Labour Market Impact Assessment (LMIA)?
The Canadian government acknowledges the shortage of skilled workers in certain sectors and aims to support employers in hiring qualified talent from abroad. The LMIA process is designed to ensure that Canadian companies prioritize hiring Canadian workers, with foreign workers only being considered if no qualified Canadians are available.
An LMIA is a document issued by Employment and Social Development Canada (ESDC), confirming that hiring a foreign worker will not negatively impact the Canadian labor market. A positive LMIA indicates that hiring the foreign worker will not displace Canadian workers. Once obtained, this document supports the foreign worker’s work permit application.
Requires an LMIA to Work in Canada?
In most cases, temporary foreign workers need an LMIA to receive a work permit. However, there are certain exemptions, such as those under the International Mobility Program (IMP) or for open work permits. Foreign workers covered by Free Trade Agreements or the Francophone Mobility Program may not need an LMIA. Employers must determine if an LMIA is required before hiring a foreign worker.
The LMIA Process
Provincial Regulations for Hiring Foreign Workers
Employers need to verify if provincial regulations apply to hiring foreign workers, as specific provincial requirements may need to be met before beginning the LMIA application process.
Steps to Apply for an LMIA
The first step is advertising the job to Canadian workers. Employers must advertise the position for at least one month across various platforms, proving that no qualified Canadian workers applied. The job description and wage must meet the standards set by the government for the occupation and location. If no Canadian workers are found, the employer may submit the LMIA application, which includes details such as the job duties, wage rate, qualifications, and evidence that efforts were made to hire Canadian citizens or permanent residents. Common LMIA application types include high-wage, low-wage, Global Talent Stream, caregiver, and agriculture LMIA.
Receiving a Positive LMIA
After submission, the LMIA application is reviewed by an ESDC officer, a process that may take several weeks or months. The employer may receive a call to verify certain details. If approved, the positive LMIA is valid for six months (as of May 2024), and the foreign worker must apply for a work permit within this timeframe.
Apply for an LMIA-based Work Permit
Once the foreign worker receives the approved LMIA from the employer, they can apply for a work permit with Immigration, Refugees, and Citizenship Canada (IRCC). The application should include the LMIA approval letter, job offer letter, and other supporting documents such as proof of qualifications and identity.
Requirements for an LMIA-based Work Permit
When applying for an LMIA-based work permit, the foreign worker needs to provide the following:
- A positive LMIA from the employer
- Job description, wage details, and working conditions
- Proof of qualifications, including education and work experience
- Proof of language proficiency (English or French)
- Personal identification documents
It is essential to ensure that the application meets the requirements set by the employer in the LMIA.
LMIA and Work Permit Processing Time
Processing times for an LMIA application can vary depending on the LMIA category and the location. After receiving a positive LMIA, work permit processing also varies by visa office. For visa-exempt foreign workers, they can apply for a work permit at the border and may receive it on the same day, provided they have sufficient evidence of qualifications.
Duration of an LMIA-based Work Permit
Typically, LMIA-based work permits are valid for 1 to 3 years, depending on the job. As of September 26, 2024, low-wage workers can apply for a 1-year work permit, while high-wage workers can apply for up to 3 years. If the employer needs the worker’s services for a longer period, they will need to apply for a new LMIA to facilitate the work permit renewal.
LMIA-based Work Permit vs. Open Work Permit
An LMIA-based work permit is a “closed” work permit, meaning the foreign worker is tied to a specific employer and location. In contrast, an open work permit allows foreign workers to work for any employer without needing an LMIA.
Benefits of an LMIA-based Work Permit
- Legal Employment: Foreign workers can legally work in Canada and gain valuable experience.
- Pathway to Permanent Residency (PR): An LMIA-based work permit can be used to apply for PR through programs like Express Entry, earning 50 points for arranged employment.
- Filling Labor Shortages: Employers can hire foreign workers to address critical gaps in their workforce.
An LMIA-based work permit is specific to an employer, while an open work permit provides greater flexibility, allowing workers to work for any employer without an LMIA.
