LABOUR MARKET IMPACT ASSESSMENT

LMIA

A Canadian employer is required to obtain a Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC) to offer a job to a foreign candidate. LMIA is required for both temporary job offers through the Temporary Foreign Worker Program and for valid job provides through one of the economic immigration programs of Canada.

The first step for obtaining LMIA is the Canadian employer submitting an application for the LMIA to the ESDC and paying the application fee. The ESDC will evaluate the use and check whether the employer has made sufficient efforts to find a Canadian citizen or permanent resident(PR) to fill the position. ESDC will decide on whether to issue a positive LMIA after considering the industry the employer operates in and also the hiring efforts made by the employer.

POSITIVE LABOUR MARKET IMPACT ASSESSMENT

ESDC issues a positive LMIA when it is convinced that hiring a foreign worker for a specific position will not create a significant negative impact on the Canadian labour market. This is precisely the reason why LMIAs are issued for specific job positions and not for individual workers.

It is the employer, not the employee who must apply for an LMIA. However, an employee may need to submit a copy of the LMIA as well as the LMIA number when he/she applies for a temporary work permit, claims Comprehensive Ranking System (CRS) points under Express Entry for a job offer or to prove that he/she meets the “valid job offer” eligibility criterion.

TEMPORARY WORK PERMITS

A foreign worker needs a work permit if he/she is coming to Canada to work temporarily. Most types of Canadian work permits require a valid job offer from a Canadian employer and a positive LMIA. There are also a few categories of temporary work permits that do not need LMIA.

LMIA-EXEMPT WORK PERMITS

International Mobility Program (IMP)

Canadian employers are allowed to hire temporary workers under the International Mobility Program (IMP) without an LMIA. Canada makes these exemptions based on broader economic, cultural, or other competitive advantages that the program offers for Canada as well as the reciprocal benefits that the Canadian citizens and the permanent residents enjoy. The North American Free Trade Agreement (NAFTA) is a good example. It allows workers from NAFTA countries to work in specific occupations in other NAFTA countries without an LMIA.

Intra-company transfers

If a company, which has a branch office in Canada, wants to transfer an employee to the country, it does not require a positive LMIA. But the employee has to be in a managerial or executive role in the company and have specialized industry knowledge.

Openwork permits

If you have an open permit to work, you can work for any Canadian employer anywhere in Canada, irrespective of whether the position they offer you has a positive LMIA or not.

Global Talent Stream

Work permits under the new Global Talent Stream of the TFWP do not require an LMIA. However, employers have to develop a Labour Market Benefits Plan with ESDC. The plan must demonstrate that their activities will make a positive impact on the Canadian labour market. Work permits under the Global Talent Stream do not also have any recruitment requirements, which means the employers need not show their efforts to fill the vacancy with workers who are either a Canadian citizen or a permanent resident.

ECONOMIC IMMIGRATION AND VALID JOB OFFERS

A valid offer of employment from the Canadian employer is a mandatory requirement for many economic immigration programs, including a few immigration categories under provincial nominee programs and the Atlantic Immigration Pilot program. Under the Express Entry system, too, candidates earn a few extra Comprehensive Ranking System score points if they have a valid job offer.

A valid job offer is defined differently by different immigration programs. While for many programs, a valid job offer is a full-time, non-seasonal job offer with a duration of at least one year, many other programs require the position to meet a certain skill level in the National Occupational Classification (NOC), to be considered a valid job offer. Most programs also require a position to have a positive LMIA.

If you are a Canadian employer who wants to hire a foreign worker or a worker who wants to come to Canada on a temporary or permanent basis, get in touch with us to enjoy a tension-free application experience.