The labor market impact assessment (LMIA) seeks to determine whether the employment of international workers has a beneficial or neutral impact on the Canadian labor force.
If there is not enough skilled labor in Canada to fill a position, the Canadian government can increase its workforce through the Temporary Foreign Worker Program (TFWP). If you’re an employer looking to engage a foreign worker, an LMIA might be necessary. Employment and Social Development Canada (ESDC) officials will review the application to ensure that competent Canadians are not being passed over in favor of the expatriate worker. Before attempting to hire someone from abroad, the company must demonstrate that it has been recruiting qualified Canadians in Canada. It must also provide salaries and benefits that meet state and federal regulations. A fee is charged for each LMIA application.
It’s crucial to remember that businesses must hunt for employment for at least 4 weeks before submitting an LMIA application. The company must demonstrate that it is using at least two additional requirements strategies in addition to advertising with the Canadian job board. Employers ought to concentrate their advertising efforts on underrepresented populations including native peoples and people with disabilities. Only English and French appear as work requirements unless the company can demonstrate the need for another language.
The LMIA process determines whether foreign workers should be labeled as “high wage” or “low wage”. Employees are considered low-wage workers if their wages are below the median state or territory, and high-wage workers if their wages are above the median.
Choosing a high-paid employee
The LMIA and transition plans must be submitted together if you intend to hire a high-wage worker. An employer should have a transition strategy to make sure that over time, they are doing everything possible to lessen their dependency on foreign labor.
Transition plans are designed to make sure that companies who are looking for foreign labor are using the program in accordance with its original goals, i.e., using it only as a last resort to cover temporary and urgent labor needs when Canadians are not available for the position. Due to this, qualified Canadians will always be given preference for open positions.
An employer can demonstrate this by, among other things, providing evidence of investment in skill development, aiding the foreign worker in obtaining permanent residency, or recruiting Canadian apprentices.
If you’re taking on a low-paid employee
The LMIA does not require the submission of transition plans if you want to hire low-wage workers.
Instead, in order to limit access to the TFWP, the Canadian government has set a limit on how many low-wage temporary foreign workers can be employed by one organization. A cap of 20% on the percentage of low-wage temporary foreign workers in an employer’s workforce that is seeking a new LMIA and has 10 or more employees is therefore imposed.
Employers who pay below-median wages in their provinces or territories must:
- transportation costs for the temporary foreign worker’s return journey;
- Ensure that there is accessible housing;
- pay for private health coverage until employees are qualified for provincial health insurance;
- The temporary foreign employee must be registered with the provincial or territorial workplace safety board; and
- Sign a contract between the employer and the employee.
Stream of Global Talent
The Global Talent Stream, which is a component of the TFWP, was created to assist Canadian firms in acquiring international tech talent more quickly. Global Talent Stream applications that meet service standards have a processing time of 10 working days from receipt of the application by the ESDC (IRCC), and work permits can be processed by Immigration, Refugees, and Citizenship Canada within two weeks. It takes 80% of the time to respond to this service request.
In the Global Talent Stream, there are two categories. High-growth businesses falling under category A are those that exhibit a requirement to bring in distinctive, specialized expertise from overseas. For this group of employers, a designated referral partner must recommend them to the Global Talent Stream. Employers in Category B are those wanting to fill positions on the Global Talent Occupations List, such as those that have been identified as high-demand and for which there is a shortage of domestic workers.
In order to meet their wage commitments for skilled workers, both types of companies must pay their staff at least as much as one another. Among the following salaries, this one is the highest:
- The Government of Canada’s Job Bank’s median wage for the profession
- the pay range that a company now offers to current employees in the same job at the same location who have the same qualifications and experience.
- the Global Talent Occupations List’s definition of the minimum salary level (if applicable).
Convenient LMIAs
Employers in Quebec are able to fill open positions with foreign workers more rapidly because of the simplified LMIA process. Employers in Quebec are not required to publicize the position for which they are hiring foreign employees or give documentation of recruitment efforts because the streamlined procedure lists the professions in which there is a documented labor shortage.
Specifically, the employer must demonstrate that:
- That the foreign worker satisfies the National Occupational Classification and the job’s standards for education and experience;
- The hourly rate paid to temporary foreign workers is equivalent to the rate paid to Canadians and permanent residents who work in the same field and location.
- All high-wage LMIA applications must include a transition strategy. However, a transition plan is only required for subsequent LMIA applications in the same field and occupation in the Quebec simplified process.
