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Temporary Foreign
Worker Program:
About the LMIA Process
Under the Temporary Foreign Worker Program, an employer must first receive approval from the Canadian government before hiring a foreign national. This comes in the form of the Labour Market Impact Assessment.
The purpose of the LMIA is to ensure the arrival of the foreign worker will not hurt workers in Canada. This comprehensive CanadaVisa page provides an overview of the LMIA process.
Overview
Alberta Refusal to Process List of Occupations
Canada operates the Temporary Foreign Worker Program (TFWP) as a means to supplement its work force when there is no qualified worker in Canada to do a job. An employer looking to hire a foreign worker in Canada often needs to submit a Labour Market Impact Assessment (LMIA) application to the Canadian government. The Canadian government employee reviewing the application must determine that the hiring of the 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 the median wage are considered high-wage.
Generally speaking, all 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.
High-Wage Workers
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 Temporary Foreign Worker Program (TFWP). This entails that they are using the TFWP 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.
Median Hourly Wages by Province/Territory
Source: Statistics Canada, Labour Force Survey, 2018 and 2019
Low-Wage Workers
Employers seeking to hire low-wage workers do not need to submit transition plans with their Labour Market Impact Assessment (LMIA) application. 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.
Employers offering a wage that is below the provincial/territorial median hourly wage must:
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.
The TFWP uses the latest Labour Force Survey results for the unemployment rates in regions across Canada. These rates determine which regions are eligible for employers to submit Labour Market Impact Assessments (LMIAs) for low-wage/lower skilled occupations in the Accommodation and Food Services sector and the Retail Trade sector.
LMIA applications for these sectors will not be processed in economic regions where the unemployment rate is 6 per cent or higher.
Given its unique labour market conditions, and as requested by the Government of the Northwest Territories, applications in these sectors for positions located in Yellowknife will be accepted for processing.
Expediting an LMIA
Applicants for a Canadian study permit are required to prove they have enough money to cover the first year of tuition fees. They also need to have the financial resources to support themselves, and any accompanying family members, each year.
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Highest-demand occupations
The 10-day service standard for this category is limited to skilled trades positions where the wage offered is at or above the provincial/territorial median wage. These positions are essential to the development of major infrastructure and natural resource extraction projects, and are therefore considered vital to Canadian economic growth.
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Source: Statistics Canada, Labour Force Survey, 2018 and 2019:
Highest-paid occupations
The 10-day service standard for this category is limited to employers hiring temporary foreign workers in the highest-paid occupations that offer wages in the top 10 percent of wages earned by Canadians in a given province or territory where the job is located
This wage level indicates that a temporary foreign worker is the highest-skilled in their occupation, and that those skills are difficult to find in the Canadian labour market.
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Source: Statistics Canada, Labour Force Survey, 2018 and 2019
Shortest-Duration Occupations
The 10-day service standard for this category is limited to employers requesting temporary foreign workers for a short duration, defined as 120 calendar days or less, in any occupation where the wage offered is at or above the provincial or territorial median wage.