The Labour Market Impact Assessment (LMIA) is integral to Canada's immigration system. The Employment and Social Development Canada (ESDC) uses it to evaluate job offers, ensuring that employing a foreign worker will not negatively impact the Canadian labour market. If a Canadian citizen or permanent resident cannot fill a job, ESDC allows employers to hire foreign nationals under the LMIA. There are different LMIA streams that employers can choose based on their needs and abilities.
How to start the Labour Market Impact Assessment (LMIA) process?
The LMIA process begins with assessing the employer’s eligibility for obtaining an LMIA. Once our experts find the employer eligible, we support the employer to go through the process starting from advertising the requested position.
Service Canada, which is responsible for LMIA applications in the ESDC, requires employers to publish a job vacancy on the government portal Job Bank for at least 4 weeks. In addition, the job must be advertised on additional platforms so Canadian candidates can consider it. The advertised job must meet various requirements in terms of prevailing wages for this occupation, duties, education and employment requirements, potential benefits, etc.
Once you have found suitable candidates, you can prepare a job offer, and we will prepare the LMIA application. In the application, we outline why hiring foreign workers will benefit your business as well as the Canadian economy.
LMIA application submission and assessment
LMIA application package should include supporting documents as well as proof of recruitment efforts from the Employer. It’s the employer’s responsibility to provide the required information and documents for the LMIA package. The LMIA application is submitted via the online LMIA portal. The LMIA officers then start a thorough review to confirm whether hiring a foreign worker is necessary and beneficial for the Canadian labour market. This evaluation considers many factors, such as the company's financial conditions, job offer, job responsibilities, proposed wages, work environment, and other factors.
To simplify, the government wants to be sure that you can pay the prevailing wage to the worker and that you demonstrated enough efforts to find Canadian workers for the role before offering a job to foreigners.
This rigorous assessment by ESDC can take up to 2-3 months, depending on the stream. If the application is approved, the employer receives a positive LMIA decision, allowing them to proceed with the work permit application of the foreign national or using the LMIA for PR support of the foreign worker.
What should employers consider before applying for an LMIA?
The opportunity to bring in a foreign national through the LMIA process provides a valuable solution to workforce challenges and enhances the organization's capacity, contributing to its growth and success. Regardless of the scale or nature of the business, from small start-ups to large multinational corporations, any employer who encounters difficulty filling an open position with a Canadian citizen or permanent resident may apply for LMIA to hire a foreign national.
Before hiring a foreign national, employers must consider a few nuances. These include but are not limited to the following:
LMIA Application fees
Canadian employers looking to recruit foreign workers must pay a CDN $1,000 processing fee for every position under the LMIA application they submit if the foreign workers need work permits. This fee covers the costs associated with reviewing and processing the application. However, it is essential to note that if the application is submitted exclusively to support an individual's permanent residency application in Canada, this processing fee is exempted.
Language proficiency
For LMIA applications, the language prerequisites are limited to English and French. ESDC officers are generally careful when an employer outlines a language requirement other than English or French. If an employer insists on such requirements, they must provide a strong justification for the necessity of that language in performing the job duties. ESDC officers will then review the justification on a case-by-case basis.
Worker rights
Canadian employers who hire temporary foreign workers must provide a formal declaration attesting to the fact that they are bound by the rules that prohibit them from laying off, or reducing the working hours of their existing Canadian employees. This is important to ensure that hiring temporary foreign workers does not undermine Canadian workers' rights and job security.
Can I fire a foreign worker?
Employers must comply with Canadian labour standards for working conditions. At the same time, if the worker’s performance does not meet the requirements of the employer, they can be laid off just like any other employee.
Employer-specific work permits
An LMIA is tailored to the employer, the job offers, and the location. It is essential to be aware that a positive LMIA does not permit foreign workers to change jobs or employers or relocate to a different region in Canada after receiving their work permit. Foreign nationals will require a new LMIA to make any of these changes. Therefore, their work permits under LMIA are always employer-specific, allowing them to work only for the employer mentioned in the work permit, in the occupation and in the location typed on their documents.
LMIA streams
The LMIA application process can vary considerably depending on the job type an employer offers to a foreign worker. It is critically important to understand the nuances of the process for each job type. The LMIA process takes into account several key job categories, each with its own unique set of considerations:
High-wage positions
High-wage positions, which provide a salary above the median wage for the same job in a specific region, typically require more skills and experience. When applying for an LMIA for these high-wage positions, a transition plan or support for the foreign worker's eventual permanent residency is required. Employers can secure an LMIA for high-wage roles through various streams such as the Global Talent, High-wage, Agricultural, and Permanent resident streams.
Low-wage positions
Low-wage positions offer less than the regional median wage and undergo a more detailed LMIA assessment process. While employers do not need to provide a transition plan for hiring low-wage workers, there is a cap on the number of employees. Businesses with a workforce exceeding ten employees are subject to a 10% cap on foreign workers in low-wage positions, implemented over two years.
How can Express Entry applicants benefit from an LMIA?
Those considering the Express Entry pathway for Canadian immigration can significantly improve their chances of success by obtaining a job offer supported by an LMIA from a Canadian employer. This offer can substantially increase their points, thereby boosting their likelihood of being chosen for permanent residency. A qualifying job offer in a category 0, 1, 2, or 3 occupations under the Training, Education, Experience & Responsibility (TEER) of the National Occupational Classification (NOC) can add 50 points to the candidate's score. Additionally, candidates with a job offer in Major Group 00 of the NOC may be eligible for 200 points.
How can we help?
We understand that the LMIA process can be complex and challenging. We can assist you in preparing the application, navigating the assessment process, and understanding the requirements and obligations once a positive LMIA is received. Contact Canada Platform today for more detailed guidance tailored to your unique circumstances.
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