LMIA Work Permits

A Labour Market Impact Assessment (LMIA) is a report produced by Employment and Social Development Canada (ESDC) that evaluates the impact of hiring a foreign national in Canada. A positive LMIA means that no Canadian resident or permanent resident is obtainable to fill the post, allowing the company to hire a foreign national. If the LMIA is negative, it means the position should be filled by a Canadian citizen or permanent resident.

An LMIA cannot be obtained by a foreign national. LMIAs, on the other hand, are documentation that must be requested by a Canadian employer. While it is sometimes feasible to acquire a foreign worker who does not require an LMIA or a work permit, all streams of Canada’s Temporary Foreign Worker Program (TFWP) require that a company get an LMIA before hiring outside of Canada. In addition, in order to claim points for a Canadian employment offer, several of Canada’s immigration routes to permanent residency require applicants to have a positive LMIA.

An entrepreneur can submit an application for an LMIA as early as six months before the position’s expected start date. The method for applying for an LMIA varies depending on the wage of the individual being hired. Employers should check their province’s or territory’s median hourly wages to see if their position is classified high-wage or low-wage, as low-wage positions will necessitate the employer meeting additional standards. Employers seeking LMIAs for certain sectors of work might choose from specialist streams. These are some of them:

• Hiring Caregivers to Work in Your Home
• Agricultural Workers for Hire
• Recruiting International Academics
• Recruiting within Quebec’s borders

Application Requirements for the LMIA

LMIA applications are mailed to the relevant Service Canada Controller Node in physical copy. Documentation that the following requirements have been met must be included in applications:

Processing Cost: All LMIA applications are subject to a $1000 CAD processing fee, which is non-refundable regardless of the outcome. This charge may be waived for certain applicants under the LMIAs for in-home carers.

Business Legitimacy Documents: Documents demonstrating the employer’s status as a genuine Canadian business are known as business legitimacy documents.

Transition Plan: Employers must submit a transition plan outlining how they expect to meet the need to hire foreign nationals. Employers are urged to hire Canadian citizens and permanent residents instead of TFWs in the future.

Recruitment Efforts: Prior to hiring a TFW, employers must demonstrate that they made significant attempts to recruit Canadian citizens or permanent residents to fill the post.

Salaries: Information on the TFW’s wages must be included in the application. This will distinguish high-wage jobs from low-wage jobs and ensure that TFWs are paid the same as their Canadian counterparts for their labour.

Workplace Health and Safety: TFWs are subject to the same workplace health and safety standards as Canadians in similar positions. As a result, employers must show that TFWs will be covered by health insurance that is at least similar to the health coverage provided by the province and territory in which the company is located.

Low-wage employees

Employers must also fulfil the following three requirements when filing LMIA applications for low-wage positions:

Cap on TFWs: TFWs are subject to a cap if an employer has previously hired TFWs.

Transportation: Employers must provide adequate transportation to and from Canada for low-wage workers. The cost of this transportation is covered by the employer.

Accommodation: For the duration of their employment in Canada, low-wage workers must be supplied with suitable housing.

After the LMIA is approved, what happens next?

Employers will receive a decision when their LMIA request has been processed. If the LMIA is positive, the company may proceed with recruiting a foreign national. If a negative LMIA is issued, the company will be denied permission to hire a foreign national.

Positive LMIAs are good for six months after they’ve been issued. The company must inform the foreign national after obtaining a positive LMIA so that they can apply for a work visa or permanent residence. Employers may request that their LMIA application be processed in 10 days if certain conditions are met. An employer must be based outside of Quebec and satisfy one of the following criteria to be eligible for accelerated processing:

Positions with the highest pay: the top 10% of salaries received by Canadians in the province or territory where the employment is located.

Skilled Trades: at least the provincial/territorial median salary for the job.

Short-Term positions: Positions with a duration of 120 days or less are considered short-term.

Express Entry: The LMIA’s role is to help an Express Entry candidate.