Temporary Foreign Worker Program and LMIA
The Temporary Foreign Worker (TFW) is a program administered by Employment and Social Development Canada (ESDC), IRCC and CBSA. The program allows employers in Canada temporarily hire foreign workers when they can’t find qualified Canadians for the job. However, before Canadian employers can hire a foreign worker they must obtain a permission in the form of Labour Market Impact Assessment (LMIA) from ESDC.
ESDC carefully reviews all LMIA applications and analyses if hiring the foreign workers for a particular job will have a negative effect on the Canadian labour market. During the assessment ESDC looks at a number of factors, including the available labour market information for the region and the occupation, Canadian employers' recruitment and advertisement of the position, wages and working conditions offered to foreign workers, labour shortages, and the transfer of skills and knowledge to Canadians.
High-wage and Low-wage streams
The process of obtaining the LMIA depends on the wage that is being offered for the position to the foreign worker. Under Temporary Foreign Worker Program if the Canadian employer must apply under one of the Streams:
Stream for High-wage Positions: if the wage is at or above the provincial or territorial median hourly wage,
Stream for Low-wage Positions: if the wage is below the provincial or territorial median hourly wage.
| Province/Territory | Median hourly wages as of April 30, 2022 |
|---|---|
| Alberta | $28.85 |
| British Columbia | $26.44 |
| Manitoba | $23.00 |
| New Brunswick | $21.79 |
| Newfoundland and Labrador | $24.29 |
| Northwest Territories | $37.30 |
| Nova Scotia | $22.00 |
| Nunavut | $36.00 |
| Ontario | $26.06 |
| Prince Edward Island | $21.63 |
| Quebec | $25.00 |
| Saskatchewan | $25.96 |
| Yukon | $32.00 |
Under the Stream for High-wage Positions Canadian employers submitting an LMIA application may request an employment duration of up to 3 years. Employers must comply with all the Temporary Foreign Worker Program requirements, pay the processing fees, and prove that their business is legitimate and the workplace is free from abuse.
The employer also must prepare a complete application, collect all necessary supporting documents, and advertise the position in accordance with the requirements of the TWP Program. Employers must conduct their recruitment and do their best to hire Canadians and permanent residents before they offer a job to a temporary foreign worker.
If the recruitment process was not fruitful and no Canadians could be hired for the job, the employer will be allowed to hire a foreign worker for a high-wage position. Nevertheless, an employer must develop a detailed Transition Plan that will clearly demonstrate how the employer is planning to reduce the reliance on TFW Program over time.
TFWP Stream for High-wage Positions
By large the Low-wage Stream is similar to the TFWP Stream for High-wage Positions. Yet, there are few key differences between these two streams. For example, under the Stream for Low-wage Positions Canadian employers do not need to prepare a Transition Plan.
Also, to make sure that Canadian workers are always considered first for the jobs, ESDC placed a to the number of low-wage temporary foreign workers that can be employed by the Canadian Employer. A Canadian business with 10 or more employees has a 20% cap limit on the proportion of temporary foreign workers hired for low-wage positions at a specific work location.
Employers looking to hire a foreign worker for a low-wage position must also:
pay for round-trip transportation for the temporary foreign worker;
ensure affordable housing is available;
pay for private health insurance until workers are eligible for provincial health coverage;
register the temporary foreign worker with the provincial/territorial workplace safety board; and
provide an employer-employee contract.
Finally, just as with a high-wage position stream, Canadian employers must comply with all the Temporary Foreign Worker Program requirements, pay the processing fees, and prove that their business is legitimate and the workplace is free from abuse. The employer is also required to advertise the position in accordance with the requirements of the TWP Program and do their best to hire Canadians and permanent residents before they offer a job to a temporary foreign worker.
TFWP Stream for Low-wage Positions
Are you trying to hire a temporary foreign worker for your business in Canada? Book a consultation with an Immigration Lawyer to discuss how to bring foreign workers under Temporary Foreign Worker Program.