Program requirements for low-wage positions

Processing fee

Families or individuals seeking to hire a foreign caregiver to provide home care for individuals requiring assistance with medical needs are exempt from paying the Labour Market Impact Assessment (LMIA) application processing fee with submission of a medical certificate attesting to the individual’s incapacity to care for themselves. Families or individuals with a gross annual income of $150,000 or less seeking to hire a foreign caregiver to provide childcare in their home to a child under 13 years of age also qualify for the processing fee exemption.

You must pay $1,000 for each position requested to cover the cost of processing your LMIA application.

• The processing fee payment (in Canadian dollars) can be made by:
  • Visa
  • MasterCard
  • American Express
  • Certified cheque (shall be made payable to the Receiver General for Canada)
  • Money order (shall be made payable to the Receiver General for Canada)
  • Bank draft (shall be made payable to the Receiver General for Canada)
• The processing fee won’t be refunded if your application is withdrawn, cancelled or if your LMIA is negative. Refunds are issued only if a fee was collected in error
• The processing fee cannot be paid by nor be recovered from TFWs

Recruitment fees

There may be a variety of fees and costs incurred in the process of recruiting TFWs, including but not limited to:

• cost of using a third-party representative
• advertising fees
• fees paid by a foreign national for assistance with finding or securing employment
• fees paid by an employer for assistance or advice in the hiring of foreign nationals

As an employer, you must confirm and ensure that you or anybody recruiting on your behalf doesn’t charge or recover any recruitment fees, directly or indirectly, from the TFWs. Failure to do so will result in a negative LMIA decision.

Third-party representatives

Recruiters

A recruiter or anybody recruiting for the employer is someone who:

• finds or attempts to find an individual for employment with the employer, or
• assists another person in finding or attempting to find an individual for employment with the employer, or
• refers a foreign national to another person who finds or attempts to find an individual for employment with the employer

Some provinces and territories have specific requirements for recruiters and recruitment activities. It is your responsibility to ensure you comply with those requirements. As an employer, you’re also responsible for the actions of anyone who recruits on your behalf.

New employers

Employers who haven’t employed a TFW in the past 6 years prior to submitting an LMIA application will be subject to a review. The employer must demonstrate that they made reasonable efforts to provide a workplace that is free of abuse and that they weren’t an affiliate of an employer who is ineligible for the TFWP or in default of any amount payable in respect of an administrative monetary penalty.

A workplace that is free of abuse includes

1. (a) proactive efforts made to prevent workplace abuse
2. (b) reactive measures taken to stop abuse

An affiliate includes an employer that is controlled by another employer

1. (a) 2 employers that are under common control, or
2. (b) employers that aren’t operated at arm’s length

Business legitimacy

All employers applying to the TFWP must provide documents along with their LMIA application to demonstrate that their business and job offer are legitimate.

Cap on proportion of low-wage positions

As of April 30, 2022, and until further notice, you’re subject to a 20% cap limit on the proportion of TFWs that you can hire in low-wage positions at a specific work location. The cap is to ensure that Canadians or permanent residents are considered first for available jobs. 

For applications received between April 30, 2022, and October 30, 2023, from employers hiring workers in low-wage positions in the following defined sectors and sub-sectors, you’re eligible for a cap limit of 30%:

• Construction (NAICS 23)
• Food manufacturing (NAICS 311)
• Wood product manufacturing (NAICS 321)
• Furniture and related product manufacturing (NAICS 337)
• Hospitals (NAICS 622)
• Nursing and residential care facilities (NAICS 623)
• Accommodation and food services (NAICS 72)

The sectors and sub-sectors classification code is determined by the North American Industry Classification System (NAICS) Canada.

You must complete the “Cap for low-wage positions” section of the LMIA application to determine if you’re within the proportion of TFWs that you can hire in low-wage positions at a specific work location. You may be asked to submit documents, such as payroll records, to support the information provided.

Recruitment and advertisement

Recruitment is the process of finding and selecting qualified employees. As part of the TFWP requirements, you must conduct recruitment efforts to hire Canadians and permanent residents before offering a job to a TFW.

Wages

Wages offered to TFWs should be similar to wages paid to Canadian and permanent resident employees hired for the same job and work location, and with similar skills and years of experience.

For the purpose of the TFWP, you must pay the prevailing wage that is defined as the highest of either:

• the median wage on Job Bank
• the wage that is within the wage range that you’re paying your current employees hired for the same job and work location, and with the same skills and years of experience

To determine the median wage on Job Bank:

• go to Compare wages on Job Bank (wage updates took place during the week of November 14, 2022)
• in the “Job search” field, enter the job title or the NOC code (2021 version) that best describes the duties and requirements of the position
• the hourly median wage will be listed in the middle column, by community or area. If the median wage is listed as “n/a”, consult the provincial/territorial wage. If it isn’t available, consult the national wage

If the position requires additional skills and years of experience over the applicable NOC description, the wages offered should reflect these additional requirements.

For the purpose of determining the wage rate being offered, we’ll only consider guaranteed wages, which exclude:

• overtime hours
• tips
• benefits
• profit sharing
• bonuses
• commissions
• other forms of compensation

Job duties and working conditions

The TFW you hired as a result of a positive LMIA must only perform duties that correspond to the occupation they were hired for.

Canadian law protects all workers in Canada, including TFWs. The exploitation of TFWs is considered a violation of Canadian laws and human rights.

Employers must:

• pay TFWs for all work, including overtime, where required by law
• provide workplace safety insurance
• offer TFWs the same benefits, and
• not take the TFWs identification

Employment in most occupations is covered under provincial or territorial legislation that deals with labour and employment standards such as: hours of work, working conditions and termination of employment. In fact, every province or territory has a Ministry of Labour that can provide information to assist employers and TFWs with questions or issues related to work.

Note: Some employers are federally regulated and, therefore, are covered by the employment standards under the Canada Labour Code.

Two-year employment duration for meat processors pilot

On December 2, 2019, Service Canada will begin accepting LMIA applications with a 2-year employment duration for positions in meat processing.

To be eligible, your business' main activity must be in the manufacturing of meat products (under NAICS code 3116 — Meat product manufacturing). The position that you’re filling must also fall under 1 of the following NOC codes:

• 63201 — Butchers - retail and wholesale
• 65202 — Meat cutters and fishmongers - retail and wholesale
• 82030 — Agricultural service contractors and farm supervisors
• 84120 — Specialized livestock workers and farm machinery operators
• 85100 — Livestock labourers
• 94141 — Industrial butchers and meat cutters, poultry preparers and related workers
• 95106 — Labourers in food and beverage processing

To apply for a 2-year employment duration, you must complete Schedule L: Two-year Employment Duration for Meat Processors Pilot and include it with your low-wage stream application. In this form, you’ll:

• attest to support your TFW employee's application for permanent residence through either the federal Agri-Food Immigration Pilot, a provincial nominee program, or a Quebec immigration program
• describe activities you’ve undertaken or will undertake to:
  • recruit a TFW who has the potential to obtain permanent residence (for example, has the necessary language skills and/or education)
  • assist the worker in becoming well-positioned for their permanent residence application
  • retain the worker in their job and in the community
• agree to distribute an information package on employment rights and protections to your TFW employee:
  • Service Canada will electronically send you the information package and instructions with the decision on your LMIA
  • a form attesting that the information package has been provided to the foreign worker will also be included in your package. Both you and the worker will need to sign the form attesting that the information package on employment rights has been provided to the employee
  • you’re required to keep 1 copy of the signed attestation form for your records and provide a copy of the signed attestation form to the TFW
• agree to participate in the evaluation of the 2-year Employment Duration for Meat Processors Pilot, and retain all relevant documentation
• agree to be subject to an inspection during the 2-year employment duration pilot

If the position you’re filling is unionized, you must also get the union's support for a 2-year employment duration for the TFW as well as their support for transitioning the foreign worker to permanent residence. To demonstrate this support, you must provide a letter from the union with your application, which is on union letterhead and signed by an authorized union official. Here is a sample letter that can be adapted by your union.

If the position you’re filling isn’t unionized, you must attest that you’ll arrange for the TFW you’re hiring through this pilot to attend an information session on workplace rights and protections. The information session must be held during work hours and can be either in person or by teleconference. Service Canada will email you a list of potential community organizations or government agencies whom you can contact to arrange this information session.

Transportation

You must pay for the round-trip transportation costs for TFWs to arrive at their work location in Canada at the beginning of their work period, and to return to their country of residence at the end of their work period.

If the TFW finds a new employer, who was issued a positive LMIA, the new employer is responsible for the transportation costs.

The transportation costs mustn’t be recovered from the TFWs.

Housing

You must provide or ensure that suitable and affordable housing is available for the TFW you’ll employ.

For the purpose of the TFWP, Canada Mortgage and Housing Corporation definitions are used to determine the suitability and affordability of housing:

• suitable housing: doesn’t require any major repairs, according to residents. Major repairs include those to defective plumbing or electrical wiring, or structural repairs to walls, floors or ceilings
• affordable housing: costs less than 30% of the TFW’s before-tax income. Shelter costs include, rent (or mortgage payment) and any payments for electricity, fuel, water and other municipal services

We may ask for proof (for example, newspaper ads) that affordable housing is available.

Health insurance

In applicable provinces or territories, you must obtain and pay for private health insurance that covers emergency medical care, for any period during that the TFW isn’t covered by the applicable provincial/territorial health insurance system.

The coverage the employer purchases must correspond with the TFWs’ first day of work in Canada and the costs mustn’t be recovered from the TFWs.

During an employer inspection, an ESDC/Service Canada inspector will look at the policy coverage to make sure that it hasn’t been charged back to the worker, and that it covers at minimum the costs of basic emergency health care for sudden illness or injuries during the period the TFW isn’t covered by the provincial/territorial health insurance. Some private insurance companies offer more comprehensive plans, but ESDC will accept a basic plan so long as it ensures that the TFW won’t have to pay for medical care if they become sick or have an accident while working in Canada.

To demonstrate compliance, the employer must be able to show proof of payment for suitable private health insurance for each TFW, as well as the terms of the policy coverage (for example, the details of what is covered).

Workplace safety

You must always ensure that the TFWs you want to hire under the TFWP are covered from the provincial or territorial workplace safety insurance provider, where required by law. Where the provincial or territorial legislation allows employers the flexibility to opt for a private insurance plan, you must ensure that:

• any private plan chosen provides better or the same level of compensation to that offered by a province or territory
• all employees on the worksite are covered by the same provider

If you’re enquiring about private insurance plan equivalency, contact the appropriate provincial or territorial workplace safety authority.

The coverage you purchased must correspond with the TFWs’ first day of work in Canada and the costs mustn’t be recovered from the TFWs.

Employment agreement

Although a copy of the employment agreement isn’t required at the time of LMIA submission, you must commit to providing a completed and signed employment agreement to each foreign worker on or before their first day of work with you. An employment agreement must:

• include information for employment in the same occupation, with the same wages and working conditions as those set out in the offer of employment
• be drafted in either English or French as preferred by the foreign worker, and
• be signed by both the employer and the foreign worker

Employers can develop and use their own employment agreement as long as it contains all the necessary information. You can also use the employment agreement template.

Employers must maintain complete employment records that fully document compliance with the employment agreement throughout the duration of the employment.

For positions in Quebec, visit the MIFI website (French only) for specific requirements regarding the employment contract.

Language of work

English or French are the only languages you can identify as a job requirement in your LMIA application and job advertisement. However, if another language is essential for the job, you must provide a justification on the application.

Positions with no language requirement

There may be rare cases where an offer of employment doesn’t require any language for the foreign national.

If there is no language required for the job, you must provide more details on the application, including:

• how the foreign national will perform job duties in an effective and safe manner without the ability to communicate in any language, and
• what reasonable measures are in place to ensure health and safety of all persons at the place of work. To demonstrate this, you must also provide applicable and appropriate documentation with your application

Examples of reasonable measures are:

• having translated workplace safety manuals and procedures
• providing workplace safety training in the foreign national’s identified language
• using international safety signs that use symbols (pictures)
• having official translators on-site, and/or
• employing other workers or supervisors who can speak with the foreign nationals in their identified language

Unionized positions

If you’re applying to hire TFWs for positions covered under a collective agreement, you must:

• advertise and offer the same wage rates as those established under the collective agreement
• offer the TFWs the same terms and conditions as Canadian and permanent resident workers
• submit a copy of the section of the collective bargaining agreement on the wage structure

The hiring of TFWs mustn’t affect current nor foreseeable labour disputes at the workplace. During LMIA assessment, if it is determined that hiring TFWs is likely to adversely affect the course, the outcome or the settlement of any labour dispute, you’ll receive a negative LMIA decision.

We recommend that you work actively with union representatives to recruit Canadians and permanent residents.