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