Changes to LMIA - and what they really mean

As many of you are aware, significant changes are on the horizon for the LMIA (Labour Market Impact Assessment) processing in Canada.

The Temporary Foreign Worker (TFW) Program has sometimes been misused to circumvent the hiring of qualified Canadian workers. In response, Minister Boissonnault recently met with business groups to announce that the Canadian government is considering stricter access to the program and implementing more rigorous compliance measures.

In light of current labor market conditions and with the goal of reducing Canadian employers' reliance on the TFW Program, Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, has announced the government's intensified efforts to combat the misuse and fraud associated with the program.

The following changes will take effect by September 26, 2024:

1. The Canadian government will no longer process LMIAs within the Low-Wage stream in census metropolitan areas where the unemployment rate is 6% or higher. However, exceptions will apply to seasonal and non-seasonal roles within the food security sectors (such as primary agriculture, food processing, and fish processing), as well as in the construction and healthcare sectors.
2. Employers will be limited to hiring a maximum of 10% of their total workforce through the TFW Program, specifically within the Low-Wage stream. This cap is a further reduction following the adjustments made in March 2024. Exceptions will be granted for seasonal and non-seasonal roles in the food security, healthcare, and construction sectors.
3. The maximum duration of employment for workers hired through the Low-Wage stream will be reduced from two years to one year.

What Do These Changes Mean for Employers in Canada?

Having navigated the LMIA process for the past decade, I don't see these changes as problematic. In fact, I believe they will reinforce ethical practices, restoring the process to what it was intended to be before recent disruptions. Essentially, these changes are a return to pre-pandemic norms.

Can You Still Support the Permanent Residency of an Employee ?Residency of an Employee?

As of now, employers can still support their current employees in their Permanent Residency (PR) process, particularly under high-wage streams to ensure compliance. This should ideally lead to more reasonable processing times for PR applications.

Can You Still Bring a Worker from Outside the Country under LMIA ?

The TFW Program has always been designed to facilitate the hiring of foreign workers when no suitable candidates are available within Canada. This fundamental aspect of the program remains unchanged, especially for highly skilled professionals and tradespeople.

Conclusion:

The upcoming changes to the LMIA process reflect a broader effort to prioritize Canadian workers while still providing pathways for employers to access foreign talent when necessary. These adjustments aim to ensure that the TFW Program is used ethically and responsibly, benefiting both employers and workers in the long term. Employers who adhere to these new regulations will likely find the process smoother and more aligned with its original intent.

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