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LMIA – Labour Market Impact Assessment is an official document required by the Canadian employer who is willing to hire a foreign employee. Any company who is hiring through the Temporary Foreign Worker Program needs to get a preapproval from government before accommodating international talent.
In this guide you will learn more about LMIA, requirements for its procedure, eligibility, certain exceptions and much more.
What is LMIA –Canada?
LMIA stands for Labour Market Impact Assessment. It is the preapproved government official document issued by Employment and Social Development Canada (ESDC) evaluating the effectiveness of recruiting the foreign immigrant on domestic employment market. If ESDC analyses that there isn’t any qualified Canadian citizen or permanent resident to fill that position, and there is a genuine requirement for that international employee, a Positive LMIA will be issued to the recruiter. A Negative LMIA indicates that a job must be taken by the Canadian Citizen or permanent resident.
Step – by – Step LMIA process
Upon the approval of LMIA, the worker now will have to apply for a work visa to obtain a Canadian Work permit. Following are the documents required for Work visa application:
- Job offer letter
- Signed employment contract
- LMIA number
- Copy of LMIA
LMIA Requirements
There are 2 main streams under which an employer categorizes the worker:
- Recruiting High-Wage Workers: Hiring a high wage foreign worker requires a transition plan as an important document along with the LMIA application. The transition plan indicates the employer’s commitment to the foreign employee during their employment. If the employer is paying a foreign national with high wage than the province’s median wage, then it is considered to be a high wage worker for LMIA purposes.
Province/Territory | Wages prior to April 30, 2022 | Wages as of April30, 2022 |
---|---|---|
Alberta | 27.28 | 28.85 |
British Columbia | 25.00 | 26.44 |
Manitoba | 21.60 | 23.00 |
New Brunswick | 20.12 | 21.79 |
Newfoundland and Labrador | 23.00 | 24.29 |
Northwest Territories | 34.36 | 37.30 |
Nova Scotia | 20.00 | 22.00 |
Nunavut | 32.00 | 36.00 |
Ontario | 24.04 | 26.06 |
Prince Edward Island | 20.00 | 21.63 |
Quebec | 23.08 | 25.00 |
Saskatchewan | 24.55 | 25.96 |
Yukon | 30.00 | 32.00 |
- Recruiting Low-Wage Workers: if an employer is planning to hire a low-wage worker, then there is no need to submit a transition plan. However, the ability to employ foreign workers will depend on a limit which will be set by Government of Canada places to restrict the amount of low-wage temporary foreign employees. The employer must also take care of transportation and housing cost of workers recruited at low wage positions.
Eligibility Requirements for Employer
- Is there a genuine shortage of labour which cannot be accommodated by Canadian resident?
- Does the Canadian employer taken the appropriate recruiting efforts to recruit a local Canadian employee?
- Are working conditions in conformity with provincial, municipal and federal regulations?
- Does the salary offered represent an accurate representation of average wage for that job within the geographic area?
- Is an employee able to fulfill the duties of their job and share their experience with Canadians?
- If the employer is involved in any ongoing dispute over employment?
- Does the salary you are aiming for correspond to the median salary for the profession and region?
- Can hiring a foreign-born worker be beneficial to the creation of jobs as well as retention in Canada?
Average LMIA processing timelines
ESDC may take 10 business days to response or sometimes it can be extended up to few months. Canada is experiencing a huge number of LMIA cases in 2022. This may cause delays which is particularly evident within the Temporary Foreign Worker Program (TFWP)
Application Type | Average processing time |
---|---|
Global talent stream | 9 business days |
Agricultural stream | 15 business days |
Seasonal agricultural worker program | 5 business days |
Permanent residence stream | 22 business days |
In-home caregivers | 24 business days |
High-wage stream | 34 business days |
Low-wage stream | 37 business days |
Lebiz Canada can help you with your LMIA pathway
Getting a LMIA can sometimes be very difficult and puzzling task if you are not having deep root knowledge of the program. Lebiz will help you obtain LMIA in an expedite manner with ease. There are multiple challenges while finding a job in Canada but we are here to help you with that. Our financial experts will give you full handholding throughout the process and will assist you for LMIA or TFWP application.
For more information on securing a LMIA work permit of Canada, speak to our senior financial experts and lawyers. They will help you choose best immigration pathway available according to your profile.
Q1- WHAT IS LMIA?
Ans1- LMIA is short for labour market impact assessment. It is a type of document which an employer receives from ESDC – Economic and Social Development Canada, if they are intending to hire an international employee for a job position in their venture.
Q2- WHAT DOES A POSITIVE LMIA MEAN?
Ans2- A positive LMIA means that there is a genuine need for a foreign worker and there is no qualified Canadian citizen or permanent resident which is best suited for that job post.
Q3-WHO NEEDS LMIA?
Ans3- An employers who is looking to recruit a foreign worker needs to obtain a pre-approved LMIA document from government as a permission to hire that worker before he/she applies for a work permit.
Q4- WHY DO I HAVE TO GET A NEW LMIA IF I JUST GOT IT ONE YEAR AGO?
Ans4- Labour Market Impact Assessment (LMIA) is valid for a limited period of time. There is no such provision by the Canadian government to extend the duration of LMIA. The employer needs to obtain a new LMIA if they are willing to keep that worker for a longer period of time provided that there is still no Canadian citizen or permanent resident who can fulfil the requirements of the job.
Q5- Who is eligible for LMIA?
Ans5 – Almost every Canadian employer is eligible get a LMIA. But there are certain basic requirements which you need to meet if you are an employer:
- You must have a legitimate business.
- You must be capable enough to remunerate your employees.
- There is a real need for an international worker.
- You are capable and willing to take care of housing and basic needs of that foreign worker.
Q6- WHO WILL PAY THE FEES OF LMIA?
Ans6- Employers has to pay the LMIA fees to ESDC. In some cases, they also tend to cover the costing of getting a work permit for their foreign worker.
Q7-HOW MANY POINTS I GET FOR LMIA UNDER EXPRESS ENTRY PROGRAM?
Ans7- After obtaining a successful LMIA from employer, a worker may be granted with 50 or 200 points under Comprehensive Ranking System (CRS) depending on the specific designation.
Q8- CAN I GET PR WITH LMIA?
Ans8- After completion of working for 12 months in Canada, you will be granted with 50 or 200 points which will enhance your CRS score. You can either apply under FWSP (Federal Skilled Worker Program), FSTP (Federal Skilled Trades Program) or CEC (Canadian Experience Class) of express entry program for permanent residency status.
Q9- DOES ENTREPRENEUR ALSO NEED LABOUR MARKET IMPACT ASSESSMENT?
Ans9- No. An entrepreneur can get a work permit to work in Canada without a LMIA. They can apply for work permit under different business visa programs in Canada proving that they are willing to do business or buy business in one of the Canada’s province.
Q10- HOW MANY LMIA’S CAN AN EMPLOYER GET?
Ans10- There is no perfect and accurate answer to this question. This depends on many factors. In some cases it is possible to get as many LMIA’s as employer wants. Due to fewer positions for skilled workers there is a limit for a low- skilled worker which a particular business can employ. Additionally there could be some restrictions because of regional unemployment levels.
Q11- CAN AN EMPLOYER TERMINATE A FOREIGN WORKER IF THEY ARE NOT WORKING?
Ans11- If an employer feels that the foreign worker is not an ideal fit for the job; they can dismiss that employee anytime in accordance with the laws of labour of that province. This will be employer duty to ensure that they notify the Service Canada of the date the foreign worker is no longer employed by them.
Q12-CAN AN INTERNATIONAL WORKER BE PROMOTED?
Ans12- No. The employer cannot promote the foreign worker using the same LMIA. When a LMIA is issued by ESDC, the work permit the receive has all the information provided like employer name, job position and the location of the work. If an employer wants to promote their foreign worker, they first need to get a new LMIA from ESDC with updated changes. Again, the employer need to provide sufficient proof that there were none qualified Canadian citizen best suited for that role.
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