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IMPACT – HIGH
What is the change? Canada has updated its Labor Market Impact Assessment (LMIA) application form, and is using a new wage formula to determine whether an application falls under the high-wage or low-wage stream.
What does the change mean? The new criterion is the wage paid by an employer, rather than the provincial or territorial prevailing wage for the job.
Background: The new application form and wage formula is part of Canada’s overhaul of the TFWP. Previously, the high-wage and low-wage streams were based on the prevailing wage for the particular job compared to the provincial or territorial median wage. Going forward, the determination of high-wage and low-wage applications will be based on the wage paid.
BAL Analysis: Employers applying for LMIA positions should prepare for the possibility that some applications that previously fell under the low-wage stream may now be considered high-wage. As a consequence, most high-wage applications (with very few exceptions) now require that employers submit a transition plan describing how the employer intends to transition to Canadian workers over the duration of the foreign worker’s employment period under the LMIA. Employers may request a two-year LMIA for high-wage applications, as opposed to one year.
This alert has been provided by the BAL Global Practice group and our network provider located in Canada. For additional information, please contact your BAL attorney.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
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