Employer Work Permit Canada: A Comprehensive Guide

Introduction and Key Takeaways

Hiring foreign workers can be a valuable strategy for Canadian employers looking to fill skills gaps and grow their businesses. However, navigating the complex world of work permits and immigration regulations can be a daunting task.

In this comprehensive guide, we’ll cover everything employers need to know about Employer Work Permit Canada, including:

• The different types of work permits available, such as the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP)
• The requirements and application process for each type of work permit
• The role of the Labour Market Impact Assessment (LMIA) in the TFWP
• Compliance obligations for employers hiring foreign workers
• Special considerations for specific industries and occupations
• The impact of COVID-19 on work permit processing and requirements
• Alternatives to work permits, such as the Global Talent Stream and the Post-Graduation Work Permit

By understanding the work permit landscape and following best practices for compliance, employers can successfully leverage global talent to meet their workforce needs.

Types of Work Permits in Canada

There are two main programs for employers looking to hire foreign workers in Canada: the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP).

Temporary Foreign Worker Program (TFWP)

The TFWP allows Canadian employers to hire foreign workers to fill temporary labour and skill shortages when qualified Canadian citizens or permanent residents are not available.

The TFWP is jointly administered by Employment and Social Development Canada (ESDC) and Immigration, Refugees and Citizenship Canada (IRCC). Employers must obtain a positive Labour Market Impact Assessment (LMIA) from ESDC before they can hire a foreign worker under the TFWP.

There are four streams under the TFWP:

1. High-wage workers: For positions that meet or exceed the median hourly wage for a given occupation and region.
2. Low-wage workers: For positions that fall below the median hourly wage for a given occupation and region.
3. Primary agriculture: For positions related to on-farm primary agriculture, such as farming, ranching, and horticulture.
4. Caregivers: For positions providing care for children, seniors, or people with medical needs, either in a private household or a healthcare facility.

Each stream has its own specific requirements and application process, which we’ll cover in more detail later in this guide.

International Mobility Program (IMP)

The IMP allows Canadian employers to hire foreign workers without needing to obtain an LMIA. The IMP is designed to support Canada’s broader economic and cultural national interests, including reciprocal employment arrangements and competitive advantages.

There are several categories under the IMP, each with its own eligibility criteria and application process:

1. Intra-company transferees: For employees of multinational companies being transferred to a Canadian branch or subsidiary.
2. Reciprocal employment: For workers coming to Canada under a reciprocal agreement, such as NAFTA or CETA.
3. Francophone Mobility: For French-speaking workers coming to work in a managerial, professional, or technical occupation outside of Quebec.
4. Post-doctoral fellows and award recipients: For researchers and academics coming to work at a Canadian institution.
5. Bridging open work permit: For certain foreign nationals who have applied for permanent residence and are awaiting a decision.

Employers hiring under the IMP are exempt from the LMIA requirement but must still comply with all other applicable laws and regulations, such as labour standards and occupational health and safety.

Labour Market Impact Assessment (LMIA)

A Labour Market Impact Assessment (LMIA) is a document that an employer must obtain in order to hire a foreign worker under the Temporary Foreign Worker Program (TFWP). The LMIA process is designed to ensure that hiring a foreign worker will not have a negative impact on the Canadian labour market.

LMIA Application Process

To apply for an LMIA, employers must follow these steps:

1. Recruit: Employers must advertise the position and make efforts to hire Canadian citizens or permanent residents first. The recruitment process must meet the minimum advertising requirements set by ESDC.
2. Offer employment: Employers must provide a job offer to the foreign worker that meets the prevailing wage and working conditions for the occupation and region.
3. Apply for LMIA: Employers must submit an LMIA application to ESDC, along with supporting documents such as proof of recruitment efforts and the job offer.
4. Pay the processing fee: Employers must pay a processing fee of $1,000 per position requested (as of 2023).
5. Await decision: ESDC will review the application and issue a positive or negative LMIA decision. Processing times vary depending on the program stream and the completeness of the application.

LMIA Requirements

To obtain a positive LMIA, employers must demonstrate that:

• The job offer is genuine and meets the prevailing wage and working conditions for the occupation and region
• The foreign worker has the necessary skills and qualifications to perform the job
• Hiring the foreign worker will not have a negative impact on the Canadian labour market
• Reasonable efforts were made to hire Canadian citizens or permanent residents first

Employers must also meet specific requirements depending on the TFWP stream they are applying under. For example, employers applying under the High-wage stream must submit a Transition Plan outlining how they will reduce their reliance on temporary foreign workers over time.

LMIA Validity and Work Permit Application

If the LMIA application is approved, ESDC will issue a positive LMIA letter to the employer. The positive LMIA is valid for six months from the date of issue.

The foreign worker must then apply for a work permit from IRCC within the validity period of the LMIA. The work permit application must include a copy of the positive LMIA letter and the job offer from the employer.

It’s important to note that a positive LMIA does not guarantee that the foreign worker will be issued a work permit. IRCC will assess the work permit application based on factors such as the worker’s admissibility to Canada, their ability to perform the job, and their intention to leave Canada at the end of the work period.

Employer Compliance Obligations

Employers hiring foreign workers under both the TFWP and IMP have certain compliance obligations they must meet to maintain their eligibility to hire foreign workers.

TFWP Compliance

Under the TFWP, employers must comply with the following conditions:

1. Job offer: The employer must provide the foreign worker with substantially the same job, wages, and working conditions as outlined in the job offer and LMIA application.
2. Wages and working conditions: The employer must pay the foreign worker the prevailing wage for the occupation and region and provide them with the same working conditions as Canadian workers in the same occupation.
3. Workplace safety: The employer must ensure that the foreign worker is covered by the appropriate provincial or territorial workplace safety insurance and that the workplace is free from abuse, including physical, sexual, psychological, and financial abuse.
4. Recordkeeping: The employer must keep records related to the foreign worker’s employment, such as payroll records and time sheets, for a minimum of six years.
5. Cooperation with inspections: The employer must cooperate with any inspection or review conducted by ESDC or IRCC to verify compliance with the TFWP.

Employers who fail to comply with these conditions may face consequences such as monetary penalties, a ban on hiring foreign workers, or criminal prosecution in severe cases.

IMP Compliance

Under the IMP, employers must comply with the following conditions:

1. Offer of employment: The employer must provide the foreign worker with substantially the same job, wages, and working conditions as outlined in the offer of employment submitted to IRCC.
2. Workplace safety: The employer must ensure that the foreign worker is covered by the appropriate provincial or territorial workplace safety insurance and that the workplace is free from abuse.
3. Recordkeeping: The employer must keep records related to the foreign worker’s employment for a minimum of six years.
4. Cooperation with inspections: The employer must cooperate with any inspection or review conducted by IRCC to verify compliance with the IMP.

Employers who fail to comply with these conditions may face consequences such as a ban on hiring foreign workers, a negative LMIA for future TFWP applications, or revocation of the foreign worker’s work permit.

Special Considerations for Specific Industries and Occupations

Certain industries and occupations have specific requirements or programs related to hiring foreign workers in Canada.

Agriculture and Agri-Food

Employers in the agriculture and agri-food sector can hire foreign workers under the Seasonal Agricultural Worker Program (SAWP) or the Agricultural Stream of the TFWP.

The SAWP allows employers to hire temporary foreign workers from Mexico or participating Caribbean countries for up to eight months per year. The Agricultural Stream allows employers to hire foreign workers for longer periods of time to fill labour shortages in primary agriculture, meat processing, and mushroom production.

Caregivers

Employers looking to hire foreign caregivers can do so under the Home Child Care Provider Pilot or the Home Support Worker Pilot. These pilots allow employers to hire foreign caregivers to provide care for children or adults in a private household without needing an LMIA.

To be eligible, employers must meet certain requirements, such as providing a full-time job offer, paying the prevailing wage, and covering the costs of transportation and health insurance for the caregiver.

Tech and IT

Employers in the tech and IT sector can use the Global Talent Stream (GTS) to hire highly skilled foreign workers without needing an LMIA. The GTS is a part of the TFWP and is designed to help Canadian companies attract and retain top global talent.

To be eligible for the GTS, employers must be referred by a designated partner organization or hiring for an occupation on the Global Talent Occupations List. They must also meet certain wage and job requirements and submit a Labour Market Benefits Plan outlining the positive impacts of hiring the foreign worker.

Impact of COVID-19

The COVID-19 pandemic has had a significant impact on work permit processing and requirements in Canada. While some of these impacts were temporary, others may have longer-term effects on the work permit landscape.

Travel Restrictions

During the height of the pandemic, Canada implemented travel restrictions that limited the entry of foreign nationals, including work permit holders. Essential workers, such as those in healthcare and food supply, were exempt from these restrictions.

As of October 2022, Canada has lifted most COVID-related travel restrictions. However, employers should still be aware of any remaining public health requirements, such as vaccination mandates or quarantine periods, that may impact their foreign workers.

Processing Delays

The pandemic has also led to processing delays for work permit applications, as IRCC and ESDC have had to adapt to remote work and reduced capacity. As of 2023, processing times for some work permit applications may still be longer than usual.

Employers should plan ahead and submit work permit applications as early as possible to account for potential delays. They should also be prepared to be flexible with start dates and to support their foreign workers through any delays or disruptions.

LMIA Flexibilities

In response to the pandemic, ESDC introduced some flexibilities for the LMIA process to help employers hire foreign workers more quickly. These flexibilities included:

• Waiving the minimum recruitment requirements for certain occupations
• Allowing employers to submit a job offer without a specific start date
• Prioritizing LMIA applications for occupations related to the pandemic response

Some of these flexibilities have been extended into 2023, while others have expired. Employers should check the latest ESDC guidelines to see what flexibilities may still be available.

Alternatives to Work Permits

In some cases, employers may be able to hire foreign workers without needing a work permit at all. Here are some common alternatives to work permits:

Global Skills Strategy

The Global Skills Strategy (GSS) allows certain high-skilled foreign workers to come to Canada without a work permit for short-term work assignments. To be eligible, the worker must:

• Be coming to work for 15 consecutive days or less every six months, or 30 consecutive days or less every 12 months
• Be coming to work in a skilled occupation that is exempt from the LMIA requirement
• Meet the requirements of the occupation, such as having a job offer and the necessary qualifications

Employers must pay a $230 compliance fee and submit an offer of employment through the Employer Portal before the foreign worker can apply for a work permit exemption.

Post-Graduation Work Permit

The Post-Graduation Work Permit (PGWP) allows international students who have graduated from a participating Canadian post-secondary institution to work in Canada for up to three years without needing an LMIA or job offer.

Employers can hire PGWP holders for any job, regardless of occupation or skill level. However, the employer must still comply with all applicable labour laws and regulations, such as minimum wage and working conditions.

Business Visitors

Foreign nationals who are coming to Canada for business activities, such as attending meetings or conferences, may be able to do so without a work permit as business visitors. To be eligible, the business visitor must:

• Be engaging in international business activities without directly entering the Canadian labour market
• Not be receiving remuneration from a Canadian source for their activities
• Have their main source of income and profits come from outside Canada

Business visitors can stay in Canada for up to six months at a time. They may need to obtain a Temporary Resident Visa (TRV) or an Electronic Travel Authorization (eTA) depending on their country of citizenship.

Conclusion

Hiring foreign workers can be a complex and daunting process for Canadian employers, but it can also be a valuable strategy for filling skills gaps and growing their businesses. By understanding the different types of work permits available, the requirements and application processes for each, and the compliance obligations they entail, employers can navigate the work permit landscape with confidence.

Employers should also stay up-to-date on the latest developments in immigration policy and processing, such as the impact of COVID-19 or changes to specific programs like the Global Talent Stream. They should work closely with experienced immigration professionals to ensure they are meeting all the necessary requirements and following best practices for compliance.

Ultimately, the key to successful foreign worker hiring is careful planning, attention to detail, and a commitment to following the rules and regulations set out by the Canadian government. By doing so, employers can tap into a global pool of talent and bring valuable skills and perspectives to their organizations.

Frequently Asked Questions (FAQ)