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Labour Market Impact Assessment (LMIA)

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What is an LMIA?

A Labour Market Impact Assessment (LMIA) is a document Canadian employers may need before they can hire a foreign worker. A positive LMIA confirms that the job requires a foreign worker because no Canadian citizen or permanent resident is available to fill the position. This approval is sometimes called a confirmation letter.

If an LMIA is required, the employer must apply for it. Once approved, the foreign worker can use it to apply for a work permit. To do that, the worker needs a job offer, a contract, the work permit support letter (WPSL), and the LMIA number.

Who needs a LMIA?

A Labour Market Impact Assessment (LMIA) is typically needed by most employers in Canada who want to hire a foreign worker. An LMIA is a document from Employment and Social Development Canada (ESDC)/Services Canada that assesses the impact of hiring a foreign worker on the Canadian labor market. Here’s a breakdown of who needs it:

For employers

Canadian Employers

Canadian employers need to obtain an LMIA if they want to hire a foreign worker for a temporary position, and no Canadians or permanent residents are available for the job. They need to show proof of recruitment efforts and demonstrate the need for a foreign worker.

LMIA supported work permit

Foreign Workers

Foreign workers often require an LMIA-supported work permit to legally work in Canada, unless they fall under a category exempt from LMIA requirements (e.g., intra-company transfers, some free trade agreements, provincial nominees, or open work permits issued under International Mobility Program).

different lmia streams

The first step in securing an LMIA-supported work permit is for the employer to obtain a Labour Market Impact Assessment (LMIA). To do so, the employer must determine which LMIA stream is best suited for the position they are offering. Below are the available LMIA streams, each designed for specific job types and wage levels:

High Wage Stream

High-Wage Stream

For employers offering positions with wages at or above the provincial or territorial median hourly wage, and requiring a Labour Market Impact Assessment (LMIA) to prove a need for a temporary foreign worker (TFW).

PNP worker

Low-Wage Stream

For employers offering jobs with wages below the provincial or territorial median hourly wage, and requiring a LMIA to prove a need for a temporary foreign worker (TFW), where the number of TFWs an employer can hire is capped.

Global Talent Stream

Global Talent Stream

For highly skilled workers in specialized fields like science, technology, engineering, and mathematics (STEM), the Global Talent Stream offers expedited LMIA processing to fill critical skill gaps, often completed in 10 business days or less.

Agricultural Stream

Agricultural Stream

For hiring foreign workers in farming and agricultural roles when no qualified Canadians or permanent residents are available. This stream covers a range of positions, from general farm labor to specialized roles like equipment operators, allowing employers to address labor shortages during peak periods.

Seasonal Agricultural Worker Program

SAWP Stream

The Seasonal Agricultural Worker Program (SAWP) is for employing foreign agricultural workers from partner countries, such as Mexico and Caribbean nations, on a seasonal basis to fulfill temporary labor needs. This program helps maintain productivity during peak agricultural seasons.

PR Stream

Permanent Residence Stream

For employers looking to hire foreign workers with the potential to transition to permanent residency in Canada. This stream not only supports long-term labor needs but also helps foster stability in the workforce by allowing skilled workers to make Canada their home, benefiting both the employers and the economy.

In most cases, an LMIA is required to show that hiring a foreign worker won’t negatively impact job opportunities for Canadians or permanent residents. After the employer secures a positive LMIA, the worker can apply for their LMIA supported work permit.

How to Apply for a LMIA

Here’s a 5-step guide for Canadian employers to obtain an LMIA:

Determine if you Need a LMIA

The employer must first determine if an LMIA is needed to hire the foreign worker. Some workers may be exempt, such as those covered by international agreements (e.g., CUSMA), provincial nominees, or holders of open work permits through the International Mobility Program. If required, the LMIA process is essential to prove there are no suitable Canadian citizens or permanent residents available to do the job.

Choose LMIA Stream and Advertise the Job

Choose the LMIA stream that fits your application, as advertising requirements vary slightly. Typically, you must advertise the position on at least three platforms, including Canada’s Job Bank (mandatory) with one being a national site like Indeed. The ads must run for at least four consecutive weeks within three months prior to submitting the LMIA application, and one posting, such as the Job Bank, must remain active until the LMIA decision is made. Ensure all ads meet Service Canada’s (EDSC’s) 11-point criteria, covering job title, wage, qualifications, etc.

Collect Supporting Documents and Prove Recruitments Efforts

For all LMIA applications, you must provide a signed job offer and proof of advertising. If it’s your first LMIA or more than two years since your last positive one, you’ll also need business legitimacy documents. Proof of advertising includes copies of the ads, details of where, when, and for how long the job was posted, and evidence that the platforms targeted qualified candidates. Also, document all recruitment efforts, such as resumes, interview notes, and reasons for not hiring Canadian citizens or permanent residents, as this is crucial for the LMIA submission.

Submit the LMIA Application

Submit your LMIA application to ESDC/Service Canada via the online LMIA application portal. Complete the forms with job details, including wages and working conditions, and upload necessary documents such as recruitment efforts, job ads, the job offer, and proof of business legitimacy (if required). Pay the CAD $1,000 fee per position online, and you’ll receive confirmation once the application is being processed.

Receive the LMIA Decision and Assist the Worker

After submission, ESDC/Services Canada will assess your application to ensure it meets all requirements, including recruitment efforts and compliance with Canadian labour standards. Processing times vary, ranging from a couple of weeks to a few months depending on the program. If approved, you’ll receive a positive LMIA, which must be provided to the foreign worker. They will need this document to apply for a work permit or extend their current permit.

The LMIA process can be complex, involving detailed recruitment efforts, documentation of job ads, and meeting strict Canadian labour standards. Cantrust Visa can handle these requirements for you, ensuring a smooth process so you can focus on growing your business with the skilled workers you need.

LMIA FAQs

How to hire if you need an LMIA?

If you need to hire a foreign worker and require a Labour Market Impact Assessment (LMIA) in Canada, here’s the process through the Temporary Foreign Worker Program (TFWP):

1. Determine if You Need an LMIA

An LMIA is required to show that hiring a foreign worker will not negatively impact the Canadian labor market. Most jobs under the Temporary Foreign Worker Program (TFWP) require an LMIA.

2. Apply for an LMIA Through the TFWP

The process includes the following steps:

  • Advertise the job: You must advertise the position on multiple platforms, following Employment and Social Development Canada (ESDC) guidelines, for at least 4 weeks. This demonstrates efforts to hire Canadians or permanent residents.
  • Apply to ESDC: Submit your LMIA application, including the job offer, recruitment efforts, wages, and business information. You must show that the wage aligns with Canadian standards for the job and location.
  • Pay the LMIA fee: Most LMIA applications come with a CAD $1,000 fee per worker.
  • Processing time: LMIA processing times vary, typically taking weeks or months, though expedited processing is available for certain streams like the Global Talent Stream.

3. Temporary Foreign Worker Program (TFWP) Streams

The TFWP has various streams depending on the type of job and labor market needs:

  • High-Wage Stream: For jobs paying above the provincial/territorial median wage. Employers must submit a transition plan to reduce reliance on temporary foreign workers over time.
  • Low-Wage Stream: For jobs paying below the median wage. Employers face caps on the number of low-wage workers they can hire and may need to provide housing arrangements for these workers.
  • Agricultural Stream: For employers hiring foreign workers for agricultural jobs. Additional requirements for housing and contracts apply.
  • Global Talent Stream: An expedited option for employers in the tech sector or those hiring highly skilled workers. LMIA applications in this stream are processed within two weeks.

4. After Receiving the LMIA

Once you receive a positive LMIA:

  • Provide the LMIA and job offer letter to the foreign worker, who will use these to apply for a work permit.
  • Compliance: Employers must follow LMIA conditions and regulations, including keeping records, ensuring proper working conditions, and undergoing potential audits.

5. Transitioning to Permanent Residence

Some foreign workers hired through the TFWP may qualify for permanent residence through programs like the Provincial Nominee Program (PNP) or Express Entry under the Canadian Experience Class (CEC).

Hiring foreign workers with an LMIA through the Temporary Foreign Worker Program (TFWP) requires careful adherence to federal and provincial regulations to ensure compliance and avoid penalties.

The child must meet the definition of a dependent under Canadian immigration law, typically meaning they are under 22 years of age and not married or in a common-law relationship.

How to hire if you don’t need an LMIA?

If you’re hiring a foreign worker and do not need an LMIA, you’ll likely be doing so through the International Mobility Program (IMP). The IMP allows employers to hire workers without the need to prove there’s a labor shortage in Canada. Here’s how the process works:

1. Determine LMIA Exemption

The first step is to determine if the foreign worker you want to hire is eligible under the IMP and doesn’t require an LMIA. Some common LMIA exemptions include:

  • International agreements: Workers covered under trade agreements such as CETA (Comprehensive Economic and Trade Agreement) or CUSMA (formerly NAFTA) can work in Canada without an LMIA.
  • Reciprocal employment: Jobs that create opportunities for Canadians abroad or fall under reciprocal arrangements (e.g., youth exchange programs).
  • Significant benefit: Workers whose employment will bring significant social, cultural, or economic benefits to Canada (e.g., entrepreneurs, high-level executives).
  • Intra-company transferees: Workers transferring within multinational companies to Canadian branches for management or specialized knowledge roles.
  • Post-Graduation Work Permit holders and Spouses of certain workers/students are also LMIA-exempt under the IMP.
  • Provincial Nominees who have received a provincial nomination from a Canadian province.

2. Submit the Offer of Employment Through the Employer Portal

If the job is LMIA-exempt, employers must still submit an offer of employment to Immigration, Refugees and Citizenship Canada (IRCC) via the IMP Employer Portal:

  • Register on the Employer Portal: Create an account to submit job offers for LMIA-exempt work permits.
  • Submit the offer of employment: Provide details about the job offer, including the role, wages, and working conditions. The foreign worker’s information will also be required.
  • Pay the employer compliance fee: A CAD $230 compliance fee is required for most LMIA-exempt job offers.

3. Foreign Worker Applies for a Work Permit

After the offer is submitted through the Employer Portal, the foreign worker can use the offer of employment number to apply for a work permit:

  • The worker will submit their work permit application either online or at a port of entry, depending on their eligibility and current status.

4. Employer Compliance

Although an LMIA is not required under the IMP, employers are still obligated to comply with regulations related to the worker’s employment:

  • Ensure that wages, job duties, and conditions match the job offer submitted through the Employer Portal.
  • Keep records for inspection by IRCC to ensure compliance with the terms of employment.

5. Duration and Renewals

Work permits issued through the IMP are typically tied to the job offer and employer and are valid for a specific period. However, in some cases (e.g., open work permits for spouses), the work permit may allow greater flexibility. The worker can apply for extensions as needed, based on their situation and the employer’s needs.

6. Transition to Permanent Residence

Many workers hired through the IMP may later apply for permanent residence. This could be through programs like Express Entry or Provincial Nominee Programs (PNP), depending on the worker’s situation.

Common LMIA-Exempt Categories Under IMP

Here’s a recap of the most common LMIA-exempt categories under the IMP:

  • CUSMA professionals and traders
  • Intra-company transferees
  • Academics (professors, researchers)
  • Performing artists
  • Religious workers
  • Charitable workers
  • Post-Graduation Work Permit holders
  • Provincial Nominees

Hiring under the International Mobility Program (IMP) is more streamlined than the LMIA process, but it still requires meeting all regulatory obligations to ensure compliance with IRCC standards.

IRCC vs, EDSC - Where do I apply for a LMIA?

You apply for a Labour Market Impact Assessment (LMIA) to Employment and Social Development Canada (ESDC), not IRCC.

Here’s the breakdown:

Employment and Social Development Canada (ESDC):

  • Employers apply to ESDC for an LMIA. The LMIA is a document that assesses whether hiring a foreign worker will negatively impact the Canadian job market.
  • The LMIA is required for most temporary foreign workers unless the job is exempt (e.g., under the International Mobility Program, IMP).
  • Only employers apply for the LMIA, not the foreign workers.

Immigration, Refugees, and Citizenship Canada (IRCC):

  • Once the employer receives a positive LMIA from ESDC, the foreign worker uses the LMIA to apply for a work permit with IRCC.
  • IRCC is responsible for processing immigration applications, including work permits and visas.

To summarize: The employer applies for an LMIA through ESDC, and the foreign worker applies for a work permit through IRCC using the LMIA provided by the employer.

How much is a LMIA?

An LMIA (Labour Market Impact Assessment) application typically costs CAD $1,000 per position when applied for directly through ESDC/Services Canada. Processing times can vary depending on the type of LMIA and other factors, but it usually takes a few weeks to a couple of months.

At Cantrust Visa, we provide a full LMIA application service for USD $1,000. Our service includes expert guidance, document preparation, and submission assistance to ensure your application is accurate and timely. Please note that government fees are not included in this price.

What are the processing times for a LMIA application?

The processing times for a Labour Market Impact Assessment (LMIA) application vary depending on the type of LMIA and specific circumstances. Here’s an overview:

  1. Standard LMIA (High-wage and Low-wage positions):
    • Typically takes 51 to 53 business days for processing, depending on the volume of applications and the job’s specifics.
  2. Global Talent Stream (GTS):
    • For highly skilled workers under this stream, processing is usually within 10 business days.
  3. Agricultural Stream:
    • Processing time generally ranges from 10 to 15 business days.
  4. Permanent Residence Stream:
    • Processing can take around 97 business days, but this varies based on individual factors and location.

Please note that actual times may vary depending on factors like the number of applications, employer compliance history, and whether additional information is requested. Also, processing times are updated monthly, so its best to check current processing times on the ESDC (Services Canada) website.

Can I get an open work permit as a spouse of a TFW?

Yes, you can get an open work permit as the spouse of a Temporary Foreign Worker (TFW), but certain conditions must be met.

Here are the key requirements:

  1. Spouse’s Employment Type:
    • Your spouse (the TFW) must be employed in a job classified under NOC (National Occupational Classification) TEER 0, 1, 2, or 3. These categories typically include managerial, professional, technical, and skilled trades jobs.
    • Alternatively, if your spouse is working in any occupation in Canada, they must be under the Temporary Foreign Worker Program (TFWP), and their employer should have received a positive LMIA.
  2. Work Permit Duration:
    • Your open work permit will generally be issued for the same duration as your spouse’s work permit.
  3. Other Considerations:
    • The application for an open work permit can usually be submitted online to IRCC either at the same time or after your spouse has applied for their work permit.
    • If your spouse is working in a lower-skilled occupation, you might not be eligible for an open work permit unless special exemptions apply (e.g., certain pilot programs).
    • Your passport must have at least six months of validity remaining. If your passport expires before your spouse’s work permit, your open work permit will only be issued up to your passport’s expiry date.

In summary, as long as your spouse is working in a qualifying job, you can apply for an open work permit that will allow you to work for any employer in Canada without needing a job offer beforehand.

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