Hiring foreign workers

Employer Options for Hiring Foreign Workers

Canadian businesses have two options for hiring foreign workers to address skills and labour shortages: 

• Temporary Foreign Worker Program (TFWP) 
• International Mobility Program (IMP)

Temporary Foreign Worker Program (TFWP)

This program requires businesses to get a Labour Market Impact Assessment (LMIA) approved by the Department of Employment and Social Development Canada (ESDC). The foreign worker can then apply for a work permit.

International Mobility Program (IMP)

This program is for jobs that don't need an LMIA. Employers can submit a job offer online through the Employer Portal, and the foreign worker can then apply for a work permit based on this online offer.

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Business Eligibility Requirements for Hiring Foreign Workers

To be eligible to hire foreign workers, businesses must meet certain requirements. These criteria apply to all businesses seeking to hire foreign workers, regardless of whether they choose the TFWP or IMP program:

• Be operational and actively selling goods or providing services in Canada.
• Have a legitimate need for foreign workers due to labour or skill shortages.
• Be financially capable of supporting temporary workers.
• Be in good standing with employment laws and regulations.

Timeline for Bringing a Foreign Worker to Canada

The entire process can vary significantly in duration, taking anywhere from a few weeks to several months, depending on a number of factors:

• The necessity of an LMIA: If required, the LMIA process will take longer.
• Job classification: If a job is deemed essential or is in high demand in Canada, this can speed up the process.
• Visa office capacity: If a temporary worker is applying from a country with a high demand for Canadian visas and immigration applications, delays can be expected.

Duration of Stay for Temporary Foreign Workers in Canada

Generally, employers can hire foreign workers for up to three years. However, there may be some restrictions on employment duration depending on the specific job and terms of employment.

Businesses can extend the stay of temporary workers in Canada beyond the initial period. This will require them to go through either the LMIA-based or the LMIA-exempt process again. If it makes business sense, employers can support temporary foreign workers in becoming Canadian permanent residents.

Cost of Hiring Foreign Workers

There are two types of fees that apply when hiring a foreign worker. The government and legal fees associated with hiring a foreign worker are typically tax-deductible business expenses, including:

• Government fees to be paid by the hiring business: C$230 employer compliance fee (for LMIA-exempt hiring process) or C$1,000 LMIA processing fee per position (for the LMIA-based hiring process).
• Government fees to be paid by the prospective candidate when applying for a work permit: C$155 work permit processing fee and C$85 biometrics fee (if applicable). If a temporary worker decides to bring their family to Canada, additional visa processing fees will apply for their spouse/common-law partner and children.
• Legal fees associated with assisting in the application preparation for both the LMIA-based and LMIA-exempt hiring processes, as well as work permits for foreign workers. Please contact us for detailed service packages.

Benefits of Relying on Foreign Workers

Based on feedback from our clients, hiring temporary workers has benefited them in several ways, either directly or indirectly:

• Addressing labour and skill shortages.
• Reducing labour turnover rates.
• Experiencing increased loyalty from employees.
• Optimizing payroll budgets while ensuring peak performance from employees.
• Expanding their business.

Benefits will naturally vary based on the size of the business, the industry, and the job vacancy.

Challenges Associated with Hiring Foreign Workers

Some of our clients have mentioned the following challenges when it comes to hiring foreign workers:

• The process can be legally complex, especially for those attempting it on their own.
• In rare cases, foreign workers in lower-skilled jobs may disappear.
• Employers have ongoing obligations and responsibilities towards temporary foreign workers, similar to those for any Canadian worker or permanent resident.
• It is necessary to organize and keep relevant records for six years.
• If a business is found to be non-compliant, it may face temporary or permanent restrictions on hiring foreign workers.

Employer Compliance and Inspections

Employers who hire foreign workers must follow the terms and conditions set out when they were allowed to hire temporary foreign workers, whether they were approved through an LMIA or exempt from needing one. They may be inspected for compliance for up to six years from the foreign worker's first day of employment and must keep all relevant records during this period. It's important to note that all obligations are communicated to businesses upfront, and they are expected to meet these requirements. If they don't follow the conditions - especially in complex cases - there is a process for reporting this to potentially reduce any negative consequences.

Checklist for Employer Self-Assessment When Hiring Foreign Workers for the First Time

Utilizing our expertise in guiding employers through the legal immigration process for hiring foreign workers, we have developed a concise, single-page checklist for employer self-evaluation [click here to download]. This document aims to assist employers looking to initiate the process of hiring foreign workers by evaluating the suitability of this undertaking (with the right questions!) before proceeding further.

Start Hiring Foreign Workers

If you are searching for a corporate immigration law firm or lawyer in Canada, we are ready to assist. Call us at +1-416-915-0808 or email info@leromlaw.com for more information to get started.