What is an LMIA?
A Labor Market Impact Assessment is approval from Employment and Skills Development Canada for an employer to hire a Foreign Worker.
If you have obtained an employment opportunity in Canada and need to get a work permit, the LMIA (Labour Market Impact Assessment) route may be the way to proceed. However, foreign workers and Canadian employers alike should know that the LMIA process is far from straightforward.
Canada’s LMIA process serves as a record that no Canadian citizen or permanent resident is ready, willing, and able to fill a specific position in Canada, and so the employer is allowed to hire a foreign worker. To obtain an LMIA, employers must advertise the position for at least four weeks and potentially interview candidates who are Canadian citizens or permanent residents.
After that, and only if the business can prove that those interviewees did not fulfill the job description, may the business be given the green light to hire a foreign worker. The worker must then apply for a Canadian work permit, supported by the LMIA, before beginning work in Canada.
LMIA applications are typically detailed and need lots of documentation and statistical tabulation. Examples include a numerical breakdown of the number of Canadian applicants for the position, the number of offers of employment made, and the number of unqualified applicants. Employers must provide a written explanation of why each un-hired Canadian was not qualified for the job. Not all work permit types require an LMIA to be issued; work permit streams that are LMIA-exempt come under the International Mobility Program.
What are the New Rules for LMIA Canada 2021
Not long ago, there have been modest changes to the LMIA process in 2021! Under the latest LMIA system, the job positions are to be separated into just two categories: high-wage and low-wage. Jobs are considered high wage if the salary meets or exceeds the median wage in the province where the job will be performed, and low-wage if the salary is below the median. The application fee for LMIA requests is now $1000 per worker, an increase from the $275 per worker fee for LMOs.
Hiring High-Wage Workers:
When hiring high-wage foreign workers, a transition plan is an important requirement for all Canadian employers seeking to employ a temporary foreign worker(s) at a wage that is equal to or above the provincial/territorial median hourly wage.
The Transition Plan is a Schedule C form to the Application for an LMIA. The Transition Plan represents commitments that an employer has agreed to undertake specific to the occupation and work location for which they are seeking TFWs.
Hiring Low-Wage Workers:
When hiring low-wage workers, a Transition Plan is not needed when applying for an LMIA. Unlike high-wage workers, low-wage workers are subject to a cap that limits the number of workers a business can employ.
Canadian employers with more than 10 employees will be restricted to a maximum 10% cap on low-wage temporary foreign workers. This cap will be phased in over the next two years, to allow Canadian employers time to transition to a Canadian workforce.
How to Hire if You Need an LMIA
The Temporary Foreign Worker Program (TFWP) lets you hire temporary foreign workers to fill labor and skill shortages. Once the LMIA has been issued, you should provide a copy of the confirmation letter to each temporary foreign worker and tell each of them to apply for a work permit.
How to Hire if You Don’t Need an LMIA
The International Mobility Program (IMP) lets you hire temporary foreign workers without an LMIA. If you hire an employee through this program you will need to pay an employer compliance fee to submit an offer of employment form through the Employer Portal.
