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Labour Market Impact Assessment (LMIA)

A Labour Market Impact Assessment (LMIA) is a critical document that Canadian employers must obtain before hiring foreign workers. The LMIA process is designed to ensure that hiring foreign workers will not negatively impact the Canadian labor market. To secure an LMIA, employers must demonstrate that there are no Canadian citizens or permanent residents available to fill the position.


EMIGRAT specializes in guiding employers through the LMIA application process, ensuring compliance with Canadian labor market regulations. Contact us for expert assistance with securing an LMIA and hiring foreign workers in Canada.


When applying for a Labour Market Impact Assessment (LMIA) to hire a temporary foreign worker (TFW) in Canada, the offered wage determines the application stream: high-wage or low-wage.


High-Wage LMIA :

For wages at or above the provincial or territorial median hourly wage, employers must apply under the high-wage stream. They need to submit a transition plan to reduce reliance on TFWs, such as training Canadian workers, and conduct thorough recruitment to attract Canadian citizens and permanent residents. Job ads must meet specific criteria, and employers are subject to compliance inspections and audits.


Low-Wage LMIA :

For wages below the median hourly wage, employers apply under the low-wage stream. This stream has a cap on the number of TFWs employers can hire. Extensive recruitment efforts are required, and job ads must meet set requirements. Employers must also provide affordable housing and cover round-trip transportation for TFWs. Compliance with all regulations, including inspections and audits, is mandatory.


Define the Job Position and Requirements: Clearly outline the role's specific duties, necessary education or experience, and required language skills (English or French).


Advertise the Job: Create a comprehensive job ad targeting Canadian citizens and permanent residents. Ensure the ad meets ESDC guidelines regarding duration, content, and distribution through appropriate channels like job boards and print media.


Submit the LMIA Application: After advertising, compile and submit the LMIA application to ESDC. Include job offer details, proof of recruitment efforts, evidence of appropriate wage levels, and a transition plan to reduce reliance on foreign workers.


Approval and Work Permit Application: Upon ESDC’s approval and issuance of a positive or neutral LMIA, the employer can proceed with hiring. The foreign worker can then apply for a work permit using the LMIA from IRCC.


Case

FAQ

  • What is an LMIA?

    An LMIA (Labour Market Impact Assessment) is a document issued by Employment and Social Development Canada (ESDC) that an employer in Canada may need to obtain before hiring a foreign worker. It verifies that there is a need for a foreign worker to fill the job and that no Canadian worker is available to do the job.

  • When is an LMIA required?

    An LMIA is required when a Canadian employer wants to hire a foreign worker for most temporary or permanent positions. Some exemptions exist, such as workers under the International Mobility Program.

  • How do I apply for an LMIA?

    To apply for an LMIA, employers must:
    * Submit an application to ESDC with details about
    the job, efforts to hire Canadians, and the need for a
    foreign worker.
    * Pay a processing fee (unless exempt).
    * Provide supporting documents, such as proof of
    recruitment efforts.

  • What information must be included in the LMIA application?

    The application must include:
    * Job details (title, duties, wage, etc.).
    * Recruitment efforts to hire Canadians.
    * Information about the business.
    * Proof of business legitimacy and financial capability
    to pay the worker.

  • What are the processing times for LMIA applications?

    Processing times vary based on the type of application and the volume of applications received. It can range from a few weeks to several months.

  • What is the cost of an LMIA application?

    As of 2024, the processing fee for an LMIA application is CAD $1,000 per position.

  • What happens after the LMIA is approved?

    If the LMIA is approved, the employer will receive a positive/neutral LMIA (confirmation letter). The foreign worker can then apply for a work permit using the LMIA and a job offer letter.

  • What are the recruitment requirements for LMIA?

    Employers must demonstrate extensive efforts to recruit Canadians and permanent residents before offering the job to a foreign worker. This includes advertising the position in various places and keeping records of the recruitment process and results.

  • Are there any exemptions to needing an LMIA?

    Yes, certain categories of workers, such as those under the International Mobility Program, do not require an LMIA. These include intra-company transferees, significant benefit workers, and those covered by trade agreements like CUSMA (formerly NAFTA).

  • How long is an LMIA valid?

    An LMIA is typically valid for 6 months from the date of issuance. The foreign worker must apply for a work permit within this time frame.

  • What are the employer's obligations after hiring a foreign worker on an LMIA?

    Employers must:
    * Comply with all terms and conditions set out in
    the LMIA and job offer.
    * Ensure the worker's wages and working
    conditions meet Canadian standards.
    * Retain records related to the employment of the
    foreign worker for a specified period.
    * Inform ESDC of any changes in the worker's
    employment status.

  • Can I use the same LMIA for multiple positions?

    No, each LMIA application is specific to a single position and a single worker. Separate applications are required for multiple positions.

  • What are the consequences of non-compliance with LMIA conditions?

    Non-compliance can result in penalties, including fines, bans from hiring foreign workers, and public listing on the ESDC non-compliant employers' list.