High-wage LMIA Stream

Essential Aspects of the High-Wage LMIA Application

In this article, we discuss the characteristics of the High-Wage Labour Market Impact Assessment (LMIA) Stream in detail. For those exploring various options, it might be helpful to begin with an overview and comparison of the different LMIA streams.

Businesses might consider the High-Wage LMIA when hiring temporary foreign workers for high-wage positions. If the hourly wage offered to a temporary foreign worker equals or surpasses the provincial median wage plus 20% for that job's location, then it's classified as a high-wage position, and the High-Wage LMIA becomes the appropriate choice. 

Many employers want to know the minimum wage rate they must offer to qualify for an LMIA to hire foreign workers. To better understand wage requirements, read about the LMIA wage rate, or, if you are sure about the wage rate, continue reading this article about the High-Wage LMIA Stream.

Checklist to Determine if a Business Can Hire a Foreign Worker Using the High-Wage LMIA Stream

The primary criteria, such as business status, occupation, and wage, that determine whether a business can use the High-Wage LMIA Stream to hire foreign workers are listed below. If you answer "yes" to all the following questions, you may consider using the High-Wage LMIA to hire foreign workers:

• Is the business operational and in good financial standing?
• Does the business intend to hire foreign workers for low-skilled, semi-skilled, or highly-skilled jobs because it cannot fill the vacancies with Canadians or permanent residents? (Note: Recruitment efforts must be conducted before filing an LMIA application.)
• Does the hourly wage for a foreign worker meet all of the following criteria? 1) It equals or exceeds the median occupational wage for the job's location. 2) It equals or surpasses the provincial/territorial median wage plus 20% for the job's location. 3) It is consistent with the wage range currently paid to other employees in the same role with equivalent skills and in the same location.
• Is the business prepared and willing to undertake specific activities to transition to a Canadian workforce during the foreign worker’s tenure? [See details below.]

Transition Plan Requirement

Canadian companies intending to hire foreign workers through the High-Wage LMIA stream are required to submit a transition plan. This plan delineates the measures the company will adopt to gradually transition to a Canadian workforce during the period of the foreign worker's employment for which an LMIA has been approved.

A transition plan might focus solely on activities that support a foreign worker's permanent residency application. This means the employer commits to assisting the temporary foreign workers they hire through the LMIA in their journey to becoming permanent residents. Such activities could involve offering a permanent job position, providing language training, granting time off for language test preparation, or covering fees associated with the permanent residency application process.

If a company is unsure whether the temporary foreign workers they're hiring would qualify for permanent residency or simply doesn't want to make this commitment, they must pledge to undertake four activities:

• Three distinct activities geared towards recruiting, retaining, or training Canadians or permanent residents. These can include measures like increasing wages, introducing an employee referral program, offering flexible hours or benefits, attending job fairs, supporting the relocation of Canadians or permanent residents, partnering with recruitment agencies, collaborating with unions or industry associations, providing apprenticeships or internships, participating in government programs, offering educational leave, or facilitating on-the-job training.
• One activity that involves collaborating with organizations that serve underrepresented groups. Furthermore, employers should establish clear targets and timelines for achieving these goals.

Companies that aim to hire for positions previously outlined in older transition plans must provide updates on their prior plans' progress and develop new ones. Service Canada/Employment and Social Development Canada (ESDC) consistently evaluates this progress, specifically looking at any reductions in reliance on temporary foreign workers, before approving subsequent LMIAs.

Exceptions exist for certain roles that don't necessitate a transition plan, including

• In-home caregivers or healthcare providers
• Primary agriculture roles
• Specialized occupations eligible for Quebec’s facilitated LMIA process
• Positions with limited durations
• Unique skill roles unavailable in Canada

Maximum Employment Duration Under High-Wage LMIA

The validity of the work permit under the High-Wage LMIA is a maximum of 3 years.

High-Wage LMIA Processing Time

The processing time for a High-Wage LMIA application by the Employment and Social Development Canada (ESDC)/Service Canada is approximately 2 months.

Start LMIA

Depending on business conditions, stages, and needs, there are specific steps to follow in the LMIA process.

If you are looking for a corporate immigration law firm or lawyer in Canada, we are here based in Toronto to help. Call us at +1-647-493-5205 or email info@leromlaw.com for additional information you need to start the process.