Labour Market Impact Assessment (LMIA)
In Canada, under the Temporary Foreign Worker Program (TFWP), an employer must first get approval from the Canadian government to hire a foreign worker. This is done through a Labour Market Impact Assessment (LMIA), which assesses the impact of hiring foreign workers in Canada.
The LMIA is a way for the government to ensure that bringing in foreign workers will not negatively affect the Canadian labour market, and that qualified Canadian workers are given priority to jobs in the market.
A positive LMIA indicates that there is a need for a foreign worker and that no Canadian citizen or permanent resident (PR) is available to do the job. A negative LMIA indicates that the position should be filled by a Canadian citizen or PR.
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LMIA Process
An employer seeking a temporary foreign worker (TFW) must submit the LMIA application, not the foreign national. Employment and Social Development Canada (ESDC) is the governing body for LMIA applications who issues the relevant documents. The application can be submitted up to six months before the start date of the position and once issued, a positive LMIA is valid for six months from the date of issue.
The LMIA application procedure varies depending on the wage of the worker. Whether the worker is paid under or above the provincial/territorial median wage determines if they are a low or high-wage worker. Low-wage positions require the employer to meet additional criteria in the application process.
Once the LMIA application is reviewed, the employer will be issued a decision from ESDC. If they receive a positive LMIA, the employer can proceed with hiring the foreign national. The foreigner will then be able to apply for a work permit or permanent residence (depending on their circumstance). If the LMIA is negative, the employer is not approved to hire a foreign worker for the position.
LMIA Employer Requirements
Certain requirements must be proved to render a positive LMIA, although it is ultimately up to the ESDC official to determine if the impact of the foreign hire will be positive, negative or neutral on the Canadian labour market.
Furthermore, the requirements for the application differ depending on the wage of the position.
The following must be included with every application, regardless of being a low or high wage position:
- Processing fee: the LMIA application fee is $1,000 CAD, which is non-refundable irrespective of the decision.
- Proof of business legitimacy: documents proving the employer is a legitimate Canadian business
- Proof of recruitment effort: employers must provide evidence of substantial efforts to recruit Canadian citizens or PRs to fill the position
- Workplace safety: evidence that the foreign worker will be covered by insurance that is at least equivalent to the minimum health care offered by the province/territory
High-wage positions:
A TFW who is paid at or above the median hourly wage of the province/territory is considered a high-wage worker. These positions require a specific high-wage application form.
In addition to the above noted requirements, employers for high-wage positions must show proof that the position was advertised on the Government of Canada’s national Job Bank for at least 30 days and also in one additional specialised source that has national reach.
Furthermore, employers for high-wage positions must submit a transition plan with the application. This is an outline of the steps the company is taking to reduce the reliance on foreign workers and to make sure the LMIA is a last resort to addressing their immediate need for a worker. Some ways employers can prove this is by showing investment in hiring and training of Canadian apprentices, or proving how they assist their workers in becoming Canadian residents.
Low-wage positions:
A TFW who is paid below the median hourly wage of the province/territory is a low-wage worker. Only certain regions and occupations in Canada process low-wage LMIA applications.
Unlike the high-wage positions, there is no requirement to submit a transition plan with the application. However, there are additional requirements to take note of. Employers for these positions must advertise the job in the Government of Canada’s national Job Bank for at least 30 days, as well as in TWO additional national sources that also target under-represented groups.
To ensure that Canadians are given priority for these jobs, the government has introduced a cap limit on the number of TFWs a company can employ. Currently, employers are limited to a 20% cap on the proportion of low-wage TFWs in their workforce.
Employers of low-wage TFWs must also ensure the following:
- Pay for round-trip transportation
- Ensure availability of affordable housing
- Pay for private health insurance until workers are covered by provincial health care
- Register the TFW with the provincial/territorial workplace safety board
- Ensure there is an employment agreement in place
How Titan Law Can Help
Titan Law’s legal team is comprised of highly knowledgeable and skilled immigration lawyers, who have helped with hundreds of LMIA applications. We are a local immigration law firm, located in Vancouver, BC and are proud to have the best LMIA lawyers in Canada. We are experts in this area of law and would be happy to assist you with the LMIA process, whether you are an employer or employee.
The system can be complicated and overwhelming to navigate, and the application forms must be filled out accurately or are otherwise returned. If you are in need of assistance, our LMIA immigration lawyers are ready to be your legal guide and help you settle and work in Canada.
