Temporary Foreign Worker Employment Permit (TFWP), LMIA

What is the Temporary Foreign Worker Program (TFWP)?

This is a program that allows employers to hire foreign workers to meet temporary labor and skills needs. As an employer, you need to comply with all TFWP requirements to ensure the rights of temporary foreign workers (TFWs) are protected and the program runs smoothly. Here are some important points to consider:

1. Employer Compliance: Employers must comply with all TFWP rules and regulations. This includes providing accurate information about the job, salary, working conditions, and other relevant details. Employers must also cooperate with any inspections, audits, or investigations conducted by authorities to verify compliance.

2. Consequences of non-compliance: Employers who fail to comply with TFWP requirements may face a number of penalties, including:

   • Fine
   • Prohibition of hiring foreign workers for a certain period of time.
   • Revoke the previously issued work permit.
   • Negative impact on future Labour Market Impact Assessment (LMIA) applications.

3. Full-time employment: To be eligible for the TFWP, the proposed job must be full-time, with a minimum of 30 hours of work per week. This ensures that the TFW has stable employment and can make a meaningful contribution to the Canadian labor market.

4. Labour Market Impact Assessment (LMIA ): Before hiring a Technical Worker (TFW), employers must have a positive LMIA. This assessment is conducted by the Employment and Social Development Authority of Canada (ESDC) to ensure that hiring a foreign worker will not negatively impact the Canadian labour market. Employers must demonstrate that they have made efforts to recruit Canadian and permanent residents and that there is a genuine need for the TFW.

5. Wages and working conditions: Employers must pay TFWs wages at the prevailing wage rate for the occupation in the region where the work is performed. Working conditions must comply with Canadian labor standards and regulations.

6. Accommodation and transportation: Employers are responsible for ensuring that TFWs have suitable accommodation and, if necessary, transportation to and from the workplace.

7. Employment contract: The employment contract must be signed by both the employer and the TFW, specifying the terms and conditions of employment, such as job duties, working hours, salary, and other relevant information.

8. Workplace safety: Employers must ensure that the workplace is safe and free from hazards, in accordance with relevant occupational health and safety regulations.

By complying with TFWP requirements and providing full-time employment, employers can successfully hire and retain temporary foreign workers to meet labor needs and contribute to the Canadian economy.

Businesses hiring foreign workers for the first time.

Employers who have not employed temporary foreign workers (TFWs) in the six years prior to applying for a Labour Market Impact Assessment (LMIA) will be considered. The employer must demonstrate that they have made reasonable efforts to provide an abuse-free workplace and that they are not affiliated with an employer ineligible for TFWP status or have not paid any outstanding fines related to an administrative penalty.

An abuse-free workplace includes:

• (a) proactive efforts to prevent workplace abuse
• (b) measures taken to prevent abuse

An affiliate includes an employer that is controlled by another employer:

• (a) 2 employers under joint control, or
• (b) employers who do not operate on an independent basis

New employers should pay attention to these points when participating in the TFWP to ensure they meet the program's requirements and provide a safe and fair working environment for temporary foreign workers. Compliance with these requirements will help employers avoid legal risks and increase their chances of successfully obtaining an LMIA and hiring temporary foreign workers.

Legality of the business

All employers participating in the TFWP must provide documentation with their LMIA application to demonstrate that their business and job offer are legitimate. This documentation may include:

1. Business license: A copy of the business license or business registration certificate from the relevant authority.

2. Tax information: Copies of recent tax returns or documents related to the company's tax payments.

3. Employee documentation: Copies of employee lists, payroll records, employment contracts, or workers' compensation insurance to prove employment.

4. Contracts, invoices, and customer information: Copies of service contracts, invoices, and customer information to prove the business operations of the company.

5. Advertising and marketing materials: Copies of advertising, marketing materials, or the business website to demonstrate business operations and market access.

6. Business location documents: Lease agreements, property ownership documents, or other paperwork relating to the business location.

These documents must be provided to demonstrate that the business is operating legally and reliably, and that the job offer for temporary foreign workers is valid. Providing accurate and complete information will increase the chances of success in obtaining an LMIA and hiring temporary foreign workers.

Quantity limit

From April 30, 2022, and until further notice, you are subject to a 20% limit on the TFW rate you can hire for low-wage positions at a particular work location. The purpose of this limit is to ensure Canadians are given priority consideration for available jobs.

From April 30, 2022, to October 30, 2023, the sectors and sub-sectors identified below are eligible for the 30% limit:

• Construction (NAICS 23)
• Food Processing (NAICS 311)
• Wood product manufacturing (NAICS 321)
• Manufacture of furniture and related products (NAICS 337)
• Hospital (NAICS 622)
• Medical and aged care facilities (NAICS 623)
• Accommodation and Food Services (NAICS 72)

Note:

• Employers will be limited to hiring 2 TFWs (for industries with a 20% rate cap) or 3 TFWs (for industries with a 30% rate cap).
  

No limits:

The exemptions from the limit include applications for:

• The main agricultural positions on the farm include:
  • Farm managers/supervisors and professional livestock workers (National Occupational Classification (NOC) codes 80020, 80021, 82030, 82031 and 84120)
  • General farm workers, nursery and greenhouse workers, and harvesters (NOC Codes 85100, 85101, and 85103)
• Caregiving positions for healthcare facilities (NAICS 62) for NOC positions 31301, 32101 and 33102
• Positions you can apply for to support TFW permanent immigration under the Express Entry Program.
• Positions that are highly mobile or genuinely temporary (120 calendar days or less); this period may be extended if you can demonstrate that the peak season, project, or event exceeds 120 calendar days.
• Low-paying positions in seasonal industries do not exceed 270 calendar days:
• Quebec Pilot Project

For more details, please refer to the Recruitment page in Quebec.

Recruitment and advertising

Recruitment is the process of finding and selecting qualified personnel. As part of TFWP requirements, you must make recruitment efforts to hire Canadian citizens and permanent residents before proposing a job for TFW.

Minimum Recruitment Requirements: Before applying for an LMIA, you must have completed at least three different recruitment activities.

Recruitment methods

Acceptable recruitment methods for a job advertisement include:

• General recruitment website
• Online classifieds website
• Specialized websites dedicated to specific career profiles (e.g., accounting, marketing, biotechnology, education, engineering)
• Local, regional, and national newspapers or news bulletins
• Local shops, places of worship, and community resource centers.
• Local, regional, and provincial/state/territory employment centers
• Magazines and journals (e.g., national magazines or journals, professional association journals, specialized journals)
• Participate in job fairs.
• Collaborate with training institutions or provide internships/training opportunities.
• Professional recruitment companies
• Consult with unions regarding labor availability.
• Advertising through professional organizations
• Internal recruitment (e.g., considering internal candidates for a position)

Salary

The proposed wages for foreign workers (TFWs) should be similar to those paid to Canadian employees hired for the same job and location, with comparable skills and years of experience.

For the purposes of the Foreign Worker Program (TFWP), you must pay the dominant wage, which is defined as the highest of the two tiers:

• Median salary on Job Bank
• The salary falls within the range of what you are currently paying to existing employees hired for the same job and location, with similar skills and years of experience.

If the position requires additional skills and years of experience beyond what the applicable NOC description states, the proposed salary should reflect these additional requirements.

To determine the proposed salary, consider only guaranteed salary components, excluding:

• Overtime
• Tip
• Welfare
• Profit sharing
• Bonus
• Rose
• Other forms of compensation

If you want to hire a foreign worker for a job in Quebec, you should consult the wage table provided by the Ministère de l'Immigration, de la Francisation et de l'Intégration (MIFI).

Note that failing to meet the dominant salary threshold will result in a negative LMIA decision.

Job duties and working conditions

Foreign workers you hire, resulting from a positive LMIA, are only permitted to perform tasks that are appropriate to the occupation for which they were hired.

Canadian law protects all workers in Canada, including foreign workers. The exploitation of foreign workers is considered a violation of Canadian law and human rights.

Employers must:

• Pay foreign workers wages for all work, including overtime, when required by law.
• Provide workplace safety insurance.
• provide the same benefits to foreign workers, and
• Do not retain the personal identification documents of foreign workers.

Employment in most occupations is protected by provincial or territorial laws relating to labor and employment standards such as working hours, working conditions, and termination of employment. In fact, each province or territory has a Ministry of Labour that can provide information to assist employers and foreign workers with questions or issues related to employment.

Note: Some employers are regulated by federal law and, therefore, are protected by employment standards under the Canada Labour Act.

Working language

English or French are the only languages ​​you can specify as job requirements in your LMIA application and job advertisement. However, if another language is necessary for the job, you must provide a reason in your application.

Positions that do not require language skills.

There may be some rare cases where a job offer does not require any language skills from a foreign national.

If no specific language is required for the job, you must provide more details in your application, including:

• How will foreigners perform their job tasks effectively and safely without the ability to communicate in any language, and
• What reasonable measures are in place to ensure the health and safety of all employees in the workplace? To demonstrate this, you must also provide appropriate and relevant documentation in conjunction with your application.

Examples of reasonable measures:

• There are translated safety manuals and workplace procedures.
• Providing workplace safety training in the languages ​​of foreign participants.
• Use international safety signs that utilize symbols (images).
• There is an official interpreter on site.
• and/or hire other workers or supervisors who can speak with foreigners in their language.

Businesses need to learn more about other important conditions HERE.

Cases that will be denied LMIA

• Regularly providing services in the sex industry.
• Businesses on the Canadian Department of Immigration, Refugees and Citizenship's ineligible list include employers such as:
• It has been found to be non-compliant with the results of the employer compliance assessment.
• He was banned from participating in the Temporary Overseas Worker Program due to non-compliance discovered during an inspection.
• Unable to pay the administrative fine

Other cases of refusal, due to regulations from current public policy:

• Low-paying positions have exceeded current quotas.
  
• A number of high-paying and low-paying positions in Alberta (unless otherwise exempt)
• The role of a home caregiver when required to stay at the employer's home.
• Any location if the business has had its LIMIA revoked within the past 2 years.

What does the file include?

Applications for an LMIA can be submitted up to six months before the start date of employment. The LMIA application will be submitted along with the government fee . The application includes:

• Labor Market Impact Assessment application form for low-wage positions (EMP5627)
• word of business legitimacy
• word of recruitment
• Employment Contract (PDF 37.1 KB)
• If you are applying under the 2-year duration pilot for meat processors:
  • Schedule L: Two-year Employment Duration for Meat Processors Pilot
  • if applicable, a letter of union support which is on union letterhead and signed by an authorized union official. Here is a sample letter that can be adapted by your union.

If this is your company's first LMIA application, please send the following documents to KeyApply for review (email info@keyapply.com):

• Certificate of Incorporation
• Articles with all Directors names
• All business locations of the company.
• Business License
• At least one of these documents:
• T4 Summary of remuneration paid,
• PD7A Statement of account for current source deductions
• At least one of the following documents:
• T2 Schedule 100 Balance sheet information and T2 Schedule 125 Income statement information
• T2125 Statement of business or professional activities (redact social insurance number)
  
• T4 or payroll records (redact social insurance number)

KeyApply's services

Handle the LMIA application process for business owners.
The above fee does not include the following charges:

• Government
• Recruitment advertising is mandatory.
• The hired worker needs to submit a separate Work Permit application, the fee of which is not included in the LMIA application service.

Q&A

I have a relative who owns a nail salon in Canada. If my relative receives an LMIA, will they be able to bring me over?

Nail technicians recruited to Canada must demonstrate sufficient professional skills to meet the requirements of the position. Therefore, if you meet the skill requirements for the position for which your LMIA was granted, you can apply. Whether or not you are a family member is less important than demonstrating to the visa officer that you meet the requirements.

Can nail technicians bring their spouses and children with them?

Starting November 16, 2022, federal and provincial immigration agencies will adopt the National Occupational Classification (NOC) 2021 system, replacing the previous NOC 2016 system.

According to the new classification system, nail technicians are now in TEER 3, equivalent to NOC B. Previously, nail technicians were classified as NOC C. Being in TEER 3 or NOC B offers the following benefits:

• For workers, spouses and children can obtain open work permits. Previously, NOC C permits were not available.
• Being included in the Express Entry system now gives you the opportunity to apply for immigration through Express Entry programs. Previously, this was not possible.