Explaining the New LMIA Rules
Canada has made changes in the design and functioning of Temporary Foreign Worker Program (TFWP) to streamline it and bring rationality to it. Peculiar steps have been put in place to ensure that Canadians employers recruit foreigners only when there are no Canadians capable of the job. LMIA has undergone some changes and here’s what you should about the change.
What is an LMIA?
An LMIA, or Labour Market Impact Assessment, is a report prepared by Employment and Social Development Canada (ESDC). It is the determinant of whether a Canadian employer requires the services of a foreign worker. When the LMIA is positive, it implies that qualified Canadians are not available to do the job; the employer can go ahead and bring the foreign worker.
Main Alterations of LMIA in 2024
1. Shorter LMIA Validity Period
Details: The validity of LMIAs has been cut down from one year to six months. This means that an employer only has six months, in which to recruit a foreign worker and then seek for this work permit.
2. Workforce Percentage Adjustments
Details: For most industries, the proportion of workers receiving the low-wage stream should be reduced to level of 20 percent, from 30 percent. But it is important to note that the above rule does not apply in constructing and healthcare industries.
3. Consideration for Asylum Seekers
Details: Employers have been obliged to use reasonable efforts to hire asylum seekers with a valid work permit, instead of using efforts to hire Canadian citizen/ persons permanently residing in Canada.
4. Annual Salary Reviews
Details: Employers have to go through their records and adjust the pay that is given to temporary foreign workers at least once a year, in accordance with the current standards as to what they should be paid depending on the job they are doing and the country they come from.
Industries Affected by the Changes
The new rules focus on seven key industries to address labor shortages:
- Food Manufacturing
- Wood Product Manufacturing
- Furniture and Related product manufacturing
- Accommodation and Food services
- Construction
- Hospitals
The RSAs for the Health category, more specifically the Nursing and Residential Care Facilities,
Adapting to the New LMIA Rules
These updates aim to ensure that the TFWP is used properly and that Canadian workers have first priority for available jobs. Employers need to adapt to these new guidelines to effectively hire foreign workers while contributing to a balanced labor market.
Conclusion
The recent updates to Canada’s LMIA rules are intended to create a fairer job market by prioritizing Canadian workers and ensuring fair pay for temporary foreign workers. Staying informed about these changes will help employers navigate the TFWP more effectively and meet their workforce needs.
For more information on how these changes might affect you, consider contacting a professional who specializes in Canadian immigration and work permits.
