Canada Labour Market Impact Assessment (LMIA)



Canada Labour Market Impact Assessment (LMIA)

A Labor Market Impact Assessment also known as an LMIA is a labor marker assessment carried out by the Employment and Social Development Canada (ESDC) to assess the offer of employment to a foreigner and ascertain that the job offer will not have a negative impact on the labor market or displace Canadian citizens or permanent citizens.

Canadian employers who wish to employ foreign professional or skilled worker must provide various information with regards to the job offer, including the number of Canadian citizens and permanent residents who applied for the same job, the number of Canadian citizen and permanent residents interviewed and a detailed explanation why the Canadians were not hired for the job.

The ESDC during the analysis of the job offer will consider the following factors:

If the remuneration offered to the foreigner is inline with a standard provision where the job is offered
If the working conditions are compliant with collective bargaining agreements or with labor laws of the province or territory
If the province or territory where the job is offered is experiencing a labor shortage
If there is a labor dispute in the company/industry
If the Canadian employer before hiring the foreigner has taken considerable steps to find Canadians that are qualified for the position.
Will the foreign professional/skilled worker be able to transfer their unique skills or expertise to Canadians?
If hiring a foreign skilled worker will create or retain jobs for Canadian citizens or permanent residents.
If the foreigner skilled worker will engage in full-time work at a pre-determined wage as an employee
The more specialized and higher salary the foreigner receives, the higher the chances of obtaining a positive Labor Market Impact Assessment for jobs offered in any major cities in Canada.

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LMIA Bases Work Permits
Before a foreigner will be issued a work permit in Canada, Canadian employers and foreign workers must undergo a two-step process. An application for a positive Labor Market Impact Assessment must be submitted to the ESDC for labor market review, thereafter a Canadian work permit application will be submitted to the Citizenship and Immigration Canada (CIC). The ESDC may issue a positive LMIA after several considerations, thereby authorizing the Canadian employer to employ the foreign worker.

An LMIA issued to foreign workers is valid for one year for all low-wage occupations.

Duration To Obtain An LMIA
The ESDC has committed 10 days for certain LMIA applications. This expedited processing time is available to applicants in high demands; such as skilled trades, jobs offering competitive remuneration of up to 10% of what Canadians earn in that province or territory, and for jobs that will last less than 120 days.

Employers Criteria For LMIA Application
Since June 2014, Canadian employers with intent to hire foreign workers are required to pay a privilege fee of $100 and a processing fee of $1,000 for every labor market assessment.

English or French are the official languages for employment unless the employer can prove that a different language is required as part of the recruitment process.

Before submitting an application for LMIA, employers are required to publicly advertise job openings in the Canadian job market for at least four weeks before. Prior to submitting the LMIA application, the employer must prove that they have done extensive advertorial on the Canadian job market.

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Employers must also pay attention to under-represented Canadians, such as aboriginals and persons with disabilities.
When an employer submits an LMIA application for a high wage position, they are also required to submit a detailed transition plan to the ESDC (a transition plan shows the company’s proactive steps to tackle reliance on temporary foreign workers). And investing in skills training and hiring Canadian apprentices are some of the ways company’s can reduce their reliance on foreign workers.

Canadian employers are required to acknowledge the fact that they are forbidden to lay of Canadian workers or cut off working hours to accommodate foreign workers.

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