LMIA A Complete Guide for Employers and Workers

The Labour Market Impact Assessment, or LMIA, is an essential document for employers in Canada. Commonly known as the confirmation letter, it was earlier called Labour Market Opinion. Companies forge this document to demonstrate the need for a foreign worker in their organisations. As a foreigner cannot take away a citizen’s job, the company also need to justify why and how a Canadian worker was not available or capable for the job role. As the requirements differ with job roles, sectors and locations, employers must thoroughly understand the type of LMIA they need to file. Additionally, they need to update the wage of the Temporary Foreign Worker (TFW) to comply with Temporary Foreign Worker Program requirements.

Once the employer gets the LMIA, individuals wishing to work with or in their organisation can apply for a work visa. With the standard application charges of $155, applicants submit their job offer letter, an employment contract and a copy of the LMIA with the LMIA number. The application, then, gets assessed by the Ministry of Employment and Social Development of Canada (ESDC) on its impact on the Canadian labour market. A positive impact states that the TFW is a necessity of the time. Workers need this document to go through the Immigration, Refugees, and Citizenship Canada (IRCC).

Eligibility and Criteria

Employers must meet some typical requirements to get the LMIA. Their legitimate business must provide goods and services to and for the needs of the public in Canada. Their application must justify a genuine need for a foreign worker and reason business their needs. ESDC checks on outstanding compliance issues, employee layoffs in the past 12 months and other details to ensure that the employer is eligible for an LMIA. The LMIA also includes the payment details and ought to meet the LMIA wage requirements.

Apart from the general requirements, LMIA also lays some specific guidelines and criteria based on the job category. For instance, companies hiring foreign workers for truck driving roles need to benefit them with safety standards and regulations. Agricultural worker hirers need an LMIA demonstrating the sectors they will be working within. Regardless of the field and role, employers need to provide proof of financial capability to afford the hired help. This is not limited to organisations only but also extends to families hiring caregivers, personal chefs and other employees.

Processing Charges

The application fee for LMIA is CAD 1,000 per temporary foreign worker. Along with that, employers also pay a privilege fee of CAD 100. It usually takes 2 weeks to 3 months to process the LMIA. The duration and requirements may vary as per the stream and wage level of the job. Bank job providers need to advertise the role for a minimum of 4 weeks before applying for an LMIA. ESDC may also conduct an interview or respond to writer requests.

Validity

Once issued, the Labour Market Impact Assessment in Canada is valid for up to 12 months. This duration, however, is changing from May 1, 2024. After which, it will only be valid for 6 months.

How to get an LMIA?

The Labour Market Impact Assessment (LMIA) application process can vary by job type. It is typically categorised into 2 main categories – high-wage and low-wage positions. The Canadian government has set median wages for all job roles in all provinces in Canada. Jobs that pay more than the median are high-wage positions while the ones below the mark are at low-wage positions. LMIA application process for high-wage positions supports the future permanent residence of the workers. In return, they do demand higher skills and experience.

Surprisingly, the applications for low-wage positions are more in-depth. They highlight the impact of the worker on the job, the sector, the country as well as the recruitment efforts and resources owned and/or managed by the hiring organisation. The CAP is a percentage calculation of the number of workers (full-time and part-time) already employed by the company. This percentage could also result in limitations in new hires.

Exception

The International Mobility Program (IMP) serves as an exception to the LMIA. Canadian organisations and citizens can hire their temporary foreign workers without the process of LMIA. Unsurprisingly, there are some conditions to meet here too! The employment must bring broader economic, cultural or other competitive advantages for Canada. In other words, it must have reciprocal benefits enjoyed by Canadians and permanent residents. The application cost of this mode is AUD 230 per and can be submitted through the IMP’s Employer Portal.

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