IMPACT – MEDIUM

What is the change? Employment and Social Development Canada (ESDC) has ended the “recruiting and advertising” exemption for employers seeking to hire foreign students who have graduated from Canadian post-secondary schools and whose Post-Graduate Work Permits (PGWPs) are expiring.

What does the change mean? Employers wishing to hire foreign nationals fitting that description must now recruit and advertise for those positions following the standard Labour Market Opinion (LMO) process.

  • Implementation timeframe: Immediate.
  • Visas/permits affected: Post-GraduateWork Permit extensions
  • Who is affected: Companies who have employees holding PGWPs and who wish to hire foreign graduates of Canadian post-secondary schools whose PGWPs are expiring.
  • Impact on processing times: These applications will be processed under the lengthier LMO procedures.
  • Business impact: The recruitment and job advertising requirement will significantly lengthen the work permit extension application process for foreign graduate hires whose post-graduate work permit extensions in the past were exempt from the advertising and recruiting requirement.

Background: ESDC removed the exemption June 5, so employers wishing to hire individuals transitioning from the PGWPs must now submit LMO applications and meet all LMO processing requirements in the occupation category.

BAL Analysis: Employers hiring foreign graduates transitioning from PGWP should plan for the increased costs and efforts involved in recruiting and advertising for local job candidates.

This alert has been provided by the BAL Global Practice group. For additional information, please contact your BAL attorney.

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