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LABOUR MARKET IMPACT ASSESSMENT

LABOUR MARKET IMPACT ASSESSMENT

In most cases, a Canadian employer wishing to hire a foreign worker must first receive government approval before the hiring can take place.
This comes in the form of a Labour Market Impact Assessment (LMIA), formerly known as a Labour Market Opinion (LMO).
In order to receive a positive LMIA, the Canadian government employee reviewing an application must determine that the hiring of a foreign worker will have a positive or neutral effect on the Canadian labour market. Among other factors, it must be clear that no qualified Canadians were passed up in favour of the foreign worker, and that the foreign worker will be given a salary and benefits that meet federal and provincial standards.

The LMIA process is different depending on whether the targeted employee is classified as “high-wage” or “low-wage”. Temporary foreign workers being paid under the provincial/territorial median wage are considered low-wage, while those being paid at or above are considered high-wage. Depending on whether a prospective employee is classified as high-wage or low-wage, certain specific provisions apply.

Generally speaking, all Canadian employers must provide evidence that they have attempted to find qualified Canadian citizens or permanent residents to fill job positions before turning to foreign workers. In addition, employers may be inspected for compliance to government regulations after their employee has begun working in Canada.

High-Wage Workers

Employers seeking to hire high-wage workers must submit transition plans along with their Labour Market Impact Assessment (LMIA) application to ensure that they are taking steps to reduce their reliance on temporary foreign workers over time. High-wage workers are those earning above the median hourly wage for a given occupation in specified region.

The transition plans are designed to ensure that employers seeking foreign workers are fulfilling the purpose of the program. This entails that they are using the program as a last and limited resort to address immediate labour needs on a temporary basis when qualified Canadians are not available, ensuring that Canadians are given the first chance at available jobs.

Low-Wage Workers

Employers seeking to hire low-wage workers do not need to submit transition plans with their Labour Market Impact Assessment (LMIA). They must, however, follow a different set of guidelines.

To restrict access to the Temporary Foreign Worker Program (TFWP), while ensuring that Canadians are always considered first for available jobs, the Government of Canada has introduced a cap to limit the number of low-wage temporary foreign workers that a business can employ.

Furthermore, certain low-wage occupations may be refused for LMIA processing. Employers with 10 or more employees applying for a new LMIA are subject to a cap of 10 percent on the proportion of their workforce that can consist of low-wage temporary foreign workers. This cap will be phased in over 2015 and 2016 in order to provide employers who are above the 10 percent cap time to transition and adjust accordingly.

Employers offering a wage that is below the provincial/territorial median hourly wage must:

  • pay for round-trip transportation for the temporary foreign worker;
  • ensure affordable housing is available;
  • pay for private health insurance until workers are eligible for provincial health coverage;
  • register the temporary foreign worker with the provincial/territorial workplace safety board; and
  • provide an employer-employee contract.

As of April 30, 2015, the Temporary Foreign Worker Program uses the latest Labour Force Survey results for the unemployment rates in regions across Canada. These rates determine which regions are eligible for employers to submit Labour Market Impact Assessments (LMIAs) for low-wage/lower skilled occupations in the Accommodation and Food Services sector and the Retail Trade sector. LMIA applications for these sectors will not be processed in economic regions where the unemployment rate is 6 per cent or higher.

Highest-paid occupations ­

The 10-day service standard for this category is limited to employers hiring temporary foreign workers in the highest-paid occupations that offer wages in the top 10 percent of wages earned by Canadians in a given province or territory where the job is located. This wage level indicated that a temporary foreign worker is the highest-skilled in their occupation, and that those skills are difficult to find in the Canadian labour market.

Shortest-duration occupations

The 10-day service standard for this category is limited to employers requesting temporary foreign workers for a short duration, defined as 120 calendar days or less, in any occupation where the wage offered is at or above the provincial or territorial median wage. Positions falling under this category include those related to repairs or manufacturing equipment and warranting work.

After receiving a positive LMIA, the employer should send a copy to their identified foreign worker. The positive LMIA must be included in the worker’s application for a Temporary Work Permit.

A single LMIA can be issued for one or multiple employees. In the case of multiple employees, the LMIA will only be issued to employees who will be filling identical positions as identified by the Canadian National Occupation Classification.

Advertising Requirements

Employers wishing to hire a temporary foreign worker to Canada must pay a processing fee of CDN $1,000 for each request for a Labour Market Impact Assessment. There is also be an additional $100 privilege fee on employers charged by Employment and Social Development Canada.

English and French are the only languages that can be determined as job requirements, both for LMIAs and for job vacancy advertisements, unless the employer can prove that another language is otherwise required for the position.

In addtion, employers must advertise all job vacancies across the Canadian job market for at least four weeks before applying for a LMIA.

Towards this end, employers are required to prove that they have used at least two other recruitment methods in addition to having posted an advertisement on the Canada Job Bank. Employers must focus advertising efforts on groups of Canadians who are under-represented, such as First Nations or persons with disabilities.

Employers are also required to submit a transition plan to ESDC, along with the application for a LMIA, for high-wage positions. This transition plan should indicate how the company plans to reduce its reliance on temporary foreign workers in the future. Proof of investment in skills training or hiring Canadian apprentices are examples of how employers can prove this. Alternatively, employers can demonstrate how they are assisting their high-skilled temporary foreign worker(s) in becoming Canadian permanent residents. If the employer is chosen for an inspection, or if they apply to renew their LMIA, they will be required to report on the progress of the transition plan that they have submitted.

Employers are required to attest to their awareness that they are prohibited from laying off or cutting the hours of Canadian workers working in the same postion(s) as the temporary foreign worker(s) working at the company.

Labour Market Impact Assessment (LMIA) Exemptions

In order to bring a temporary foreign worker to Canada, a Canadian employer must generally receive a positive Labour Market Impact Assessment (LMIA). There are several cases, however, where the need for a LMIA may be waived.

Some of the most common LMIA-exempt streams are outlined below;

  • International Agreements
  • Canada is a party to a number of international agreements that facilitate the entry of foreign workers. Admission of foreign workers under these agreements is considered of significant benefit to Canada and, as such, does not require a LMIA. The North American Free Trade Agreement (NAFTA) is an example of this case.
  • Entrepreneurs/Self-Employed Candidates

A LMIA exemption may be granted to private entrepreneurs who wish to come to Canada temporarily in order to start or operate a business. Applicants to one of these programs must be the sole or majority owners of the business they wish to pursue in Canada. They will also have to demonstrate that their business will be of significant benefit to Canada. Entrepreneurs are only eligible for LMIA-exempt work permits if they can demonstrate that their work in Canada is temporary in nature. This category is particularly well suited to owners of seasonal businesses. Entrepreneurs who have already applied for Canadian permanent residence may also qualify for LMIA-exempt work permits in this category. Entrepreneurs are only eligible for LMIA-exempt work permits if they can demonstrate that their work in Canada is temporary in nature.

Intra-Company Transferees

Intra-Company Transferees may be granted a LMIA exemption for a temporary transfer to Canada. Transferees must be considered executives, managers, or specialized knowledge workers, and must work for a foreign company with a qualifying relationship to the company in Canada.

International Exchange Programs

Canada is a participant in a number of programs for international youth exchange. Such programs include the International Experience Canada (IEC) Working Holiday Visa, Student Co-op programs, Young Professionals programs, and teacher exchange programs. These programs are exempt from the need for a LMIA.

Dependents Of Foreign Workers

Spouses and children of Foreign Workers holding a Canadian work permit for a skilled position do not require a LMIA. Please note that this does not apply to the spouses of workers on an International Exchange Program.

French-Speaking Skilled Workers

Foreign nationals who have been recruited through a francophone immigration promotional event coordinated between the federal government and Francophone minority communities, and who are destined for a province or territory outside of Quebec and qualified under a National Occupational Classification (NOC) 0, A or B, may be eligible to work in Canada through Mobilité Francophone.

Religous Workers

The need for a LMIA for religious workers will vary depending on the kind of work to be done in Canada. A foreign national may work in Canada without a LMIA when the main duties are “spiritual”.

Academics

This includes researchers, guest lecturers, and visiting professors.

Provincial LMIA Exemptions

Workers nominated by a province for permanent residence and who have obtained a job offer in that province may be exempt from the need for a LMIA.

Note: Being exempt from obtaining a LMIA does not mean the individual is exempt from obtaining a work permit. All streams on the LMIA exemption list still require the individual to obtain a work permit to work in Canada legally.

For more information on these categories, kindly contact us at [email protected] or through the other avenues on our contact us page.