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Labour Market Impact Assessment(LMIA)

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    Labour Market Impact Assessment(LMIA)

    The Temporary Foreign Worker Program(TFWP) aims to provide a chance for employers to hire temporary foreign workers in the absence of qualified workers in Canada to take up a particular job position. However, in order to hire a temporary foreign worker under the program, the employer must submit a Labour Market Impact Assessment(LMIA) application to the Canada government.

    The application is assessed by the Canada government on the basis of three major factors:

    • If the hiring is going to have a positive or neutral effect on the labour market of Canada.
    • If qualified Canadians were passed up for the sake of the foreign worker.
    • If the foreign worker will be given salary and benefits as per federal and provincial standards.

    The employer can hire this particular foreign worker only if he receives a positive LMIA report. The report will indicate that:

    • There is a need for a foreign worker to fill the job
    • No eligible Canadian worker or permanent resident is available to fill the job.
      If the employer receives a negative LMIA report, it means the position needs to be filled by a Canadian citizen or permanent resident.

    Applying for Labour Market Impact Assessment(LMIA)

    The application for an LMIA cannot be submitted by a foreign worker. It is the duty of the employer to submit the application.

    The employer must submit the LMIA application to the Employment and Social Development Canada(ESDC). Generally speaking, in this application, the employer is providing evidence that they made serious efforts to find a qualified Canadian citizen or permanent resident to fill the position before turning to foreign workers. Once a temporary foreign worker is hired with a positive LMIA, the government authorities may inspect the employers to check whether they comply with government regulations.

    After the employer gets the LMIA, a temporary worker can apply for a work permit. For the same, the worker will have to submit the following documents:

    • Job offer letter
    • Contract
    • Copy of the LMIA
    • LMIA number

    Requirements for an employer to apply for LMIA

    • A processing fees of CDN $1000
    • English and French are the two languages which can be put forth as requirements for job
    • The employer must have advertised the job vacancies across the Canadian market at least four weeks before applying for LMIA.
    • They must prove that they have used at least two other recruitment methods other than posting an advertisement on the Canada Job Bank.
    • They must prove that they have focused their advertising efforts on under-represented Canadians such as First Nations and persons with disabilities.
    • They must demonstrate their awareness that they should not lay off or cut the working hours of Canadian workers in the same position.
    • They must provide documents to prove that they are a legitimate Canadian business.
    • They must make arrangements to provide the same level of work place safety to temporary foreign workers as their Canadian counterparts.
    • They must also provide evidence that the temporary foreign workers will be covered by insurance

    Labour Market Impact Assessment(LMIA) application process

    The application process is different depending on whether the worker being hired is a high wage worker or low wage worker.

    LMIA for High Wage Workers

    High wage workers are those who will be paid at or above the provincial/territorial median wage. The employers submitting an LMIA application for a high wage worker must submit transition plans along with the LMIA application. The transition plan is aimed to prove to the government that they will be taking efforts to bring down their dependence on temporary foreign workers over time. In order to prove the same, the employers must demonstrate that they are providing support to the temporary foreign workers to become permanent residents. If the employer is chosen for inspection or if they apply for renewing the LMIA, they will have to report on the progress of this transition plan which they submit with the LMIA application.

    Province/Territory Median hourly wages as of April 30, 2022
    Alberta $28.85
    British Columbia $26.44
    Manitoba $23.00
    New Brunswick $21.79
    Newfoundland and Labrador $24.29
    Northwest Territories $37.30
    Nova Scotia $22.00
    Nunavut $36.00
    Ontario $26.06
    Prince Edward Island $21.63
    Quebec $25.00
    Saskatchewan $25.96
    Yukon $32.00

    LMIA for low-wage workers

    Employers who want to hire low-wage workers need not submit transition plans along with their Labour Market Impact Assessment application. However, there is a cap on the number of low-wage temporary foreign workers that a business can employ. Also, certain low-wage occupations are not eligible for LMIA processing. Besides, the employers must also follow certain guidelines. These include:

    • Pay for round-trip transportation for the worker
    • Ensure that affordable housing is available for them
    • Pay for their private health insurance
    • Register the worker with provincial/territorial workplace safety board
    • Provide employer-employee contract

    LMIA application processing time

    Usually, LMIA report is provided to workers under the following categories within 10 working days:
    Workers for highest demand occupations.

    The workers for skilled trades positions for which wages are above provincial or territorial median wage is provided with LMIA report within 10 days. They include contractors, supervisors, carpenters and heavy equipment operators.

    Workers for highest paid occupations

    The workers for highest-paid occupations are also provided the LMIA report within 10 days. The high level of wages means the worker is highly skilled in the occupation and it is difficult to find candidates who have the same level of skills in Canadian labour market.

    Shortest duration occupations

    Foreign temporary workers who are hired for shortest duration occupations are also provided with LMIA report within 10 days. By shortest duration, it means fewer than 120 calendar days. The wage offered should also be at or above the provincial/territorial median wage.

    LMIA exemptions

    In certain cases, it is not necessary for the employer to obtain an LMIA report to hire a temporary foreign worker. These include:

    • International Mobility Program
    • Intra-company transfers
    • NAFTA work permits
    • CETA work permits

    Canada offers many pathways for a temporary worker to become permanent resident in Canada. If you need a detailed briefing on the immigration process for skilled workers to Canada, you can talk to the Canada immigration Consultants of CanApprove. Contact us.

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