High-Wage LMIA is a reliable solution for Canadian companies to hire foreign workers and retain skilled talent. A foreign worker can obtain work authorization for as much as 3 years or even permanently, if the Canadian company will support their permanent residence application.

The program may appear intimidating at first, but with enough resources and proper guidelines, it can be used as a reliable solution to address labour shortages.

At Sobirovs Law Firm, we ensure that retaining skilled international talent is easy and hassle-free, allowing your business to grow despite the labour shortages. Schedule a consultation today!

Definition of High-Wage LMIA Workers

High-wage LMIA workers are foreign workers who earn a high wage salary. In the LMIA context, a high wage salary is one that is above the provincial median wage.

High-wage LMIA workers can be from any country, but they need to have relevant experience based on the job description, be able to speak in English or French, be in good health, and have a clean criminal record.

The Canadian company has full flexibility in hiring foreign workers in any occupation without any limitations on how many foreign workers they can bring in a single year.

What is the Prevailing Wage for High-Wage LMIA Workers?

The prevailing wage, also called the median wage, is the median hourly wage depending on the region and occupation. High-wage LMIA workers must be paid a salary equal to or above that amount.

For High-wage LMIA applications, there are 2 prevailing wage brackets to consider:

1. Provincial prevailing wage: a general prevailing wage based on each province in Canada. This is used to determine if the worker will fall under High-wage or Low-wage category.
   • as a reminder, workers who are paid above the provincial prevailing wage are considered to be High-wage
2. Occupation prevailing wage: a prevailing wage that is specific to the occupation and the location of work. This is used to determine the minimum wage that a High-wage worker must be paid.
   • as a reminder, you must look at the median wage to understand the minimum wage that must be offered and paid to the High-wage worker.

High-Wage LMIA Requirements

General requirements for High-wage LMIA applications ask for:

• A completed application form, including transition plan activities
• Proof of recruitment and a detailed summary of recruitment efforts
• Business legitimacy documents such as T2 Schedule 100 and 125, a business license, T4 Summary of Remuneration paid and the most recent PD7A slip
• Payment of a government processing fee of CAD $1,000 per position

Canadian Employer Requirements

Any Canadian company that applies for a High-wage LMIA will be assessed to confirm that:

• It provides a product or a service in Canada – meaning it is a Canadian-registered and operating business.
• It offers employment that’s consistent with the reasonable needs of the business – meaning that the position that is being requested with the High-wage LMIA application aligns with the business’s needs.
• It can fulfil all terms of the job offer – meaning the Canadian company has the financial ability to pay the foreign worker’s salary and provide a workspace safe from abuse.
• It has no compliance issues and is not on the list of ineligible employers.

Canadian companies in British Columbia, Saskatchewan, Nova Scotia or Manitoba must also obtain a provincial employer registration certificate that provides additional authorization to hire foreign workers. This certificate must be obtained before a High-wage LMIA application can be submitted.

Canadian companies outside those provinces can submit a direct High-wage LMIA application without obtaining additional certificates.

Learn all about Canada’s Global Talent Stream

Foreign Worker Requirements

Luckily for Canadian companies, Canadian immigration policies don’t impose any limits or quotas on how many High-wage foreign workers Canadian companies can bring.

In addition, there are no limits on what countries can be considered for hiring high-wage foreign workers.

Otherwise, the general requirements for the foreign workers are as follows:

• Must have relevant education, matching work experience, and additional professional certifications, if applicable
• Be able to speak in English or French to perform their job duties
• Be admissible to Canada, meaning they are not in violation of any inadmissibility factors as specified by Canadian immigration law.

Find out about viable Canada Tech Visa options.

Processing Time for High-Wage LMIA Applications

Based on our experience, the processing time for High-wage LMIA applications ranges between 8 to 12 weeks after the application has been submitted. This doesn’t include the mandatory 4-week recruitment period that takes place before the application can be submitted.

Service Canada often updates their statistics on average LMIA processing times based on the actual number of applications.

Application Process for High-Wage LMIA Workers

The process for High-wage LMIA workers can look something like this:

1. Identify the foreign worker who needs High-wage LMIA
2. Initiate the recruitment period, which must run for at least 4 weeks before the LMIA application can be submitted
3. During the recruitment period, use the time to prepare the application by initializing it on the online portal and collecting relevant documents
4. During the third week of advertisements, start reviewing applicants. You must consider applicants that are Canadian citizens, permanent residents, or hold a valid work permit as an asylum seeker
5. If the recruitment efforts were unfruitful and you were not able to identify a worker after the 4 weeks, then you can go ahead with submitting the LMIA application
6. Once LMIA application is submitted, ESDC will reach out to make the application fee payment
7. ESDC officer may reach out to schedule an interview or they may ask for additional information or documents before finalizing the application
8. Once the officer is satisfied, a final decision will be issued and the foreign worker will be able to apply for a work permit with the LMIA approval letter

Employer Compliance

Every Canadian company that applies for an LMIA will be subject to employer compliance. Employer compliance is a set of rules and guidelines set by ESDC and IRCC that serve to protect and regulate the employment of foreign workers.

Overall, ESDC will look at the following conditions in the context of compliance:

• Complying with all federal, provincial, and/or territorial laws that regulate employment and recruiting.
• The foreign worker obtains a signed offer letter on the first day of work (or earlier) that clearly outlines all relevant details associated with their employment such as job title, duties, salary, work location, and benefits.
• All relevant records concerning the High-wage LMIA application are kept for 6 years.
  • This includes recruitment records, communication threads with the applicant, communication records with any third party involved in this process, the submitted application, expenses, communication threads with the ESDC officer, copy of the final decision letter, and anything else that is relevant.
• Commitment to executing the activities that were agreed on in the transition plan.
• Informing ESDC of any changes to the foreign worker’s employment conditions.
• Providing a safe working environment to the foreign worker that is free of abuse and has proper safety measures depending on the industry standards.
• Maintain the same employment conditions set out in the High-wage LMIA application and the signed offer letter.
• The company remains engaged in the same business for the duration of the foreign worker’s work permit.
  • For example, if the business gets acquired or re-branded, the foreign worker may need a new LMIA to accurately reflect employment records.
• The fees associated with recruitment and bringing the foreign worker to Canada are not recovered, directly or indirectly, from the foreign worker.

Frequently Asked Questions

Below you will find answers to our most commonly asked questions about hiring High-wage LMIA foreign workers:

Is it difficult to get a High-wage LMIA approved?

When a High-wage LMIA is prepared properly from the very beginning (the recruitment period), and the business is a legitimate operational business in Canada, it is not difficult to get this application approved.

What is the prevailing wage for High-wage LMIA?

The prevailing wage is the median hourly wage of the position depending on the region of employment. If the offered wage is above the provincial prevailing wage, the LMIA will be considered High-wage.

What job positions are eligible for High-wage LMIA?

As long as the offered wage is above the provincial prevailing wage, almost any job position can be eligible for a High-wage LMIA. Generally speaking, white-collar and high-skilled managerial positions fall under High-wage LMIA. However, depending on the job description, administrative roles could be considered under High-wage LMIA.

What salary do I need to offer to foreign workers with High-wage LMIA?

As a minimum, the foreign worker must be offered a prevailing wage for their occupation depending on the geographical location of their employment. If you have additional requirements for the role that are not considered standard, you must offer a higher rate.

What happens if the position is part of the union?

If the position is part of the union, then the same conditions that extend to unionized workers must apply to foreign workers. It is also important to keep ESDC updated if there will be a salary increase for the foreign worker.

How long does it take to obtain a High-wage LMIA?

High-wage LMIA works in two important milestones:

1. 4-week recruitment period
2. 8~12 weeks application processing period

Is there a fee for a High-wage LMIA application?

There is a mandatory filing fee of CAD 1,000 per position in a High-wage LMIA application. If you are planning to use services of immigration lawyers, you can expect an additional service fee depending on what services you will require.

What are the requirements to get a High-wage LMIA?

First and foremost, the Canadian company must be active and operational with enough resources to support the foreign worker’s salary.

Second, the Canadian company must not be on the list of ineligible employers.

Third, prepare the advertisements to meet ESDC’s program requirements and run a 4-week recruitment period.

And last, submit an accurate and honest application using the LMIA online portal with supporting documents.

Can I apply for multiple High-wage LMIAs?

Yes – there is no limit to how many High-wage LMIA applications you can submit. You can also submit 1 high-wage LMIA application requesting multiple positions. This can work only if you request identical positions in relation to the title, job duties, salary and job location.

Are there any restrictions on the duration of employment for high-wage LMIA positions?

Yes – the high-wage LMIA allows the employment of foreign workers from one (1) to three (3) years.

Can I extend a High-wage LMIA?

While you can’t extend a High-wage LMIA, you can submit a new High-wage LMIA to extend the employment period of the foreign worker. Please be mindful that the foreign worker will require a new work permit in association with a new High-wage LMIA.

Is it mandatory to advertise the position before applying for a High-wage LMIA?

Yes, it is a mandatory and important milestone for High-wage LMIA applications. Improper advertisements and recruitment efforts are one of the most common reasons for High-wage LMIA refusal.

What happens if I find a suitable applicant during the advertisement period?

You must interview them for the position and identify whether this applicant is a perfect match. Remember that a suitable applicant must be a Canadian citizen, a Canadian permanent resident, or an asylum seeker with a valid open work permit.

If the candidate is a perfect match and accepts your job offer, then it doesn’t make sense to proceed with the LMIA application unless you have a rationale behind why you still need the foreign worker to be in Canada.

What are my obligations as an employer under High-wage LMIA?

Generally speaking, as an employer, you must ensure that all conditions set out in the High-wage LMIA application and signed job offer letter remain the same throughout the foreign worker’s employment. For more details, please see our section above on employer compliance.

What are the consequences of non-compliance with High-wage LMIA regulations?

The consequences of non-compliance can vary depending on the severity of a violation. Starting from a warning, it can go up to monetary penalties ranging from up to $100,000 per violation to a maximum of $1 million per year, and for most serious violations, you can expect a permanent ban from submitting subsequent High-wage LMIA applications.

Can a foreign worker apply for permanent residency based on a High-wage LMIA?

A High-wage LMIA can help foreign workers increase their chances for permanent residency. However, each case is very individual when it comes to permanent residence. As such, we recommend contacting an immigration lawyer to assess the foreign worker’s chances for permanent residency.

Do I need to keep the foreign worker for the entire duration of their work permit?

Not necessarily – if the foreign worker fails to meet the responsibilities and duties associated with their job, you can let them go following internal proceedings and ensuring they meet the employment standards of the region or province. As an employer, you are not responsible for maintaining the foreign worker’s employment for the entire duration if they fail to meet job requirements and become a liability.

Are there any alternatives to a High-wage LMIA for hiring foreign workers?

Yes, there are a wide variety of options for Canadian employers to bring foreign workers into Canada without using the High-wage LMIA. Get in touch with us today and learn about the different options available for you!