The news has caused quite a stir since its announcement on August 20th. And for good reason: Quebec will suspend the issuance of certain work permits for jobs on the Island of Montreal starting September 3, 2024, for a period of six months.

What are the concrete impacts of this measure, and who are the employers and workers affected? Immétis analyzes the situation.

RECRUITING TEMPORARY FOREIGN WORKERS: THE PROCESS

Why go international?

To meet their labor needs, some employers choose to turn to international candidate pools. This option is selected when it is not possible to fill the position by recruiting a Canadian or permanent resident due to a lack of available candidates.

Although the costs and timelines are higher compared to local recruitment, the international route provides access to a larger pool of candidates, thereby increasing the chances of filling the available positions.

What are the main steps?

The general rule for recruiting a foreign national is to prove that this hiring will not negatively impact the local labor market. The employer must also demonstrate that they were unable to fill the position with a Canadian or permanent resident and that the conditions offered to the foreign candidate will be at least equivalent to those enjoyed by local employees.

This process is called a Labour Market Impact Assessment (LMIA) and is part of the Temporary Foreign Worker Program (TFWP). The employer must declare the job conditions: position and duties, location, salary, benefits, etc. In Quebec, a province with some autonomy in selecting its immigrants, the LMIA must be accompanied by a Quebec Acceptance Certificate (CAQ) application. The LMIA essentially serves as preliminary authorization for the employer to hire foreign workers, after which the candidate can apply for a work permit.

There are different types of LMIAs, some requiring job postings on employment websites, others not. The choice depends on the position to be filled and the candidate’s profile. A general principle applies to all LMIAs, which are categorized into high-wage and low-wage positions. In Quebec, any position paying less than $27.47 per hour is considered “low-wage,” while positions paying more are considered “high-wage,” each with specific obligations.

THE CHANGES

Starting Tuesday, September 3, 2024, the reception and processing of certain LMIA/CAQ applications for low-wage positions on the Island of Montreal will be suspended for an initial period of six months.

According to statements from the authorities, this suspension is expected to affect only 3,500 workers over the next six months, compared to the 300,000 work permit holders currently in Quebec.

Who is affected?

In reality, the suspension only applies to initial or renewal LMIA applications for positions paying less than $27.47 per hour, or $57,000 annually for a 40-hour work week, and located on the Island of Montreal.

For the purposes of the moratorium, the Island of Montreal includes the following municipalities:

– Baie-D’Urfé

– Beaconsfield

– Côte-Saint-Luc

– Dollard-des-Ormeaux

– Dorval

– Hampstead

– Kirkland

– Île-Dorval

– Montreal

– Montreal East

– Montreal West

– Mount Royal

– Pointe-Claire

– Sainte-Anne-de-Bellevue

– Senneville

– Westmount

Neighboring municipalities such as Brossard, Longueuil, or Laval are not affected by this measure.

The measure also excludes certain key sectors. Specifically: education, health and social services, food processing, agriculture, and construction. Businesses on the Island of Montreal operating in one of these sectors will still be able to submit LMIA applications regardless of the salary offered.

For example, a cook working in a long-term care facility on the Island of Montreal will not be affected by this suspension, even if the position is low-wage. However, the same cook working in a restaurant in Montreal, with a salary below $57,000 annually, would be impacted by the reform.

THE IMPACTS

The impact on employers of temporary foreign workers

Companies wishing to fill positions affected by this measure will no longer be able to submit LMIA applications starting September 3rd.

Several options will then be available:

– Fill the position with an existing worker in canada

– Identify international candidates who could obtain a work permit through other programs, such as the Young Professionals program.

– Postpone recruitment until a later date, though there’s no guarantee that the moratorium won’t be extended or expanded.

The consequences are significant for employers currently employing workers affected by this measure.

If their work permits expire within the next six months and an LMIA is required for renewal, they won’t be able to renew the permit and will have to leave their job if no alternative solution is found.

For example:

– A consulting company on the Island of Montreal currently employs a Marketing Manager earning $55,000 annually.

– The worker has a Young Professionals permit expiring in January 2025 (issued under the International Mobility Program), which is non-renewable.

– The company was planning to apply for an LMIA/CAQ to retain the employee.

Due to the moratorium, starting September 3rd, the company will no longer be able to submit an LMIA/CAQ application and thus cannot proceed with the renewal. If the application cannot be submitted before September 3rd to retain the worker, one option would be to increase the worker’s salary to exclude the position from the measures in place.

However, this can be a significant effort for employers and might affect salary equity among employees.

TOWARDS THE END OF TEMPORARY IMMIGRATION?

For the Quebec Government, this moratorium is considered “a first step” in its stated intention to reduce temporary immigration. The Government also plans to cut its overseas recruitment missions and introduce a bill aimed at regulating the number of international students in institutions.

However, international recruitment remains crucial for many businesses in Quebec. Despite the increase in the number of permanent residents, some sectors continue to face significant labor shortages. Examples include aerospace, education, and manufacturing. In the absence of available candidates to fill these positions, recruiting foreign workers is seen as a solution to support the development and growth of companies.