New Method To Be Introduced To Recruit Workers Soon

23 Apr 2015

From April 30^th, a new method would be introduced to identify the employer requirement while recruiting the foreign workers. Even though this change was contemplated earlier (with June 2014 Amendments) but only now it has set to come into force.

Further myriad of changes which have affected Canada’s Temporary Worker Program since last few years, it appears that we have not seen the end. This change results in impacting LMIA applications.

Until now, as per the Post –June 2014 Scheme, all employers seeking to hire any foreign worker, needs to consider whether appropriate salary for this occupation is below or above the provincial median wage. They should also consider whether the occupation requires high skill or low skill.

All NOC occupation is required to have a median wage on the Job Bank, which does take into account location and other factors. This is different from the provincial median, which is simply a median wage taken across all jobs in the province.

In many cases, the high skill position will be above the median provincial wage, and for low skill positions (it does have cap as to number of positions which can be filled), it would be under the median provincial wage. However, it could be possible there could be a low skill occupation (NOC C OR D) whose median wage is based on job bank pays above the provincial median wage. There it could be considered high wage and it could be subject to the transition plan.

According to the new scheme, the test would be much simpler as to whether the wages required for that particular occupation pursuant as per Job Bank guideline are below or above the provincial median wage. If it is below then they are in the low wage stream and if above then they are in high wage stream.

For all low wage occupations, employers are asked to include return airfare. They should also provide a contract having prescribed obligation and ensure that affordable housing is available. The government will also take steps to update its employment surveys which would impact low wage, position where the unemployment is six percent or greater, in particular sectors.

Though the actual situation type that could be affected due to this change may be limited, it is essential to incorporate the legal consideration for all applications, lest an error may occur.

A few additional points to consider.

• ESDC (Employment and Social Development Canada) as well as Service Canada, the administrators of the program, use the 2006 National Occupational Classification (NOC) requirement for job equivalency evaluation.
• Yearly salaries are calculated on the presumption of a 40 hour work week.
• New forms would be introduced beginning of April 30 which would impact both high as well as low wage positions whereas previously there where separate forms. But now, both types would be completed on the same form and post 30^th April, all applications must use only the new form.
• LMIAs in Quebec would be subject to the same requirement as all other provinces, for which the employers would retain some flexibility.
• LMIAs for highest demand occupation, highest paid occupations or short duration work periods will be now provided within a 10 business day service standard.

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