With a growing gap between the skills companies need and the ones workers possess companies compete for qualified workers. Here we can find a solution by using the temporary foreign worker (TFWP) program and other temporary work permit programs including those affiliated with trade agreements and reciprocal exchanges that are part of the International Mobility Program.
The TFWP offers five temporary work permit categories, known as the high-wage stream, the low-wage stream, the Agricultural Stream, the Caregiver stream, and the Global Talent stream. The high-wage stream addresses positions with wages at or above the provincial or territorial median hourly wage, whereas the low-wage stream is for positions with wages below median hourly wages. Only 10% of a workforce can be made up of temporary foreign workers working in a low-wage position at a given location.
Employers hiring under the Global Talent Stream—which was designed for expedited processing to help employers obtain highly skilled or specialized talent more quickly— must submit a Labour Market Benefits Plan (LMBP). Unlike the more detailed LMIA, the LMBP only requires that employers demonstrate their “commitment to activities that will have lasting, positive impacts on the Canadian labour market.
Labour Market Impact Assessment
Employment and Social Development Canada (ESDC) will issue a positive LMIA if an assessment indicates that hiring a temporary foreign worker will have a positive or neutral impact on the Canadian labour market. ESDC evaluates the following to issue a successful LMIA,
-whether the employment of the foreign national will or is likely to result idents; direct job creation or job retention for Canadian citizens or permanent residents; whether the employment of the foreign national will or is likely to result in the development or transfer of skills and knowledge for the benefit of Canadian citizens or permanent residents; whether the employment of the foreign national is likely to fill a labour shortage; whether the wages offered to the foreign national are consistent with the prevailing wage rate for the occupation and whether the working conditions meet generally accepted Canadian standards; whether the employer will hire or train Canadian citizens or permanent residents or has made, or has agreed to make, reasonable efforts to do so; whether the employment of the foreign national is likely to adversely affect the settlement of any labour dispute in progress or the employment of any person involved in the dispute; and whether the employer has fulfilled or has made reasonable efforts to fulfill any commitments made in previous assessments. While ESDC will conduct an LMIA for TFWP streams, three exceptions exist. The first is the Global Talent Stream, which, as explained above, instead requires an LMBP. The second exception is for applications to positions in certain sectors and regions of low wage employment. More specifically, ESDC will not process an LMIA application for a position when all of the following conditions are true. a) in a region defined by Statistics Canada as having an annual unemployment rate of 6% b) identified under the North American Industry Classification System as Accommodations and Food Service or Retail Trade; and c) categorized under certain NOC codes, including 6541 (security guards and related security service occupations), 6611 (cashiers) and 6622 (store shelf stockers, clerks and order fillers).
Supporting documentation and fees along with their LMIA application form, employers must submit supporting documentation to prove they have met or attempted to meet these LMIAs conditions and must pay fees to cover the cost of the LMIA. Most simply, employers who use the TFWP must submit to Service Canada proof of recruitment efforts to hire Canadians and permanent residents. ESDC may issue a negative LMIA if—among other reasons—the employer was not able to demonstrate sufficient efforts to recruit, hire or train Canadians or permanent residents for the position.
All employers must pay $1,000 for each temporary foreign worker position requested to cover the cost of processing their LMIA application. Once again, this condition is subject to certain exceptions. For example, families and individuals seeking to hire a foreign caregiver to provide home care for someone requiring assistance with medical needs are exempt from paying the application processing fee. Exemptions also exist for certain occupations related to primary agriculture.
Foreign workers are assessed in advance by our firm to determine eligibility to obtain a work permit.
You may hire a foreign worker who has an open work permit or a Post Graduate Work Permit, and through a qualifying provincial program, under a Free Trade Agreement, such as NAFTA, Canada-Chile, and others.
COMPLIANCE WITH THE TFW PROGRAM
There are other factors that you need to be aware of, such as record keeping and compliance with the program. As a Human Resource and Immigration professional, I can advise you on the requirements.