LMIA - Labour Market Impact Assessment
What is a Labour Market Impact Assessment (LMIA)?
A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) that assesses the impact of hiring a foreign worker on the Canadian labor market. It is a crucial step for Canadian employers who wish to hire foreign workers under certain employment streams.
There are two main ways to employ a foreign national in Canada, through the Temporary Foreign Worker Program (TFWP) or through the International Mobility Program (IMP). Most employers will need to apply for an LMIA through the TFWP before hiring a temporary worker unless an LMIA exemption under the IMP exists.
The Temporary Foreign Worker Program is intended for employers facing short-term and labour shortages, and only when there are no Canadian citizens or permanent residents to fill the position. As an employer of the Temporary Foreign Worker Program, you must comply with the program requirements. ESDC has several mechanisms in place to verify an employers' compliance with the program requirements, and those that fail to comply will be subject to consequences
Here are some key points about LMIA:
Purpose: The LMIA aims to protect the Canadian labor market by ensuring that hiring a foreign worker will not negatively impact employment opportunities for Canadian citizens and permanent residents. It assesses factors such as the availability of Canadian workers, wages, working conditions, and the potential benefits of hiring a foreign worker.
Employer application: Canadian employers must apply for an LMIA by submitting relevant documents and information to ESDC. They need to demonstrate their efforts to recruit Canadian workers for the position and provide details about the job offer, including job description, salary, and benefits.
Application assessment: ESDC assesses the LMIA application based on several factors, including the employer's recruitment efforts, the labor market conditions in the specific region and industry, and the job's impact on wages and working conditions. ESDC may consult with other organizations or request additional information during the assessment process.
Positive or negative determination: If the LMIA application is approved, it results in a positive LMIA. This indicates that the employer has demonstrated a need to hire a foreign worker and can proceed with the employment offer. A negative LMIA means that the application has been rejected, and the employer cannot hire a foreign worker for that position.
Impact on work permit: A positive LMIA is generally a requirement for certain work permit streams, such as the Temporary Foreign Worker Program (TFWP). With a positive LMIA, the foreign worker can apply for a work permit to work in Canada. However, there may be additional requirements to fulfill, such as obtaining a valid job offer and meeting eligibility criteria.
It's important to note that LMIA requirements and processes can vary based on the specific work permit stream, industry, and regional considerations.
The Five Labour Market Streams
In Canada, the Temporary Foreign Worker Program (TFWP) consists of five main streams or categories under which employers can hire foreign workers. These streams are designed to address different labor market needs and requirements. Here are the five labor market streams within the TFWP:
High-wage stream: This stream is for higher-skilled occupations with wages that meet or exceed the provincial or territorial median hourly wage. Employers hiring foreign workers under this stream typically require a positive Labour Market Impact Assessment (LMIA) and must demonstrate efforts to recruit and train Canadian citizens or permanent residents.
Low-wage stream: The low-wage stream is for lower-skilled or entry-level occupations with wages below the provincial or territorial median hourly wage. Employers must obtain a positive LMIA and meet specific requirements to demonstrate that hiring a foreign worker will not have a negative impact on the Canadian labor market.
Seasonal Agricultural Worker Program (SAWP): The SAWP is a stream that allows employers in the agricultural sector to hire temporary foreign workers for specific seasonal agricultural work. Employers must have a valid job offer and obtain a positive LMIA specifically under the SAWP.
Agricultural Stream: This stream is designed for employers in the primary agricultural sector who want to hire foreign workers for non-seasonal agricultural work. Employers must demonstrate a genuine need for foreign workers and meet specific requirements outlined by the program.
Global Talent Stream (GTS): The Global Talent Stream is a fast-track option within the TFWP that allows certain employers to hire highly skilled foreign workers for specialized positions. To access this stream, employers need to be referred to the program by one of the designated referral partners, and they must meet specific eligibility criteria.
It's important to note that each labor market stream within the TFWP has its own requirements, processes, and criteria that employers must meet. The specific requirements may vary based on factors such as the occupation, wage level, industry, and regional considerations.
Low Wage Labour Market Impact Assessment
The Low-wage stream of the Labour Market Impact Assessment (LMIA) is a category within the Temporary Foreign Worker Program (TFWP) in Canada. It allows employers to hire foreign workers for lower-skilled or entry-level occupations with wages below the provincial or territorial median hourly wage.
Here are some key points regarding the Low-wage LMIA:
Genuine need for foreign workers: Employers must demonstrate a genuine need for hiring foreign workers due to a lack of available Canadian citizens or permanent residents to fill the job positions. They need to provide evidence that they have made efforts to recruit and hire Canadians first.
Wage requirements: The wages offered to the foreign workers must be consistent with the prevailing wage rates for the specific occupation and location. The wages must also meet or exceed the minimum wage set by the province or territory where the work will take place.
Advertisements and recruitment: Employers are required to advertise the job positions in multiple venues to attract Canadian citizens and permanent residents. The recruitment efforts must be made within a specified time frame and meet the advertising requirements set by Employment and Social Development Canada (ESDC).
Labor market impact assessment: The employer needs to apply for an LMIA by submitting the necessary documentation, including details about the job positions, wages, recruitment efforts, and a comprehensive explanation of the need for foreign workers. ESDC will assess the application based on the labor market conditions and the impact of hiring foreign workers on the Canadian labor market.
Duration of the LMIA: If the LMIA application is approved, it will typically be valid for a specific period of time. The employer can proceed with hiring the foreign workers during this validity period. After the LMIA expires, the employer may need to apply for a new LMIA if they wish to continue employing foreign workers.
Work permit application: Once the employer obtains a positive LMIA, the foreign worker can apply for a work permit to work in Canada. The work permit application will require the foreign worker to provide the necessary documents, including the positive LMIA, job offer letter, and other supporting documents.
It’s important to note that the specific requirements and processes for the Low-wage LMIA can vary based on factors such as the province or territory, occupation, and other regional considerations.
High Wage Labour Market Impact Assessment
The High-wage stream of the Labour Market Impact Assessment (LMIA) is a category within the Temporary Foreign Worker Program (TFWP) in Canada. It allows employers to hire foreign workers for higher-skilled occupations with wages that meet or exceed the provincial or territorial median hourly wage.
Transition Plan: The transition plan is a key piece of a high-wage LMIA application. It describes the activities an employer will commit to in order to recruit, retain and train Canadians and permanent residents to reduce the reliance on the temporary foreign worker program. In some cases, employers may be exempt from the transition plan requirement; for example, if the position is for a limited duration or requires unique skills that are not readily available in Canada.
Recruitment Efforts: Employers must conduct recruitment efforts to hire a Canadian or permanent resident before offering the position to a foreign worker and applying for an LMIA. Successful LMIA’s start with good recruitment efforts and any deviation.
At least three recruitment activities must be conducted for four consecutive weeks within three months prior to submitting the LMIA application. To satisfy the minimum recruitment requirements, the job opening must be posted on the Government of Canada’s Job Bank and on two other platforms.
Job Match Service: Employers are required to use the job match service. Job match allows employers to see anonymous profiles of job seekers that meet the skills and requirements described in the job posting, ranking them using a five-star system. For high-wage positions, employers must invite all four-star or more ranked job seekers to apply for the position within 30 days of advertising.
It’s important to note that the specific requirements and processes for the High-wage LMIA can vary based on factors such as the province or territory, occupation, and other regional considerations.
Quick Contact
Dream Tour
Explore
The World
