Labour Market Benefit Plan and Transition Plan: Complete Immigration Guide.

If you have heard about LMIA, then you must have heard about a Transition Plan or Labour Market Benefit Plan, which could be applicable to you when you are hiring foreign workers. Both of these are vital components of an LMIA application process and apply in very specific situations. A Transition Plan is a mandatory document required by a majority of employers in Canada when applying for a Labour Market Impact Assessment (LMIA).

The key difference between the two is that a Transition Plan is associated with High Wage LMIA applications, while a Labour Market Benefits Plan is associated with Global Talent Stream LMIA applications. Neither of them is required for other types of LMIA applications.

What is a Labour Market Impact Assessment (LMIA)?

A Labour Market Impact Assessment (LMIA) is a crucial document that Canadian employers need to obtain before hiring foreign workers. Issued by Employment and Social Development Canada (ESDC), the LMIA evaluates the potential impact of hiring a foreign worker on the Canadian labour market. This assessment ensures that Canadian citizens and permanent residents are prioritized for job opportunities and that foreign workers are only hired when no qualified Canadians are available. The LMIA process is designed to protect the Canadian workforce while addressing labor shortages in specific industries.

What is the Transition Plan for the Temporary Foreign Worker Program?

The purpose of the transition plan LMIA is to get new immigrants and alleviate talent shortages in Canadian companies. It does so by allowing Canadian employees to directly learn from the foreign worker or by transitioning the foreign worker to become a permanent resident. A solid transition plan includes clear, relevant, and measurable commitments, ensuring that the selected activities are carefully considered based on insights gathered from recruitment efforts. Transition Plans hold employers accountable for their promises on the Labour Market Impact Assessment.

Remember: an LMIA application is put together when Canadian companies struggle to find skilled talent. A transition plan is put in place to ensure that the Canadian company doesn’t have the same problem going forward by reducing reliance on temporary foreign workers. Transition Plans are required by all employers employing temporary foreign workers in high-wage positions.

The transition plan is included as a separate section on the LMIA application. The Canadian company will have 2 options when selecting transition plan activities:

1. Selecting 4 activities to recruit, train, and retain Canadian citizens and permanent residents in the same occupation as requested in the LMIA or

2. Transition the foreign worker to become a permanent resident

Transition Plan Implementation Example

Company A struggled to find a skilled interior designer for residential homes. The company tried recruiting from inside Canada but wasn’t able to find what they were looking for.

A perfect candidate appeared, but they had not requested a work permit or authorization in Canada. Company A decided to apply for a High-Wage LMIA for this candidate so that the candidate could later apply for a work permit and start working with the company.

In the transition plan of their LMIA application, the company decided to select 4 activities to recruit, train, and retain Canadian citizens and permanent residents in the same occupation as requested in the LMIA (interior designer).

The activities they selected were:

1. Host a career fair once every quarter

2. Develop apprenticeship programs for post-graduate students

3. Have the candidate host monthly lunch and learn sessions

4. Allocate individual budgets for interior designers at the firm for continued learning and professional development

Alternatively, instead of selecting 4 activities, the company could support their candidate with the transition toward permanent residence.

In this case, the company needs to issue a permanent job offer to the candidate and support their application for permanent residence.

Considering that Canada has federal and provincial programs for permanent residence, the company’s support can vary depending on the program’s requirements.

If any changes are needed after the LMIA is issued, employers should contact Service Canada to request and submit a revised transition plan. Employers must evaluate their ability to meet the obligations of the Transition Plan as they impact subsequent LMIA applications.

Learn all about LMIA Recruitment and Advertisement Requirements.

What is the Labour Market Benefit Plan for the Canadian Workforce?

The Labour Market Benefit Plan, also called LMBP in abbreviation, is very similar to the transition plan. The key differences of the LMBP vs. the Transition Plan are:

• LMBP is used only for Global Talent Stream LMIA applications

• LMBP doesn’t allow the Canadian company to select transition to permanent residence as its activity

• LMBP asks for 3 activities (as a minimum) as opposed to 4 activities

• LMBP activities need to cover each year of foreign worker’s employment

• For example, a GTS LMIA application asks for 3 years of foreign worker employment. The LMBP activities will then need to cover a 3-year period

It is crucial to emphasize the importance of transition plan tables detail when filling out the Transition Plan tables. Commitments must be clear, relevant, and measurable to ensure the employer transition plan’s effectiveness. ESDC may conduct an inspection to verify compliance with the Transition Plan at any time during the LMIA’s validity.

LMBP is also structured to have 1 mandatory activity, which is dictated by the GTS LMIA application category, and 2 supplementary activities that are not dependent on the category.

Category A of GTS LMIA applications asks that the mandatory activity be the creation of new jobs for Canadian citizens and permanent residents.

Category B asks that the mandatory activity is an investment in skills and training of Canadian citizens and permanent residents.

Recommended Supplementary Activities for Recruitment Efforts

The supplementary activities, as recommended by ESDC, can be any of the following distinct activities:

• job creation

• note that this can be used as a supplementary activity only for Category B

• forming partnerships with local colleges, universities or other learning centres

• offering paid co-op or internship opportunities, seeking interns

• engaging in initiatives that boost workplace participation of underrepresented groups

• providing continued professional development opportunities

• ensuring that the foreign worker will supervise and mentor Canadian workers at the firm to support knowledge transfer. i.e. mentorship programs

• increasing revenue or investments for the company

• developing or improving best company practices or policies related to the attraction and retention of Canadian citizens or permanent residents

• developing or enhancing partnerships with organizations that assist with identifying top domestic capital

• offering financial support for relocation expenses, educational pursuits, and incentives for skill development

Labour Market Benefit Plan Implementation Example

Company A is applying for Category A GTS LMIA to ask for 3 years of employment with a foreign worker. Their LMBP would look something like this:

• Mandatory activity: commit to create 3 new jobs for each year that the foreign worker will be working with the company

• The new jobs can be in any role and occupation; it doesn’t have to be the same as the position that is being asked in the GTS LMIA application

• for example, the company commits to hiring 3 administrative assistants in the first year, 3 software developers in the second year, 3 marketing managers in the third year

• Supplementary activity #1: commit to investing $5,000 in continued professional development opportunities for Canadian employees for each year of the foreign worker’s employment

• Supplementary activity #2: allocate $1,000 each year to sponsor a career fair for underrepresented groups

The median hourly wage is a threshold for determining whether a position qualifies as high-wage or low-wage, which affects both salary determinations and employer obligations in hiring temporary foreign workers.

In our experience, ESDC will mostly accept 3 activities for an LMBP and will not ask to add a 4th one unless the Canadian company is newer, doesn’t have many employees or doesn’t have substantial revenue.

Just like the transition plan, LMBP will have a separate section in the GTS LMIA application. Unlike the transition plan, ESDC officers will often schedule a meeting to confirm LMBP activities.

If there is one best tip we can share, it is to select activities that are most realistic to the company. This will make the work easier to complete and ensure continued employer compliance with the temporary foreign worker program.

Benefits of Hiring Foreign Workers

Hiring foreign workers offers numerous advantages for Canadian employers. These workers can fill critical labor gaps and bring specialized and unique skills that are in short supply within Canada. Additionally, foreign workers introduce diverse perspectives and innovative ideas to the workplace, fostering a culture of creativity and productivity. By hiring foreign workers, Canadian employers can enhance their business operations, expand their market reach, and boost their competitiveness on a global scale. The infusion of international talent can be a significant driver of growth and success for Canadian companies.

Employer Requirements

Canadian employers looking to hire foreign workers must meet specific requirements to ensure compliance with labour laws and regulations. Firstly, employers must demonstrate that they have made reasonable efforts to recruit and hire Canadian citizens or permanent residents before applying for an LMIA. This includes advertising the job vacancy and documenting recruitment efforts. Employers must also provide evidence of their financial capacity to pay the foreign worker’s salary and benefits. Additionally, they must adhere to all relevant labour laws, including those related to wages, working conditions, and health and safety, to ensure a fair and supportive work environment for foreign workers.

Application Process

The application process for an LMIA involves several key steps:

1. Determine the Type of LMIA Required: Employers must identify whether they need a high-wage or low-wage LMIA based on the wage offered to the foreign worker.

2. Gather Required Documents: Employers need to collect all necessary documents, such as a detailed job offer letter, the foreign worker’s resume, and proof of the employer’s financial resources.

3. Submit the Application: The complete application, along with all required documents and fees, must be submitted to Service Canada.

4. Wait for Processing: Service Canada will review the application, a process that can take several weeks or even months.

5. Receive the LMIA: If approved, the employer will receive an LMIA, which the foreign worker can then use to support their work permit application.

By following these steps, Canadian employers can navigate the LMIA application process effectively, ensuring they meet all requirements and secure the talent needed to drive their business forward.

How Sobirovs Law Firm Can Help You

Ready to simplify your LMIA application process? Sobirovs Law Firm specializes in crafting effective Labour Market Benefit Plans and Transition Plans. We help you develop strategies to recruit Canadian talent or support foreign workers’ transition to permanent residency.

Our expert team ensures your LMIA application is thorough, compliant, and tailored to your business needs. Contact us today to streamline your LMIA process and secure the talent your business needs to thrive!