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Labour Market Impact Assessment (LMIA)

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What is LMIA in Canada?

A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada may be required before hiring a foreign worker.

An employer hiring through a Temporary Foreign Worker Program may initially needs to get approval from Employment and Social Development Canada (ESDC) to hire a foreign worker.

A positive LMIA will show that there is a need for a foreign worker to fill the job. It will also show that no Canadian worker or permanent resident is available to do the job. A positive LMIA is sometimes called a confirmation letter.

Once an employer gets the LMIA, the worker can apply for a work permit.

To apply for a work permit, a worker needs

  • a job offer letter
  • a signed employment contract
  • a copy of the LMIA, and
  • the LMIA number

Upon successful LMIA application, a foreign worker can receive 50 or 200 points depending on TEER codes under the Comprehensive Ranking System (CRS).

diverse-friendly-coworkers-talking-using-digital-tablet-in-office-.jpg

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Employer Requirements for LMIA

A Canadian employer who wants to hire foreign nationals that do not have a right to work in Canada – you will need to receive an LMIA approval. Below are the three most important requirements:

1st requirement for all employers is to proove that they have attempted to search for qualified domestic workers who are Canadian citizens or permanent residents. You have no choice but to hire foreign workers.

The 2nd requirement depends on whether you plan to hire a high-wage or a low-wage employee. The LMIA process depends on whether the targeted employee is classified as “high-wage” or “low-wage”. Temporary foreign workers being paid under the provincial/territorial median wage are considered low-wage, while those being paid at or above the median wage are considered high-wage

The 3rd requirement includes an inspection for compliance with regulations and reporting on the Transition Plan’s progress. This requirement applies only to employers that have already been employing foreign workers under LMIA.    

LMIA Eligibility

Upon receiving the LMIA application, ESDC will consider multiple factors to decide whether the Canadian employer is eligible to employ a foreign worker. ESDC will assess the following factors:

Is there a labor shortage that local Canadian residents just can’t fill?

Do Canadian employers use reasonable recruitment efforts to offer positions to local Canadian employees?

Do your working conditions comply with local, regional, and federal regulations?

Are the salaries offered a fair representation of the average salary for the position in the region?

Can workers fulfill their employment obligations and share their expertise and knowledge with Canadians? Whether the employer is involved in an ongoing labor dispute.

Do target salaries reflect average salaries for the job and region?

Will hiring foreign workers have a positive impact on job creation and retention in Canada?

ESDC will adjust its assessment method depending on the type of work and worker the employer intends to hire. This adjustment to LMIA requirements is very important, and the employer must refer to them to achieve a positive LMIA application outcome.  

LMIA Advertising Requirements

To be able to hire a temporary foreign worker, you must show that you made considerable efforts to recruit domestic workers but were not able to find it. You must advertise the position for at least 4 weeks on Canada’s Government Job Bank website and use at least 2 additional recruitment methods.  

LMIA Exemption

Not all employers are required to receive LMIA approval to hire temporary foreign workers. Canada government has created several LMIA exemption codes through the International Mobility Program from which employer can benefit.

Countries with Free Trade Agreements – if your foreign worker is a citizen of a country with which Canada has an agreement with Canada, then it is likely that you will be exempt from LMIA.

  • Global Talent Stream
  • CUSMA (ex-NAFTA) Countries
  • CETA Countries
  • Intra-Company Transfer Program