Everything you need to know about LMIA.

What is an LMIA?

LMIA stands for Labour Market Impact Assessment. It’s a process employers in Canada go through to get permission to hire a foreign worker. This permission comes from the Canadian government (specifically Service Canada). The LMIA shows that the employer tried to find a qualified Canadian citizen or permanent resident for the job but couldn’t.

Does everyone need an LMIA for a work permit?

No, not everyone needs an LMIA. There are many exceptions, including:

International students
Spouses or partners of students or foreign workers already with a work permit
Specific programs like the International Mobility Program
Certain nationalities with specific occupations based on agreements with Canada
Temporary policies for specific nationalities (e.g., Ukrainians, Syrians)

Understanding LMIA Streams in Canada:

This guide explains the different Labour Market Impact Assessment (LMIA) streams employers can use to hire foreign workers in Canada. Remember, not everyone needs an LMIA – check with a professional for your specific situation.

Main LMIA Streams:

Global Talent Stream (GTS): Ideal for high-demand occupations or workers with unique skills. Faster processing but requires a Labour Market Benefits Plan showing how you’ll benefit the Canadian labour market (e.g., job creation, training).
Seasonal Agricultural Worker Program (SAWP): For temporary agricultural work that Canadians can’t fill. Employers must provide transportation, housing, and health insurance for workers.
Agricultural Stream: Hire temporary foreign workers (TFWs) for up to 24 months in specific agricultural sectors. Employers must demonstrate recruitment efforts and offer housing, transportation, health insurance, and a safe work environment. Employment contracts are mandatory.
Express Entry (Permanent Residence) LMIA: Supports hiring foreign skilled workers aiming for permanent residency. Targets high-skilled positions and specific immigration programs. Allows for “Dual Intent LMIAs” where workers can apply for both a work permit and permanent residence simultaneously.
Academics, Medical Doctors, Specialists, or Registered Nurses: Helps universities fill teaching and research positions. Exemptions exist for certain groups who may not require an LMIA or work permit. Institutions must prioritize advertising jobs to Canadians first.
High or Low-Wage Positions: Most common streams for non-agricultural employers.
- High Wage: For positions paying at or above the provincial/territorial median wage.
- Low Wage: For positions paying below the median. Strict recruitment efforts are required before hiring foreign workers. Caps exist on the number of low-wage foreign workers an employer can hire.
In-Home Caregiver LMIA: Allows families to hire foreign caregivers when no Canadians are available. Exemptions exist for specific caregiving situations. Caregivers may have pathways to permanent residency.

Steps to apply for LMIA for employers:

Define the Job: Identify the National Occupational Classification (NOC) and wage rate. Determine the LMIA stream based on wage (High wage or Low wage) or other parameters.
Advertise the job (30+ Days): Advertise the position and prioritize interviewing Canadian applicants.
Prepare LMIA Application: Gather documents showcasing your recruitment efforts and reasoning why Canadians or PRs were not suitable for this job.
Submit & Pay Fee: Apply for LMIA with ESDC and cover the processing fee.
ESDC Interview (Possible): Be prepared for an interview if requested.
Support Work Permit: Assist your foreign worker with their work permit application (after LMIA approval).

Selecting the Right NOC for the LMIA Application:

The National Occupational Classification (NOC) is a system for categorizing jobs in Canada. It’s crucial for the LMIA application as it affects:

Prevailing Wage: The NOC helps determine the average wage employers need to offer the foreign worker.
ESDC Assessment: The NOC can influence how ESDC evaluates job opportunities for Canadians, impacting the LMIA approval.
Work Permit Approval: IRCC uses the NOC to understand the job requirements and decide on the temporary foreign worker request.

Finding the Correct NOC:

Search the NOC Website: Visit https://noc.esdc.gc.ca/Structure/Noc2021 and search occupations by title.
Consider Multiple Options: Often, several NOCs might seem suitable for the job offer. Carefully review the descriptions, duties, and required skills for each option. Do not rely on the job title.
Local Market Considerations: Research the labour market situation for each potential NOC using the Job Bank. Choose an NOC with a demonstrated shortage of local workers.
Minimum Wage: Make sure the prevailing wage for the chosen NOC is considered while making a decision. Employers might need to offer more than they initially planned to meet LMIA requirements.
Candidate Qualifications: Ensure the foreign worker meets the education and experience requirements listed under the chosen NOC.

Employer Requirements for LMIA:

An LMIA (Labour Market Impact Assessment) is mandatory for Canadian employers bringing in foreign workers. Here are the key points to remember:

Proof that the employer tried Hiring Canadians: Employers must show genuine efforts to recruit Canadian citizens or permanent residents before offering the job to a foreign worker. They must show they made efforts but could not find a suitable talent.
High-Wage vs. Low-Wage LMIA: The LMIA stream depends on the wage employer offers. It’s high-wage if the worker is paid above the provincial median and low-wage if the worker is paid below the provincial median.
Reporting for Previous LMIA Holders: Employers who already have foreign workers might need to comply with additional regulations and report on their recruitment efforts.

Hiring Foreign Workers in Canada: High-Wage vs. Low-Wage

Understanding LMIA requirements is crucial. Here’s a breakdown for high-wage and low-wage positions:

High-Wage Workers:

Transition Plan Needed: You’ll need a plan outlining efforts to help the foreign worker integrate into the Canadian workforce (e.g., training, upskilling programs).
Focus on Canadian Talent: Demonstrate efforts to recruit and retain Canadian citizens or permanent residents.
Pathway to Permanency: Show how you’re supporting the worker’s potential transition to permanent residency.

Low-Wage Workers:

No Transition Plan Required: Transition plans are not mandatory for low-wage positions.
Limited Availability: The government restricts the number of low-wage foreign workers employers can hire (typically 20%).
Exceptions in Specific Sectors: Some sectors like construction or healthcare may have higher caps (up to 30%) until August 2024.
Employer Responsibilities: You must cover the foreign worker’s travel costs (to and from Canada) and provide affordable housing.

LMIA to Support Permanent Residency Application

An LMIA (Labour Market Impact Assessment) can serve a dual purpose for Canadian employers:

Filling Job Vacancies: The traditional role of an LMIA is to help employers demonstrate they’ve tried recruiting Canadians or permanent residents before hiring a foreign worker.
Supporting Permanent Residency: LMIAs can also strategically help foreign workers already in Canada obtain permanent residency. Here’s how:
- Dual-Purpose LMIA: This option allows employers to simultaneously fill a job vacancy with a foreign worker and support their permanent residency application. It’s processed like a regular LMIA.
- Permanent Residence Stream: This fee-exempt stream is specifically designed for employers to support existing foreign workers (already on an open work permit) with their permanent residency applications. The LMIA confirms arranged employment, which can give them an edge in the application process.

Challenges with LMIA:

Hiring foreign workers in Canada can be facilitated by an LMIA, but there are hurdles to consider. The process can be time-consuming and expensive, with advertising costs and detailed paperwork involved. Additionally, not all jobs or foreign workers qualify for LMIA support. The entertainment industry, for example, is exempt.

The complexity of the LMIA process can be challenging, especially for small businesses. LMIAs are also inflexible, tied to a specific job, location, and timeframe. This can be inconvenient for employers who need to adjust staffing or for foreign workers seeking job changes.

Concerns exist that the LMIA system might be misused, potentially leading to situations where temporary foreign workers lack proper rights and protections. There are calls for reform or a fairer alternative system.

The ease of obtaining an LMIA depends on several factors. The type of job, its location, and the availability of qualified Canadians all play a role. Employers must also demonstrate genuine efforts to recruit locally before hiring foreign workers. A clear job description with details on duties, wages, and working conditions is essential for the application.

General Tips:

High-demand occupations, higher wages, and regions with higher unemployment rates might make obtaining an LMIA easier.
Conversely, low-demand jobs, lower wages, and low unemployment regions might present more difficulty.

Overall:

The LMIA process requires careful planning and preparation. Consulting a professional can help ensure you have the necessary documentation and information to increase your chances of a successful application.

Processing times for LMIAs in Canada:

The LMIA stream you apply under (e.g., Global Talent, Agricultural) has a set processing timeframe. You can find these on the Service Canada website, but they are not broken down by province. For some LMIA streams (like low-wage or high-wage), processing times can vary by province.

Here’s a general overview, as per the latest update for March 2024:

PR-supported LMIA: Processing times are the same across Canada, about 75+ business days.
Low-Wage LMIA:These were previously processed faster, especially for low-skilled occupations. However, processing times have increased, with the current national average around 55 business days. Individual provinces may still have slight variations.
High-Wage LMIA: Expect longer processing times, especially in provinces like British Columbia (up to 3 months).
Global Talent Stream: This is the fastest stream with processing time less than two weeks.

Chances of a work permit rejection after LMIA is approved!

That’s an important point to clarify!

LMIA Approval Doesn’t Guarantee Work Permit:

While Service Canada approving your LMIA is a positive step, it doesn’t guarantee work permit issuance for the foreign worker. While ESDC approves the LMIA, it is Immigration, Refugees and Citizenship Canada (IRCC) who makes the final decision on work permits.

If the foreign worker’s documents don’t meet IRCC requirements for the job offered, their work permit application could be refused.

Relinking the LMIA (Optional):

Even if the initial foreign worker’s work permit is refused, there’s an option for employers to re-link the approved LMIA to another foreign worker. This is possible until the LMIA expires or a work permit is issued for one of the offered positions (whichever comes first).

Difference between a no-name LMIA and an LMIA with a name stated on it.

There are two main ways to apply for an LMIA: named and unnamed.

Unnamed LMIA: This is ideal if you haven’t identified a specific foreign worker yet. You can process the LMIA without a name. Once approved, you can link it to a qualified foreign worker who wants to use this LMIA to apply for their work permit.

Named LMIA: This involves including the foreign worker’s details in the LMIA application from the start. However, once approved, you generally cannot change the linked worker unless their work permit application is refused.

Exceptions: PR-supported LMIAs always require a named foreign worker as permanent residency is the goal.

Change of job on LMIA based closed work permit.

No, foreign workers with LMIA-based work permits typically cannot change jobs or employers. Here’s a concise explanation:

Limited Job Mobility: LMIA work permits are tied to a specific employer and job offer. This means the foreign worker cannot switch jobs or employers freely.

Exceptions may exist: Open work permit categories might offer more flexibility, but these are not connected to LMIAs.

New LMIA & Work Permit Required: To change employers, the foreign worker would generally need a new LMIA from the new employer, followed by a new work permit application.

Seek Professional Advice: Consult an immigration professional to explore options and potential exceptions for your specific situation.

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Employers: Thinking of hiring foreign talent? Book a consultation to discuss your specific situation and receive expert guidance on the LMIA application process.
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