LMIA

Understanding the Labour Market Impact Assessment (LMIA)

In Canada, employers looking to hire foreign workers usually need a Labour Market Impact Assessment (LMIA), a document issued by Employment and Social Development Canada (ESDC). An LMIA assesses the potential effects of hiring foreign workers on the Canadian labor market. If approved, the LMIA indicates that no Canadian citizens or permanent residents are available to fill the position, allowing employers to hire foreign workers.

Purpose of the LMIA

The LMIA ensures that hiring foreign workers will not negatively impact Canadian workers. It confirms that:

• No Canadian citizens or permanent residents are available to do the job.
• Hiring a foreign worker will fill a labor shortage.
• Employing the foreign worker will have a neutral or positive impact on the Canadian labor market.

Types of LMIA

1. High-Wage and Low-Wage Positions:

• High-Wage: Jobs with wages at or above the median hourly wage for the province or territory.
• Low-Wage: Jobs with wages below the median hourly wage.

2. Temporary Foreign Worker (TFW) Stream:

Covers streams like the Global Talent Stream, Agricultural Stream, and Caregiver Stream.

3. Permanent Residence Stream:

For employers supporting a foreign worker’s application for permanent residency.

LMIA Requirements

To apply for an LMIA, employers must meet several requirements:

1. Processing Fee:

A non-refundable fee of $1000 CAD is required for each LMIA application. Some in-home caregiver positions may be exempt.

2. Business Legitimacy Documents:

Employers must provide proof of their legitimate business operations.

3. Transition Plan (for High-Wage Workers):

Employers hiring high-wage workers need a plan to reduce their reliance on temporary foreign workers over time.

4. Recruitment Efforts:

Employers must demonstrate efforts to recruit Canadian citizens and permanent residents. This includes:

• Advertising the job on the Job Bank.
• Using at least two additional recruitment methods that meet duration and content requirements.

5. Wages:

Employers must specify TFW wages to distinguish high-wage from low-wage positions. Wages must align with Canadian standards to ensure fair compensation.

6. Workplace Safety:

Employers are required to show that foreign workers will receive the same health and safety protections as Canadian workers, including appropriate insurance coverage.

Additional Requirements for Low-Wage Workers

• Cap on TFWs: A limit of 20% on the number of foreign workers in low-wage positions.
• Transportation: Employers must provide transportation to and from Canada for low-wage workers.
• Housing: Employers must arrange adequate housing for low-wage workers for the duration of their employment.

LMIA Application Steps

1. Determine the Type of LMIA Needed: Identify if the job is high-wage or low-wage and select the appropriate stream.
2. Meet Advertising Requirements: Ensure that the job is advertised on the Job Bank and through additional recruitment channels, meeting specified requirements.
3. Gather Required Documents: Prepare documents such as a detailed job description, business license, proof of recruitment efforts, and financial information.
4. Complete LMIA Application Forms: Fill out the required forms based on the specific stream (high-wage or low-wage) and submit them along with supporting documents and proof of payment.

Conclusion

Obtaining an LMIA is essential for Canadian employers hiring foreign workers. By following the correct procedures and meeting all requirements, employers can address labor shortages with skilled international talent. For up-to-date and detailed information, always refer to the ESDC website.