Temporary Workers in Canada

Only citizens and permanent residents have a right to work in Canada. As a general rule, a Canadian employer must apply for a Labour Market Opinion ("LMO") before hiring a foreign worker (formerly known as "validation"). This is a determination by a government agency (HRSDC) that the employment will have a "positive or neutral economic effect" on job opportunities for Canadians. Factors to be considered include whether there are Canadians available to do the job, whether the pay is sufficient to attract Canadians, and whether the job will result in employment creation or transfer of skills to Canadians. Recently, HRSDC has started a new program of expedited LMOs for "occupations under pressure." These occupations vary by province. All that is required in most cases is posting for seven days on a government Web site. This has made LMOs much easier for these kinds of cases.

There are many exceptions to the LMO requirement. The exceptions should be utilized whenever possible. These include:

• Many types of short term employment do not require work authorization or confirmation. These include religious workers; performing artists; athletes; and many business visitors, including buyers, sellers, corporate and union personnel coming to Canada to consult with a Canadian affiliate, guest speakers, and trainees.
• Certain North American Free Trade Agreement (NAFTA) categories do not require employment authorization. Examples include business visitors coming to negotiate contracts and engage in consultations. Another important category is after-sales service. This includes the installation, repair and servicing of commercial or industrial equipment or software sold by a U.S. or Mexican business. There must be a service agreement relating to the original sales contract. The workers must remain on the foreign payroll. This category has now been expanded beyond the NAFTA countries.
• Other NAFTA categories and the General Agreement on Trade in Services (GATS) do require employment authorization, but do not require an LMO. While NAFTA is available only to US and Mexican citizens, GATS is available to citizens of many countries including India. NAFTA includes an extensive list of occupations, generally requiring a bachelor's degree for entry. GATS is very limited.
• Several other categories of jobs, not related to treaties, also require employment authorization, but are LMO exempt. These include foreign workers repairing or servicing (but not installing) equipment purchased abroad; senior managerial intra-company transferees and transferees with specialized knowledge; workers providing training in the use of equipment purchased abroad; and student employment for one year following completion of studies in Canada. Students can work for two years if their university and job location are outside of Toronto, Montreal, and Vancouver.
• Canada offers young people from many countries an opportunity to visit Canada for "working vacations." These programs vary from one country to another. They typically allow young people between the ages of 18 to 30 to work for up to 12 months in Canada. U.S. citizens can apply through BUNAC.
• Finally, Canada has launched an expedited program for software workers. Certain specifically defined jobs have been pre-confirmed. These jobs, therefore, do not need to be confirmed by HRSDC. There are seven such jobs, defined in terms of specific computer languages, operating systems, and other computer technologies. Most experienced software developers will qualify under one of these job definitions. There is also an educational and experience requirement, usually a bachelor's degree and two years of experience.

Canada now allows the spouses of skilled or managerial foreign workers to obtain work authorization as well. This privilege also applies to same-sex and common-law partners. This is now a permanent program. This is a major advantage over the United States, which does not allow partners of temporary workers to accept employment, unless they qualify independently.

Canada's rules for temporary work authorization are complex. We can help get the right permit quickly.