What extra rules apply when hiring a lower-wage foreign worker under an LMIA?
The Temporary Foreign Worker Program's Low-Wage Stream applies to positions that pay below the provincial or territorial median hourly wage. Because lower-wage workers are considered more vulnerable, Service Canada imposes additional requirements on employers using this stream.
In addition to the standard LMIA requirements, employers in the Low-Wage Stream must typically: pay for the round-trip transportation costs of the foreign worker from their country of origin to Canada and back; provide or arrange private health insurance until the worker is eligible for provincial coverage; ensure affordable housing is available and, in some cases, arrange it; and register the worker with the relevant provincial workers' compensation board.
Employers in certain industries (such as food service, accommodation, or construction) may face caps on the proportion of low-wage temporary foreign workers they can employ relative to their overall Canadian workforce.
Service Canada reviews low-wage applications more strictly, and the recruitment advertising requirements are rigorous. The practical compliance burden is higher than for the High-Wage Stream.
Ontario's provincial employment standards — including minimum wage, vacation pay, and public holiday rules — also apply to these workers regardless of their immigration status.
Key takeaways
- The Low-Wage Stream has additional employer obligations including transportation, housing, and insurance.
- Industry-specific caps may limit the proportion of low-wage foreign workers.
- Recruitment and documentation requirements are rigorous.
- Ontario's provincial employment standards apply independently and must also be met.