My employer applied for LMIA for PR on 22nd December, last week he received an email from Service Canada.
Can anyone help me to write an explanation for this.
- Employers must demonstrate that they are reasonably able to fulfill the salary or wage offer on the current LMO application(s) as well as any other salary offered in relation to previous confirmations issued for foreign workers that have not yet commenced employment. When assessing the employer’s ability to fulfill the salary or wage offer, the net income and/or retained earnings (profits) declared on the income tax return Schedule 100/125 or signed financial statement, should be great enough to support foreign worker program-related financial obligations. When the profits declared on the income tax return or financial statements are not greater than the wage offer to the worker(s), other documents/explanations provided may be considered such as;
- Business contracts – business contracts could substantiate the capacity for future earnings, particularly for employers whose CRA documents do not support their ability to fulfil financial obligations. For example, an employer may have had financial difficulties in the previous taxation year, yet they can demonstrate the capacity for future earnings due to an increase in business. Program officers should ensure that the business contract indicates financial terms sufficient to pay the skilled worker (at least as much as the salary and benefits offered to the worker and that of any others who have been previously approved but have not commenced work).
- Non-recurrent expenses – One-time or miscellaneous expenses reported on the financial statement could be the cause for a reduced net income.
- Attrition – The departure/retirement/termination of a current/recent employee could result in additional funds being available to cover the salary of the worker.
- Moving a position from “outsourced” to “in-house” – Demonstration of cost-savings from changing a position from outsourced to in-house with copies of invoices/payments made.
- Service Canada requires that the funds to cover the salary of the worker come from regular operations, as opposed to shareholder injections or other loans. In addition, projections of future profit and growth cannot be considered for this assessment.
Can anyone help me to write an explanation for this.
- Employers must demonstrate that they are reasonably able to fulfill the salary or wage offer on the current LMO application(s) as well as any other salary offered in relation to previous confirmations issued for foreign workers that have not yet commenced employment. When assessing the employer’s ability to fulfill the salary or wage offer, the net income and/or retained earnings (profits) declared on the income tax return Schedule 100/125 or signed financial statement, should be great enough to support foreign worker program-related financial obligations. When the profits declared on the income tax return or financial statements are not greater than the wage offer to the worker(s), other documents/explanations provided may be considered such as;
- Business contracts – business contracts could substantiate the capacity for future earnings, particularly for employers whose CRA documents do not support their ability to fulfil financial obligations. For example, an employer may have had financial difficulties in the previous taxation year, yet they can demonstrate the capacity for future earnings due to an increase in business. Program officers should ensure that the business contract indicates financial terms sufficient to pay the skilled worker (at least as much as the salary and benefits offered to the worker and that of any others who have been previously approved but have not commenced work).
- Non-recurrent expenses – One-time or miscellaneous expenses reported on the financial statement could be the cause for a reduced net income.
- Attrition – The departure/retirement/termination of a current/recent employee could result in additional funds being available to cover the salary of the worker.
- Moving a position from “outsourced” to “in-house” – Demonstration of cost-savings from changing a position from outsourced to in-house with copies of invoices/payments made.
- Service Canada requires that the funds to cover the salary of the worker come from regular operations, as opposed to shareholder injections or other loans. In addition, projections of future profit and growth cannot be considered for this assessment.
