Labour Market Impact Assessment (LMIA)
What is LMIA?
If you’re a Canadian employer looking to hire someone from another country or a temporary resident within Canada, you may need to go through the LMIA process (Labour Market Impact Assessment).
This process involves applying to Employment and Social Development Canada (ESDC), which evaluates whether hiring a foreign worker will have a positive or neutral effect on the Canadian job market. A positive outcome in the LMIA process allows your company to move forward with hiring the foreign worker. The LMIA helps ensure that the employment of foreign workers does not negatively impact job opportunities for Canadians.
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LMIA Process Explained
01
Job Bank Registration
Employers must create a valid account on the Job Bank can post job openings, recruit, and hire across Canada. To be verified and receive a valid employer account, they must provide key details such as their business number, industry, address, number of employees, and other critical business information.
02
Provincial Certificate
In British Columbia, Manitoba, and Saskatchewan, employers looking to hire temporary foreign workers are required to register at the provincial level. After completing this registration process, they are issued a provincial employer registration certificate, which permits them to employ foreign workers. Hire temporary foreign workers Wrap registration infoApply for a certificate of registration.
03
Comply with Advertisement Requirements
Typically, companies must prioritize hiring locals by advertising job openings to them. There are certain criteria for recruitment and job advertising, and rules outlining when these requirements can be waived or simplified.
04
Complete LMIA Application
This stage requires filling out the application forms for the appropriate LMIA stream and submitting documents that confirm the legitimacy of the employer’s business. The specific LMIA stream for the application is determined by the job description and employment terms, which also dictate the necessary supporting documents.
05
Pay Fees & Submit the Application
Pay the LMIA fees and submit the application with supporting documents.
06
Interview with ESDC Officer
An officer from Employment and Social Development Canada (ESDC)/Service Canada will review the application. This may include conducting an LMIA interview or addressing written inquiries as needed.
07
LMIA Approval
The LMIA process ends with a decision. If an officer determines that hiring foreign workers will positively or neutrally impact the Canadian labor market, they will issue an LMIA Confirmation Letter, allowing the employer to hire a foreign worker. Conversely, if the officer believes the impact could be negative, they may deny the LMIA application.
08
Worker Applies For The Work Permit
An employer must give a foreign worker the LMIA Confirmation Letter, which is necessary for applying for a work permit. The Temporary Foreign Worker (TFW) must fill out the required forms and submit documents that demonstrate their qualifications and ability to meet the job requirements.
Employer’s Requirements For LMIA Approval
- Genuine Need: Employers must demonstrate a genuine need for hiring a foreign worker. They need to provide a compelling justification for why the position cannot be filled by a Canadian citizen or permanent resident.
- Recruitment Efforts: Employers are expected to make reasonable efforts to recruit Canadian citizens and permanent residents for the job position before considering hiring a foreign worker. They need to document their recruitment activities, such as advertising the job vacancy, conducting interviews, and providing reasons for not selecting Canadian applicants.
- Wage and Working Conditions: Employers must offer wages and working conditions that meet or exceed the prevailing rates in the region for the specific occupation. The wages should be competitive and in line with the industry standards.
- Labor Market Impact: Employers must demonstrate that hiring a foreign worker will not have a negative impact on the Canadian labor market. They need to show that the employment of a foreign worker will not result in the displacement of Canadian workers or hinder their employment opportunities.
- Compliance with Laws and Regulations: Employers are expected to comply with all applicable federal, provincial, and territorial laws and regulations, including employment standards, workplace safety, and human rights legislation.
- Transition Plan (in some cases): For high-wage LMIA applications, employers may be required to submit a transition plan. This plan outlines how they will gradually reduce their reliance on foreign workers and increase their efforts to hire and train Canadian citizens or permanent residents.
LMIA Processing Time (Average in APRIL 2024)
Processing times can vary from a few weeks to several months. ESDC regularly updates these times to accurately reflect the current conditions.
| Stream | Time in Business Days |
|---|---|
| Global Talent Stream | 7 |
| Agricultural stream | 13 |
| Seasonal Agricultural Worker Program | 7 |
| Permanent resident stream | 79 |
| High-wage stream | 51 |
| Low-wage stream | 55 |
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What Are The Steps After LMIA Approval
Step 01
Offer of Employment
Provide the foreign worker with a written job offer that includes key details about the position, wages, and working conditions.
Step 02
Work Permit Application
The foreign worker uses the positive LMIA and job offer to apply for a work permit from Immigration, Refugees and Citizenship Canada (IRCC).
Step 03
Work Permit Approval
If the work permit application is approved, the foreign worker can legally work in Canada for the specified employer and position.
What LMIA Wage Rate To Offer
As part of the LMIA process, employers are required to offer a wage that meets or exceeds the prevailing wage for the specific job and location. This ensures that hiring a foreign worker does not negatively impact Canadian workers and aligns with Employment and Social Development Canada (ESDC) standards.
To determine the correct wage rate for your LMIA application, follow these steps:
- 1.Identify the appropriate NOC (National Occupational Classification) code for the job.
- 2.Visit Job Bank Canada and enter the 5-digit NOC TEER code.
- 3.Select the geographic location of the job. If no wage data is available for that occupation in the region, refer to the provincial median wage. If that is also unavailable, use the national median wage.
- 4.The median wage is the minimum requirement for most positions. However, for senior or specialized roles, ESDC may expect a higher wage to reflect industry standards.
Note: Wage rates change periodically. Employers must ensure the offered wage remains compliant throughout the entire duration of the temporary foreign worker’s employment as part of the LMIA process.
What Are The Job Advertising Requirement For An LMIA Application
Advertising a job for Canadians and permanent residents is a crucial step in the recruitment process before a business can hire foreign workers. This is actually the first step in the LMIA process. Employers must show that they have been unable to find qualified Canadians or permanent residents for the job.
Employers should advertise carefully to comply with LMIA requirements:
Must include the business name and address, job title, duties, required qualifications (language, education, work experience), terms of employment (location, wage, hours, duration), and contact information for applications.
Must advertise on job bank. Additionally, it must be also advertised on 2-4 platform, depending on the LMIA stream.
Each posting must run for at least 28 consecutive days without interruption. The LMIA application must be submitted to Service Canada/ESDC within 3 months from the start of the first advertisement but after the recruitment period ends. The Job Bank advertisement must continue until a decision is made on the LMIA application.
Can include websites, newspapers, magazines, community resource centers, job fairs, recruitment agencies, professional associations, or even internal company postings. An advertisement on the Job Bank is required, and for the High Wage Stream, using the Job Match function is mandatory.
This documentation, showing where, when, and how long the job was advertised, must be submitted with the LMIA application and retained for 6 years.
Start The LMIA Process
Our expertise is tailored to simplify every step of the LMIA process and increase your chances of success within Canada’s immigration system. From preparing your application to communicating with Employment and Social Development Canada (ESDC), we ensure your LMIA submission is accurate and complete.
Choose WEICS for expert guidance through both the LMIA and work permit processes. Connect with us today to learn how our personalized services can help you meet your business hiring needs efficiently and effectively.