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 with government regulations after their employee has begun working in Canada.
Employers seeking to hire high-wage workers must submit transition plans along with their LMIA application to ensure that they are taking steps to reduce their reliance on temporary foreign workers over time. 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.
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.
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 was phased in over 2015 and 2016 in order to provide employers who were above the 10 percent cap time to transition and adjust accordingly.
The Government of Canada believes that foreign workers can help employers meet their labour needs when Canadians and permanent residents are not available. As part of this process the government supports higher-skilled foreign workers based on their potential to become economically established in Canada and to assist employers to meet their skilled labour shortages.
Employers who wish to hire skilled foreign workers and support their permanent resident visa application can make a job offer under Immigration, Refugees and Citizenship Canada (IRCC) Express Entry system. The job offer must meet the criteria of 1 of the listed economic immigration programs. These programs include:
Federal Skilled Worker Program (FSWP)
The employer must be offering a job for:
Federal Skilled Trades Program (FSTP)
The common scenarios under which one can work in Canada:
Canadian Experience Class (CEC)
The employer must be offering a job for:
The Agricultural Stream allows employers to hire Temporary Foreign Workers (TFWs) for a maximum period of 24 months when Canadians and permanent residents are not available.
The employer must be offering a job for:
National Commodity List
Employers who want to hire a temporary foreign worker (TFW) under the Agricultural Stream, must submit the Labour Market Impact Assessment (LMIA) application along with all the required supporting documentation to Employment and Social Development Canada (ESDC)/Service Canada.
The government of Canada has created a special category of work permit that offers a facilitated route through which majority owners of a company can acquire the right to work in Canada legally.
Generally, to obtain a work permit, a Labour Market Impact Assessment (LMIA) must first be conducted and approved. However, majority business owners (over 50% ownership) may be eligible for a work permit under the Owner/Operator stream, and as such, exempt from the advertising requirements of the LMIA. This facilitates the process greatly, as this is usually the most difficult hurdle of a LMIA and its ancillary work permit application.
The Global Talent Stream allows certain skilled workers to obtain a work permit within two weeks of applying. It is one of the pillars of Canada's Global Skills Strategy, which aims to help innovative companies grow by ensuring they can access the highly skilled talent they need quickly.
Among other initiatives, this new work stream establishes a two-week standard for processing of work permit applications (and temporary resident visas, if applicable) for highly skilled talent. The Global Talent Stream is part of Canada's Temporary Foreign Worker Program.
Category A
High-growth companies that can demonstrate a need to recruit unique specialized talent from abroad fall under Category A. Employers in this category must be referred to the Global Talent Stream by a designated referral partner.
Category B
Category B is for employers looking to hire certain highly skilled foreign workers for occupations found on the Global Talent Occupations List, which have been determined to be in-demand and for which there is insufficient domestic labour supply. This list may be updated periodically to respond to labour market needs.
Employers looking to hire skilled workers through the Global Talent Stream are required to work with Employment and Social Development Canada (ESDC) to develop a Labour Market Benefits Plan. This plan outlines the positive benefits that foreign talent will bring to the Canadian labour market, and activities that the employer will undertake to encourage job creation, skills and training investments.
