Rethinking Low-Wage Hiring: Why Seasonal Workers May Be the Smartest Move for Canadian Employers

In Canada, employers looking to hire temporary foreign workers in low-wage positions face significant regulatory constraints. Under the low-wage stream of the Labour Market Impact Assessment (LMIA) process, employers are subject to a 10% workforce cap and limited to issuing 12-month work permits—a structure that often complicates long-term staffing needs.

However, there's a strategic exemption worth exploring: for seasonal industries, employers can hire foreign workers for positions lasting up to 270 calendar days (approximately 9 months) without being subject to the same restrictions. All LMIA applications must still be submitted at once, but this approach can open new doors for businesses navigating staffing pressures during their peak seasons.

Understanding the Challenge

The 10% cap limits the proportion of a company’s workforce that can be made up of low-wage temporary foreign workers, which can be particularly restrictive for small to mid-sized businesses in sectors.

Additionally, the 12-month work permit cap under the low-wage LMIA stream means that even when a qualified worker is found, their tenure is short-lived, making continuity difficult and increasing recruitment and training costs.

The Seasonal Worker Advantage

Hiring workers under the seasonal low-wage LMIA exemption may offer a more sustainable and cost-effective solution. The benefits include:

- Exemption from the 10% cap: Seasonal positions are not counted toward the employer’s low-wage cap if the employment is for 270 calendar days or less.

- Flexible workforce planning: Workers can be brought in precisely when they’re needed most, such as during summer tourism, winter resorts, or harvest seasons.

- Streamlined compliance: By aligning hiring plans with the seasonal exemption, employers can reduce the risk of regulatory breaches or future LMIA refusals due to cap overages.

Strategic Considerations

Before choosing this route, employers should:

- Clearly define the peak season and ensure that employment contracts do not exceed the 270-day limit.

- Submit all LMIA applications simultaneously for each season as this is mandatory under this stream.

- Consider establishing a return-worker strategy, where the same workers are re-invited seasonally, allowing for better productivity and lower training costs.

Conclusion

Given the limitations of the low-wage LMIA stream, employers—especially those in seasonal industries—should reassess their hiring strategies. Leveraging the seasonal exemption may not only ensure regulatory compliance but also improve operational efficiency and reduce costs.

At a time when the labour market is tight and immigration rules are increasingly complex, seasonal hiring may be the most practical path forward for many Canadian employers.