What is LMIA for Canada?
Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) allowing Canadian employers to hire a foreign worker for a Canadian job. A positive LMIA will reflect the requirement of a foreign employee to fill the job vacancy. It confirms the unavailability of a Canadian worker or permanent resident to do the job. It also ensures that hiring a foreign worker will not negatively impact Canadian job opportunities.
Free Immigration AssessmentWho needs LMIA?
Canadian employers hire foreign workers due to the unavailability of suitable candidates to fill the vacancy. Following are the workers that require LMIA to work in Canada:
- High-wage workers
- Low-wage workers
- Seasonal Agricultural Workers: temporary agricultural workers
Please visit the official website of IRCC. Additionally, consider consulting an immigration professional to determine if a specific job offer requires an LMIA for further clarification.
LMIA Work PermitsProcess of obtaining LMIA
Obtaining a Canadian Labour Market Impact Assessment (LMIA) is essential for Canadian employers who want to hire foreign workers for positions that Canadian citizens or permanent residents cannot fill.
To obtain an LMIA, employers need to advertise the job vacancy for a minimum of four weeks and interview candidates who are citizens or permanent residents of Canada.
If the employers prove that those interviewees do not meet the job description, then they may get permission to hire a foreign worker. With the LMIA, the worker can apply for a Canadian work permit.
LMIA applications contain lots of documentation and statistical tabulation. For instance, it includes the exact number of Canadian applicants for the vacancy, the number of offers of employment made, and the number of ineligible applicants. Employers must produce a written document describing why those applicants weren’t selected.
However, LMIA is optional for all kinds of work permits. The International Mobility Program covers LMIA-exempt work permit streams. Also, Quebec has different processes and policies for LMIAs.
The Temporary Foreign Worker Program
The Temporary Foreign Worker Program is a Canadian immigration program that allows Canadian employers to recruit foreign workers to fill temporary labour shortages. The program is part of Canada’s broader immigration system designed to address specific labour market needs.
The TFWP is divided into two main streams: High-wage worker and Low-wage worker streams.
If you need to apply for an LMIA, the wage for the job position will be the deciding factor:
- The employer must apply under a high-wage worker stream if the foreign worker has a median hourly wage at or above the province or territory.
- The employer must apply under a low-wage worker stream if the foreign worker has a median hourly wage below the province or territory.
Therefore, when assessing which stream to follow:
1) Identify the skill level and job title within the NOC Matrix.
2) Assess if Higher-Skilled or Lower-Skilled.
3) Go to www.jobbank.gc.ca and click “By wages” in the menu.
4) Type the name or NOC code of the job title.
5) Locate the province/territory of the job.
6) Identify the “Median Wage” for that specific location. This will be the “prevailing wage rate” for this particular area in this occupation.
7) Assess this prevailing wage rate against the provincial/territorial median wage and categorize it as high-paid- low-paid jobs.
Once you receive an LMIA, you should distribute a copy of the confirmation letter to each temporary foreign worker and instruct them to apply for a work permit.
Employers and foreign workers considering the TFWP should be aware of the specific requirements and processes associated with the program, as they can change over time. Consulting with immigration experts or legal advisors can help you navigate the application and compliance processes effectively.
LMIA Requirements
1. The Stream of Higher-Skilled Occupations — High-Wage Workers
Advertising:
1) National/Provincial Job Bank for at least 28 days (must remain posted until LMIA is issued)
2) Two other sources of advertising, one of which must be national in scope.
Transition Plan
Employers must complete a detailed transition plan (to be explained in the next section).
2. The Stream for Higher-Skilled Occupations — Low-Wage Workers
Advertising:
1) National/Provincial Job Bank for at least 28 days (must remain posted until LMIA is issued).
2) Two other sources of advertising, one of which must be national in scope.
Cap on Low-Wage Temporary Foreign Workers
Employers with ten or more employees applying for a new LMIA under this stream are subject to a cap. If an employer hires for a sector with a demonstrated labour shortage, they may employ up to 30 percent of their employees through this stream. Otherwise, employers may hire up to 20 percent of their employees through this stream.
3. The Stream of Lower-Skilled Occupations – High-Wage Workers
Advertising:
1) National/Provincial Job Bank for at least 28 days (must remain posted until LMIA is issued).
2) Two other sources of advertising, one of which must target under-represented groups.
Transition Plan
Employers must complete a detailed transition plan (to be explained in the next section).
4. The Stream of Lower-Skilled Occupations – Low-Wage Workers
Advertising:
1) National/Provincial Job Bank for at least 28 days (must remain posted until LMIA is issued).
2) Two other sources of advertising, one of which must target under-represented groups.
Cap on Low-Wage Temporary Foreign Workers
Employers with ten or more employees applying for a new LMIA under this stream are subject to a cap. If an employer hires for a sector with a demonstrated labour shortage, they may employ up to 30 percent of their employees through this stream. Otherwise, employers may hire up to 20 percent of their employees through this stream.
LMIA in Quebec
Employers in the province of Quebec may fill selected positions without including proof of recruitment efforts. The occupation list – 2023 was implemented on February 24.
Quebec added various entry-level positions to the in-demand list for facilitated LMIAs in 2022. The newly listed occupations will help Quebec to fill significant gaps in its job market. These lists will remain eligible for simplified processing until the final updation on February 24, 2024.
Employer Transition Plans
Employer Transition Plans are a requirement under the Temporary Foreign Worker Program (TFWP) in Canada for certain employers. These plans ensure that employers actively work toward reducing their reliance on temporary foreign workers (TFWs) over time and that they try to recruit and train Canadian citizens or permanent residents to fill those positions.
In addition to the recruitment and advertising requirements, Canada needs employers to undertake the following activities:
1) Three additional recruitment activities.
2) One additional activity targeting groups such as new immigrants, youth, aboriginals, and differently-abled Canadians.
3) Helping temporary foreign workers obtain permanent residence by providing valid job offers.
Employers must prepare the expected number of Canadians to recruit through these activities. They must supply proposed timelines for the outlined activities. Finally, the result of the transition plan must be reported to ESDC. Evaluation of the estimated plans will take place thereafter. However, employers get an exemption from submitting a transition plan if they provide proof that the vacant position requires a specific skill/ or is only project-based.
Cap on low-wage Temporary Foreign Workers
Canada has imposed a cap on the number of low-wage Temporary Foreign Workers (TFWs) that an employer could hire in specific industries and regions. These caps were introduced to ensure that the employment of TFWs in low-wage positions did not displace Canadian workers.
Under this stream, if the Employers apply for ten or more employees for a new LMIA, then they are subject to a cap. Employers can hire up to 30% of their workers through this stream if they prove that there is a labour shortage. If not, they may employ only up to 20% of their workers through this stream.
Refusal to process a LMIA application
ESDC will no longer process LMIA applications and may be refused due to the following reasons:
- If your advertising and recruitment efforts do not meet ESDC’s standards
- If ESDC finds that the wages and working conditions are inadequate
- if the assessment indicates a negative impact on the Canadian labour market
- An inadequate transition plan
- if your business has a history of non-compliance with federal or provincial/territorial laws related to employment,
Please also note that the Immigration regulations and policies can change, so previously accepted applications may not meet updated requirements.
Duration of work permit
The duration of a work permit in Canada may vary depending on various factors, including the type of work permit, the specific circumstances of the foreign worker, and the employer’s needs.
2-year employment duration for low-wage positions
As part of a 3-year pilot initiated in March 2020, TFWP has extended support and special measures to employers and workers affected by COVID-19. In the low-wage stream, there will be an increase from 1 to 2 years for LMIA in the allowable employment duration.
3-year employment duration for high-wage positions
From April 4, 2022, employers submitting an LMIA application for a high-wage position can request up to 3 years of employment. The high-wage stream includes caregiver positions, Agricultural Stream, and Express Entry.
The LMIA processing time is not published online by any departments in Canada. The Canadian government does not have stated about processing standards or targets publicly.
Processing time for LMIAs
For highest-demand occupations (skilled trades), highest-paid occupations or short-duration work periods (120 days or less), LMIAs are issued within ten working days.
Highest-demand occupations list
The 10-day service standard is restricted to the skilled trades where the existing wage rate is equal to or above the current provincial/territorial median wage.
Shortest-duration occupations
The 10-day service standard will be made available for employers for a duration of 120 days and where the prevailing wage rate for the occupation is equal to or above the median wage of the province/territory.
Application fee for LMIA
Employers, not workers, must pay the application fee for any job position request. However, this is per position, not per application. With the increase in requests for a job position, the costs increase accordingly. Thus, Employers must pay a fee of CAD 1,000 to submit an LMIA application under the Temporary Foreign Worker Program.
Auditing for the Temporary Foreign Worker Program
Employers are subjected to various auditing and compliance monitoring to ensure they adhere to program requirements and proposed activities in the transition plans. These audits and compliance measures are implemented to safeguard the rights of foreign workers, protect the Canadian labour market, and maintain the program’s integrity.
Proper Business Communication
Employers seeking to hire should be able to articulate their business challenges clearly. To obtain an LMIA, employers must follow detailed guidelines. Most Program Officers base their decisions on internal labour market indicators and the information submitted by the employer. So, if they are convinced, they issue a positive LMIA. Program Officers keep a vigilant eye on employers and do not entertain fraud in their recruitment efforts. Therefore, perfect LMIA applications must be detailed, logical, and well-articulated business communication.
Other details of the LMIA
Many job seekers may get frustrated by employers’ need for knowledge of IRCC or about Canada’s LMIA process. It is advisable that foreign workers should be aware of their rights and avenues for reporting any mistreatment or violations of program conditions.
If your LMIA application is refused, you must review the refusal letter provided by ESDC. Depending on the circumstances, you may appeal the decision or reapply with corrected information. Seeking legal advice or consulting with an immigration expert is often recommended to navigate the process effectively, especially if you believe the refusal was unjust or based on misunderstandings.
Interestingly, you may bypass the LMIA process by obtaining a work permit under any of the International Mobility Program streams. This option would be an excellent option for workers and employers.
A Canadian lawyer can be a valuable resource for immigration applications, including for Labour Market Impact Assessments (LMIAs) or other types of immigration processes. A Canadian immigration lawyer can provide legal advice and guidance throughout the application process. We, ImmiLaw Immigration, a Canadian immigration and law firm, have extensive expertise in securing LMIAs for suitable employers and work permits for foreign workers.
Feel free to contact us for your queries.
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