Labour Market Benefit Plan And Transition Plan In Canada

Understanding the Transition Plan and Labour Market Benefit Plan is crucial for anyone familiar with LMIA. These plans play a significant role in the LMIA application process, especially when it comes to hiring international employees.

It’s important to note that the Transition Plan is typically used for High-Wage LMIA requests, while the Labour Market Benefit Plan is associated with Global Talent Stream LMIA requests. However, either of these plans may be required for other types of LMIA applications.

Meaning Of Transition Plan

The primary goal of the transition plan is to alleviate skill shortages in Canadian firms. This is achieved by either facilitating knowledge transfer from the international employee to Canadian workers or by assisting the international employee in becoming a permanent resident.

It’s important to remember that an LMIA application is often a proactive step taken by Canadian firms to address skill shortages. The transition plan, in particular, is a proactive strategy to ensure that the Canadian firm is well-prepared and equipped to meet its workforce needs.

The transition plan is attached as a different part of the LMIA application. The Canadian firm will have two choices when choosing transition plan exercises:

1. Change the international employee to become a permanent resident.
2. Choosing four exercises to recruit, educate, and retain Canadian nationals and permanent residents in the same career as demanded in the LMIA.

Illustration Of Transition Plan Implementation

Firm A fought to find an experienced interior designer for residential houses. The firm attempted hiring from within Canada but was unable to determine what they were seeking.

A perfect applicant showed up; however, they did not have employment approval in Canada. Firm A opted to make an application for a High-Wage LMIA so that the applicant could later apply for a work permit and begin working with the firm.

In the transition plan of their LMIA application, the firm opted to choose four exercises to recruit, educate, and retain Canadian nationals and permanent residents in the same profession as demanded in the LMIA (interior design)

The exercises they chose were:

1. Allocate personal budget for interior designers at the company for continued understanding and skilled expansion.
2. Host an occupational fair once every quarter
3. Have the applicant host every month’s lunch and learn periods
4. Generate internship programs for post-graduate students.

Optionally, rather than choosing four exercises, the firm could assist their applicants with the changes towards permanent residence. In this situation, the firm would require providing the applicants with a permanent employment offer and assisting them with the request for permanent residence.

Canada has national and regional permanent residence programs, so the firm’s assistance can differ based on the program conditions.

Meaning Of Labour Market Benefit Plan

The Labour Market Benefit Plan, also described as LMBP, is similar to the transition plan. The significant disparities of the LMBP and the Transition Plan are:

• The Labour Market Benefits Plan is just for Global Talent Stream LMIA requests.
• The Labour Market Benefit Plan does not enable the Canadian firm to choose transition to permanent residence as its exercise.
• The Labour Market Benefits Plan requests three exercises as opposed to 4 exercises.
• Labour Market Benefit Plan exercises are required yearly to protect international employees’ jobs.

The Labour Market Benefit Plan is also structured to have one compulsory exercise, ordered by the GTS LMIA application classification, and two supplementary exercises not dependent on the classification.

Classification A of GTS LMIA requests that the compulsory exercise is to develop new employment for Canadian nationals and permanent residents.

Classification B demands that the compulsory exercise be an investment in the talents and internships of Canadian nationals and permanent residents.

Suggested Supplementary Exercises

The supplementary exercises, as suggested by ESDC, can be either of the following:

• Employment development: know that this can be used as a supplementary exercise for Classification B.
• Developing associations with local institutions or other learning hubs.
• Providing reimbursed co-op or training prospects.
• Getting involved in initiatives that develop workplace participation of underrepresented teams.
• Offering continued skilled expansion prospects.
• Ensure that the international employee supervises and coaches Canadian employees at the company to assist in knowledge transfer.
• Elevating income and investments for the firm.
• Growing or enhancing best firm practices or approaches associated with the enticement and retention of Canadian nationals or permanent residents.
• Growing or improving associations with institutions that help with recognizing top local capital.