Allied with Ernst & Young LLP Page 1 Canadian Immigration Update Presented by Egan LLP September 24, 2013

Allied with Ernst & Young LLP Page 2 Disclaimer The following information is not, and cannot be considered to be, legal advice. Any actions or specific needs relating to immigration matters should only be undertaken after consulting with an authorized immigration professional. The following information is subject to change. Readers are strongly encouraged to confirm the current validity of the information with an authorized immigration professional, or by consulting the appropriate government website.

Allied with Ernst & Young LLP Page 3 Overview ► Recent developments ► LMO process & recruitment ► LMO audits ► Compliance ► Process & potential pitfalls

Allied with Ernst & Young LLP Page 4 New Developments in Canadian Immigration Law & Process ► Less accessible, less flexible, more compliance-focussed ► Substantially increased focus on protecting the labour market in Canada ► Striking visa officers + cutbacks = slower processing times ► Service Canada releases series of new requirements ► New biometric data requirements for citizens of certain countries and pre-travel screening for nationals of visa-exempt countries have been proposed ► New global electronic application process for temporary residents recently implemented

Allied with Ernst & Young LLP Page 5 Basics ► Work permits processed by CIC or CBSA, based on approximately 40 different processing categories ► Three most common categories for work permits: ► Intracompany transferee (LMO-exempt) ► Free Trade Professional (LMO-exempt) ► Labour Market Opinion-based work permit (LMO) ► LMO is a labour market analysis to determine the impact of hiring a foreign national on the Canadian job market

Allied with Ernst & Young LLP Page 6 Basics ► A work permit can only be issued where, among other things: ► The offer is “genuine” ► The employer has paid each foreign worker with the wages, occupation, and working conditions which are substantially the same as in the offer of employment

Allied with Ernst & Young LLP Page 7 Labour Market Opinion Overview ► LMOs are issued by ESDC / Service Canada ► In most new hire situations, an LMO is required unless the foreign worker qualifies for a work permit under an LMO-exempt category (intra-company transferee, NAFTA Professional, business visitor etc.) ► A labour market confirmation will only be issued if it is determined that the worker will have a positive or neutral effect on the Canadian labour market

Allied with Ernst & Young LLP Page 8 Recent Changes to LMO Program ► On April 29, 2013 significant changes to the Temporary Foreign Worker Program (TFWP) took effect, including the following: ► The Accelerated LMO process is temporarily suspended ► Employers can no longer use a wage within 15% of the prevailing wage for high-skilled workers

Allied with Ernst & Young LLP Page 9 Recent Changes ► On July 31, 2013 additional changes to the TFWP were implemented, including: ► A Government processing fee of $275 per position to be paid at time of submission ► Recruitment efforts for all NOC Occupations increased from 2 weeks to 4 weeks, and recruitment efforts must continue until LMO is issued ► Employers must advertise the position on Service Canada’s National Job Bank website, or its Provincial/Territorial equivalent in addition to using at least two other recruitment methods that are consistent with the advertising practices for the occupation ► For higher-skilled occupations, such as management, professional, scientific, technical or trade occupations, the advertising medium should be national in scope

Allied with Ernst & Young LLP Page 10 New Recruitment Requirements All NOC Occupations ► In order to obtain a positive LMO, employers are, among other things, generally required to demonstrate that they have made genuine efforts to recruit qualified Canadians for the stated role ► The advertisement must be posted in 3 places, one must be the Government of Canada’s National Job Bank or its provincial/territorial counterpart & one other national source 1. A recognized internet employer site, such as Workopolis or Monster 2. The website of a professional association 3. A national newspaper, professional journal, or newsletter 4. Recruiter

Allied with Ernst & Young LLP Page 11 New Recruitment Requirements All NOC Occupations cont’d ► Advertisements should include the following information: ► Company operating name ► Business address ► Position title ► Duties ► Employment terms ► Any benefits offered ► Location of work ► Skills required ► Wage info

Allied with Ernst & Young LLP Page 12 LMOs: Prevailing Median Wage ► Employers must pay foreign workers wages that are consistent with salaries paid to Canadians in that profession and in that geographic area ► Employers must pay at least the prevailing wage rate for NOC ( ► Changes in wage increase must be reported to Service Canada. A substantial change in wages has been interpreted as a 2% wage differential

Allied with Ernst & Young LLP Page 13 ► Will the employment of the foreign worker: ► Lead to direct job creation or job retention for Canadian citizens or permanent residents? ► Result in the creation of transfer of skills & knowledge? ► Fill a labour shortage? ► Are the wages and working conditions consistent with those offered to Canadians? ► Reasonable efforts to hire or train Canadians? ► Will the employment of the foreign national adversely affect a labour dispute? Factors in assessing impact on Canadian labour market:

Allied with Ernst & Young LLP Page 14 Implications for Employer Non-Compliance ► Where the occupation, wages or working conditions are not “substantially the same” and where there is no ability to legally justify this failure, the employer may be placed on a list of employers who are deemed to be ineligible to make a “genuine” job offer to a foreign worker for two years ► The employer’s name and address may be posted on the CIC website for the duration of the two years

Allied with Ernst & Young LLP Page 15 Finding of Employer Non-Compliance – Corrective Measures ► In the event of a finding of non-compliance, employers may have their pending LMO application refused, any previously approved LMO’s may be revoked if the work permit has not yet been issued and they may be denied access to the program if the employer is listed on the CIC blacklist ► Employers may be asked to take corrective measures such as compensating workers for a failure to pay a specified salary or hourly rate or applying for a new LMO where a position / location has changed ► Employers should also consider any legal justifications: change in law, change in collective agreement, dramatic change in economic environment, error in interpretation, accounting or administrative error and provide written evidence in response to a compliance review ► It has been suggested that employers will not be able to rely upon the same justification repeatedly

Allied with Ernst & Young LLP Page 16 Preparing for an HRSDC Compliance Review or Level 2 Assessment ► Ensure contact listed on LMO application is knowledgeable regarding process and information provided ► Understand employer history with Service Canada – any prior concerns with genuineness or STS? ► Conduct internal audit to identify any potential non-compliance (wages, location of employment, position, provincial laws) ► Set up or review information tracking system for foreign workers ► Maintain corporate information file for LMO applications for 6 years ► Officers will typically provide 3-5 business days to respond to requests for additional information and 30 days for formal compliance reviews

Allied with Ernst & Young LLP Page 17 Information Tracking – Preparing for an HRSDC Compliance Review or Level 2 Audit ► Actively Engaged in Business ► Copy of Business Licence or CRA T2125 with T4 or copy of corporate tax return ► Ensure description of business activity is accurate ► Reasonable Employment Needs ► Detailed position description & clearly articulated benefits to Canada ► Reasonably able to fulfill terms of employment ► Corporate tax return ► T4 Summary of Remuneration ► Financial statements ► Time sheets

Allied with Ernst & Young LLP Page 18 Information Tracking – Preparing for an HRSDC Compliance Review or Level 2 Audit ► Past Compliance ► Breach of any relevant Provincial / Territorial legislation or regulations (employment standards, occupational health and safety violations) ► Workers compensation clearance letter may be requested ► Recruitment efforts ► Maintain copies of internal / external postings ► Establish process to accurately document recruitment efforts and results (number of applications received, reasons why applicants not considered)

Allied with Ernst & Young LLP Page 19 Focus on IT industry and HR personnel ► New questionnaire and detailed review regarding outsourcing and offshoring ► Strict adherence to prevailing wage – creeping into intra company transfer provisions ► Digital media industry recruiting exemptions continue to exist in British Columbia ► Human Resources professionals who are not licensed immigration consultants or lawyers cannot directly assist with immigration applications (section 91 of the Immigration and Refugee Protection Act)

Allied with Ernst & Young LLP Page 20 Contacts Jonathan Leebosh, Partner Ph: Craig Natsuhara, Associate Partner Ph:

Allied with Ernst & Young LLP Page 21 Questions