Introduction

Hiring temporary foreign workers can be a viable option for employers looking to fill skill gaps or labour shortages in their workforce. However, the process of hiring temporary foreign workers can be complex and time-consuming. Here, we will provide a guide for employers to hire temporary foreign workers and the LMIA (Labour Market Impact Assessment) process.

Step 1: Determine the Need for Temporary Foreign Workers

The first step in hiring temporary foreign workers is to determine the need for them. Employers should assess their current workforce and identify any gaps in skills or labour shortages. They should also consider the duration of the need for temporary workers and whether it is a short-term or long-term need.

Step 2: Obtain a Labour Market Impact Assessment (LMIA)

Before hiring a temporary foreign worker, employers must obtain a Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC). An LMIA is a document that confirms that there is a need for a foreign worker to fill a job and that there are no Canadians or permanent residents available to fill the position. The application process can take several weeks, so employers should plan accordingly.

Step 3: Recruit Foreign Workers

Once an employer has obtained an LMIA, they can begin to recruit foreign workers. Employers can use a variety of methods to recruit foreign workers, including advertising on job boards, attending job fairs, and working with recruitment agencies. If an internal foreign candidate is determined, the candidate can use this positive LMIA to apply for a closed (LMIA-linked) work permit from the Immigration, Refugee and Citizenship Canada (IRCC). Employers should ensure that they follow all relevant laws and regulations when recruiting foreign workers, including ensuring that they do not discriminate against any group of candidates.

Step 4: Maintain Compliance

Employers must maintain compliance with all laws and regulations related to the employment of temporary foreign workers. This includes ensuring that the foreign worker is being paid the required wage and that their working conditions are consistent with the respective provincial/territorial labour laws.

Employers must also keep accurate records of their temporary foreign workers and provide regular reports to ESDC/IRCC as required. ESDC and IRCC often send out audit letters to companies to ensure compliance with conditions of the LMIA application and work permit issuance.

Determine the Need for Temporary Foreign Workers

Assess Your Workforce

The first step in determining the need for temporary foreign workers is to assess your current workforce. Employers should identify any gaps in skills or labour shortages that may be hindering their productivity or profitability. This could include positions that have been vacant for an extended period of time, positions that are difficult to fill, or positions that require specific skills that are not readily available in the local labour market.

Duration of Need

Once employers have identified the areas where they require additional support, they must determine the duration of the need for temporary foreign workers. This can vary depending on the industry, the type of work, and the specific project or task that needs to be completed. Employers should consider whether the need is short-term or long-term, and whether it is likely to recur in the future. Usually the maximum duration of a temporary foreign worker position is 2 years.

For short-term needs, employers may consider hiring temporary foreign workers on a seasonal or project basis. For long-term needs, employers may consider hiring temporary foreign workers on a permanent basis or sponsoring them for permanent residency.

Impact on Your Workforce

Employers must also consider the impact of hiring temporary foreign workers on their existing workforce. This includes assessing how the addition of temporary foreign workers may affect team dynamics, productivity, and employee morale.

Employers should communicate with their existing workforce to address any concerns or issues that may arise from the hiring of temporary foreign workers. This can include providing information about the skills and experience of the foreign workers, as well as information about their role and responsibilities within the company.

Labour Market Information

Employers should also research the labour market to determine if there are any Canadians or permanent residents who are available to fill the positions. This can include reviewing job postings and resumes, attending job fairs, and consulting with recruitment agencies.

Employers should also be aware of any labour market trends or changes that may affect their ability to attract and retain local talent. This can include changes in the economy, demographics, or government policies.

Obtain a Labour Market Impact Assessment (LMIA)

Employers who wish to hire temporary foreign workers in Canada must obtain a Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC) before they can make a job offer to a foreign worker. The LMIA process ensures that there are no Canadian citizens or permanent residents available to fill the position and that the employer has made an effort to recruit locally.

Determine if an LMIA is Required

The first step for employers is to determine if an LMIA is required for the position they are looking to fill. In some cases, certain occupations and industries are exempt from the LMIA requirement, or the LMIA process may be expedited or simplified.

Employers should consult the ESDC website to determine if an LMIA is required for the position they are looking to fill. If an LMIA is required, employers can then proceed to the next step.

Submit an LMIA Application

The next step for employers is to submit an LMIA application to ESDC. The application must include a variety of information, including:

• The job description and duties of the position
• The duration of the position
• The qualifications and experience required for the position
• The wage being offered for the position
• The efforts made to recruit Canadian citizens or permanent residents for the position
• The benefits being offered to the foreign worker

High-Wage Position and Low-Wage Position

Depending on the wage type of the position – high-wage position vs. low-wage position, there can be a cap (maximum ratio) of foreign workers that you can employ. The cut off between high-wage and low-wage positions for LMIA is determined by the median hourly wage, determined by Statistics Canada, for each province or territory. If the wage of the position is higher than the median hourly wage of the province, then it would be considered a high-wage position for LMIA applications.

Median hourly wages – in each province/territory

For a low-wage positions, there is generally a cap of 20%, although certain NOC positions would be different, or exempt. For high-wage positions, you must submit along the LMIA application a transition plan. The Transition Plan details the actions the employer commits to taking during the worker’s employment to recruit, train and retain Canadian citizens and permanent residents and reduce dependence on the Temporary Foreign Worker Program (TFWP).

Business Legitimacy

The employer company is required to show documentation that the business is in active operation, and show proof that the offer submitted in the LMIA is financially capable of fulfilling the offer.

Respond to Requests for Information

After an LMIA application has been submitted, ESDC may request additional information or documentation from the employer. Employers must respond to these requests in a timely manner to ensure that the application is processed as quickly as possible.

Wait for the LMIA Decision

Once the LMIA application has been processed, ESDC will issue a decision on whether or not the employer can make a job offer to a foreign worker. The decision will be based on a variety of factors, including the need for the position, the efforts made to recruit locally, and the wage and benefits being offered.

If the LMIA is approved, the employer can then proceed to the next step of the process, which is to provide a job offer to the foreign worker.

Provide the Job Offer and LMIA to the Foreign Worker

After the LMIA has been approved, the employer must provide a job offer and LMIA to the foreign worker. The foreign worker can then apply to the IRCC for a work permit.

Recruit Foreign Workers

After receiving a positive LMIA, it is usually not an issue for the worker to apply for the work permit after receiving a copy of the positive LMIA. For the duration of the work permit, the worker can only work for the employer who has provided the LMIA to the worker. The worker is not free to work for another employer as he/she wishes.

If the employment contract is terminated before the end of the work permit expires, the worker will need to find another employer on another LMIA, or be LMIA exempt by the time when he/she works for another employer. Or the worker will need to change his/her status to visitor or student upon applying for the appropriate status.

Maintaining Compliance

For the duration of the LMIA/work permit, it is crucial for the employer to maintain the employment conditions set in the initial employment contract submitted in the LMIA application. If found to be breaching any of the initial conditions or any provincial/territorial employment standards laws, it could impact future LMIA applications for this employer.

From time to time, both the ESDC and IRCC will send review/audit letters to employers to verify that employees are indeed being offered the said conditions of employment while they are working in the company. Make sure response given on the reply form is truthful, and when requested, provide documentation to support the response.

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