Canada has changed the rules for Canadian employers hiring foreign temporary workers. Starting September 26, 2024, certain Labour Market Impact Assessment (LMIA) applications submitted for low-wage positions have been particularly affected by four new rules.
Firstly, certain LMIA applications for low-wage positions in census metropolitan areas with an unemployment rate of 6% or higher are not being processed.
Secondly, in some sectors, the current 20% cap on the proportion of low-wage positions has been reduced to 10%.
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Thirdly, in the construction and healthcare sectors, the cap on the proportion of low-wage positions has been reduced to 20%.
Lastly, the maximum employment duration for low-wage positions is being reduced from 2 years to 1 year.
Further, from September 3, 2024, to March 3, 2025, certain LMIA applications submitted for low-wage positions in the economic region of Montréal are not being processed.
The new LMIA rules will impact hiring of foreign temporary workers in Canada.
A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada may need to get before hiring a foreign worker. Employers of some types of temporary workers need to get a Labour Market Impact Assessment (LMIA) before the worker applies for a work permit. An LMIA is a document from Employment and Social Development Canada that gives the employer permission to hire a temporary worker.
A positive LMIA will show that there is a need for a foreign worker to fill the job. It will also show that no Canadian worker or permanent resident is available to do the job. A positive LMIA is sometimes called a confirmation letter.
If the employer needs an LMIA, they must apply for one. Once an employer gets the LMIA, the worker can apply for a work permit.
To apply for a work permit, a worker needs a job offer letter, a contract, a copy of the LMIA, and the LMIA number. A job offer letter is a Canadian employer’s document providing details about a temporary worker’s job, including pay, duties, and conditions. It is typically less detailed than a contract and should be included with work permit applications.