Labour Market Impact Assessment (LMIA)

If you want to hire a temporary foreign worker as a Canadian employer, you may need to obtain a Labour Market Impact Assessment (LMIA).

A labour market impact assessment (LMIA) justifies the need to hire a foreign worker by assessing labour and skill shortages in the domestic market.

A LMIA confirms that no Canadian citizen or permanent resident is available for that occupation.

To apply for a temporary work permit in Canada, you must have a positive LMIA. A negative LMIA indicates that the request was turned down.

For specific work permits, there are a few exceptions to LMIA requirements.

 

What is the Process of Applying for a Labour Market Impact Assessment (LMIA)?

The application process for an LMIA differs for high-wage and low-wage foreign workers.

Temporary foreign workers who are paid less than the provincial or territorial median wage are classified as low-wage workers.

If the foreign workers are paid at or above the median wage in that province or territory, they are considered high-wage workers.

Employers who submit LMIA applications for low-wage workers must also meet the following requirements:

  • Meet the temporary foreign worker capacity limit.
  • Make adequate transportation to and from Canada available.
  • Provide adequate housing during the employment period.

 

There is also a procedure for applying for an LMIA to assist temporary foreign workers in obtaining permanent residency. This is referred to as a Dual Intent LMIA, and temporary foreign workers can benefit from additional job offer points for their Express Entry permanent residence application. This is possible for applicants both inside and outside the country.

 

Employers must apply for an LMIA 6 months before the start date of employment under the Temporary Foreign Worker Program (TFWP).

 

What are the Requirements for the Labour Market Impact Assessment (LMIA)?

As an employer, you must comply to the conditions imposed by Employment and Social Development Canada (ESDC). You will be expected to:

 

  • Meet all TFWP eligibility requirements for the LMIA application.
  • Inform ESDC of any changes related to a positive LMIA or the temporary foreign worker’s employment.
  • Examine your activities to ensure they are in accordance with the TFWP.
  • In addition to the foregoing, you may be required to undergo an Employer Compliance review, which includes an inspection and a ministerial review.

 

To apply for an LMIA, employers must meet the following requirements:

  • Pay a $1000 application processing fee.
  • Prove  company’s legitimacy.
  • Submit documentation demonstrating recruitment efforts to hire Canadian citizens or permanent residents.
  • Comply with the minimum wage requirements
  • Show proof of workplace safety.

 

Employers must comply with the following advertising requirements for recruitment-based LMIAs:

 

  • Before applying for LMIA, employers must advertise their job openings across the Canadian labour market for at least four weeks.
  • Unless another language is required for the position, the advertisement must mention English or French language proficiency requirements.
  • Aside from the foregoing, unique occupation-specific requirements must also be met.

 

How long is an LMIA valid for?

An LMIA is valid for a period of 6 months from the day of issuance.

 

An experienced immigration consultant can correctly organise and greatly expedite the above complex requirements, which will also increase your chances of success.

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