Canada: New Recognized Employer Pilot Introduced

• Effective dates. The REP will open in September 2023 for employers in the Primary Agriculture stream and in January 2024 for employers in all other industry sectors. Applications will be accepted until September 2024.
• Eligibility criteria. To participate in the REP, employers must have a minimum of three positive Labour Market Impact Assessments (LMIA) for the same occupation over the past five years, from a list of occupations designated as in-shortage under the Canadian Occupational Projection System (COPS). ESDC will determine eligibility based on the employer’s history of compliance with the Temporary Foreign Worker Program (TFWP) and how often the employer uses the program to fill in-demand occupations.
• Application process. Employers can apply simultaneously for the REP and a LMIA through the LMIA Online Portal (or by email for certain employers with online portal exemptions). Additionally, ESDC will also be proactively inviting employers to apply.
• LMIA benefits. Under the REP, employers will gain access to LMIAs valid for 36 months, up from the usual nine-month validity (or 18-month validity in effect until October 2023). The LMIA is a document that employers in Canada must obtain before certain foreign nationals can apply for a work permit through the TFWP. It proves that employers have taken steps to recruit Canadians and/or that employing the foreign national in Canada would be beneficial to the labor market. Employers can also expect a simplified application process for LMIA applications for positions on the COPS list.   
• Other benefits. Employers that participate in the REP will be designated as recognized employers on Canada’s Job Bank, thus potentially attracting more candidates.

A simplified LMIA application process and longer validity for LMIA approvals will help employers better manage their labor needs by granting more flexibility to employers and employees alike. It also reduces the administrative hurdles and costs of submitting different LMIAs over the next three years.

Recognized employers will also benefit from a Job Bank designation that shows their recognized status to prospective workers, enhancing an employer’s reputation in the labor market.

• Temporary Foreign Worker Program. The TFWP allows employers in Canada to hire foreign workers to fill labor and skill shortages on a temporary basis when no Canadians or permanent residents are available.
• Purpose of the program. The pilot program is aimed at reducing administrative hurdles and simplifying the hiring process for TFWP employers who demonstrate a history of complying with program requirements, thus addressing labor shortages while enhancing foreign worker protection.
• Dual focus on increased migration to fill labor shortages and worker protection. The new pilot builds on a series of other initiatives aimed at improving the TFWP. The Temporary Foreign Worker Program Workforce Solutions Road Map announced in April 2022 (and currently extended until October 30, 2023) implemented several key improvements to the TFWP program to address labor shortages. These included the elimination of caps on seasonal industry workers; longer validity for LMIAs; extension of employment duration under several streams and relaxed hiring policies for low-wage occupations. Additionally, it builds on the transition to online applications for LMIAs under the program implemented in April 2023 to improve processing. Furthermore, the program also builds on the regulatory amendments implemented by the government in August 2022 to improve employer compliance and protect foreign workers’ rights in Canada.

EDSC will be offering technical briefings to stakeholders to provide more information about REP and the application process. ESDC will also be posting additional details on its website in the coming weeks.

Employers should work with their immigration professionals for eligibility assessments and case-specific advice.