LMIA High-wage/Low-wage
The wage being offered for the position will determine if you need to apply for a Labour Market Impact Assessment under the Stream for High-wage Positions or the Stream for Low-wage Positions, each with their own requirements.
Overview
High-wage & Low-wage positions
If you are offering a wage to a temporary foreign worker that is:
- at or above the provincial or territorial median hourly wage, you must apply under the Stream for high-wage positions
- below the provincial or territorial median hourly wage, you must apply under the Stream for low-wage positions
LMIA for High-wage positions
Advertising & Recruitment Requirements
Employers must conduct recruitment efforts to hire Canadians and Permanent Residents before offering a job to a temporary foreign worker. There are minimum advertisement requirements for the program that need to be followed.
Wages
Wages offered to temporary foreign workers should be similar to wages paid to Canadian and permanent resident employees hired for the same job and work location, and with similar skills and years of experience.
Transition Plan
An employer or prospective employer is also required to provide a “transition plan” as part of their LMIA application unless an exemption applies. A transition plan must describes the activities that an employer or prospective employer will undertake to recruit, retain, and train Canadians to reduce their reliance upon temporary foreign workers during the validity of the positive LMIA confirmation, if issued. A transition plan must include the following:
- At least three distinct activities to recruit, retain, and / or train a Canadian for the position and one additional activity to engage an organization serving underrepresented groups to identify potential candidates for recruitment or training; or
- At least one activity to support the foreign national in transitioning to a Canadian permanent resident.
LMIA for Low-wage positions
Cap
An employer is subject to a cap on the number of foreign nationals they can employ in low wage positions at a specific work location unless an exemption applies. If an employer hired a foreign national in a low wage position before June 20, 2014, they are subject to a 20% cap or their established estimated cap (which is lower) on the number of foreign nationals they can hire in low wage positions. However, if an employer did not employ a foreign national in a low wage position before June 20, 2014, they are subject to a 10% cap.
Advertising & Recruitment Requirements
Employers must conduct recruitment efforts to hire Canadians and Permanent Residents before offering a job to a temporary foreign worker. There are minimum advertisement requirements for the program that need to be followed.
Wages
Wages offered to temporary foreign workers should be similar to wages paid to Canadian and permanent resident employees hired for the same job and work location, and with similar skills and years of experience.
Transportation & Health Care
If an employer is hiring a foreign national in a low wage position, they are required to:
- Pay all costs associated with transporting a foreign national from their country of residence to Canada and back again;
- Provide or ensure that suitable and affordable housing is available for the foreign national from the first day that they arrive in Canada; and
- Ensure that the foreign national is covered by private, provincial, or territorial health insurance from the first day that they arrive in Canada.
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We work with employers using the Temporary Foreign Worker program to ensure they continually meet ESDC/Service Canada guidelines.
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