Labor Market Impact Assessment for Work Permits in Canada

If you plan to apply for a work permit in Canada, you should be aware of the Labor Market Impact Assessment (LMIA) process. The Labor Market Impact Assessment is proof that no Canadian resident or citizen is eligible to fill a specific job position; hence, a foreign national is required to do so. To obtain an LMIA document, a Canadian employer must advertise a job vacancy for at least a month and interview local applicants first.

Only when an employer proves that no local talent is available to fill the job position, the company may get permission to hire an overseas skilled worker by Employment and Social Development Canada (ESDC). The foreign national must first apply for a work permit before moving to Canada.

A positive LMIA shows that a business can hire a foreign national as no permanent resident or citizen is available. The validity of positive LMIAs is six months. A negative LMIA shows that a Canadian citizen or permanent resident must fill a job vacancy.

The LMIA process aims to ensure that an overseas worker should not harm Canadians. Therefore, approval is necessary for Canadian employers before hiring a foreigner. The process is classified as ‘high-wage’ or ‘low-wage.’ Foreign workers whose salaries are under the provincial wage rate are considered low-wage, while those with the same or above the median wage fall under the ‘high-wage’ category. The application fee for the LMIA process is $1000 per worker.

 

LMIA- Eligibility Requirements

Before applying for the Labor Market Impact Assessment, you must meet the following requirements:

  • As of August 28, 2017, the employer must advertise the job vacancy on the government of Canada website. If you opt for an alternative route, you must submit a written explanation stating your reasons for it.
  • Employers must pay a processing fee of CDN 1,000 for every foreign worker they intend to hire. A “privilege fee” of CDN 100 also applies.
  • Conduct at least two methods of recruitment that align with the needs and interests of the occupation, apart from posting the position on the Job Bank website. The employer must first interview local candidates with the proper education, skills, and experience required to perform the job role.
  • Employers must confirm that they are not laying off Canadian workers while employing a foreigner.
  • Fulfill the basic terms of conditions of the job offer
  • Submit documents to Canada Revenue Agency

 

LMIA Approval- What is the Next Step?
Once Employment and Social Development Canada approves your application, you must send a copy of the document and Annex A to the foreign worker. After which, the worker may apply for a work permit to come to Canada.

A worker must submit the following documents while applying for a work permit:
  • Copy of a job offer letter
  • Copy of contract
  • LMIA document and the number

 

How to hire a worker without LMIA?
International Mobility Program permits Canadian employers to hire a foreign worker without worrying about the LMIA process. To do so, employers must submit an offer to an employer for temporary workers in the Employer Portal and pay the compliance fee. The request confirms that you wish to hire a foreign worker through the international mobility program.

After submitting the job offer, the foreign worker may apply for a work permit.

 

LMIA Changes 2021-22

There have been a couple of new updates related to the LMIA process in Canada.

  • Now all LMIA related jobs are divided into two categories
    • High-wage: where the salary is above the median wage rate in the province/territory
    • Low- wage: the pay is below the median wage rate
  • LMIA fee is now CAD 1000 per worker from $275

 

LMIA Processing Times
Due to the outbreak of the Covid-19 pandemic, Canada is receiving huge volumes of LMIA applications, resulting in delays or longer processing time.
Please refer to the table below to learn about the processing times for each LMIA stream:
 
Type of Application Processing Time
Global Talent Stream 8 days
Agricultural Stream 13 days
Seasonal Agricultural Program 7 days
Permanent Residence Stream 17 days
In-home Caregivers 13 days
High-Wage Stream 33 days
Low-Wage Stream 29 days
Want to know about work permits in Canada? Call us on 8595338595 or drop an email at [email protected]. Our professional consultants will help you understand the work permit process related to LMIA by adhering to the highest level of client servicing.

 

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