The Labour Market Impact Assessment (LMIA) is a crucial component of the Canadian immigration process, especially for those looking to work in Canada. If you’re an employer wanting to hire foreign workers or a prospective employee aiming to understand how LMIA affects your application, this blog post will answer some of the most frequently asked questions about LMIA.

1. What is an LMIA?

An LMIA is a document that an employer in Canada may need to obtain before hiring a foreign worker. It serves as proof that there is a need for a foreign worker to fill the job and that no Canadian worker or permanent resident is available to do the job.

2. Who Needs an LMIA?

Employers who wish to hire foreign workers under the Temporary Foreign Worker Program (TFWP) generally need an LMIA. There are specific streams under which an LMIA is required, including:

• High-wage workers
• Low-wage workers
• Seasonal agricultural workers
• In-home caregivers
• Dual Intent or PR stream

3. How Does an Employer Apply for an LMIA?

Employers must follow these steps to apply for an LMIA:

1. Determine the Stream: Identify the appropriate stream for the job position.
2. Meet Program Requirements: Ensure the job offer meets program requirements, such as providing a fair wage.
3. Submit the Application: Fill out and submit the necessary forms and supporting documents to Employment and Social Development Canada (ESDC).
4. Pay the Fee: Pay the processing fee, if applicable.

4. What Documents are Required for an LMIA Application?

The required documents can vary depending on the stream, but generally, employers need to provide:

• Proof of business legitimacy
• Recruitment efforts to hire Canadians or permanent residents
• Job offer details
• Wage and working conditions information

5. Can an Employer Terminate a Foreign Worker if They Are Not Working?

If an employer feels that a foreign worker is not a good fit for the job, they can dismiss the employee according to provincial labor laws. The employer must notify ESDC of the date the foreign worker is no longer employed.

6. What Happens After an LMIA is Approved?

Once an LMIA is approved, the employer will receive a positive LMIA letter, which the foreign worker can use to apply for a work permit. The work permit application must include the job offer, the contract, a copy of the positive LMIA, and the LMIA number.

7. Can an LMIA be Rejected?

Yes, an LMIA application can be rejected if it does not meet the necessary criteria. Common reasons for rejection include insufficient recruitment efforts, inadequate job offer details, or failure to prove the need for a foreign worker.

8. Is There an LMIA Exemption?

Certain categories of workers may be exempt from needing an LMIA under the International Mobility Program (IMP). These exemptions include:

• Intra-company transferees
• CUSMA professionals
• Participants in international agreements or exchange programs

9. How Does LMIA Affect the Express Entry System?

A positive LMIA can significantly benefit candidates in the Express Entry pool by providing additional Comprehensive Ranking System (CRS) points, thereby increasing their chances of receiving an Invitation to Apply (ITA) for permanent residence. A candidate can receive either 50 points or 200 points depending on their job position offered.

10. How Long is an LMIA Valid?

An LMIA is generally valid for six months from the date of issuance. The foreign worker must apply for a work permit within this period. The employment period is generally longer than 6 months and should not be confused with LMIA validity period.

11. What Information is Included in the LMIA Approval Letter?

The LMIA approval letter, emailed to the employer (not the worker), includes detailed information about the job and the company. The letter contains:

• Employer’s name
• Address where the foreign worker will work
• Wage details
• Term of the contract
• Occupation title and NOC code
• Full contact information of the approved employer

For named LMIAs, the worker’s names will be listed. For unnamed LMIAs, a blank table will be included. If you need the foreign worker to work at multiple locations, ensure all locations are stated in the job posts, contract, and LMIA application. Post-approval requests for multiple work locations can be made to Service Canada, and each case is evaluated individually.

12. How Much Does an LMIA Cost and Who Pays for It?

For every position and vacancy on the same LMIA or multiple LMIAs, the employer must pay a non-refundable processing fee of $1,000 to ESDC. The employer must pay this fee and in no condition, should recover the fee from the employee later. There are exemptions for this fee in the case of PR supported and caregiver applications.

13. What’s the Difference Between a No-Name LMIA and an LMIA with a Name Stated on It?

A no-name LMIA means the employer has not yet identified an eligible foreign worker and is processing the LMIA without a specific name. Once approved, the employer can link a specific foreign worker to the positive LMIA for their work permit application. An LMIA with a name stated on it includes the name of the foreign worker during the application process. The employer cannot change the name unless the foreign worker is not approved for a work permit. Permanent Resident (PR) supported LMIAs must always include a name.

14. Will Service Canada Interview the Employer Before Making a Decision?

If you have repeatedly applied and had previously approved LMIA’s, the chances of an interview are low. If it’s your first time applying for an LMIA, it’s very likely that Service Canada will schedule a quick interview call with you to go over the application details.

15. Are There Compliance Requirements for Employers After Hiring a Foreign Worker Through an LMIA?

Yes, there are. Employers must meet the terms and conditions of the employment contract. They need to keep all LMIA documentation for six years, as there could be a random audit at any time within this period, even if the foreign worker never showed up to work. ESDC may interview the foreign worker if they are on-site and review payroll and other documents to ensure compliance with conditions of wages, hours of work, overtime, and work conditions. The foreign worker can be earning more or having better conditions than originally offered, but not less. Employers must report to ESDC if the foreign worker does not show up to work, either from the beginning or at any point during employment.

16. How Long Does it Take to Process an LMIA from Start to Finish?

It takes 30 days to advertise and go through the recruitment process. If no qualified Canadians can fill the position, the employer will continue to apply for an LMIA after this recruitment stage. The processing time can range from few weeks to several months depending on whether it’s low wage, high wage, PR supported, and the province. Employers can check current processing times on the ESDC website.

17. Is it Legal to Hire Family Members or Relatives Using an LMIA?

Yes, it is possible, but the family member needs to qualify for the position with supporting documentation for their work permit. Specific precautions and genuine need of hiring are necessary when applying for an immediate family member, especially with IRCC, not so much with ESDC. However, it is entirely legal and possible.

18. How Many LMIAs Can an Employer Get?

There is no fixed limit on the number of LMIAs an employer can obtain, as it depends on many factors unique to each situation. Generally, employers can get as many LMIA approvals as are legitimately needed. However, for certain low-wage occupations, there is a cap on the number of foreign workers any one business can employ, and there can be restrictions based on regional unemployment levels.

19. Can I Give My Worker a Promotion?

To promote a foreign worker, you must first go through the LMIA process to demonstrate a labor shortage for the new position, obtain an approved LMIA, and then have the foreign worker obtain a new work permit for the new position.

20. Can I Give My Foreign Worker a Raise or Bonus?

When you submitted the LMIA application, a wage rate was specified in the application and the advertising. Increasing the wage rate after the foreign worker starts can cause problems during a compliance audit. Service Canada’s position is that if you had advertised a higher wage rate initially, Canadians or Permanent Residents might have been interested in the position, eliminating the need to hire a foreign worker. The exception is if the prevailing wage rate changes while the foreign worker is employed. You must adjust the foreign worker’s wage rate to match the prevailing wage rate if it increases. If regular pay increases are part of your normal operations, you can specify this on the LMIA application to provide the same raises to foreign workers as Canadian employees.

21. Do I Need an LMIA if I Am Working in Canada on a Post-Graduate Work Permit?

This depends on your particular circumstance. If you are currently working in Canada on a post-graduate work permit and have a valid job offer, your employer may need an LMIA only if you need to meet certain program requirements for the Federal Skilled Worker Program or the Federal Skilled Trades Program and your job is not exempt from an LMIA. If your job is LMIA-exempt, you do not need an LMIA.

22. Why Am I Required to Undergo an Inspection if I Have Already Hired My Temporary Foreign Worker?

Any Canadian employer may be subject to an inspection by an IRCC officer or an ESDC officer. Inspections ensure that the employer meets the conditions set when they first hired the temporary foreign worker. Inspections protect foreign workers from mistreatment and ensure the program is used as intended. Inspections can be triggered if there is a reason to suspect non-compliance, previous non-compliance, or random selection.

23. Can I Apply for a Work Permit When I Enter Canada?

Generally, you should apply for a work permit before traveling to Canada. However, in some cases, you may be eligible to apply at a port of entry. To be eligible, you must meet certain requirements.

24. How Do I Change Employers?

To change employers, you must apply to change the conditions of your work permit. Before applying, you need information and documents from your new employer. If your new employer needs an LMIA to hire you, they must provide a new job offer letter, LMIA number, and contract. If no LMIA is required, they need to give you the offer of employment number received when they submitted your offer of employment.

25. What is a Dual Intent LMIA?

A Dual Intent LMIA is used when an employer intends to hire a foreign worker temporarily but also supports their application for permanent residence. This type of LMIA indicates that the employer plans to retain the worker long-term, contributing to their permanent residence process.

26. What is the Impact of LMIA on Spousal Work Permits?

If a foreign worker is employed under an LMIA-based work permit, their spouse may be eligible to apply for an open work permit. This allows the spouse to work for any employer in Canada without needing their own LMIA.

27. Can I Appeal an LMIA Decision?

There is no formal appeal process for LMIA decisions. However, you can request a reconsideration if you believe there was an error in the decision-making process. It’s advisable to provide additional evidence or address any shortcomings in your original application.

28. What Happens if My LMIA Application is Denied?

If your LMIA application is denied, you will receive a letter explaining the reasons for the denial. You can address the issues outlined and reapply if you believe the reasons for denial can be rectified. Alternatively, you may seek legal advice to explore other options or appeal the decision if there are grounds for it.

Conclusion

Understanding the LMIA process is essential for both employers and prospective foreign workers. While the application process can be intricate, having the correct information and preparation can facilitate a smoother experience. If you have more questions or need personalized assistance, consider consulting with immigration experts like us.

Get started today: If you’re eager to explore Canadian immigration possibilities for yourself or your foreign worker with a reliable team, take our online assessment today. A member of our team will promptly reach out to assist you further.