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Canada - Labour Market Impact Assessment (LMIA)

 

Nearly 80% of immigrants who move to Canada and receive permanent residency status find employment but what of those who seek temporary employment? There are currently over 470,000 temporary foreign workers in Canada, predominantly finding employment in crop and animal production, accommodation and service industries, manufacturing and clothing sectors as well as in entertainment and recreation, the arts, and private households.

 

Programs that allow foreigners to live and work in Canada temporarily usually require a Labour Market Impact Assessment (LMIA). Some foreign workers are exempt from needing an LMIA, however, all streams that fall under the Temporary Foreign Worker Program (TFWP) require LMIAs as well as some other immigration programs which will allow applicants to claim points for having a job in Canada.

 

What Is a Labour Market Impact Assessment (LMIA)?

A Labour Market Impact Assessment (LMIA) is a document provided by the Employment and Social Development Canada (ESDC) to assess what kind of effects hiring international workers will have in Canada. The ESDC's main aim is to ensure that all Canadians have a higher quality of life by endorsing a highly-skilled, efficient and inclusive workforce to boost Canada’s labor market.

 

Once the ESDC has assessed whether or not it is viable to hire an international worker there will either be a positive or negative outcome.

 

A positive LMIA shows that an employer was unable to fill a particular job in Canada with a Canadian or a permanent resident that is suitable for the position.

 

A negative LMIA shows that there are sufficient Canadian or permanent resident candidates that are eligible to fill the vacant job position.

 

How do I apply for an LMIA?

You would not have to. In most cases, employers are required to apply for a Labour Market Impact Assessment (LMIA) before they can hire foreign workers. To positive LMIA, a Canadian employer must prove that there is no Canadian or permanent resident worker available to complete the job in question and a foreign worker is therefore required.

 

Employers will have different application procedures depending on your wage and the median wage of the province or territory you will be working in. Low-wage positions will require more processes than high-wage positions.

 

Median Hourly Wage by Province or Territory

Province/ Territory

Median hourly wage as of May 11, 2020

Alberta

$27.28

British Columbia

$25.00

Manitoba

$21.60

New Brunswick

$20.12

Newfoundland and Labrador

$23.00

Northwest Territories

$34.36

Nova Scotia

$20.00

Nunavut

$32.00

Ontario

$24.04

Prince Edward Island

$20.00

Quebec

$23.08

Saskatchewan

$24.55

Yukon

$30.00

 

Do I need an LMIA?

 

YES, if you are:

 

An in-home caregiver

An Agricultural Worker

A Foreign Research Academic

Applying through the Temporary Foreign Worker Program

Wish to work in Quebec

 

No, if you are:

International Mobility Program

International Free Trade Agreements

Canadian Social & Cultural Interests

Intra-Company Transfers

Those awaiting Permanent Residency

 

Once the LMIA is approved

If a Labour Market Impact Assessment is approved or deemed positive it will be valid for 6 months. Sometimes an LMIA may be approved in as little as 10 days. You will then be notified by your employer to say that you can apply for your work permit or permanent residency. It is important to ensure that you receive a copy of the LMIA and job offer from your employer as you will need it when you apply for your work permit. 

 

Get ready to Work!

Before starting on your Canadian journey, it’s important to know whether or not you will need an LMIA or not. Various programs and immigration categories are on offer for temporary foreign workers who are just as much an integral part of the development and growth of the Canadian economy as permanent residents and citizens are.

 

Once your Labour Market Impact Assessment (LMIA) has been approved and you have the job offer you’ll need to apply for your Canadian work permit. Requirements may differ slightly from program to program as well as if you are applying for work in the province of Quebec.

 

Need help with your application to work in Canada?

 

Simply click the link below to speak to one of our highly qualified consultants for more information about the Labour Market Impact Assessment, as well as the visa and work permit application process.

 

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LMIA Requirements

The LMIA application process can be quite labor intensive and needs a lot of detailed supporting documents. Your employer will have to meet the following requirements to receive a positive LMIA:

 

  1. Show that they could not fill the job locally

Your employer must have advertised the vacant position for a minimum of 4 consecutive weeks in the last three months before applying for an LMIA. This should be done on the Government Jobsite, JobBank. You can submit invoices from paid job platforms or supporting copies and documents as proof.

 

  1. Develop a transition plan or a labor market benefits plan

Your employers must produce a transition plan which will need to be submitted with your LMIA application. A transition plan should describe in detail what attempts the employer plans to undertake to recruit, retain, and train Canadians and permanent residents to reduce their reliance on the TFWP. For highly skilled positions, like those that fall under the Global Talent Stream, employers must develop a labor market benefits plan that describes how hiring a highly-skilled foreign worker will benefit the Canadian labor market.

 

  1. Draw up an employment contract

An employment contract must be prepared and signed by the employer and the temporary foreign worker to ensure that all parties involved are aware of their rights and obligations. The temporary foreign worker must sign it before arriving in Canada.

 

  1. Meet additional requirements for low-wage positions

Additional work benefits like transportation, affordable housing, and healthcare must be arranged and provided for low-wage foreign workers. The ESDC may conduct inspections to ensure employers adhere to these requirements.

 

  1. Pay the LMIA application fees

Employers must pay a CAD $1,000 processing fee for the Labour Market Impact Assessment application. Employers may be exempt from paying the application fee if they are hiring through the Caregiver Stream and the Agriculture Worker Streams. An LMIA is valid for six months after it is issued to a Canadian employer.

 

What's Next?

Now that you have your LMIA, you will be able to apply for your Canadian work visa. You will need the following documents to apply:

 

Your job offer letter

Your employment contracts

A copy of the LMIA; and

Your LMIA number

 

 

 




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