What is Labour Market Assessment?
Canada runs the Temporary Foreign Worker Program (TFWP) as a method to supplement its workforce when there is no qualified worker in Canada to do a job. To hire a foreign worker in Canada, a company must apply for a Labour Market Impact Assessment (LMIA) from the Canadian government. Whenever a foreign worker is hired, the Canadian government employee assessing the application must decide if it will improve or have no impact on the Canadian labour market. Canada’s Employment and Social Development will examine the application (ESDC). The foreign worker must receive pay and benefits with federal and provincial norms, and it must be evident that no qualified Canadians must be given preference over him. Depending on whether the targeted person is a “high-wage” or “low-wage” employee, the LMIA procedure varies. Low-pay temporary foreign employees are those paid less than the provincial or territorial median wage; high-wage workers are those paid at or above the median wages.
LMIA Work PermitHiring a High-Wage Worker
You need to submit transition plans with the LMIA if you want to hire a high-wage worker. A transition plan is a plan that ensures you are taking the steps as an employer to reduce your reliance on foreign workers over time.
Transition plans are intended to ensure that employers looking for foreign employees are fulfilling the program’s objectives, i.e., utilizing it only as a last alternative for temporarily covering labour shortages when no qualified Canadians are available. By doing this, eligible Canadians are given preference for open positions. An employer can demonstrate this, for instance, by providing evidence of investment in skill development or support.
Free Immigration AssessmentHiring a Low-Wage Worker
There is no requirement to submit transition plans with a Labour Market Impact Assessment (LMIA) application from employers looking to hire low-wage workers. But they must adhere to a distinct set of rules.
The Canadian government has restricted the number of low-wage temporary foreign employees that a company can hire to guarantee that Canadians may be given preference for open positions under the Temporary Foreign Worker Program (TFWP). Additionally, processing of the LMIA is generally denied for some low-wage jobs. The percentage of low-wage temporary foreign workers working for an employer having ten or more employees may not exceed 20% of their total workforce.
Employers who offer wages below the provincial/territorial median are required to:
- Pay for the temporary foreign worker’s round-trip transportation;
- Make sure there is access to affordable housing;
- Until employees are qualified for provincial health care, pay for private health insurance;
- The provincial or territorial workplace safety board should receive temporary foreign worker’s registration
- A contract between the employer and the employee.
Global Talent Stream
Certain talented employees can apply for a work permit through the Global Talent Stream and receive one two weeks later. It is a cornerstone of Canada’s Global Skills Strategy, which aims to support the expansion of innovative businesses by ensuring access to the highly qualified individuals they require.
This workstream creates a two-week norm for processing applications for work permits (and temporary resident visas, if necessary) for highly skilled talent, among other activities. Part of Canada’s Temporary Foreign Worker Program is the Global Talent Stream. The Global Talent Stream aims to help employers in Canada fast-track the hiring of foreign tech talent.
The Global Talent Stream has two categories. High-growth businesses falling under category A need to bring in foreign talent with specific skills. This category of employers requires a designated referral partner to refer them to the Global Talent Stream. Employers trying to fill positions on the Global Talent Occupations List—a list of professions for which there is a shortage of domestic labour—are in Category B. These positions are generally in demand.
Employers in both groups must adhere to the payment standards for skilled workers, which means they must pay their staff at least the going rate. The prevailing pay is the higher of the following two figures:
According to the Government of Canada’s Job Bank, the occupation’s median salary
- The pay range that a company now offers to current employees in the same role, working in the same location, and possessing the same qualifications.
- The Global Talent Occupations List’s minimum wage ceiling (if applicable).
Facilitated Labour Market Impact Assessment (LMIA)
Impact Assessment (LMIA) processing is updated annually by the Quebec Immigration Ministry.
By enabling them to engage foreign workers more rapidly, this procedure intends to assist Quebec firms in addressing their state’s well-documented labour shortages. Employers in Quebec do not have to provide evidence that they could not find a worker in Canada to fill the position because there is evidence of a labour shortage in these professions.
The following is required to be proven by the employer:
That the temporary foreign worker satisfies the job’s educational and experience prerequisites as well as those set forth by the National Occupational Classification; That the hourly wage offered to temporary foreign workers is competitive with that received by Canadians and permanent residents who work in the same profession and region.
All applications for high-wage LMIA must include a transition strategy. According to the facilitated process in Quebec, the transition plan is only necessary for a second or subsequent application for an LMIA in the same occupation and area.
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