LMIA (Labor Market Impact Assessment)

What is a labor market impact assessment?

A labor market impact assessment, or LMIA for short, is a formal declaration stating that a foreign worker is required to fill a position that cannot be filled by a Canadian or permanent resident.

When is LMIA needed?

A labor Market Impact Assessment is required if you are hiring a temporary foreign worker under one of the following streams:Â

  • high-wage workers
  • low-wage workers
  • workers through the Seasonal Agricultural Worker Program
  • workers through the Agricultural Stream
  • LMIA to Support a Permanent Residency Visa Application
  • Global Talent Stream
  • LMIA for In-Home Caregivers (read a related article here)
LMIA (Labor Market Impact Assessment)

How do I know which stream I apply under?

Statistics Canada establishes the median hourly pay for each province and territory. A high-wage stream ought to be chosen if the employer’s hourly compensation is more than the median amount. The medians for 2022 for all of Canada’s territories are available on this page.

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Conversely, if the hourly wage is below the median, employers should select the low-wage stream.

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A streamlined program called Seasonal Agricultural Worker is intended for nationals of member nations who want to work in agriculture.

The Canadian government defines the agricultural stream as a program that is available for on-farm work in certain commodity sectors, such as poultry, livestock, cereals, flowers, etc.

The Dual LMIA program is intended to assist with both work permit applications and applications for permanent residence. In this stream, foreign employees can continue working for their company while they wait for the IRCC to process their application for permanent residence. A job offer could be worth an additional 50 or 200 Express Entry points.

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The Global Talent Stream program was created to assist forward-thinking companies in hiring outstanding personnel from throughout the world. Only jobs relating to computers are included in the list of qualifying occupations; yet, applications are typically received within two weeks after submission.

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LMIA for Caregivers permits households to employ foreign nationals in certain health-related occupations, such as home health care, nursing, and nannying. Only those who are already residents of Canada are eligible to apply. Two distinct pilot programs were established by the government for applicants from outside. (Home Support Worker and Home Child Care Provider Pilot Programs).

What should I do if I need to change the stream?

You must withdraw your present application and submit a new one under a different stream.

Who should apply for LMIA?

Either the employer or their representatives should apply for and accept LMIA. An employee is not intended to receive an LMIA. Employees ought to apply for and be granted a work visa.

When should employers apply for LMIA?

Up to six months before the anticipated recruitment date, the application should be submitted.

How to receive LMIA?

In order to be granted LMIA, the employer needs to submit a series of documents demonstrating the necessity of temporary labor abroad, verify the legality of the company, and demonstrate that LMIA payment has been made. Additionally, employers must show that they have made a good faith effort to locate competent Canadian candidates for the open post but have been unsuccessful. This contains documentation of the job posting and interview transcripts supporting the reasons the candidate is not a suitable fit.

Who issues LMIA?

The Ministry of Employment and Social Development (ESDC) conducts on-site inspections on behalf of the IRCC to issue LMIAs.

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If the LMIA is positive, the employee can proceed to apply for a work permit, as they have demonstrated to the authorities that they require a foreign worker.

LMIA Application Process?

Verifying your exemption status is the first step in the LMIA procedure. It may be possible to engage a temporary employee without having to apply for LMIA in certain occupation codes that are excluded from the law. As a result, we advise you to start by consulting the exemption codes.

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You can start the LMIA process as soon as it is decided that it is necessary.

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The application procedure consists of two steps: the employer applies to ESDC, and then when a favorable LMIA judgment is made, the employee applies for a work permit. The application can be sent by email to a designated office or through the LMIA application portal.

LMIA Employer Requirements

Employers in Edmonton must demonstrate that they are actively conducting business to be eligible to apply for an LMIA.

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In addition, an employer must also meet the following requirements:Â

  • The employer must be a business that is actively involved in the provision of products and services, has a valid legal status, and operates.
  • Must be able to offer steady employment for the necessary duration and have a physical location in Edmonton where the candidate will work.
  • The business cannot be involved in the sex industry, be on the non-compliance list, or be in arrears on a financial penalty for non-compliance.
  • Must provide interview and advertisement records as evidence that she or he made a reasonable attempt to hire Canadian nationals or permanent residents. After the interviews, it must also be proven why other prospects are not hireable.
  • The job must not be on the list of low-paying jobs, be situated in an area where the unemployment rate is more than 6%, include certain food and retail positions, or pay more than a specific threshold.
  • The employee may voluntarily provide information to ESDC if they are not sure if they are in violation of their employment contract.

LMIA Application Processing Time

Using an LMIA Online Portal to start your LMIA application can take up to ten minutes. It may take hours to prepare the application and its supporting documentation. An extremely technical application is LMIA.

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Your application processing period may take anywhere from 10 days (Global Talent Stream) to 60 days (Low Wage Stream), depending on the stream you select.

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As a general rule, the so-called “skilled trades,” which are in the highest demand, pay the highest wages and have the shortest duration, are typically filled as quickly as feasible. On the other hand, hiring requests for long-term, low-paid employees are handled more slowly.

LMIA Processing Fee

Every temporary foreign worker must pay a $1000 processing fee. Families requesting for a caregiver to care for a family member with medical requirements or those with incomes under $150,000 are the only instances in which this rule does not apply.

Validity of a Work Permit

Usually, work permits are granted for a maximum of two years. Depending on the type of LMIA and the length of the passport. For instance, work permits granted under the GATS or NAFTA to employees are often valid for a year. The maximum stay period for executives and senior managers is seven years.