credential Recognition Program provides loans and grants to cover assessment costs.
- Monitor provincial reforms. Some provinces, like British Columbia and Ontario, have already introduced restrictions on Canadian work experience requirements. Stay updated on provincial changes that may align with the proposed federal legislation. Sign up for newsletters from provincial regulatory bodies or immigration advocacy groups like the Institute for Canadian Citizenship.
- Leverage supervised practice models. Provinces like Ontario and Nova Scotia offer supervised practice programs for healthcare professionals. These allow internationally trained workers to gain Canadian experience while working toward full licensure. Check if your profession qualifies for such programs in your province.
- Advocate for policy change. The Fair Licensing Act is still a proposal. Contact your local Member of Parliament (MP) to express support for the legislation. Organizations like the Canadian Council for Refugees and World Education Services are actively advocating for FCR reform—consider joining their efforts.
- Prepare for potential delays. Even if the Act passes, implementation will take time. Use this period to improve your language skills, gain Canadian certifications (e.g., First Aid, WHMIS), or pursue additional training to strengthen your application for licensure.
Pro Tip
If you’re an internationally trained professional, document every step of your credential recognition process. Keep records of applications, correspondence with licensing bodies, and any rejections. This documentation can be invaluable if the Fair Licensing Act passes, as it may provide evidence of systemic barriers and help expedite your case under the new legislation.
Frequently Asked Questions
1. What is the Fair Licensing Act, and when will it become law?
The Fair Licensing Act is a proposed federal legislation that would enforce national standards for foreign credential recognition (FCR) across all provinces. As of June 2026, it is still a proposal and has not been introduced in Parliament. The legislative process could take 12-24 months if it gains political support, meaning it may not become law until 2027 or later.
2. How would the Fair Licensing Act differ from current provincial reforms?
Current provincial reforms, such as British Columbia’s ban on Canadian work experience requirements, are voluntary and apply only to specific professions. The Fair Licensing Act would be legally binding and enforceable nationwide, covering all regulated professions. It would use financial penalties (e.g., withholding federal funding) to ensure compliance, unlike the current system, which relies on voluntary cooperation.
3. Which professions would benefit the most from the Fair Licensing Act?
Healthcare professionals (physicians, nurses, dentists) and skilled tradespeople (electricians, plumbers, welders) would see the most significant benefits. These fields face the highest FCR barriers and critical labor shortages. Engineers, accountants, and teachers would also benefit from standardized licensing processes.
4. What can I do if my profession is not regulated in Canada?
If your profession is not regulated (e.g., IT, marketing, project management), the Fair Licensing Act may not directly impact you. However, you can still face challenges with Canadian employers undervaluing your international experience. To mitigate this, consider obtaining Canadian certifications (e.g., PMP for project managers, Google Analytics for marketers) or volunteering to gain local experience. Networking through professional associations can also help bridge the gap.
5. How would the Fair Licensing Act affect Express Entry candidates?
The Act could improve job matching for Express Entry candidates in regulated professions. Currently, many candidates accept lower-skilled jobs due to licensing delays, which can negatively impact their CRS scores. With faster credential recognition, candidates could secure jobs in their fields, potentially increasing their CRS scores and improving their chances of receiving an Invitation to Apply (ITA).
6. What are the potential drawbacks of the Fair Licensing Act?
One potential drawback is resistance from provincial licensing bodies, which may view federal intervention as overreach. Additionally, the Act could create tension between federal and provincial governments over jurisdiction. There is also a risk that standardized licensing could lower professional standards if not carefully implemented. However, the report argues that these risks are outweighed by the economic and social benefits of integrating skilled immigrants.
📋 Official Source
Verified against the official IRCC Foreign Credential Recognition Program. Always confirm with canada.ca before submitting applications.
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