Labour-Market-Impact-Assessment -LMIA

Labour Market Impact Assessment (LMIA)

A detailed guide on Canadian Labour Market Impact Assessment (LMIA)

Working as a skilled worker in Canada normally necessitates a Canadian work visa. As part of the hiring process, a Canadian business who hires a foreign worker for a specific post may be required to publicize that opportunity first.For Canadian firms who seek to hire talented foreign workers, there are certain advertising standards that must be met. When a Labour Market Impact Assessment (LMIA) is required, it may be necessary to advertise for the position 

Employers in Canada must post all job vacancies across the Canadian labor market for a minimum of four weeks before applying for an LMIA to meet the advertising requirements.

What exactly is an LMIA for Canada?

LMIA refers to the Labour Market Impact Assessment, a document that a Canadian business may be required to obtain from Employment and Social Development Canada (ESDC) before hiring a foreign worker.

When there is no qualified worker in Canada to complete a job, Canada uses the Temporary Foreign Worker Program (TFWP) to boost its workforce. Employers who want to hire a foreign worker in Canada must frequently apply to the Canadian government for a Labour Market Impact Assessment (LMIA). The Canadian government employee examining the application must determine if hiring the foreign worker will benefit or harm the Canadian labor market. Among other things, it must be obvious that no qualified Canadians were passed over in favor of the foreign worker, and that the foreign worker will be paid and get benefits in accordance with federal and provincial regulations.

Before a temporary worker may apply for a work permit in Canada, his or her employer must get an LMIA. If an LMIA is required, the Canadian employer must obtain one as well.

A positive LMIA grants approval to engage a temporary employee by demonstrating that –

  • There is no Canadian on the job, and a foreign worker is needed to fill the position.
  • The employer can determine whether or not an LMIA is required.

The employer can evaluate if an LMIA is required by studying the LMIA exemption codes and work permit exemptions.

Once the LMIA has been obtained by the Canadian employer, the foreign worker can apply for a Canadian work permit.

Applying for a work permit in Canada necessitates –

  • A contract of employment.
  • An employment offer.
  • The LMIA number, as well as a copy of the LMIA

Depending on whether the targeted individual is classed as “high-wage” or “low-wage,” the LMIA process differs. Temporary foreign employees paid less than the provincial/territorial median wage are classified as low-wage, while those paid at or over the median wage are classified as high-wage.

In general, all companies must show that they attempted to fill job openings with suitable Canadian citizens or permanent residents before hiring foreign workers. Furthermore, after their employee begins working in Canada, employers may be inspected for compliance with federal requirements.

High-Wage Workers:

Employers wishing to hire high-wage workers must submit transition plans with their LMIA application to demonstrate that they are taking steps to gradually lessen their reliance on temporary foreign workers. They can demonstrate this by investing in skill training or recruiting Canadian apprentices. Employers can also show how they are aiding their high-skilled temporary foreign worker(s) in becoming permanent residents of Canada. If the employer is chosen for an inspection or applies to renew their LMIA, they must report on the progress of the transition plan they filed.

The transition plans are intended to guarantee that employers seeking foreign employees are fulfilling the purpose of the TFWP. This means that they are only employing the TFWP as a last and limited resort to meet immediate labor demands on a temporary basis when suitable Canadians are not available, ensuring that Canadians are given first priority at open employment.

Low-Wage Workers:

Employers wishing to hire low-wage workers are not required to submit transition plans with their LMIA application. They must, however, adhere to a different set of rules.

The Government of Canada has implemented a cap to limit the number of low-wage temporary foreign employees that a business can employ in order to restrict access to the Temporary Foreign Worker Program (TFWP) while ensuring that Canadians are always considered first for available employment. Additionally, certain low-wage occupations may be denied LMIA processing. Employers with 10 or more employees who apply for a new LMIA face a 20% cap on the proportion of their workforce that can be made up of low-wage temporary foreign workers.

Employers who pay less than the provincial/territorial median hourly wage must:

  • Provide round-trip transportation for the temporary foreign worker
  • Provide affordable housing.
  • Pay for private health insurance until workers are eligible for provincial health coverage.
  • Register the temporary foreign worker with the provincial/territorial workplace safety board. 
  • Provide an employer-employee contract

The TFWP uses the most recent Labour Force Survey statistics to calculate unemployment rates across Canada. These rates determine which regions are eligible for firms to submit Labour Market Impact Assessments (LMIAs) for low-wage/low-skilled occupations in the Accommodation and Food Services and Retail Trade sectors.

LMIA applications for these sectors will not be processed in economic regions with a 6% or greater unemployment rate.

Applications in these industries for opportunities in Yellowknife will be allowed for processing due to its specific labor market conditions and as requested by the Government of the Northwest Territories.

Requirements for Advertising (Including Exemptions)

Employers who want to hire a temporary foreign worker in Canada must pay a CDN $1,000 processing fee for each request for a Labour Market Impact Assessment.

Unless the business can demonstrate that another language is required for the position, English and French are the only languages that can be used as job requirements in LMIAs and job vacancy advertisements.

Furthermore, before applying for an LMIA, firms must post all job vacancies across the Canadian labour market for at least four weeks. To that purpose, companies must demonstrate that they employed at least two different methods of recruitment in addition to posting an advertisement on the Canada Job Bank. Employers must focus their advertising efforts on under-represented groups of Canadians, such as First Nations or those with impairments.

Employers must certify that they are aware that they are forbidden from laying off or reducing the hours of Canadian workers who work in the same position(s) as the temporary foreign worker(s) employed by the company.

Where do Canadian firms list job openings?

At least one of the three actions listed below must be in progress. Three separate means of recruitment:
(1)(2)   & (3) – any two can be chosen
Posting on the website of Canada Job BankInternal employee recruitment
Professional recruitment firms
Participation at career fairs
Professional hiring firms
Websites for general employment
Advertising via professional organizations
Classified websites on the internet
Consultations with unions for available labor
Collaborating with training institutions or providing internships
Specialized websites dedicated to specific occupational profiles
Newspapers or newsletters at the national, regional, and local levels
Local businesses, community centers, and places of worship
Journals or magazines
Employment centers at the local, regional, provincial, or territorial levels

Job Bank is Canada’s national employment service, provided by Employment and Social Development Canada (ESDC) on behalf of the Canada Employment Insurance Commission in partnership with provincial and territorial (PT) governments.

Expediting an LMIA

LMIAs will be delivered within a 10-business-day service standard for workers in the following occupational groups, according to the IRCC website:

Occupations in high demand

The 10-day service requirement for this category is restricted to skilled trades positions with wages at or above the provincial/territorial median salary. These positions are critical to the construction of significant infrastructure and natural resource extraction projects, and thus to Canadian economic growth.

NOC 2011

OCCUPATION TITLE

7202Contractors and supervisors, electricians, and telecommunications workers
7204Carpentry trades, contractors and supervisors
7205Other building trades, installers, repairers, and servicers, as well as contractors and supervisors
7271Carpenters
7301Contractors and supervisors, as well as mechanics
7302Heavy equipment operator crews, contractors and supervisors
8211Logging and forestry supervisors
8221Mining and quarrying supervisors
8222Oil and gas drilling services, contractors and supervisors
8241Logging machinery operators
8252Agricultural service contractors, farm supervisors and specialized livestock workers
9211Supervisors, mineral and metal processing
9212Supervisors, petroleum, gas and chemical processing and utilities
9214Supervisors, plastic and rubber products manufacturing
9231Central control and process operators, mineral and metal processing
9241Power engineers and power systems operators
9243Water and waste treatment plant operators
7231Machinists and machining and tooling inspectors
7233Sheet metal workers
7235Structural metal and plate work fabricators and fitters
7236Ironworkers
7237Welders and related machine operators
7241Electricians (except industrial and power system)
7242Industrial electricians
7243Power system electricians
7244Electrical power line and cable workers
7245Telecommunications line and cable workers
7246Telecommunications installation and repair workers
7251Plumbers
7252Steamfitters, pipefitters and sprinkler system installers
7253Gas fitters
7311Construction millwrights and industrial mechanics
7312Heavy-duty equipment mechanics
7313Refrigeration and air conditioning mechanics
7314Railway carmen/women
7315Aircraft mechanics and aircraft inspectors
7318Elevator constructors and mechanics
7371Crane operators
7372Drillers and blasters – surface, mining, quarrying and construction
7373Water well drillers
8231Underground production and development miners
8232Oil and gas well drillers, servicers, testers and related workers
9232Petroleum, gas and chemical process operators

Exemptions and Variations in Quebec

Work permits are provided to Quebec Selection Certificate holders (CSQ)

A Quebec Selection Certificate (CSQ) is a certificate issued by the Quebec government to those who have been authorized for immigration to that province. Holders of a CSQ can work in Quebec without their company requiring an LMIA.

List of vocations made easier

The list of facilitated LMIA vocations for Quebec includes industry sectors that are in high demand for labor. Employers in Quebec who apply through the facilitated LMIA process are not obliged to present evidence of recruitment efforts.

Other employees

Foreign workers who do not fit into either of the aforementioned categories may be required to apply for and get a Certificat d’Acceptation du Quebec (CAQ) and a temporary work permit before beginning work in Quebec.

Understanding how Canadian firms hire foreign workers and their advertising needs helps skilled workers plan their job in Canada.