The workforce is on the decline in Canada and labor shortages are not news in the country. In this regard, the country’s government announced its intention to conduct a Recognized Employer Pilot, which will kick off in September.

The pilot will run under the Temporary Foreign Worker Program (TFWP) and its main aim will seek to cut the administrative burdens, especially those associated with repeat employers who have time and again proved they can comply with Temporary Foreign Worker Program requirements.

How will the Pilot Work?

First of all, through the REP, eligible employers will easily have access to Labor Market Impact Assessments (LMIAs). These LMIAs will be valid for up to 36 months. Besides, employers will be able to benefit from a simplified LMIA application.

But What is LMIA?

LMIA is a document that is compulsory for any Canadian Employer who wishes to hire a foreign employee. Notably, this document entails a labor market test and the regulations dictate that any Canadian employer must complete it to prove they are suitable candidates for recruiting foreign labor. The LMIA provides sufficient evidence indicating that there are no Canadian or permanent residence workers available to discharge the job in question, so the employer has to seek the workforce elsewhere.

A positive LMIA is sometimes referred to as a confirmation letter. According to the Canadian government, the September pilot is tailored to help employers mitigate the cumbersome process of submitting multiple LMIA applications. For the next three years, fewer LMIA will be submitted for employers who have been compliant with TFWP requirements.

This will help eligible employers to address their staffing needs easily without undergoing the red tape that were initially associated with hiring a foreign worker. The employers will also have an advantage from a job bank designation that indicates their recognized status to potential workers.

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