New changes to Labour Market Impact Assessment (LMIA) announced on 21 October 2024

New changes announced on October 21, 2024, to Labour Market Impact Assessment (LMIA) requirements under the Temporary Foreign Worker Program (TFW Program).

Wage threshold for high and low-wage streams

Under the TFW Program, when employers apply for an LMIA in either the high or low-wage streams, the hourly wage offered by the employer for the requested position determines which stream applies.

Starting November 8, 2024, the provincial and territorial wage threshold used to determine the applicable stream will be increased by 20% over the current level.

As of November 8, employers, before submitting an LMIA application, will be able to consult the updated reference table available on the TFW Program website to find out the new applicable thresholds. This change does not apply to LMIA applications received before November 8 that are currently being processed, or those for which decisions have already been made.

Each of these streams has different requirements, particularly with respect to recruitment efforts, and transportation and housing for temporary foreign workers. Employers are reminded of their obligation to ensure these requirements are met at all times.

Supporting documents required for the LMIA

As part of the LMIA, job offers described in the application are assessed to ensure that the business and the job offer are both genuine and legitimate.

Starting October 28, 2024:

• Attestations from Chartered Professional Accountants or lawyers (or any other member in good standing with a law society) will no longer be accepted as supporting documentation to demonstrate the legitimacy of the employer's business.

• However, attestations from official representatives of regulated financial institutions will still be accepted, but only to substantiate the following legitimacy factor: The business has the ability to fulfill terms of the job offer.

This change also applies to LMIA applications received before October 28, 2024, that are still under assessment and for which a decision has not been rendered by Service Canada. Service Canada officers will contact employers who have submitted an attestation that has become ineligible, if applicable. Employers will then have the opportunity to provide additional supporting documents.

This new information and details of the supporting documents required for LMIAs will be available on the TFW Program website as of October 28, 2024.

Calculation of the effect of the cap on the proportion of low-wage positions

As a reminder, a cap on the maximum proportion of low-wage temporary foreign workers that an employer may have at a given work location is in place to ensure that Canadians and permanent residents are considered first for available jobs.

As part of their LMIA applications, employers must determine if they are within the allowable proportion of low-wage temporary foreign workers with LMIAs relative to the total workforce at a given work location. This includes full-time and part-time workers, whether they are Canadians, permanent residents, asylum seekers or foreign workers.

More information on cap requirements for low-wage positions can be found on the LMIA application and on the TFW Program website, including information on existing exemptions. If you have questions on the TFW Program, please visit Canada.ca or reach out to the Employer Contact Centre.