Canada is one of the most inclusive countries around the globe that promotes multiculturalism. It has the highest immigration rates and welcomes thousands of immigrants every year. The immigrants include individuals with the essential work experiences and skill sets that help them in obtaining permanent residency.

Labour Market Impact Assessment (LMIA)

An LMIA, initiated by the Canadian Government, is a process of labour market verification. Through LMIA, Employment, and Social Development Canada (ESDC) confirms a job offer of a foreign worker and ensures that the employment will have a positive impact on the labour market of Canada. The LMIA Canada process necessitates the employer to submit all the important documents and information relating to the position. It also obliges the employer to provide information about the total Canadian and permanent resident candidates having undergone the hiring process. Moreover, the employer must also state the reasons why the Canadian prospects were unable to meet the hiring requirements.

The results of the LMIA process can be positive or negative. On receiving a positive LMIA known as a confirmation letter, the employer can hire a foreign employee to fill the position. A positive result shows that there is actually a requirement for a foreign worker, and no Canadian or permanent resident candidates were fit for the job position. Now, the temporary foreign employee is eligible to apply for Refugees and Citizenship Canada (IRCC) to avail the work permit.

In order to apply for the work permit, the foreign workers need:

  • a job offer letter
  • a contract
  • a copy of the LMIA
  • the LMIA number

Types of Labour Market Impact Assessment

  1. Express Entry LMIA

Express Entry LMIA is meant to support the applications under the Express Entry Program for obtaining Permanent Residence in Canada. Express Entry system awards 50 or 200 CRS points, depending on the level of the position, to the positive LMIA holder. The employer can subsequently hire the foreign worker. The employer can subsequently hire the foreign worker, whom they sponsored for LMIA.

 2. Regular LMIA

The regular LMIA supports the application under the Temporary Foreign Worker Program for getting the work permit. Once the employer gets the LMIA, the foreign worker can apply for availing the work permit.

3. High-Wage Earner Position

For the high-wage positions, the employer needs to complete a Transition Plan outlining the intention of permanently filling the job position held by a temporary foreign worker. Although some categories of workers are exempt from this requirement. It is important for employers to keep comprehensive records of the foreign worker’s stay in the country. While certain high-wage LMIA applications take less time to process, others may take longer. Foreign workers coming for 120 days or even less, workers in high skill trades, and workers whose salary falls in the category of top 10% Canadian earnings are likely to receive the LMIA results within ten business days.

4. Low-Wage Earner Positions

The LMIA application process of low-wage earner positions is quite different from the high-wage positions. Moreover, there are more restrictions on the low-wage job offers. Positive LMIA results of low-wage jobs will enable employers to hire foreign workers only for one year. In addition to this, the organizations having more than ten employees can have only 10% workforce of low-wage foreign workers. In addition, if the worker’s salary is less than median in that province or territory, the employer will be capped on proportion of low-wage positions. Employers need to pay more application fees, fill out longer forms, and keep detailed records of recruitment practices.

LMIA - Labour Market Impact Assessment Canada

Guide for Employers to Apply for LMIA

There are a number of steps that employers need to go through in order to apply for an LMIA. So, if you are willing to apply for an LMIA, make sure to follow a step-by-step guide given below.

1. Determine the Skill Level

The first thing to do is to determine the skill level and class for the intended occupation. Leveraging the National Occupation Classification (NOC) system can help in determining the skills more accurately. NOC is the nationally accepted system for the job groups as well as titles in Canada.

2. Fulfil the Advertisement Requirements

When applying for the LMIA, an employer needs to prove that sufficient actions have been taken to hire a Canadian citizen or a permanent resident of Canada. You need to prove this with authentic evidence. Make sure you have fulfilled the minimum advertisement requirements but still haven’t been able to find the perfect fit candidate. However, the Employment and Social Development Canada has the right to demand more advertisement efforts if it feels the need for a wider advertisement period for filling the vacant position.

3. Offer the Median Wage Rate

When looking for a worker to fill a job position, make sure to offer a median wage rate. It must not fall below the prevailing wage rate of your geographical location.

4. Cross-check the Fulfilment of Eligibility Requirements

Before applying for the LMIA, make sure to cross-check that none of the Canadian and permanent resident workers are able to meet the eligibility requirements. This is important because you can only successfully apply for LMIA when there are no Canadian or permanent resident candidates qualified for the job position.  Moreover, it ensures that the hiring of the foreign worker will not negatively impact the labour market of Canada

5. Submit the Application

Once you are sure that you have completed all the previous steps, it is time to submit the LMIA application. Before you identify a potential temporary foreign worker, ensure submitting the application to the concerned authority.

6. Prepare for the Interview

As a mandatory step in the LMIA sponsorship process, the employer will have an interview with the Officer from the Service Canada. Be ready to provide information regarding the business and its needs, as well as justifications for hiring the foreign worker. The Officer holding the interview will be determining whether the LMIA should be approved or not, based both on the documents provided with the application and the results of the interview.

7. Contact Foreign Worker

The final step is to contact the temporary foreign worker whom you find fit for the vacant position. Once the Service Canada provides you with the approved LMIA, you can forward the copy of the confirmation letter to the foreign worker. Make sure to also include the duly signed offer of employment as well as the contract of employment. Now, the temporary foreign worker can apply for the work permit. However, it is important to note that a neutral or positive LMIA result is not a guarantee the foreign worker will receive the work permit.

Final Thoughts

Working in Canada can enhance the eligibility of an individual to avail permanent residency. Acquiring LMIA is beneficial for both employers and employees. Make sure to take a look at the important facts relating to LMIA for better outcomes. If you’re looking for further knowledge about LMIA, or interested in applying to be a temporary worker and in dire need of immigration services, do not hesitate to contact our professional team at Konan Law today and book an appointment!

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