What Canadian Employers Need to Know Before Hiring International Workers

Hiring international workers in Canada can help businesses fill labour gaps and stay competitive. But before you can bring in foreign talent, there are key steps and certifications employers must follow to stay compliant with Canadian immigration rules.

This guide explains the employer requirements, how to prepare to sponsor foreign workers in Canada, and what to expect from the LMIA process.

What Is an LMIA, and When Do Employers Need One?

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An LMIA (Labour Market Impact Assessment) is a document that shows the Canadian government that hiring a foreign worker won’t negatively affect the job market for Canadians. Employers usually need an LMIA before they can hire most temporary foreign workers. However, some jobs are LMIA-exempt through international agreements or public policy exemptions.

Some common jobs that require an LMIA include general labour positions, food service supervisors, construction trades, truck drivers, and roles in manufacturing. On the other hand, some positions are exempt from the LMIA requirement. These include jobs under trade agreements like CUSMA, intra-company transfers, roles for post-graduate work permit holders, and International Experience Canada (IEC) participants.

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Steps to Prepare for LMIA‍

If your business needs an LMIA, you must follow specific steps to apply properly and meet all legal requirements.

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Check LMIA Requirements

‍Before submitting an LMIA application, ensure your business meets the basic requirements. You must operate a legitimate, active business in Canada. Your company should be financially stable and capable of paying the foreign worker. You also need to show that you tried to hire Canadian citizens or permanent residents first by advertising the job. Finally, your job offer must meet Canadian wage and working conditions standards.

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Advertise the Position‍

To prove that you made efforts to hire locally, you must advertise the job in Canada for at least four consecutive weeks. This includes posting the position on the Government of Canada’s Job Bank, which is mandatory. You must also post it in at least two other places, such as LinkedIn or Indeed, to show a genuine effort was made to reach Canadian job seekers.

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Apply for the LMIA

‍Once the advertising requirement is complete, you can apply for the LMIA through Service Canada. Your application should include proof of recruitment efforts, relevant business documents such as tax records and payroll evidence, and a detailed employment contract and job offer. There is also a non-refundable application fee of CAD $1,000 per worker. For more details on how to apply for an LMIA, visit the Employment and Social Development Canada website.

Canada Immigration Compliance for Companies
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‍Employers who hire foreign workers must follow federal immigration laws and provincial labour standards. You are required to keep records of the job offer, wages, and working conditions. It's also your responsibility to ensure the job follows local employment laws. Employers may be audited or inspected, and failure to comply with the rules could result in penalties, fines, or bans from future participation in immigration programs.

How to Become a Designated or Eligible Employer‍

Some immigration programs require employers to be officially recognized as designated or eligible. This helps streamline the hiring process for companies in specific regions or sectors.

Designated Atlantic Employer (Atlantic Immigration Program)‍

To participate in the Atlantic Immigration Program (AIP), employers must apply to become a designated Atlantic employer in one of the Atlantic provinces: Nova Scotia, New Brunswick, Prince Edward Island, or Newfoundland and Labrador. This process includes demonstrating that your business is stable, compliant with local labour laws, and willing to support newcomers with settlement efforts.

RNIP Employer Requirement (Rural and Northern Immigration Pilot)‍

If your business operates in a community that is part of the Rural and Northern Immigration Pilot (RNIP), you can apply to be a participating employer. Each RNIP community has its own set of requirements, but common steps include registering your business with the community, posting jobs on its official site, and getting approval from the community before making job offers to foreign workers.

People Also Ask

What is the first step to hire international workers in Canada?

‍The first step is to check if the job position you're offering requires an LMIA or if it qualifies for an exemption. From there, ensure your business meets the necessary eligibility criteria to support a foreign worker.

How long does an LMIA take?

‍Processing times vary depending on the job type and application stream. It can take several weeks to a few months. High-demand occupations or special LMIA streams may be processed more quickly.

Can small businesses hire foreign workers in Canada?

‍Yes, small businesses can hire foreign workers as long as they can show they are financially stable, actively operating, and compliant with Canadian labour standards and immigration rules.

What happens if I don’t follow the rules?

‍Employers who fail to meet the requirements or violate the terms of their foreign worker agreements may face penalties. These can include fines, removal from the list of approved employers, or bans from hiring temporary foreign workers in the future.

Key Takeaways

‍To hire foreign workers in Canada, employers need to understand the LMIA process and know whether their job offer is exempt. Preparing an LMIA involves meeting advertising requirements, gathering the correct documentation, and applying through Service Canada. Employers must stay compliant with immigration rules and may need to become a designated employer under regional programs like AIP or RNIP.