Employers in Canada hiring international applicants use the provincial median hourly wage to know the requirements they need to meet for the TFWP, i.e., Temporary Foreign Worker Program. 

The location of the wage & position offered to the applicants also determines if employers need to apply for LMIA, i.e., Labor Market Impact Assessment or not under the high-wage or low-wage position stream. 

If the employee is paid under the provincial median hourly wage, it is considered a low wage. On the contrary, if they are paid above the median wage, it implies they are paid a high wage. 

 

Temporary Foreign Worker Program: What It Is? 

The TFWP, i.e., Temporary Foreign Worker Program, enables employers to recruit international people to fill in the labor shortages in Canada. In addition, employees looking to hire people need to undergo the Canadian government labor market test, i.e., LMIA. The LMIA ensures that there will be either a neutral or positive impact on the labor market if the employer hires an international candidate.  A temporary work permit & LMIA are needed before an international candidate can begin working for the employer via TFWP. 

Thus, if you are seeking to hire a high-wage worker, you must submit transition plans along with the LMIA. This will ensure that you are taking the required steps as an employer to reduce your reliance on international workers. In addition, this implies that qualified people are given priority for available jobs. 

In addition, if you are looking to hire a low-wage worker, there’s no need for a transition plan with LMIA. Instead, the government will cap the number of low-wage workers a company recruits to restrict access to TFWP. 

 

Thus, if you are an employer providing a wage which is below the provincial median, then you must: 

  • Pay for round-trip transportation
  • Ensure the availability of affordable housing
  • Pay for private health insurance until employees are eligible for territorial health coverage
  • Register the temporary foreign worker with provincial workplace safety 
  • Provide an employer-employee contract

 

Finally, the application must be reviewed by ESDC, i.e., Employment & Social Development Canada and officials who will determine that no qualified Canadians are overlooked in favor of international workers.