Labour Market Impact Assessment (LMIA)
LMIA applications are complex and require lots of documentation and statistical tabulation e.g. numerical breakdown of the number of Canadians applied for the position, the number of offers of employment made, and the number of unqualified applicants. Employers must provide a written description of why each un-hired Canadian was not qualified for the job.
Employment and Social Development Canada (ESDC) oversees Canada’s LMIA process. ESDC while considering LMIA applications takes into consideration following elements of the job offer:
- Whether salary offered to the foreign worker is consistent with average wages paid for the occupation in that area?
- That the working conditions are consistent with labour laws
- Is there a labour shortage for that occupation in the area the position is located?
- That if the foreign worker be able to transfer unique skills or expertise to Canadians
- Is there an ongoing labour dispute in the company and/or industry?
- That Canadian employer has made adequate recruitment efforts to find a Canadian to fill that position
- That hiring foreign worker will help to create or retain jobs for Canadians
Temporary Foreign Workers Program is divided into streams for Higher-skilled workers and Lower-skilled workers. Positions falling in skill levels 0, A and B of the National Occupational Classification (NOC) system are placed in the Higher-skilled category. Positions falling in skills levels C and D are considered in low-skilled category.
The wage being offered for the position will determine if you need to apply for a Labor Market Impact Assessment under the Stream for High-wage Positions or the Stream for Low-wage Positions, each with their own requirements.
If you are offering a wage to a temporary foreign worker that is:
- at or above the provincial or territorial median hourly wage, you must apply under the Stream for high-wage positions
- below the provincial or territorial median hourly wage, you must apply under the Stream for low-wage positions
LMIA Requirements
Various LMIA streams have some specific requirements. Click on your relevant Stream category below to find out more:
Advertisement Requirement:
- National/Provincial Job Bank for at least 28 days coupled with continuation of Ad until LMIA is issued
- Two other sources of advertising one of which must be national
Transition plan: Employers must complete a detailed transition plan
Advertisement Requirement:
- National/Provincial Job Bank for at least 28 days coupled with continuation of Ad until LMIA is issued
- Two other sources of advertising one of which must be national
Cap on Low-Wage Temporary Foreign Workers:
Employers with 10 or more employees applying for a new LMIA under this stream are subject to a cap. This is 10 per cent of temporary foreign workers who may be employed at that worksite. Also there are some exceptions to the cap on low-wage temporary foreign workers
Advertisement Requirement:
- National/Provincial Job Bank for at least 28 days coupled with continuation of Ad until LMIA is issued
- Two other sources of advertising one of which must target under-represented groups
Transition plan: Employers must complete a detailed transition plan
Advertisement Requirement:
- National/Provincial Job Bank for at least 28 days coupled with continuation of Ad until LMIA is issued
- Two other sources of advertising one of which must be national
Cap on Low-Wage Temporary Foreign Workers:
Employers with 10 or more employees applying for a new LMIA under this stream are subject to a cap of 10 per cent of temporary foreign workers who may be employed at that worksite
LMIA Application Fees
For every job position being requested, employer must pay per application position fee of CAD $1,000. This is not per application, but per position. Under any circumstances, this fee can be charged from the Foreign Worker
Therefore, if the LMIA application is requesting 10 positions, the application fees due would be CAD $10,000
Processing of LMIA Applications
Many factors must be evaluated before deciding on LMIA application. You can help reduce delays in processing your application by:
- ensuring your LMIA application is complete before it is submitted
- responding promptly to Service Canada requests for additional information or documentation
Economic & Provincial Immigration Programs
There are several provincial and immigration programs which enable foreign applicants to earn additional points to their credit if they have valid job offer from Canadian Employers thus facilitating their permanent residence to Canada. Such programs are like Atlantic Immigration Pilot Program & many Provincial Nominee Programs. Candidates in the federal Express Entry pool can also claim additional Comprehensive Ranking System (CRS) points if they receive a valid job offer.
