Canada Clarifies Employer Definition for High-Wage LMIA Applications

• Canada has updated its Temporary Foreign Worker Program guidance to clarify how Service Canada determines which employer qualifies in high-wage LMIA applications. 

Employer Definition for High-Wage LMIA Applications 

Canada has issued updated guidance under the Temporary Foreign Worker Program (TFWP) clarifying how Service Canada assesses the employer in Labour Market Impact Assessment (LMIA) applications.  

The changes were added to the program requirements for high-wage positions to help ensure that the entity benefiting from and directing a foreign worker’s employment is properly identified.  

Clarification of Who Qualifies as the Employer 

Under the updated guidance, Service Canada may consider several factors when determining whether an LMIA applicant is the true employer, including: 

• Who is responsible for meeting TFWP requirements. 
• Who benefits directly from the worker’s services. 
• Who controls where, when and how the work is performed. 
• Who pays wages and compensation. 
• Who supervises performance and sets job duties. 
• Who has the authority to terminate employment. 
• Which entity the worker recognizes as their employer.  

Focus on Employer-Employee Relationships 

The guidance emphasizes that a valid employer-employee relationship exists when an employer hires a worker, directs their work and compensates them for their services.  

Employers must provide a genuine offer of employment and actual work for a specified period.  

Increased Scrutiny of Certain Arrangements 

Additionally, the government provided additional clarity around arrangements involving staffing agencies and worker classification. Authorities are reinforcing expectations that the employer listed in an LMIA application must be the entity that exercises meaningful control over the employment relationship.

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