New Regulations for LMIA-Based Job Advertising

Employers who hire for labor market effect assessment (LMIA) -based jobs are now required to use the “Direct Apply” function on the National Job Bank of Canada as part of the advertising requirements to receive a positive LMIA.

Failure to use the direct application function and consider all applications received through the Job Bank can result in non-compliance with LMIA advertising requirements and the rejection of an LMIA application.

Impact on Employers

The new direct application requirement sets a higher standard for meeting LMIA advertising rules for employers. Previously, employers had to advertise their roles on the Job Bank for four consecutive weeks and use at least two additional recruitment methods, but direct application was not mandatory.

With the new regulation, direct application is now a mandatory standard, and employers must review all CVs submitted through this function. Failure to do so can lead to non-compliance and the rejection of an LMIA application.

Employers may also face restrictions on the Job Bank for disabling direct applications or not considering CVs of Canadian residents or citizens, which can impact their ability to meet LMIA requirements.

In addition to direct application, employers must still offer at least two additional application methods, such as linking candidates to their company website or preferred application portal.

Canada’s Job Bank and LMIA Advertising

The Job Bank of Canada is a government-run job board that connects job seekers and employers. It is a required platform for employers advertising LMIA-based positions to meet advertising requirements and demonstrate the need for foreign employees.

Most LMIA-based jobs must be advertised to show that no Canadian residents or citizens are available to fill the role. Certain job categories are exempt from this requirement, including academics, camp counselors, entertainment sector roles, and home caregivers.

Context on the Temporary Foreign Worker Program (TFWP)

The TFWP, which processes LMIA-based work permits, has been criticized for potentially suppressing wages and hindering efforts to recruit Canadian workers. The new direct advertisement requirement is part of the government’s response to these concerns and aims to reduce the number of temporary foreign workers in Canada.

Impact on Job Seekers

Job seekers can now submit their applications directly through the Job Bank portal for LMIA-based jobs using the direct application function. This streamlines the application process and saves time for applicants who no longer need to navigate to individual employer websites to apply.