Important!! LMIA Applications & Employers

Hello World! Today, we would like to share important notice for Labour Market Impact Assessment (LMIA) based Work Permit applicants and employers.

Job Bank updated wages on November 29, 2023, and employers are now required to update the wages of Temporary Foreign Workers (TFWs) to reflect the prevailing wage. 

(Click here for the previous article related to LMIA)

What is LMIA?

LMIA is a document that an employer in Canada may need to get before hiring a foreign worker.

A positive LMIA will show that there is a need for a foreign worker to fill the job. It will also show that no Canadian worker or permanent resident is available to do the job. A positive LMIA is sometimes called a confirmation letter.

The employer is obligated to maintain compliance with the job offer such as positions, wages, and working conditions and immigration laws associated with its LMIA.

You can check if you need an LMIA or not for your Work Permit through the following link.

https://www.canada.ca/en/immigration-refugees-citizenship/services/work-canada/hire-temporary-foreign/find-need-labour-market-impact-assessment.html#do_you_nedd_LMIA

Prevailing Wage Reviews

For LMIA applications submitted as of January 1, 2024, employers are required to update the wages of TFWs to reflect the prevailing wage. 

The Prevailing Wage is the average wage paid to workers of equivalent experience and qualifications working in the occupation. It is required to be reviewed annually using the most recent wages posted in the Job Bank.

Because Job Bank wages are updated every year in the fall, employers have until January 1 of the following year to reassess and apply the prevailing wage. The updated wage can never go below the wage identified in the positive LMIA at any time during a TFW’s employment period, even if the prevailing wage decreases.

You don’t need to report a wage modification to Service Canada if it meets the prevailing wage. Employers who don’t update wages accordingly may be subject to sanctions including administrative monetary penalties and bans from using the program.

To check the latest wages in the Job Bank, please visit the following website.

https://www.jobbank.gc.ca/trend-analysis/search-wages

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As mentioned above, employers are required to review and update the wages of TFWs accordingly with most recent wages posted in the Job Bank. If the currently offered wage is below the prevailing wage, sanctions may be imposed. To avoid problems, please review and update your wages now.

If you have any questions about this topic or need assistance in the LMIA process, please feel free to send your form from here.

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