Hire a Temporary Foreign Worker with a Labour Market Impact Assessment (LMIA)

If you’re an employer in Canada looking to hire a temporary foreign worker (TFW), the Labour Market Impact Assessment (LMIA) is a critical step in the process. It helps determine whether hiring a TFW will have a positive or neutral impact on the Canadian labour market. Before hiring, it’s essential to understand which type of LMIA application applies to your situation and your responsibilities under the Temporary Foreign Worker Program (TFWP).

1. Determine the Right LMIA Application for Your Needs

Depending on the position you’re hiring for, there are different types of LMIA applications. These include applications for high-wage or low-wage positions, as well as specific streams for global talent, seasonal workers, or in-home caregivers. Ensuring you choose the correct application type will streamline the process and help you comply with Canadian regulations.

2. Your Responsibilities as an Employer

When hiring through the TFWP, you must meet several obligations, including:

• Demonstrating that you’ve tried to recruit Canadian citizens or permanent residents first.
• Providing fair wages and working conditions for the foreign worker.
• Complying with ongoing monitoring and reporting requirements from Service Canada.

3. New Measures for Low-Wage Positions (Effective September 26, 2024)

As of September 26, 2024, new restrictions are in place for LMIA applications related to low-wage positions:

• Applications in high unemployment areas: LMIA applications for low-wage positions in census metropolitan areas with an unemployment rate of 6% or higher will no longer be processed.
• Caps on low-wage positions:
  • In general sectors, the cap on low-wage positions is being reduced from 20% to 10%.
  • In the construction and healthcare sectors, the cap is reduced from 30% to 20%.
    
• Reduced employment duration: The maximum employment duration for low-wage positions is being reduced from 2 years to 1 year.

4. Choosing the Right LMIA Stream for Your Temporary Foreign Worker

It’s crucial to determine the right stream when applying for an LMIA to hire a temporary foreign worker (TFW). The process varies depending on the type of position you’re hiring for, and selecting the appropriate stream ensures a smoother and faster application process. Here are the most common streams:

4.1. High-Wage and Low-Wage Positions

The type of wage offered will determine whether you apply through the high-wage or low-wage stream. This is based on the median wage in the province or territory where the job is located. If the wage is above the median, you’ll apply for a high-wage LMIA; if it’s below, you’ll need a low-wage LMIA.

4.2. Global Talent Stream

For businesses looking to hire uniquely skilled talent or in-demand workers, the Global Talent Stream offers an expedited pathway. This stream is designed to help companies grow and innovate by bringing in top-tier talent from around the world in specialized or highly sought-after fields.

4.3. Caregiver Positions

You can also hire a TFW to provide care for children, seniors, or individuals with medical needs. This stream is especially beneficial for families requiring dedicated, long-term care.

4.4. Applications to Support Permanent Residency

If you’re hiring or already hired a skilled foreign worker with the goal of supporting their permanent residency application, the LMIA process can facilitate this transition. This is often used for highly skilled positions where the worker plans to stay in Canada long term.

4.5. Foreign Academic Positions

Post-secondary institutions in Canada can hire foreign academics for positions at degree-granting institutions through a specialized LMIA stream. This applies to teaching, research, or academic leadership roles.

By staying informed of these changes and ensuring compliance, you can effectively hire a temporary foreign worker while supporting Canada’s economic goals.

For further assistance and to start your LMIA application, contact us today.