There have been some major modifications that have been made to Labour Market Impact
Assessment (LMIA) applications as of September 26, 2024, with a focus on low-wage jobs. Employers looking to fill certain jobs with Temporary Foreign Workers (TFWs) may be impacted by these new regulations. We would want to provide you a general understanding of these developments and how they may affect your hiring procedure as an immigration specialist.
Key Updates for Low-Wage Positions
1) Rate of Unemployment and Refusal of Applications: Applications for Low-Wage Employment under the LMIA in Census Metropolitan Areas (CMAs) where the rate of Unemployment is 6% or over will no longer be accepted. At the time of submission, employers have to be informed of the local unemployment rate. The LMIA application may be denied if the rate equals or surpasses 6% and the employment offer is less than the province or territory’s median hourly salary.
2) New Low-Wage Position Cap:
● For the majority of industries, the overall cap on low-wage posts has been lowered from 20% to 10%.
● The cap is currently 20% for the construction and healthcare industries.
● Particularly affected are jobs in the construction, food manufacturing, healthcare, and educational services industries. Your application won’t be processed if it goes beyond these limits.
3) Decline in Employment Duration: The maximum employment duration for low-wage positions has been reduced from 2 years to 1 year. Companies must therefore take this into account when planning their workforces. Particular Conditions for Specific Roles In-Home Caregivers: LMIAs for in-home caregiver roles with a live-in requirement, especially those in private households, may not be processed. These roles include registered nurses, licensed practical nurses, home childcare providers, and attendants for persons with disabilities.
Positions in Montréal: From September 3, 2024, to March 3, 2025, LMIA applications for certain low-wage positions in the economic region of Montréal will not be processed due to public policy considerations.
Employers Being Examined
Applications for LMIA’s cannot be submitted by certain employers, including:
● Those offering services in the sex industry.
● Employers whose LMIA’s were revoked within the last two years or who were found to be in violation of prior LMIA’s.
● Companies that don’t fulfill compliance rules and are thus listed as ineligible withImmigration, Refugees and Citizenship Canada (IRCC).
In order to comply, employers should take the following steps:
1) Verify the unemployment rate in their region before submitting an application by consulting census data and unemployment tables from Statistics Canada.
2) Verify that their company is not listed as ineligible and that all prior LMIA applications complied with all applicable requirements.
3) Adhere to the limits on the number of low-wage positions at their workplace, particularly in sectors with tighter restrictions.
Fees for Processing and Exemptions
Lastly, you won’t be charged any processing costs if your LMIA application is rejected in accordance with these new rules. A comprehensive letter explaining the grounds for the rejection will also be sent to you.
For a clearer understanding of the specific conditions around LMIA processing, it’s important to stay updated with the latest information from Statistics Canada and Employment and Social Development Canada (ESDC).
At Rio Consultancy Group, we place a strong emphasis on being aware of changes in Canadian immigration laws and taking proactive measures to address them. Our staff is available to help companies comply with the new regulations, manage compliance, and ensure that LMIA applications are submitted successfully.
