What is Labour Market Impact Assessment (LMIA)?
An employer in Canada must complete a Labour Market Impact Assessment (LMIA) before hiring a foreign temporary employee (formerly called a Labour Market Opinion, LMO).
A Labour Market Impact Assessment protects the Canadian job market and protects foreign workers temporarily employed in Canada by protecting the domestic job market. LMIA-exempt work permits can only be obtained under certain circumstances.
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Assessing the Merits of an LMIA Application
It generally takes two steps to obtain a Canada open work permit. Employment and Social Development Canada (ESDC) must receive the qualifying LMIA application from the Canadian employer.
Canadian employers must let applicants know why they were not hired as well as how many Canadians applied. If a work permit is issued, employers may be inspected for compliance.
ESDC will consider the following factors when assessing the applicant's merits:
1. Are there any Canadians who would be willing to fill this job?
2. Has the employer made enough effort to hire a Canadian for the position?
3. Is it possible to create jobs in Canada by hiring a foreign national?
4. Are the wages and salaries offered by the employer in line with the regional average?
5. According to Canadian Labour standards, are the working conditions acceptable?
6. Is the employer or industry where the job is located involved in ongoing labour disputes?
ESDC will issue a positive LMIA if it is satisfied that a region and industry can sustain foreign labor.
They are appropriate for employers, for the positions being offered, and for the regions in which they are located. A positive LMIA does not allow you to change jobs or employers after getting a work permit or moving to a different region of Canada. Under any of these circumstances, you will need to find a new LMIA.
Employees are classified as "high wage" or "low wage" in the LMIA process. In this context, low-wage foreign workers are defined as those whose remuneration is lower than provincial/territorial median wages. High-wage temporary foreign workers are those whose wages are equal to or more than the average.
Median Hourly Wages by Province/Territory
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Province/Territory
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Wage ($/hr)
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Newfoundland and Labrador
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$21.12
|
|
Prince Edward Island
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$17.49
|
|
Nova Scotia
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$18.85
|
|
New Brunswick
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$18.00
|
|
Quebec
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$20.00
|
|
Ontario
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$21.15
|
|
Manitoba
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$19.50
|
|
Saskatchewan
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$22.00
|
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Alberta
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$25.00
|
|
British Columbia
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$22.00
|
|
Yukon
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$27.50
|
|
Northwest Territories
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$30.00
|
|
Nunavut
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$29.00
|
*Source: Employment and Social Development Canada (ESDC).
High-Wage Workers
The submission of a transition plan is an essential requirement for all Canadian employers who are looking to hire a temporary foreign worker(s) at a wage equal to or higher than the provincial/territorial median hourly wage. In the interest of Canadians, employers are required to develop a plan to reduce their reliance on temporary foreign workers.
Low-Wage Workers
The process of completing a Labour Market Impact Analysis (LMIA) does not require employers to submit a transition plan for hiring low-wage workers. Contrary to high-wage workers, low-wage temporary foreign workers are subject to a limit that restricts the number that can be employed by a particular company.
There will be a 10% cap on low-wage temporary foreign workers for Canadian employers with more than 10 employees.
To give Canadian employers time to transition to a Canadian workforce, this cap will be phased in over the next two years.
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LMIA Processing Times
Processing times for LMIAs can vary from a few weeks to a few months. An LMIA application will be processed by Employment and Social Development Canada (ESDC) within 10 business days. There is now a standard 10-business-day turnaround time for the following categories:
1. Applications for all LMIA jobs that are in high demand (trades), or
2. Top-paying occupations (top 10%)
3. (120 days or less) Working periods with short durations.
LMIA Fees and Additional Employer Requirements
1.) Application fees for Labour Market Impact Assessments are CDN $1,000 for each application (except for those intended to support permanent residency). A Privilege Fee of CDN $100 also applies.
2.) Canadian employers are required to advertise (Canada Job Bank) for a minimum of four weeks prior to applying for LMIA. Additionally, employers must identify at least two other recruitment methods, other than the Canada Job Bank website, to target potential hires.
The ESDC will also be looking for proof that underrepresented groups of Canadians have been considered (e.g. disabled people, aboriginal people, youth).
3.) To qualify as a requisite for the LMIA, only two languages are acceptable: English and French. A large majority of ESDC agents are reluctant to approve an LMIA application if another language has been used as a determinant other than English or French.
How to get a positive LMIA
This topic is important for employers because it covers the factors that ESDC considers when assessing LMIA applications. This information can help employers increase their chances of success.
How to apply for a work permit with a positive LMIA
This topic is important for foreign workers because it covers the different types of work permits available to them and the application process.
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LMIA-exempt work permits
This topic is important for both employers and foreign workers because it covers the different types of jobs and employers that are exempt from the LMIA requirement. This information can help employers save time and money, and it can help foreign workers find work without having to go through the LMIA process.
How to use an LMIA to support a permanent residency application
This topic is important for foreign workers who are interested in immigrating to Canada permanently. It covers the different permanent residency programs that allow foreign workers to use an LMIA as a pathway to citizenship.
Common LMIA mistakes to avoid
This topic is important for both employers and foreign workers because it covers some of the most common mistakes that people make when applying for LMIAs. This information can help people avoid these mistakes and increase their chances of success.
FAQs:
What are the benefits of using an LMIA?
There are several benefits to using an LMIA, including:
* It allows employers to hire foreign workers who have the skills and experience they need to fill vacant positions.
* It can help employers attract and retain top talent.
* It can help employers expand their businesses and create new jobs.
* It can help employers comply with Canadian labour laws.
How long does it take to get a positive LMIA?
The processing time for LMIA applications can vary depending on the complexity of the application and the workload at ESDC. However, most applications are processed within 10 business days.
How much does it cost to apply for an LMIA?
The application fee for an LMIA is CAD $1,000. There is also a CAD $100 Privilege Fee.
What are the requirements for a work permit with a positive LMIA?
In addition to having a positive LMIA, applicants for a work permit must also meet the following requirements:
* They must have a valid passport.
* They must have a job offer from a Canadian employer.
* They must meet the language and medical requirements for work in Canada.
* They must have sufficient funds to support themselves and their dependents while in Canada.
What are some of the common LMIA mistakes to avoid?
Here are some of the most common LMIA mistakes to avoid:
* Not providing enough information about the job offer and the qualifications of the foreign worker.
* Not advertising the job vacancy in Canada.
* Not demonstrating that no Canadian worker is available for the job.
* Not submitting a complete and accurate application.
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