WHAT IS LABOUR MARKET IMPACT ASSESSMENT (LMIA)?
Labour Market Impact Assessment (LMIA) for Canada usually means that Canadian employers must get government approval before hiring foreign workers Labour Market Impact Assessment (LMIA). Are you peering to apply for an LMIA in Canada? Whether you are an Employer or a foreign worker applying for an LMIA-based Work Permit in Canada, this page will help you to clear all your queries about LMIA in Canada. Let’s get started with understanding about Labour market impact assessment (LMIA)
An LMIA is issued in cases where a Canadian employer cannot fill the vacancy with a local Canadian worker or a permanent resident. This is after demonstrating this by advertising the jobs in Canada and hiring Canadians, proving that those applying are not qualified for the position offered.
Labour market impact assessment, popularly called LMIA, is an important document issued by the government as an approval to hire a foreign employee/ international worker for Canada since there is a shortage of labour i.e. no Canadian citizen or permanent resident is eligible to apply or available to apply for the vacant position. This requires an employer to submit an LMIA request to ESDC. The LMIA is very important since it is a proven record that no Canadian employee is hurt while hiring a foreign employee for all reasons.
Critical reason why an LMIA is essential is to determine how hiring a foreign worker impacts the Canadian labour market - negatively or positively.
After applying for the Labour Market Impact Assessment (LMIA), an employer has to wait for a letter of approval from Employment and Social Development Canada ( ESDC ) . The positive LMIA is also known as the confirmation letter. It confirms the need to hire a foreign worker. Once the employer is in the position of the LMIA, the potential candidate can apply for a work permit. They need to have the following: a job offer letter, a contract, an LMIA copy, and the LMIA number.
What happens in the case of a Negative Labour Market Impact Assessment (LMIA) ?
If, in any case, your employer cannot meet the program’s requirements, ESDC/Service Canada will issue an adverse LMIA letter. But the Department will also provide the employers with the required information to recover any work permit-related fees already paid.
New Labour Market Impact Assessment (LMIA) Rules in Canada 2022
The new LMIA system divides job positions into four categories. The LMIA program will depend on the type of employment you want to offer. The employment is further categorized into four main subheads of high wage & low wage positions, seasonal agriculture workers program & agriculture stream workers.
- Hire a High- wage position worker through a Labour market impact assessment (LMIA) in Canada
Jobs can be classified as high wages if the salary is equivalent to the median wage or is more than it in the province where the job will be performed.
- Hire a Low – wage position worker through a Labour market impact assessment (LMIA) in Canada
Low-wage positions are those that have a salary that is lower than the median wage.
- Hire through Seasonal agriculture workers program
This program allows employers to engage temporary foreign workers. The condition in this program is primarily for citizens of Caribbean nations & Mexico.
The essential requirement to fulfill this program is the visa will be valid for a maximum of 8 months as long as they can guarantee the workers a minimum of 240 hours of work of no more than 6 weeks.
When Canadians and permanent residents are unavailable, firms may engage temporary foreign workers (TFW) through the Seasonal Agricultural Worker Program (SAWP).
Employers must fulfil three requirements to be eligible for the SAWP:
- TFWs hired must be citizens of participating Caribbean nations or Mexico.
- There must be production in some commodities sectors.
- The endeavour must be a part of main agriculture on farms.
- Hire through Agriculture stream program
When Canadians and permanent residents are unavailable, firms may hire Temporary Foreign Workers (TFWs) under the Agricultural Stream.
Employers must fulfil two requirements to be eligible for this stream:
- Production must be in specific commodity sectors.
- The activity must connect to on-farm primary agriculture.
Hiring High-Wage Workers with Labour Market Impact Assessment (LMIA) in Canada
To hire high-wage foreign workers, a transition plan is essential for all Canadian employers who want to employ temporary foreign workers at a wage equal to or above the provincial or territorial median hourly wage.
Transition Plan, a Schedule C form to the Application for an LMIA, represents the commitments of an employer agreeing to stick to the specifics of the occupation and work location for which they seek TFWs.
Hiring Low Wage Workers with Labour Market Impact Assessment (LMIA) in Canada
A Transition Plan is not needed when hiring low-wage workers and applying for a Labour Market Impact Assessment (LMIA). However, a cap limits the number of employees a business can hire or employ for a low wage. Canadian employers with more than ten employees are restricted to a 10% cap on low-wage temporary foreign workers.
This cap will be in place for the next two years to give Canadian employers time to transit to the Canadian labour market.
How to Hire expecting Labour Market Impact Assessment (LMIA)?
The Temporary Foreign Worker Program (TFWP) enables you to recruit temporary foreign workers to fill labour and skill shortages. Once the employer receives the LMIA, he should share a copy of the confirmation letter with each temporary foreign worker and inform them to apply for a work permit.
How to recruit if you do not need a Labour Market Impact Assessment (LMIA)?
The International Mobility Program (IMP) allows Canadian employers to recruit temporary foreign workers without an LMIA. When hiring using this program, Canadian employers need to:
- Pay the Employer Compliance Fee
- submit an offer of employment form through the Employer Portal
After An Labour Market Impact Assessment (LMIA) is approved, what's the Next Step?
After your LMIA application is approved, you will have to send a copy of the LMIA and Annex A to the foreign worker to apply for a work permit!
Need Help Applying For An LMIA? We Can Help!
Applying for LMIA in Canada can be very confusing and tricky, that is, if you are not sure what you are doing. However, AMK Global has been helping clients efficiently complete their LMIA applications. Our immigration professionals always on standby to assist you with your LMIA and Temporary Work Permit Applications.
How to apply for an LMIA ?
You have to apply for the Labour Market Impact Assessment (LMIA) from Service Canada. The Temporary Foreign Worker Program should only be employed when no Canadians or permanent residents are available, and there are immediate skills and labour shortages.
It would be best if you abode by the Program’s obligations as an employer. Depending on the position you’re applying for, these specifications could change. The government takes the Program’s integrity extremely seriously. It has procedures in place to ensure employers are adhering to its rules.
You must submit an application form and all other supporting documentation to receive a Labour Market Impact Assessment ( LMIA). Your Application will be evaluated to see whether the company is legitimate/honest, whether a job offer is warranted, and what outcome employing a temporary foreign worker would have on the Canadian labour market.
Employers who file an LMIA application for a high-wage position after April 4, 2022, may ask for an employment period of up to three years. The length of the job must correspond to the employer’s logical employment requirements. (High-wage jobs include those in the Agricultural Stream, Global Talent Stream, and High-wage Stream, including caregiver positions), and Express Entry.) If the employer gives a sufficient justification, the length may be extended in unusual cases.
Document requirements to apply for a Labour Market Impact Assessment (LMIA) for High-Paying Positions
Use the application form to apply.
You must fill it out, sign it, and return it to the relevant Service Canada Processing Center with all necessary paperwork and the processing cost. The application materials must contain:
- Application for a Labour Market Impact Assessment for High-Paying Positions (EMP5626)
- proof of a company’s authenticity/ Legitimacy or legality.
- Evidence of recruitment
Get in touch with our team to understand better!
How's the process proceeds after LMIA for Canada approved?
After you have received a positive LMIA, you will have to do the following
- Get the employment contract signed by the temporary foreign worker ( TFW)
- Share a copy of the LMIA Letter and its Annex A to the worker
( Please note if you are a foreign worker, you will require these letters to apply for your work permit, which is the next step for you once your LMIA is approved )
To immigrate to Canada, you will have to apply for a Permanent Residence or Work Permit before the expiry of your LMIA.
As of April 4, 2022, IRCC has stated that positive LMIAs will be valid for 18 months from the date of issuance.
Can you apply for your work permit if you haven’t received your LMIA? To know more about LMIA Based work permits, reach out to our team from here.
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