3 Tips to Successfully Hire Foreign Workers

Do you know that immigration accounts for nearly 100% of Canada’s labour force growth? In fact, by 2032, immigration will be responsible for 100% of our country’s population growth.

There are enormous benefits to hiring workers from outside Canada, including:

  • access to highly skilled and specialized workers that may not be available in the domestic labor market,
  • filling labor shortages in specific industries or regions, allowing employers to maintain productivity and continue to grow their businesses,
  • bringing cultural diversity to the workplace, which can lead to increased creativity, innovation, and improved communication with international clients or customers,
  • helping Canadian employers build relationships with other countries and gain access to new markets.
 

Employers that invest in hiring foreign workers and supporting them in pursuit of their long-term goals in Canada (which often include becoming permanent residents and citizens) can strengthen their company’s employee brand, avoid costly workforce interruptions, save on recruitment costs, and improve their product or service by retaining long-term staff.

Taking a human-centered approach

We believe it’s crucial to embrace a holistic, human-centered approach to hiring foreign workers. These individuals, and their families, are taking significant risks to uproot themselves, move to a new country and work and live in a different culture. As employers, you can play an influential role in foreign workers’ integration into Canadian society, not just your workplace. Having a detailed onboarding process for foreign workers that is sensitive to cultural differences, undertaking equity, diversity and inclusion (EDI) training for all staff members, and providing resources to assist newcomers with housing, language, banking, and other settlement matters in your area are a great place to start.

Resources for Employers and Foreign Workers

There are many resources to assist Canadian employers hiring foreign workers. Government-funded settlement centres are located across Canada and can help foreign workers improve their language skills, find a place to live, sign their children up for school and learn about community services.

Immigration, Refugees and Citizenship Canada’s (IRCC) Employer Roadmap provides employers with information about recruiting, screening, hiring and retaining foreign workers.

The Immigrant Employment Council of BC also has tools to assist employers with hiring foreign workers, screening foreign applicants, conducting culturally sensitive interviews, providing support to foreign workers and creating a culturally inclusive work environment.

Canadian Flag

3 Tips for Successfully Hiring Foreign Workers

Understand the law

Almost all foreign workers in Canada require a work permit. This document outlines the conditions of a worker’s employment, including the employer, job title and location they are permitted to work. There are over 50 different types of work permits.

Employers should be familiar with the laws and regulations related to hiring foreign workers, including the Temporary Foreign Worker Program (TFWP), the International Mobility Program (IMP), and other relevant programs and regulations.

The TFWP is one program employers can use to hire foreign workers by submitting an application, called a Labour Market Impact Assessment (LMIA), proving the employer made extensive efforts to hire a qualified Canadian for the role and demonstrating a labour/skills shortage. Ultimately, the burden of proof lies with the employer to convince Employment and Social Development Canada (ESDC) that hiring a foreign worker will have a neutral or positive impact on the Canadian labour market (i.e. will not take jobs away from available and qualified Canadians). The foreign worker whom the employer was approved to hire then applies separately for a work permit.

The IMP is an alternative to the TFWP and does not require an LMIA. Categories of work permits under the IMP include International Experience Canada (i.e. Working Holiday Visa), Francophone Mobility Program, Post-graduation Work Permit, Bridging Open Work Permit, Intra-Company Transfer and others. Employers must submit an offer of employment to support the foreign worker’s application for a work permit.

Ensure compliance with regulations

Employers should be aware of the different rules, regulations and procedures in place in the province and territory where the foreign worker will be employed. Employers who hire foreign workers through the TFWP and IMP must adhere to strict compliance guidelines. Failure to do so can lead to fines and banishment from the program.

It’s required to keep thorough records related to their foreign workers’ employment and notify relevant authorities of any changes to employment conditions in prescribed circumstances.  

Those who use the TFWP must meet conditions stipulated in the Immigration and Refugee Protection Regulations (IRPR), keep relevant records for 6 years and inform ESDC of any changes to working conditions.  The TFWP Compliance  and Modification to a Positive LMIA pages on the TFWP website provide more detail. Similarly, those who hire certain foreign workers without an LMIA must adhere to the IMP employer compliance rules.

One very important area of compliance that is often the cause of non-compliance in the TFWP relates to wages. Employers are required to review median wages on a yearly basis to ensure the foreign worker continues to be paid a fair wage and must seek approval from ESDC to increase a foreign worker’s wage more than 2%. This might require a new LMIA application.

Finally, employers hiring foreign workers in British Columbia and Manitoba must be registered in accordance with provincial laws.

Stay up to date

Immigration programs, policies and procedures change frequently. Staying up to date on changes helps employers meet their obligations when hiring foreign workers and take advantage of new/modified programs to hire foreign workers and fill labour shortages.

  1. Temporary Foreign Worker Program (TFWP) website
    1. Navigate to the type of LMIA to see updates relevant to that application stream (updates are posted at the top of the page)
  2. Immigration, Refugees and Citizenship Canada (IRCC) newsroom
    1. Here you will find news releases, notices and backgrounders
  3. Social media
    1. IRCC posts many updates on their social media channels (sometimes even before they’re posted on the official website!)

Leveraging immigration to fill labour and skills shortages is inevitable. Being informed and building a solid strategy will enable employers to realize the benefits of hiring foreign workers and achieve the greatest return on their investment in hiring foreign workers.

TL;DR

There are both provincial and federal laws and regulations you must follow as an employer hiring foreign workers. Understand your obligations and stay up to date of any changes to ensure you remain compliant. 

Key Resources:

Written on July 12, 2024 by Brooke Finlay

Interested in reading more?

Explore our guide for Employers: The Most Important Immigration Facts for Canadian Employers