What is a Labour Market Benefits Plan (LMBP)? VanHack answers your questions!

What is a Labour Market Benefits Plan?

When a company uses the Global Talent Stream to hire someone from outside of Canada, Employment and Social Development Canada (ESDC) wants to ensure that the Canadian labour market is not negatively affected. To do that, they ask that companies commit to activities that will have lasting, positive impacts on the Canadian labour market.

A Labour Market Benefits Plan will help you and ESDC identify and track the commitments that will benefit the Canadian economy through your employment of highly-skilled global talent.

Employment and Social Development Canada (ESDC), through its Service Canada processing centres, assesses applications from employers requesting permission to hire temporary foreign workers and conducts Labour Market Impact Assessments to determine the likely effect these workers would have on the Canadian labour market. The Program assesses the impact by looking at available labour market information for the region and the occupation, the employers’ recruitment and advertisement efforts, wages and working conditions, labour shortages and the transfer of skills and knowledge to Canadians.

Who is Employment and Social Development Canada (ESDC)?

Employment and Social Development Canada (ESDC) is the department of the Government of Canada responsible for developing, managing and delivering social programs and services. ESDC assesses applications from employers requesting permission to hire temporary foreign workers and conducts Labour Market Impact Assessments (LMIA) to determine the likely effect these workers would have on the Canadian labour market. The Program assesses the impact by looking at available labour market information for the region including wages, working conditions and labour shortages.

How many Benefits do I need to commit to?

  • 1 Mandatory benefit
  • 2 Complementary benefits

How long do the commitments last?

The commitments will cover the period for which you are requesting the Foreign Worker to work for you. You can request the Foreign Worker for a maximum period of 2 years.

What are some options/examples of Benefits I can choose?

  • Investment into in-house Skills and Training (Mandatory for Category B)
    • Lunch and Learns for Canadians and PRs
    • Conferences for Canadians and PRs
    • Training allowance for Canadians and PRs
    • Paid internships or co-ops for Canadians and PRs
  • Job Creation (Mandatory for Category A)
    • Hiring Canadians/PRs in a full-time or part-time capacity
  • Knowledge Transfer
    • Having the Foreign Worker train Canadians and PRs in their area of expertise through training sessions (ex. Lunch and Learns)
  • Enhanced Company Performance
    • Increasing growth of revenue, clients or investment at the company
  • Increase in workplace diversity
    • Hiring of underrepresented groups and women
    • Hosting and/or attending events that support the professional development of underrepresented groups and women
  • Improving company best practices/policies
    • Supporting code sprints and hackathons to hire new employees

How much do I need to commit to?

This will depend on the size of your company, annual revenue and number of Foreign Workers you are hiring. Connect with one of our immigration consultants for more personalized advice.

What if I hire another Foreign Worker at a later date?

ESDC will almost always ask to renegotiate the LMBP on a call. Depending on the strength of your previous commitments, upon request, the officer may allow you to skip the renegotiation. If the previous commitments are not strong enough to include the new hire, the LMBP will need to be improved by either increasing the previous commitments or committing to new ones.

Is there a way to avoid renegotiating the LMBP for each future hire?

YES, you can create an LMBP to incorporate future hires! Inform ESDC of the number of foreign workers you would like to hire in the year and you will be able to skip the renegotiation stage each time leading to faster approvals! One thing to note – your commitments will need to be stronger to support your forecast of workers.

What is discussed on the LMBP call?

  • The commitments you have chosen
  • The target numbers you hope to achieve for each commitment
  • Documentation you can use to prove you have met each commitments
  • The dates for when your LMBP commitments begin and end

What happens after the call?

ESDC will send a draft of the LMBP commitments as discussed on the call. This draft will need to be signed and sent back. Once approved, ESDC will issue the LMIA which can be used by the Foreign Worker to apply for their work permit.

What happens if I do not complete the commitments?

Progress Reviews of your Plan will be conducted by ESDC on an annual basis to assess how well you are meeting the employer-specific commitments detailed in your Plan.

If you do not make reasonable efforts to meet your Plan commitments, or complete your Progress Review within the requested time frame, you will likely receive a negative decision on future applications to the Global Talent Stream.

Do you have any examples of an LMBP?

Well yes, please see below.

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