If you are an employer who is interested in hiring foreign workers, you might need a Labour Market Assessment.
A Labour Market Assessment (LMIA) is done to ensure foreign workers are hired positively or neutrally.
The Temporary foreign worker program (TFWP) is a way for the Canadian government to supplement its workforce when it lacks qualified workers. An LMIA is required for employers who wish to hire foreign workers. Employment and Social Development Canada will review the application and determine if any qualified Canadians are being overlooked to hire the foreign worker. Before they hire foreign workers, the employer must show that they tried to find Canadians qualified to fill the job. They must also provide benefits and salaries aligned with federal and provincial standards. An LMIA request will cost you $1,000 per position.
Remember that you, as an employer, must post the job vacancy at least four weeks before applying for an LMIA. Employers must show that they have used at most two other recruitment methods besides posting an advertisement on Canada Job Bank. Employers should also focus their advertising on underrepresented groups such as First Nations peoples and persons with disabilities. English and French can only be used as job requirements unless the employer can prove that another language is necessary.
LMIA depends on whether the worker is considered “high-wage” or “low-wage”. Suppose the employee is being paid under the provincial/territorial median wage. In that case, they are considered a low wage, and if they are paid at or above the median, they are considered high.
Hiring a high-wage worker
You must submit transition plans with your LMIA if you want to hire a high-wage employee. A transition plan is a plan to ensure that you take the necessary steps to reduce your dependence on foreign workers in the future.
The purpose of transition plans is to ensure that foreign employers meet the program’s purposes. This means they use the program only as a last resort to meet immediate labour requirements temporarily when Canadians are unavailable. This guarantees that Canadians with the right qualifications are given preference for jobs.
An employer may prove it by investing in skills training, supporting a foreign worker to become a permanent resident, or hiring Canadian apprentices.
You are looking to hire a low-wage employee.
You don’t need to submit transition plans if you are looking for a low-wage employee to work for you.
To limit access to the TFWP, the Government of Canada has set a limit on the number of low-wage foreign workers a company can hire. Employers with more than ten employees who apply for a new LMIA will be subject to a 20 per cent cap on the percentage of their workforce made up of low-wage, temporary foreign workers.
If you are an employer offering a wage that is below the provincial/territorial median, you must:
- Round-trip transportation costs for temporary foreign workers
- Assure affordable housing;
- Pay for private insurance until your workers become eligible for provincial coverage.
- Register the temporary foreign worker with the provincial/territorial workplace safety board; and
- Offer an employer-employee agreement.
Global Talent Stream
The Global Talent Stream, part of TFWP, is designed to assist Canadian employers in accelerating the hiring of foreign talent. Global Talent Stream applications take ten business days to process, and the IRCC can issue a work permit in as little as two weeks. This service standard should be met at least 80% of all times.
The Global Talent Stream has two types. Category A is for high-growth companies that need to recruit specialized talent from overseas. This category requires that a designated partner refer employers to the Global Talent Stream. Category B is for employers looking to hire exceptional talent for occupations on the Global Talent Occupations List. This list includes occupations that have been determined to be in high demand, and there is a shortage of domestic labour supply.
Both employers in these categories must comply with the payment requirements for skilled workers. This means they must pay the employee at least the prevailing wage, and the highest wage of either is the prevailing wage.
- The Government of Canada’s Job Bank shows the median wage for each occupation.
- An employer will pay current employees who are in the same job at the same place, have the same skills, and have the same experience.
- The minimum wage floor is set in the Global Talent Occupations List if applicable.
Facilitated LMIAs
Employers in Quebec can use the facilitated LMIA process to help address labor shortages, allowing them to hire foreign workers faster. Employers in Quebec are not required to post the job or show evidence of their recruitment efforts under the facilitated process.
The following is required of the employer:
- The foreign worker has the required education and experience to perform the job.
- The hourly wage paid to temporary foreign workers is comparable to the rate paid to permanent residents and Canadians who work in the same occupation or geographic area.
- All high-wage LMIA applications require a transition plan. A transition plan is not required for any subsequent applications for LMIA at the highest wage in Quebec.
