Temporary Foreign Worker Program Adjudication Standards Reformed
April 27, 2015
Country / Territory
Share
Canada
Employment and Social Development Canada (ESDC) has implemented technical changes to the way that it adjudicates labour market impact assessment (LMIA) applications and the requirements for employers to meet the required elements under the Temporary Foreign Worker Program (TFWP). These changes follow last June’s reorganization of the TFWP, the goal of which was to focus on low-skilled, low-wage occupations and to ensure employers give Canadian workers preference over foreign workers. The changes are effective April 30, 2015.
Implementation of New High- and Low-Wage Streams
Last June, the government changed the main criterion for employers who participate in the TFWP from the National Occupation Classification to wage levels that distinguish between “high-” and “low-” wage workers. Now, ESDC will compare foreign workers’ wages to the provincial/territorial median wages identified in Statistics Canada’s latest Labour Force Survey (2014). In effect, the measures that were in place for the Stream for Lower-Skilled Occupations will now apply to the new Stream for Low-Wage Positions.
As a result of these changes, new Labour Market Impact Assessment (LMIA) application forms will be introduced. Only applications submitted using the new forms will be processed.
Simplified Method for Calculating Low-Wage Positions Cap
In addition, employers will also see a simplified way to calculate the cap on TFWs in low-wage positions at a specific work location.
There will also be a revised schedule for the Low-Wage Positions form.
Changes to Unemployment Rates
New Labour Force Survey results produced by the government for unemployment rates will be used to determine which regions are eligible to submit LMIAs for low-wage occupations in the Accommodation and Food Services sector and the Retail sector. ESDC will not process any LMIA applications for these sectors in economic regions where the unemployment rate is 6% or higher.
Employers Hiring for Positions Located in Quebec
The reforms to the TFWP that were announced in June 2014 will become effective on April 30, 2015 for employers hiring TFWs for positions located in Quebec.
When LMIAs replaced the Labour Market Opinion last June, employers seeking to hire high-wage temporary foreign workers were required to submit transition plans to demonstrate how they will increase efforts to hire Canadians. Now, employers hiring TFWs through Quebec’s Simplified LMIA Process will be considered under the Stream for High-Wage Positions and will be given significant flexibilities under the requirement for a Transition Plan.
What This Means for Employers and Foreign Nationals
Employers recruiting foreign nationals for low-skill, low-wage occupations should see different application processes for low-wage positions. The continued message from ESDC is that any employer that abuses its foreign national workforce will be subject to increased compliance and enforcement and to increased sanctions.
This alert is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Implementation of New High- and Low-Wage Streams
Last June, the government changed the main criterion for employers who participate in the TFWP from the National Occupation Classification to wage levels that distinguish between “high-” and “low-” wage workers. Now, ESDC will compare foreign workers’ wages to the provincial/territorial median wages identified in Statistics Canada’s latest Labour Force Survey (2014). In effect, the measures that were in place for the Stream for Lower-Skilled Occupations will now apply to the new Stream for Low-Wage Positions.
As a result of these changes, new Labour Market Impact Assessment (LMIA) application forms will be introduced. Only applications submitted using the new forms will be processed.
Simplified Method for Calculating Low-Wage Positions Cap
In addition, employers will also see a simplified way to calculate the cap on TFWs in low-wage positions at a specific work location.
There will also be a revised schedule for the Low-Wage Positions form.
Changes to Unemployment Rates
New Labour Force Survey results produced by the government for unemployment rates will be used to determine which regions are eligible to submit LMIAs for low-wage occupations in the Accommodation and Food Services sector and the Retail sector. ESDC will not process any LMIA applications for these sectors in economic regions where the unemployment rate is 6% or higher.
Employers Hiring for Positions Located in Quebec
The reforms to the TFWP that were announced in June 2014 will become effective on April 30, 2015 for employers hiring TFWs for positions located in Quebec.
When LMIAs replaced the Labour Market Opinion last June, employers seeking to hire high-wage temporary foreign workers were required to submit transition plans to demonstrate how they will increase efforts to hire Canadians. Now, employers hiring TFWs through Quebec’s Simplified LMIA Process will be considered under the Stream for High-Wage Positions and will be given significant flexibilities under the requirement for a Transition Plan.
What This Means for Employers and Foreign Nationals
Employers recruiting foreign nationals for low-skill, low-wage occupations should see different application processes for low-wage positions. The continued message from ESDC is that any employer that abuses its foreign national workforce will be subject to increased compliance and enforcement and to increased sanctions.
This alert is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
© 2015 Fragomen
