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.

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

Sources:

• Source for the wage rates prior to May 31, 2023, (column 2) is Statistics Canada, Labour Force Survey, 2020 to 2021, based on National Occupational Classification (NOC) 2016
• Source for the wage rates as of May 31, 2023, (column 3) is Statistics Canada, Labour Force Survey, 2021 to 2022, based on NOC 2021

Labour Market Impact Assessment (LMIA)

This step follows a job posting in three national media for a period of four weeks

Employers can request one LMIA per position to fill.

Employment and Social Development Canada (ESDC) does not check whether the foreign worker has the educational and professional background required to perform the tasks described in the job posting.

Transition plan high-wage positions

Employers looking to hire high-salary workers should submit transition plans along with their Labor Market Impact Assessment (LMIA) to make sure they take actions to reduce their recourse to temporary foreign workers over time.

Transition plans are designed to make sure employers use foreign workers in accordance with the objectives of the program. This means that they use the program as a last resort in order to meet immediate needs when qualified Canadians are not available and to make sure that Canadians are the first to be offered the available position.

Transition plans are required for all high-wage LMIA applications, however, in Quebec under the Facilitated Process, the exemption applies only to the first LMIA application request for the same occupation and same work location. A transition plan is only required from the second LMIA application request onwards for the same occupation in the same work location.

Cap on proportion of low-wage positions

As of April 30, 2022 and until further notice, you are subject to a 20% cap limit on the proportion of temporary foreign workers that you can hire in low-wage positions at a specific work location. The cap is to ensure that Canadians or permanent residents are considered first for available jobs.

For applications received between April 30, 2022 and April 30, 2023 from employers hiring workers in low-wage positions in the following defined sectors and sub-sectors, you are eligible for a cap limit of 30%:

• Construction (NAICS 23)
• Food Manufacturing (NAICS 311)
• Wood Product Manufacturing (NAICS 321)
• Furniture and Related Product Manufacturing (NAICS 337)
• Hospitals (NAICS 622)
• Nursing and Residential Care Facilities (NAICS 623)
• Accommodation and Food Services (NAICS 72)

The sectors and sub-sectors classification code is determined by the North American Industry Classification System (NAICS) Canada.

Federal LMIA exemption

• International agreements;
• Entrepreneur candidates / self-employed workers;
• Transfers within a company;
• International exchange programs;
• Dependents of foreign workers;
• Religious workers;
• Academics;
• Provincial LMIA exemptions;
• Workers under the French-speaking social benefits program;
• Provincial candidates for permanent residency.

LMIA exemption in Quebec

The ministère de l’Immigration, de la Francisation et de l’Intégration du Québec (MIFI) has established provisions simplifying the hiring of TFWs. These provisions exempt employers from applying for an LMIA with ESDC/Service Canada, if they hire a TFW who:

• holds a valid work permit;
• holds a Certificat de Sélection du Québec (CSQ);
• resides in the province of Quebec;
• applied for permanent residence in the Skilled Worker Category (Quebec).

The TFW must also fall into one of the following categories:

• seek to extend his work permit for his current employer in Quebec;
• seek to renew his work authorization for a new employer in Quebec;
• be a foreign student who has obtained a post-graduation work permit and who has a job offer in the province of Quebec;
• hold a work permit as a participant in one of the programs of the International Experience Canada (IEC) initiative, and seek to:
• extend his work permit for the current employer;
• renew it for a new employer in Quebec.

Facilitated labour market impact assessment process for Quebec employers

Employment and Social Development Canada (ESDC) and the ministère de l’Immigration, de la Francisation et de l’Intégration (MIFI), signed an agreement to enable employers to apply for a Labour Market Impact Assessment (LMIA), to fill selected positions without having to include proof of recruitment efforts.

Employer compliance

Inspections are used to determine whether employers who hire TFWs are meeting the compliance requirements set out in the Immigration and Refugee Protection Regulations (IRPR). Inspections take the form of a paper administrative exam or an on-site inspection. Employers can be subject to:

• an inspection in the event of non-compliance in the past;
• random verification;
• suspicions of non-compliance.

ESDC and IRCC assess employers’ compliance in function of the criteria established in the IRPR, namely:

Factors examined

During an inspection, ESDC/Service Canada inspectors will check if the employer has met the conditions set out in the job offer, the positive LMIA letter and its appendices. These conditions include:

1. The employer must remain actively engaged, during the period of validity of the work permit of the foreign worker, in the company for which the offer of employment was made, unless the offer has been made for a job as a home care provider;
2. Employers must comply with federal, provincial and territorial laws that govern employment and recruitment in the province or territory where the foreign worker is employed;
3. Employers must provide to each foreign worker a job in the same occupation as the one indicated in the job offer;
4. Employers must provide each foreign worker with essentially the same salary, but no less favorable than the one offered in the job offer;
5. Employers must provide each foreign worker with working conditions that are essentially the same but no less favorable than those in the job offer;
6. The employer must make reasonable efforts to provide a workplace free of abuse;
7. Employers must respect any specific commitment agreed upon at the time of issuance of the LMIA with respect to the direct creation of jobs for Canadians and permanent residents;
8. Employers must respect any specific commitment agreed upon at the time of issuance of the LMIA with respect to keeping Canadians and permanent residents employed;
9. Employers must meet any specific commitment agreed upon at the time of issuance of the LMIA with respect to the hiring or training of Canadians and permanent residents;
10. The employer must respect any specific commitment agreed upon at the time of issuance of the LMIA, with respect to the development of skills and knowledge for the benefit of Canadians or permanent residents;
11. The employer must meet any specific commitment agreed upon at the time of issuance of the LMIA with respect to the transfer of skills and knowledge for the benefit of Canadians or permanent residents;
12. The employer must demonstrate that it has made reasonable efforts to hire Canadians or permanent residents, if this is one of the factors that led to the issuance of a work permit;
13. The employer must demonstrate that he has made reasonable efforts to train Canadians or permanent residents, if this is one of the factors that led to the issuance of a work permit;
14. Employers must be able to demonstrate that all the information they provided as part of the LMIA application was correct;
15. The employer must keep all documents relating to compliance with these conditions for a period of six years, from the first day of employment of the foreign national;
16. The employer must present himself at any time and at any specific place to answer questions and provide documents allowing to verify the respect of the conditions;
17. The employer must provide all the documents required as part of an inspection;
18. The employer must be present at any inspection (unless the employer has not been informed) that takes place in the premises or the place where the foreign national carries out his work and/or in the premises or places which are provided to him as accommodation, provide all reasonable assistance to the person carrying out this inspection and provide him with any document or information he requires;
19. The employer must make sure that the foreign national lives in a private household in Canada and provides care, childcare services, home support services for the elderly or care for a disabled person, in this unsupervised household (specific to home care providers);
20. The employer must provide the foreign worker with adequate furnished and private accommodation in the household (specific to home care providers);
21. The employer must have sufficient financial resources to pay the foreign worker the salary offered to him (specific to home care providers).

Consequences of non-compliance during an inspection

Employers found to be non-compliant following an inspection carried out before December 1, 2015 could:

• Have a two-year ban from using the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP);
• See their name, address and period of eligibility posted on IRCC’s public website;
• Receive a negative LMIA for any pending request;
• Undergo the revocation or suspension of any LMIA already issued.

Employers found to be non-compliant following an inspection, relating to an offense that occurred since December 1, 2015, could:

• Receive a warning;
• Receive an administrative monetary penalty of $ 500 to $ 100,000 for each violation, up to a maximum of one million dollars per employer over a one-year period;
• Receive a one, two, five or ten year ban, or a permanent ban for the most serious violations of the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP);
• See their name, address with details associated with offenses committed and consequences imposed posted on IRCC’s public website;
• Undergo the revocation or suspension of any LMIA already issued.

Employer’s response

Employers will have 30 days to present a written argument regarding any discrepancy associated with the violation in question, the proposed consequence, or both. During this period, the employer may also request an extension of the period granted to provide a reply. Such requests will be considered on a case-by-case basis and may be accepted if they prove to be reasonable. Any new information provided by the employer at this time will be examined by a distinct officer who was not involved in determining the temporary results.

Unionized positions

If you are applying to hire temporary foreign workers for positions covered under a collective agreement, you must:

• advertise and offer the same wage rates as those established under the collective agreement
• offer the temporary foreign workers the same terms and conditions as Canadian and permanent resident workers
• submit a copy of the section of the collective bargaining agreement on the wage structure

The hiring of temporary foreign workers must not affect current nor foreseeable labour disputes at the workplace.

We recommend that you work actively with union representatives to recruit Canadians and permanent residents.