Labour Market Impact Assessment (LMIA) Applications: Will You Be Successful? - Ravi Jain, B.A.(Hons.), LL.B., LL.M., C.S. Partner, Green and ...
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Labour Market Impact Assessment (LMIA) Applications: Will You Be Successful? Ravi Jain, B.A.(Hons.), LL.B., LL.M., C.S. Partner, Green and Spiegel LLP 1
Agenda 1. What is an LMIA? • Recruitment Tips • Transition Plan 2. Global Talent Stream 3. Employer Compliance • Inspections Page title goes here as footer 2
What is an LMIA? The Temporary Foreign Worker Program (TFWP) allows employers to hire temporary foreign workers and to promote Canada’s economic and labour interests by filling genuine labour needs. A Labour Market Impact Assessment (LMIA) is sometimes required before a prospective foreign worker mayobtain a Work Permit. (There are various LMIA-exempt Work Permits.) What is an LMIA? 3
Regular LMIA Permanent LMIA • Used to support • Can be used to support just PR Work Permit – can or to support PR +Work Permit also be used to • If just PR, there is no $1000 support PR government processing fee • Filed with applicable • File with ESDC office in St John, ESDC office in the New Brunswick province of the work • *If a company has not been in location operation for at least 1 year, • $1,000 government cannot file a permanent LMIA processing fee Regular versus Permanent LMIA 4
First Steps 1. Review job description to determine NOC code 2. Confirm salary offered meets prevailing wage (https://www.jobbank.gc.ca) 3. Confirm job requirements as per NOC code 1. watch for overly onerous education, language, experience requirements 2. E.g, do not ask for supervisory experience when the NOC only requires general experience in the industry (do not ask for managerial experience for a supervisory role) 4. Ensure foreign worker meets job requirements First Steps 5
High Wage Low Wage At-or-above provincial Below provincial median wage (as median wage (as determined by ESDC) determined by ESDC) Phased in cap on % of low wage TFW Transition plan required at any worksite 10 day processing No LMIAs for Food Service, available for some Accommodation and Retail Sectors occupation streams in regions of unemployment at-or- (highest demand, highest above 6% paid or short duration) LMIA valid for 1 year Program Divided into Two Streams 6
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Recruitment • Prior to submitting the application, employer must advertise • 3 sources for a month minimum -we recommend 4 • Unless CEO/CFO, Job Bank must be one source. • Collect applications/resumes as they come in and providing a detailed recruitment summary • Ensure all sources are independently posted. “Scraped” ads do not count. • Ensure to use industry specific sources wherever possible – especially for cooks/chefs and trades based roles • (Ex: target culinary colleges for chefs and localwork.ca for trades-based ) Recruitment 8
Advertisements Include • Business name and address • Work location – city, province • Job title • Job Duties • Wage • Benefits • Whether the position is project based or permanent • Minimum job requirements and preferred skills/credentials Advertisement Content 9
UNIQUE POSITIONS • When the position is extremely unique, we can ask for a discretionary recruitment exemption INTERMITTENT POSITIONS • When the position is intermittent and the TFW will be in Canada for no longer than 120 days over a period of time (up to 1 year), we can ask for a discretionary recruitment exemption. • In this case, Service Canada will want a detailed travel schedule • The Work Permit will be issued for 1 year, to cover the intermittent entry Variations to Recruitment (not on the list) 10
Transition Plan • Required for High-Wage • Transition plan is in addition to recruiting and advertising requirements in the LMIA that ensure Canadians and Permanent Residents are hired first • Employers must have a strategy to train, share skills with and/or transition to a Canadian workforce through investment in training or hiring apprentices or • Commit to assisting the TFW transition to becoming a permanent resident • Employers will be assessed on the implementation of their plan during audits and renewals • Employers failing to implement their plan may be denied new LMIAs The Transition Plan 11
Activities may include: • Offering increased wages, flex-hours or other benefits • Campus recruitment • Job Fairs • Recruiting from underrepresented groups • Apprenticeship, Co-Ops and other training • Supporting a permanent residency application for the foreign worker The Transition Plan - Activities 12
10 Day Processing • 10 (business day) processing if the wage falls within the top 10% of wage earners in the province. • E.g, Ontario: wage must be at least $46.00 per hour (equivalent to $95,680 per year based on a 40 hour work week) • Regular processing: ~ 4-10 weeks 10 Day Processing 13
Work Permit • If LMIA approved, apply for Work Permit • Onus then on Foreign Worker to show meets requirements of the position as was listed in the LMIA application (i.e. education, experience, skills) • Visa exempt foreign nationals can apply at the port of entry • Foreign nationals requiring a visa must apply at a overseas processing centre Work Permit 14
GLOBAL TALENT STREAM Global Talent Stream 15
Global Talent Stream • Skip advertising! • No transition plan! • Expedited processing times • For the LMIA: supposed to be 10 day processing • For the Work Permit: supposed to be 10 day processing (if applicant is overseas) • Employers must complete a Labour Market Benefits Plan • Employers must pay prevailing wage Global Talent Stream 16
Global Talent Stream Category A • Must be referred to the Global Talent Stream by one of Employment and Social Development Canada the Global Talent Stream’s designated partners and are hiring unique and specialized talent (the “unicorns”) Category B • Occupations on the Global Talent occupations list. Eligibility for the Global Talent Stream 17
Category A Category B Unique and Specialized Talent Global Talent Occupations List • Advanced knowledge of the industry; • NOC 0213 –Computer and information systems managers; • NOC 2147 –computer engineers (except software engineers and designers); • Advanced degree in an area of • NOC 2171 –Information systems analysts and consultants; specialization of interest to the employer; • NOC 2172 –Database analysts and data administrators; AND/OR • NOC 2173 –Software engineers and designers; • Minimum of five years of experience in the • NOC 2174 –Computer programmers and interactive media developers; • NOC 2175 –Web designers and developers; field of specialized experience; AND • NOC 2241 –Electrical and electronics engineering technologists and • A highly paid position with a salary of technicians who earn a wage of at least $38.94; usually $80,000 or more. • NOC 2283 –Information systems testing technicians who earn a wage of at least $37.50; • Sub-set of 5241 Digital Media and Design –position requires a minimum of five years of industry experience, and skills requirements including: 3D modeling, virtual and augmented reality; animation, level editing, editor and pipeline software and tools in applicable industry; other specialized knowledge of software framework in applicable industry (for example, Unreal 3.0) and/or, Experience in planning and managing a project and earn a wage of at least $38.406. 18
Labour Market Benefits Plan • Labour Market Benefits Plan must show positive impact on the Canadian labour market. • Mandatory Benefits for Category A: creating jobs • Mandatory Benefits for Category B: increasing skills and training investments • Complementary benefits: job creation, investment in skills and training, transferring knowledge to Canadians and PRs, enhanced company performance and implementing best practices or policies as an employer for your workforce. • Employers must provide activities and targets for each benefit Labour Market Benefits Plan 19
EMPLOYER COMPLIANCE Employer Compliance 20
Employer Compliance • Inspections to ensure the employer is adhering to the terms and conditions outlined in the job offer and application. Regulations cover both: • Labour Market Impact Assessment (LMIA) work permits • LMIA-exempt work permits (e.g., NAFTA work permits and intra- company transfer work permits within the International Mobility Program) Who is impacted? 21
Employer Compliance ESDC will consider limited justifications for violations if: • Errors made in good faith • Reasonable efforts were made to comply • They result from a genuine misinterpretation of obligations or requirements • They result from changes to Federal or Provincial law • They result from changes to provisions of a collective bargaining agreement Limited Justifications 22
Employer Compliance • 25% of all employers of TFWs inspected each year • Authority to conduct onsite and warrantless inspections • Can go back 6 years • Inspectors are permitted to interview both foreign workers and Canadian employees • May demand production of any document necessary to demonstrate compliance • Banks and Payroll companies can be compelled to provide records to verify information provided by employers Inspections 23
Sanctions • Administrative monetary penalties • $500-$100,000 per violation • Monetary penalties are cumulative, $1M cumulative cap per annum • Violations are distinct, and separate: • The same violation relating to multiple foreign nationals count as separate violations • Different violations relating to the same foreign national count as separate violations Consequences of Non-Compliance 24
Possible Consequences • Revocation of LMIAs • Published on an ineligible employers list online • List includes both employers who have been suspended and employers found to be in violation of rules, and will include the consequences have been imposed • Fines, and criminal charges and penalties for misrepresentations to ESDC • Information sharing by ESDC may trigger employment standards, occupational health and safety, and other investigations • Non-compliant employers may also face a period of ineligibility to hire foreign nationals. Ineligibility is not cumulative. The longest period applies. The AMP Regime 25
Voluntary Disclosure • If you become aware of non-compliance you may make a voluntary disclosure to ESDC • This does not mean you will not face penalties, but these may be reduced • Disclosures must be complete, and must be made prior to any compliance and enforcement action being undertaken • An “acceptable” disclosure may result in 4 points being deducted per violation • Previous compliance history, disclosure history, and the severity of the violation will be considered when evaluating disclosures Voluntary Disclosure 26
Questions? 27
Ravi Jain, B.A.(Hons.), LL.B., LL.M., C.S. Green and Spiegel LLP 390 Bay Street, Suite 2800 To r o n t o , O N M 5 H 2 Y 2 @RaviRandalJain Canada https://www.linkedin.com/in/ravikrjain/ ravij@gands.com +416.866.2186 28
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