What is an LMIA?
Labour Market Impact Assessment (LMIA) is required from most Canadian employers before hiring a foreign worker and if the job is not exempt from LMIA.
LMIA is applied for by the employers and the type of program affects the process application for LMIA. The types can be as follows:
- High-Wage Workers;
- Low-Wage Workers;
- Seasonal Agricultural Worker Program; or
- Agricultural Stream
The employee then can get a work permit and to do so they need to have an employment contract, a copy of the LMIA, the LMIA number and a job offer from the employer.
The job offer should include the amount of payment and deductions from it, responsibilities of the job and any conditions such as work hours, etc.
A positive LMIA, A.K.A confirmation letter, means that your employer can go on with hiring you as a foreign worker. You can also apply for a work permit with it too. A negative LMIA means that you were denied because there were in-land Canadians for the position already.
Labour Market Impact Assessment is a part of TFWP. This program is designed to take care of short-term labor shortages. It plays a significant role in supporting sectors that have skilled labour shortages.
What is the LMIA Application?
LMIA application is a process in which your employer asks for permission for you be a foreign worker. This application should be submitted to ESDC and they will review it to determine if hiring the foreign worker has a positive or a negative impact on the labour market.
Your LMIA application must have the following information:
- The job description and requirements
- Wage and working conditions
- Recruitment efforts to hire Canadians or permanent residents
- Justification for the need for a foreign worker
- Information on the foreign worker, if applicable.
Your employer must show, through this application, that they have made plenty of reasonable efforts to hire Canadians and has not succeeded. This could be shown in the form of advertising for the position 4 weeks in advance on platforms approved by the Canadian government.
Who Can Apply for an LMIA in Canada?
Canadian employers who want to hire a temporary foreign worker must apply for an LMIA and make sure they meet the requirements. Common scenarios where employers want to apply for an LMIA are:
- High-Wage Jobs: Positions that offer wages above the median hourly wage in the province or territory where the job is located.
- Low-Wage Jobs: Positions offering wages below the median hourly wage. These typically include roles in sectors with labor shortages, such as hospitality and retail.
- Agricultural Workers: Employers in agriculture who need seasonal or year-round workers for activities directly related to farming, such as planting or harvesting.
- Caregiver Positions: Employers looking to hire caregivers for children, seniors, or persons with medical needs.
To qualify for applying for an LMIA, employers must own a legitimate business that can showcase their financial ability to hire foreign workers
High and Low Wage Positions in Canada
The distinction between these two positions is super important in the LMIA process. Put in simple terms, high wage refers to an above-median salary and low wage to a below-median salary.
High-Wage Positions
For these positions, the applicant must provide a transition plan. The plan must outline how the employer is going to lower the reliance on foreign workers over a set period of time. To do this, the employer must try and hire/train Canadians, improve the working conditions and hire local talent in the future.
Low-Wage Positions
The lower-wage positions are more strict. The Canadian government sets a cap on how many foreign worker a company can hire. In most sectors, the cap is 10%. This means the company cannot hire more than 10% of its workforce from TFWs.
The maximum time that you can remained hired in a low-wage position is only 1 year but in construction and health, this limit is reduced.
LMIA Employer Requirement Checklist
There are several boxes each employer must check before successfully getting an LMIA. If they fail to comply with these requirements, they could face a negative LMIA decision. Let’s have a look at the checklist:
- Recruitment Efforts: Employers must provide evidence that they have attempted to recruit Canadian citizens or permanent residents before turning to foreign workers.
- Wage and Working Conditions: The wages offered to the foreign worker must be equal to or higher than the prevailing wage for the job in the same geographical region.
- No Impact on Labor Disputes: Employers cannot use foreign workers to replace workers involved in a labor dispute, and hiring a TFW must not negatively affect the settlement of labor disputes.
- Compliance with Labor Laws: Employers must adhere to provincial and federal labor laws, ensuring that the foreign worker receives the same benefits, rights, and protections as their Canadian counterparts.
- Job Offer: Employers must provide a valid job offer that clearly outlines the roles, responsibilities, wage, and working conditions of the position.
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