A company looking to hire a foreign worker under the Temporary Foreign Worker Program (TFWP) will need to request LMAI. LMAI is — a program designed to employ foreign nationals and temporarily address labour shortages at times when no qualified Canadians are available to work such positions.
Company will have to submit a proof that there will be no negative impact on Canadian labour workforce because of their hiring a foreign national, which will include:
Additionally employers will have to advertise a vacant job opportunity for a minimum of four weeks prior to applying for an LMIA. In those four weeks, the employer must also have advertised the position using at least three recruitment methods, one specifically being the Canada Job Bank.
There are two classifications under LMAI; “high wage” or “low wage” employee. The primary difference between these two classifications is the added requirement of a “transition plan,”
LMIAs for high-wage workers
If foreign worker will be paid a rate equal to or above the median provincial/territorial wage, the transition plan is mandatory part of LMAI submission. Transition plans assist with by proving that the TFWP is being utilized in a limited capacity and as a last resort to fill employment gaps temporarily when no other options exist.
LMIAs for low-wage workers
Hiring a foreign national who will be paid under the median wage for a particular province/territory does not necessitate the submission of a transition plan.
There is a cap on foreign workers that a business can employ under this “low-wage” worker category. A company with 10 or more employees can have no more than 20% of their workforce be classified as “low-wage temporary foreign workers”.
Additionally, company hiring a low-wage foreign worker must: