Usually, if an employer is seeking a labour market opinion (LMO)
in order to hire a foreign national, the employer must meet Service
Canada's recruiting requirements. Qualified Canadians and
Canadian permanent residents must first be sought before a LMO
application may be made.
Prior to this announcement, an employer did not have to
advertise before applying for a LMO where (i) the foreign national
held a PGWP; (ii) the PGWP was soon to expire; and (iii) the
employer was making an offer of permanent employment. This
advertising variation was useful as a mechanism to help with the
transition to a LMO based work permit while the foreign national
applied for permanent resident status.
Given that this variation to advertising has been eliminated,
employers seeking to extend the status of foreign nationals who are
working under a PGWP must now meet Service Canada's recruiting
requirements before applying for the LMO.
This change creates a higher level of uncertainty regarding an
employer's ability to maintain the employment of foreign
nationals who graduate from Canadian post-secondary institutions,
especially those who have graduated from shorter term programs,
since the length of a PGWP is linked to the length of the academic
program from which the foreign national graduated.
One solution is to ensure that foreign nationals holding a PGWP
apply for permanent resident status as soon as possible, in the
hope that permanent resident status may be obtained prior to the
expiration of the PGWP, thereby avoiding any potential need to
obtain a LMO-based work permit. There may also be an
opportunity to obtain a bridging work permit if the application for
permanent status has been acknowledged (information on bridging
work permits is available here: Operational Bulletin on Bridging Work
Canadian companies that recruit foreign nationals graduating
from Canadian institutions need to be aware of this rule change,
and should develop strategies to deal with the elimination of this
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