A Labour Market Impact Assessment (LMIA) is a mandatory document for most foreign workers seeking employment in Canada. This document, issued by Employment and Social Development Canada (ESDC), enables Canadian companies to address labor shortages by hiring foreign nationals. This guide provides a comprehensive overview of the different types of LMIAs, their requirements, and the application process.
What is an LMIA Work Permit?
The ESDC requires employers to complete the LMIA process to ensure that hiring a foreign worker will not negatively affect the Canadian economy. A key component of this process is demonstrating that no qualified Canadian citizens or permanent residents were available to fill the position. A foreign worker who receives a positive LMIA can then apply for a work permit to work for their new Canadian employer.
LMIA Assessment Criteria
The ESDC evaluates several factors during the LMIA assessment, including:
Wage Consistency: The proposed salary for the foreign worker must align with the average wage for the occupation in the specific region.
Working Conditions: Working conditions must comply with local labor laws and applicable collective bargaining agreements.
Labor Shortage: The ESDC assesses whether a verifiable labor shortage exists for the occupation being advertised.
Labor Disputes: The presence of any ongoing labor disputes at the employer’s company is considered.
Recruitment Efforts: The employer must provide evidence of sufficient efforts to recruit Canadian citizens or permanent residents for the position.
Skill Transfer: The potential for the foreign worker to transfer their skills and expertise to local workers is evaluated.
Employment Status: The foreign worker must be an official employee of the Canadian company.
Employer Requirements for an LMIA
Employers wishing to obtain an LMIA must meet the following criteria:
Processing Fee: Pay a $1,000 CAD processing fee. Exemptions apply to LMIAs for caregivers of low-income families and those supporting permanent resident applications.
Job Advertisement: Advertise the position for a minimum of four weeks before extending an offer to a foreign worker.
Recruitment Evidence: Provide proof of advertising the position on the Canadian Job Bank website and at least two other recruitment platforms.
Transition Plan: Submit a transition plan detailing how they will reduce their reliance on foreign workers over time.
Training and Investment: Offer evidence of investment in training Canadian workers.
Job Protection: Prove that the hiring of the foreign worker will not result in the layoff of any Canadian employees.
Types of LMIA Work Permits
The Temporary Foreign Worker Program includes several LMIA subcategories tailored to different situations:
Low-Wage LMIA: Required when the foreign worker’s wage is below the provincial median wage.
High-Wage LMIA: Required when the foreign worker’s wage is equal to or higher than the provincial median wage.
LMIA for Agricultural Workers: This category is for employers hiring foreign workers for primary agricultural roles on farms. It has two subcategories:
Seasonal Agricultural Worker Program: For workers from Mexico or select Caribbean countries.
Agricultural Stream: For workers from any country.
Global Talent Stream: This LMIA is designed for employers hiring highly-skilled foreign workers in specific, in-demand occupations such as:
Information system managers
Database analysts
Software designers and engineers
Web developers and designers
Information systems analysts This stream also includes occupations identified by partner organizations like the BC Tech Association and Economic Development Winnipeg.
Facilitated LMIA (Quebec): A specific process for employers in Quebec that does not require proof of recruitment efforts for Canadian citizens or permanent residents. Key requirements include:
Application must be submitted in French.
The position must be on a pre-approved list of occupations with high labor demand in Quebec.
The LMIA application requires approval from both provincial and federal authorities.
Post-LMIA Approval Process
Upon receiving a positive LMIA, the employer must inform the foreign worker, who can then proceed with their work permit application. The foreign worker must be issued a work permit before commencing employment with the Canadian company.
LMIA-Exempt Work Permits
Certain foreign workers are exempt from the LMIA requirement, including:
Individuals whose work provides a significant benefit to the Canadian economy.
Entrepreneurs and self-employed individuals establishing a business in Canada.
French-speaking skilled workers with a valid job offer outside of Quebec.
Workers under specific international trade agreements.
Individuals granted special exemptions by the Minister of Immigration.