When it comes to hiring temporary foreign workers in Canada, navigating the intricacies of the Labour Market Impact Assessment (LMIA) process is crucial. Among the various types of LMIA, high-wage and low-wage positions stand out as popular options for employers. Understanding the differences between these two categories can significantly impact your hiring strategy.
Let’s delve into a comprehensive comparison to help you make informed decisions.
Table: Defining Hourly Wage for High-Wage and Low-Wage LMIAs
| Province/Territory | Defining Hourly Wage Before May 31, 2023 | Defining Hourly Wage On or After May 31, 2023 |
| Alberta | $28.85 | $28.85 |
| British Columbia | $26.44 | $27.50 |
| Manitoba | $23.00 | $23.94 |
| New Brunswick | $21.79 | $23.00 |
| Newfoundland and Labrador | $24.29 | $25.00 |
| Northwest Territories | $37.30 | $38.00 |
| Nova Scotia | $22.00 | $22.97 |
| Nunavut | $36.00 | $35.90 |
| Ontario | $26.06 | $27.00 |
| Prince Edward Island | $21.63 | $22.50 |
| Quebec | $25.00 | $26.00 |
| Saskatchewan | $25.96 | $26.22 |
| Yukon | $32.00 | $35.00 |
Application Process for High-Wage and Low-Wage LMIAs
When it comes to the application process, there are notable disparities between high-wage and low-wage LMIAs. Let’s break down the key variances:
| Criterion | High-Wage LMIA | Low-Wage LMIA |
| Salary | Prevailing regional wage equal to or higher than provincial hourly wages | Prevailing regional wage lower than provincial hourly wages |
| Processing Fee | $1000 (exceptions apply) | Same as high-wage |
| Business Legitimacy | Submit at least two documents showcasing active business operations capable of covering employee’s salary | Same as high-wage |
| Cap on Employees | Not applicable | Cap of 20% for pre-June 20, 2014 hires; 10% otherwise, with exceptions |
| Transition Plan | Required | Not required |
Recruitment Strategies for High-Wage and Low-Wage LMIAs
When it comes to recruiting temporary foreign workers through the Labour Market Impact Assessment (LMIA) process in Canada, employers must navigate distinct strategies based on whether they are applying for a high-wage or low-wage LMIA.
- Recruitment Efforts: For both high-wage and low-wage LMIAs, employers are required to post the job on at least three sources for four weeks. This includes platforms such as Job Bank. However, for low-wage LMIAs, there is an additional requirement to target underrepresented groups during the recruitment process. This means actively seeking applicants from demographics such as Indigenous persons, vulnerable youth, persons with disabilities, and newcomers.
- Job Match Service: In the Job Match service, where employers can invite applicants to apply for the job, the criteria differ slightly between high-wage and low-wage LMIAs. For high-wage positions, employers are encouraged to invite applicants with a rating of four stars or more. Conversely, for low-wage positions, employers should extend invitations to applicants with a rating of two stars or more.
Other Requirements for Low-Wage and High-Wage LMIAs
- Transportation: Employers applying for low-wage LMIAs are obligated to cover the round trip costs for the foreign worker. This ensures that the worker can travel to Canada and return home without incurring financial burdens.
- Housing: While not mandatory for high-wage LMIAs, employers must ensure that affordable housing is available to low-wage foreign workers. However, they are not required to directly pay the rent.
- Healthcare: While providing healthcare coverage is not mandatory for high-wage LMIAs, employers applying for low-wage LMIAs must purchase coverage for the employee. This coverage extends until the provincial healthcare programs 1become applicable to the foreign worker.
- Employment Contract: High-wage LMIA applications do not necessitate the submission of an employment contract to Service Canada. Conversely, for low-wage positions, employers must submit a mandatory employment contract. They can utilize the sample contract provided by the Government of Canada for this purpose.
Understanding the nuances between high-wage and low-wage LMIAs empowers employers to make strategic decisions aligned with their hiring needs and budgetary constraints. Whether opting for a streamlined high-wage process or navigating the additional requirements of a low-wage LMIA, thorough comprehension ensures compliance and successful recruitment endeavors. Remember, seeking professional guidance is always advisable to navigate the complexities of the LMIA process effectively.
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