Refuse LMIAs in Low-Wage Stream
Hello World! Today, we would like to share important notice for Labour Market Impact Assessment (LMIA) based Work Permit applicants and employers.
In our previous article, we mentioned the possibility of implementing refusal to process under the Low-Wage stream, and the Government of Canada announced significant changes to LMIA applications in this stream on August 26, 2024.
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. Employers also need to prove that hiring a foreign worker will not negatively affect the Canadian labour market.
Please visit here to see the types of LMIA streams.
Key Changes
Effective September 26, 2024, the following changes will be implemented for LMIA applications in the Low-Wage stream.
LMIA Refusals in High Unemployment Areas: LMIA applications for the Low-Wage stream will no longer be accepted in metropolitan areas with an unemployment rate of 6% or higher.
Exceptions: Occupations in food security sectors (primary agriculture, food processing and fish processing), construction and healthcare
10% Cap on Foreign Workers: Employers will now be restricted from hiring more than 10% of their total workforce with foreign workers.
Exceptions: Occupations in food security sectors (primary agriculture, food processing and fish processing), construction and healthcare
Reduced Employment Duration: The maximum duration of employment for workers hired through the Low-Wage stream will be reduced to one year from the previous two-year limit.
For more information on this announcement, please check the link below.
Anticipated Further Adjustments
The Government of Canada will continue to monitor labour market conditions and make further adjustments to the program as necessary.
Within the next 90 days, the government will also review the High-Wage stream and other LMIAs and may change to the application process and rules.
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The Government of Canada expects that this action will reduce employer’s reliance on the LMIA and protect employment opportunities for Canadian workers.
If you have any questions or concerns about your LMIA/Work Permit application, please feel free to contact us from here.
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