LABOUR MARKET IMPACT ASSESSMENT (LMIA)
A Labour Market Impact Assessment (LMIA) refers to a document that allows a Canadian employer to hire foreign nationals as workers. It can also be seen as a procedure formulated to safeguard the local job market of Canada as well as the foreign nationals working in Canada. It is necessary to have a positive Labour Market Impact Assessment before applying for a work permit in Canada.
HOW DOES AN LMIA HELP YOU?
A Labour Market Impact Assessment is beneficial in a number opf ways-
- Allows you to work in Canada
- Gets you sponsored by a Canadian employer
- Allows the Canadian employer to hire a foreign worker
- If you have a positive Labour Market Impact Assessment, you receive your visa within a period of 2 months.
- Allows you to secure a Canada PR, if and when found eligible.
The Labour Market Impact Assessment process differs on the basis of whether the target employee falls under the category of ‘low wage’ or ‘high wage’. Those temporary foreign workers who are paid higher or above the median wage are classified as ‘high-wage’ workers. Likewise, those temporary foreign workers who are paid under the provincial median wage, are categorised as ‘low-wage’ workers.
- Those Canadian employers who wish to hire high wage workers, must submit their transition plans supported by their Labour Market Impact Assessment applications to the ESDC.
- This is dopne to ensure that necessary steps have been taken to reduce the dependence of foreign workers over time.
- Often times, employers can prove this by recruiting Canadian apprentices.
- Upon inspection however, or in situations of a renewal of Labour Market Impact Assessment, employers are instructed to provide details about the progress of the submitted transition plan concerning the workers.
Median/Hourly wages by province-
The ESDC has recently included the following provisions, following the recent changes from the median/hourly wage standard (prior to May 31st, 2023)-
- Service Canada will use the revised median wages to determine whether the worker classifies as a ‘high wage’ or a ‘low wage’ worker, depending on whether the Labour Market Impact Assessment application was submitted on/after May 31st, 2023.
- Starting from May 31st to August 29th, 2023, a 90-day transition period will be in effect. During this period, the EDSC considers and goes through the applications of employees to differentiate between high and low wages.
|Province/territory||Median hourly wages as of May 31, 2023|
|Newfoundland and Labrador||$25.00|
|Prince Edward Island||$22.50|
Low Wage workers-
- Those Canadian employers seeking to retain low pay envelope workers aren’t needed to give a transition plan, in addition to their Labour Market Impact Assessment operation. However, there are certain restrictions at place, that have been imposed by the Canadian government.
- To ensure that Canadians are always considered the first priority for available jobs, the Canadian government has introduced a cap limit to the hiring of low-wage temporary foreign workers that any given business may employ.
- Certain low-wage occupations may further be refused Labour Market Impact Assessment processing.Employers with 10 or further workers who are applying for a new LMIA are subordinated on the number of their pool confirming of low-pay envelope temporary foreign workers.
LABOUR MARKET IMPACT ASSESSMENT REQUIREMENTS-
- Processing fee– all Labour Market Impact Assessment applications inclue a processing fee of $1000 CAD, which is non-refundable in case of a negative result.
- Supporting business documents– documents that prove the employer’s business is a Canadian one.
- Transition plan– Employers need to provide a plan describing how they intend to meet the need for hiring foreign working professionals.
- Recruitment efforts– Employers must prove their substantial efforts in recruiting the Canadian citizens and permanent residents prior to considering the hiring of foreign workers.
- Wages– All applications must include wage details, that would help distinguish between the low wage and the high wage workers,
- Workplace safety– All temporary foreign workers are entitled to the same safety conditions as the Canadian citizens or Canadian permanent residents.
HOW TO GET LABOUR MARKET IMPACT ASSESSMENT-
The process for applying for an LMIA is listed as under-
- A Labour Market Impact Assessment application has to be submitted by the Canadian employer, to the Employment and Social Development Canada (ESDC).
- He must submit a detailed list of Canadian citizens who had applied for the position and had been interviewed, and detailed reasons explaining why they had not been recruited.
- A positive LMIA is granted by the EDSC upon ensuring that the respective area and location can sustain new workers.
- The position and location are decided by the ESDC as they are employer-specific.
- After obtaining a positive LMIA, the candidate cannot request for relocation to another place. In case of such a situation, the candidate needs to acquire a new LMIA.
While most foreign workers require an LMIA, there are situations in which an LMIA is not needed at all.
LMIA BASED WORK PERMIT-
LMIA gives permission to the employer to hire a temporary foreign worker in the absence of a qualified Canadian worker. This document shows that no Canadian worker is available for the job, and so a foreign worker must fill the place. Eventually, a work permit is issued to the worker.
The LMIA is issued for the following reasons-
- To make sure that foreign workers are not chosen at the cost of Canadian citizens, or Canadian permanent residents who are qualified for the said position, and,
- To make sure such a hiring does not have any adverse/negative impact on the Canadian labour market.
LMIA EXEMPT WORK PERMIT-
There are however certain instances in which a worker does not require an LMIA to support his job offer. It becomes unwanted when-
- You are a full-time employee for the employer for at least a year
- You hold a valid job offer
- You hold a valid work permit that excludes the need for an LMIA under the following cases-
- An international agreement (CUSMA, GATS)
- A federal-provincial agreement
- The “Canadian Interests” category
JOBS THAT ARE EXEMPT FROM AN LMIA-
- Reciprocal employment – allows foreign workers to secure jobs in Canada, when Canadians have similar opportunities in those countries
- Designated by the Minister – includes researchers, fellows, and guest lecturers (sponsored through a federal program)
- Charity and Religious work – this excludes volunteers.
Note– all these can be exempted only when the candidates fulfill the additional aforementioned requirements.
FASTENING THE PROCESS OF LMIA APPLICATIONS-
The EDSC will only review applications in 10 business days, provided the following conditions-
- Complete application
- The employer does not require a compliance review, and the EDSC does not need added time for consultation or clarification concerning the applications.
EXPEDITING AN LMIA- EXCLUDING LOW WAGE WORKERS
The expedition of LMIA is purely limited to the high wage workers, and excludes the low wage temporary foreign workers, so as to ensure that a temporary foreign worker is the highest skilled in the given occupation, so much so that such a skill is difficult to find in the Canadian labour market.
PROCESSING TIME FOR LMIAS-
Processing time for LMIAs may vary from 2 weeks to a few months. Considering the workforce demand in Canada however, the ESDC has promised to process a few applications in 10 days time.
LMIA FEES –
Each LMIA application involves a processing fee of CAD 1000 in addition to a privilege fee of CAD 100. The employer is responsible for the legal costs as well as costs of the application. For example, for five workers, the employer has to bear the costs of 5 LMIAs.
AFTER AN LMIA APPROVAL-
After the processing of the LMIA application, a decision is issued.
- If the LMIA is positive, the employer can move ahead with the hiring of a foreign national. Positive LMIAs are valid for 6 months since the date of issuing. After the issuing of a positive LMIA, the worker must be informed so that he can apply for a Canada work permit.
- In case of a negative LMIA, the employer is refused to hire a foreign national.
Therefore, a Labour Market Impact Assessment is of much importance when applying for a Canada work permit, as an immigrant, so as to prove that your hiring that not, in any way, affected the Canadian Labour Market, at the behest of Canadian permanent residents, or Canadian workers.
WHY ALWAYS CONSIDER BASICS OF IMMIGRATION?
- Expert Visa counselors provide Step-by-step guidance through a secure, online process.
- Apt evaluation of credentials and faster visa processing.
- Identifying all potential hazards and roadblocks in securing a visa.
- Assistance with documentation, immigration rules, citizenship, and border control procedures.
- Multiple case assessment for better conflict resolution.
- Designated process managers to provide personalized guidance.
Just like the basics of anything act as “building blocks” forming a strong foundation for constructing complex structures. The Basics of Immigration serve as the foundational elements of moving abroad, for any aspiring immigrant.