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CANADIAN IMMIGRATION BLOG BY L. LEVTSUN

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ESDC Proposed Changes to the Owner/Operator LMIA Program

ESDC Proposed Changes to the Owner/Operator LMIA Program

Important Update Regarding Owner-Operator LMIA That Will Come Into Force On April 1, 2021

April 1, 2021 - Update - New Rules for Owner/Operator LMIA Program


As of April 1, 2021, the Temporary Foreign Worker Program (TFWP) will remove special processing instructions for the “owner/operator” category.


These changes are part of regular policy reviews to ensure that the TFWP continues to work within its intended purpose, and is only used by employers to fill a position when qualified Canadians or Permanent Residents are not available.


Owner/Operator LMIA applications will be assessed using the normal process. ESDC/Service Canada will assess an employer's advertisement/recruitment efforts in Owner-Operator LMIAs. 

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Owner-Operator Program is suitable for experienced entrepreneurs financially prepared to operate a business in Canada. Foreign nationals with a business acumen brought significant economic benefit through investment, transfer of expertise, job creation/retention for Canadians and permanent residents, and a positive contribution to the Canadian business operation industry.


The Owner/Operator Program leads to comparatively fast immigration for eligible business operators. Still, this Canada business immigration program's eligibility requirements have not been "strictly" set/framed. What is clear, owners and operators are exempted from the advertisement requirement (LMIA variation) and must unconditionally control the business (i.e., be a 51% shareholder).


Absent set requirements for the investment amount, type and size of the business, status (startup vs running business), number of employees, foreign national's educational and professional background, the Owner-Operator Program raised a certain level of confusion and uncertainty for potential candidates.


Owners are not required to recruit Canadians/permanent residents for the position they would hire themselves (LMIA Variation). However, assessing the impact of a business owner's employment on the Canadian labour market [LMIA] and the job offer's genuineness is still required. Program officers and visa officers have broader discretion when processing Owner-Operator LMIA applications and work permits. Mainly, these applications are subject to significant scrutiny from the business perspective, for which the requirements are not set. From practice, we know that the program worked in both startup and purchase of operating business scenarios.


Quite the opposite, provincial nomination business programs (Business PNPs) have set requirements for the business and its owner, which, however, not all can meet. It is fair to say that the Owner-Operator Program filled that gap for entrepreneurs who do not meet provincial net worth, investment, or other requirements, or was looking for faster business immigration to Canada option.


Given the high unemployment rates, a certain level of uncertainty due to the "vague" requirements and the associated with that potential abuse of this program, ESDC proposed changes to the Owner/Operator LMIA Program.

Comparison of Current Rules and New Changes ESDC Proposed for Owner/Operator LMIA

If you are interested in the Owner/Operator Program, read about the changes that ESDC [the Department of Employment and Social Development Canada] suggested recently. These may or may not become the new requirements in the nearest future. The changes/new rules will likely be set by the end of 2020 or the beginning of 2021.

Recruitment Efforts/LMIA Advertisement

ESDC suggested owners/operators intending to employ themselves would no longer be exempt from recruitment/advertisement requirements. The rationale behind this suggestion is to ensure that Canadians/permanent residents are given the first opportunity at available jobs. Thus, all Canadian employers would be required to identify an occupational category and make reasonable efforts to recruit and hire a Canadian or permanent resident for that position before seeking a foreign national (i.e. business owner/operator).

Wages and Working Conditions

ESDC suggested that owners/operators intending to employ themselves would be required to advertise at the prevailing wage for their intended occupation and would also be required to pay that wage. Commonly, they fall under NOC 00 or NOC 0.

Genuineness – Startup/Operating Business

ESDC suggested that only businesses in continuous operation for at least 1 year while employing at least 1 full-time equivalent Canadian/permanent resident for that duration would be eligible to apply for Owner/Operator LMIA. The rationale behind this suggestion is to ensure that the Canadian employer is actively engaged in business at the time of application.

Classification of Occupations

ESDC suggested that Canadian employers assign the correct NOC code to the position they seek to fill. Extra attention would be devoted by program officers to distinguish senior management positions (NOC 00) form middle management occupations (NOC 0). The rationale behind this suggestion is to ensure that the job offer is relevant to the type of business and wage offered is similar to the one paid to Canadian/permanent resident employees for the same occupation.

Read more about the current program requirements and complete the Owner Operator Free Eligibility Assessment Form here.

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