A Labour Market Impact Assessment (LMIA) is a document a Canadian employer needs to hire most types of foreign workers.
A positive LMIA confirms there is a need for a foreign worker to fill the job at hand and that no Canadian worker is available to do the job.
An LMIA application must be made by an employer. Once the LMIA is obtained, it must be sent to the candidate to accompany the work permit application. Generally, a temporary foreign worker will need a work permit and a positive LMIA in order to work in Canada.
Some occupations do not require an LMIA.
Employers who require an LMIA to hire a foreign national can do so through the Temporary Foreign Worker Program (TFWP).
Employers who do not require an LMIA to hire a foreign national can do so through the International Mobility Program (IMP).
Steps for Employers to Apply for the LMIA
1. Determine the Type of LMIA
Before beginning the application process, employers must understand which LMIA category they are applying for. The most common categories are for high-wage workers (those earning above the median provincial or territorial wage) and low-wage workers (those earning below the median wage). Other LMIA categories include caregivers, agricultural workers, and positions under the Global Talent Stream.
Each category has specific requirements and conditions. For example, low-wage LMIAs might have stricter conditions regarding the maximum duration of the work permit, while high-wage LMIAs may require additional commitments to training and skills development for Canadians.
2. Advertise the Job Vacancy
One of the most critical requirements for obtaining an LMIA is to prove that there are no qualified Canadians or permanent residents available to fill the job. To meet this condition, employers must advertise the position for a minimum of four consecutive weeks before applying for the LMIA. The job must be posted in at least three different mediums, including the Government of Canada’s Job Bank and other platforms commonly used by Canadian employers.
Employers need to keep detailed documentation of the advertising efforts, including:
- Copies of job postings
- Dates the positions were advertised
- Where the job was posted
- A summary of the results, including the number of applications received and the reasons why any Canadian applicants were not suitable.
This proof of advertising demonstrates that the employer made a genuine effort to recruit Canadian citizens or permanent residents first.
3. Gather Necessary Documentation
Along with proof of job advertising, employers must submit various supporting documents with their LMIA application, including:
- Business registration documents: To verify the legitimacy of the business.
- Proof of financial capacity: Employers need to demonstrate that they can afford to hire the foreign worker.
- Copy of the job offer: A detailed description of the job, including wages, working conditions, and any benefits.
- Transition plan (for high-wage positions): Employers hiring high-wage workers must submit a transition plan that outlines how they will reduce their future reliance on foreign workers by training or hiring Canadians or permanent residents.
4. Submit the LMIA Application
Once all required documents are prepared, employers can submit their LMIA application to Employment and Social Development Canada (ESDC), either online or by mail. Each LMIA application comes with a processing fee of $1,000 per position, except for specific exempt categories such as caregivers.
5. Processing Times and Approval Periods
Processing times for LMIA applications vary depending on the type of worker and category. On average, high-wage and low-wage applications take about 8 to 29 business days. Applications under the Global Talent Stream, designed for highly specialized workers, are often processed within 10 business days.
Once an LMIA is approved, employers will receive a confirmation letter, and the foreign worker can use this to apply for a work permit. Approval periods vary based on the type of LMIA and whether the employer has met all the necessary criteria.
6. After LMIA Approval
Upon receiving a positive LMIA, employers can proceed with hiring the foreign worker. It’s important to note that LMIA approval is time-sensitive. Employers should ensure that the foreign worker applies for their work permit as soon as possible, as LMIAs can expire after a certain period.
How Canada Makes LMIA Application Decisions
The decision on whether or not to issue a positive LMIA is made by Employment and Social Development Canada (ESDC) and then issued to Immigration, Refugees and Citizenship Canada (IRCC).
IRCC then informs the employer of the final LMIA decision. In making an LMIA decision, ESDC considers several factors including:
- The impact of hiring the foreign worker will have on the Canadian labour market.
- The wages and working conditions being offered to the foreign worker.
- The availability of Canadian citizens or permanent residents to do the job in question.
- Whether a transfer of useful knowledge and skills would result from hiring the foreign worker.
- Whether hiring the foreign worker will help create jobs for Canadian citizens and permanent residents.
LMIA Validity and Duration of Employment
After a positive LMIA is issued, a temporary foreign worker has six months to use it to apply for a work permit. No extensions will be given. If the six-month period expires and the foreign worker does not submit a work permit application, a new LMIA application is required.
In Quebec, there is a separate LMIA application process.
Eligibility and Employer Requirements for Hiring a Foreign Worker
Hiring foreign workers in Canada involves strict criteria, and employers must meet certain eligibility requirements before proceeding. Central to the process is demonstrating that efforts were made to hire Canadians or permanent residents first. Employers must also fulfill obligations after successfully hiring a foreign worker, including paying application fees and adhering to the conditions set forth in the Labour Market Impact Assessment (LMIA) process.
Demonstrating Sufficient Recruitment Efforts in Canada
To prove that hiring a foreign worker will not negatively impact the Canadian labor market, employers must demonstrate they have made sufficient recruitment efforts to hire Canadians or permanent residents. This is a key step in the LMIA process, as it shows that the employer exhausted local options before seeking to employ a foreign national.
To meet the recruitment requirement, employers must:
- Advertise the job vacancy in Canada for at least four consecutive weeks before submitting the LMIA application.
- Use at least three different recruitment methods. One of these must be the Government of Canada’s Job Bank, which is an official platform for Canadian job seekers. Additional methods could include online job boards, print media, or recruitment agencies commonly used in the industry.
- Ensure the job ad remains accessible during the recruitment period, reaching a wide audience.
Adequate Proof of Recruitment Efforts
Employers must provide detailed documentation of their recruitment activities as part of the LMIA application. This includes:
- Copies of the job advertisements, showing where and when the ads were posted.
- Proof of the duration of the job ad, confirming that it was active for the required four weeks.
- A summary of the recruitment results, such as the number of Canadian applicants and reasons why they were not selected. Employers must explain why qualified Canadian candidates were not available or suitable for the role.
This documentation is crucial, as it demonstrates that the employer made a legitimate effort to hire domestically, satisfying one of the most important LMIA criteria.
Employer Obligations After Hiring
Once an employer successfully obtains a positive LMIA and hires a foreign worker, several obligations remain in place. First, the employer must pay a processing fee of $1,000 for each LMIA application, with exemptions only for specific categories (e.g., caregivers).
Employers must also ensure they comply with the conditions outlined in the LMIA, including:
- Paying the worker the wage offered in the job offer.
- Providing the working conditions and benefits promised.
- Adhering to any additional commitments, such as creating a transition plan for high-wage LMIA positions, which outlines how the employer will reduce reliance on foreign workers in the future.
Failure to comply with these obligations can result in penalties or future ineligibility to hire foreign workers. Thus, employers must carefully manage all post-hire responsibilities to ensure compliance with Canadian immigration laws.
Types of LMIA Streams
The Labour Market Impact Assessment (LMIA) process is tailored to different streams, depending on the type of job and wage offered. Understanding the various LMIA streams is essential for employers seeking to hire foreign workers in Canada.
High-Wage vs. Low-Wage Streams
The high-wage stream applies to jobs where the wage offered is above the median wage for the province or territory. Employers hiring through this stream must submit a transition plan, outlining how they intend to reduce their reliance on foreign workers by training or hiring Canadians or permanent residents in the long term. These positions typically allow for longer work permits and a greater focus on skills transfer.
In contrast, the low-wage stream applies to jobs where the offered wage is below the provincial or territorial median. Employers in this stream face stricter conditions, such as a cap on the number of foreign workers they can hire. Work permits are often shorter, and the aim is to fill labor shortages in lower-paying sectors where domestic workers are harder to find.
Seasonal Agricultural Worker Program (SAWP)
The Seasonal Agricultural Worker Program allows employers in the agricultural sector to hire foreign workers from specific countries to fill seasonal positions. These workers can work in Canada for up to eight months in jobs like planting, harvesting, and general farm labor. Employers do not need to advertise these jobs as extensively as other streams due to the seasonal nature of the work.
In-Home Caregiver Program
The In-Home Caregiver Program allows Canadian families to hire foreign workers to care for children, seniors, or individuals with medical needs. Employers must meet specific criteria, such as providing adequate accommodation and meeting wage and working condition standards.
Exemptions and Alternatives to LMIA
In some cases, employers may hire foreign workers without going through the Labour Market Impact Assessment (LMIA) process. Various trade agreements and immigration programs provide LMIA exemptions, streamlining the hiring of foreign workers under specific conditions.
Workers Through CUSMA, CETA, and Other Trade Agreements
Foreign workers from countries with which Canada has trade agreements, such as the Canada-United States-Mexico Agreement (CUSMA) and the Comprehensive Economic and Trade Agreement (CETA), may be eligible to work in Canada without an LMIA. These agreements facilitate the mobility of certain professionals, traders, and investors, making it easier for companies to transfer or hire workers from member countries. CUSMA, for example, allows professionals in more than 60 occupations to work in Canada under facilitated conditions. Similarly, CETA applies to workers from European Union countries, allowing temporary entry for business professionals and certain categories of workers without an LMIA.
Intra-Company Transferees and International Experience Canada (IEC) Participants
The Intra-Company Transfer (ICT) program allows multinational companies to transfer employees to their Canadian branches without an LMIA. This is typically reserved for executives, managers, or employees with specialized knowledge who have worked with the company for a minimum period. It simplifies bringing in talent that is essential to the company’s operations in Canada.
Participants in the International Experience Canada (IEC) program, which includes the Working Holiday Visa, also benefit from LMIA exemptions. This program allows young people from certain countries to work in Canada temporarily, offering employers access to international talent without the need for an LMIA.
LMIA Processing Times
The processing times for a Labour Market Impact Assessment (LMIA) can vary significantly depending on the type of application, the worker category, and current demand. Understanding these timelines is crucial for employers planning to hire foreign workers, as delays can impact the hiring process and the worker’s ability to begin employment.
General LMIA Processing Times
On average, LMIA processing times for high-wage and low-wage positions can range from 8 to 29 business days. However, these times can fluctuate depending on the complexity of the application and whether additional information or clarification is required by Employment and Social Development Canada (ESDC). During peak periods or in specific regions, processing times may extend beyond the average range.
Global Talent Stream Processing Times
One of the fastest LMIA streams is the Global Talent Stream (GTS), which is part of Canada’s Global Skills Strategy. It is designed to help companies hire highly skilled workers more quickly, particularly in technology or specialized fields. Applications submitted through the GTS are often processed within 10 business days, making it an attractive option for employers looking to fill roles in high-demand sectors.
Seasonal Agricultural Worker Program (SAWP)
For employers hiring through the Seasonal Agricultural Worker Program (SAWP), processing times are typically shorter due to the program’s seasonal nature and the high demand for labor during specific periods. Applications for these workers generally receive expedited processing compared to other streams.
Tips to Minimize Delays
To avoid delays, employers should ensure that their LMIA application is complete, including all necessary documentation such as proof of recruitment efforts and a well-documented job offer.
Important Distinction
The validity of the LMIA is not the same as the duration of employment of the LMIA.
The validity of an LMIA indicates the amount of time that a foreign worker applicant has to use the LMIA and apply for a work permit.
The duration of employment of an LMIA indicates the length of validity of a work permit issued using the LMIA. There are three options relating to the duration of employment for an LMIA:
- Temporary duration to support a work permit application only.
- Permanent duration to support a permanent residence application. Work permits issued under a permanent duration LMIA will be issued for a maximum period of two years, provided the candidate meets the requirements set out in the LMIA. The work permit will not be extended regardless of whether or not a permanent residence application is underway.
- A combination of permanent and temporary duration to support both a permanent residence application and a work permit application.
Related Information:
LMIA Frequently Asked Questions (FAQ)
1. What’s the difference between LMIA and work permit?
An LMIA (Labour Market Impact Assessment) is a document that an employer in Canada must obtain before hiring a foreign worker. It proves that there are no qualified Canadians or permanent residents available for the position, and hiring a foreign worker will not negatively affect the Canadian labor market.
A work permit, on the other hand, is a document that allows the foreign worker to legally work in Canada. In most cases, a positive LMIA is needed for the foreign worker to apply for a work permit, though some exemptions apply.
2. Do all jobs require an LMIA?
No, not all jobs require an LMIA. Certain foreign workers are exempt from needing an LMIA based on trade agreements (e.g., CUSMA), Intra-Company Transfers, or specific programs like International Experience Canada (IEC). Additionally, some positions that serve Canada’s broader economic, cultural, or social interests may also qualify for LMIA exemptions.
3. How can I increase the chances of LMIA approval?
To increase the likelihood of LMIA approval, employers should:
- Comply with recruitment requirements by posting the job in at least three platforms, including the Government of Canada’s Job Bank.
- Provide detailed proof of recruitment efforts, explaining why Canadian applicants were not hired.
- Ensure that the wage and working conditions offered meet the standards for the specific job and region.
- Submit a complete and accurate application with all supporting documents.
4. What are the fees for an LMIA application?
Employers must pay a processing fee of $1,000 per LMIA application for each position they are seeking to fill. Some categories, such as caregivers, may be exempt from this fee.
5. How long does it take to process an LMIA application?
LMIA processing times vary depending on the category of the application. General high-wage and low-wage LMIAs can take between 8 and 29 business days, while the Global Talent Stream often processes within 10 business days. Seasonal and agricultural workers may have shorter processing times due to their time-sensitive nature.
6. Can I hire a foreign worker while the LMIA is being processed?
No, you cannot hire a foreign worker until the LMIA has been approved and the worker has received their work permit. However, once the LMIA is approved, the foreign worker can apply for their work permit using the positive LMIA.
7. What happens if my LMIA application is rejected?
If your LMIA application is rejected, you can reapply after addressing the issues that led to the refusal. Common reasons for rejection include incomplete documentation, insufficient recruitment efforts, or failure to offer competitive wages or working conditions.
