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Labour Market Impact Assessment (LMIA)

Details on the LMIA process, which determines if a Canadian employer can hire a foreign worker for a specific job.

Sections

1. What is an LMIA?

An LMIA is a document issued by Employment and Social Development Canada (ESDC) that allows a Canadian employer to hire a foreign worker. The LMIA confirms that:

  • There is a genuine need for a foreign worker to fill the job.
  • No Canadian citizen or permanent resident is available to do the job.

Employers must obtain a positive LMIA before the foreign worker can apply for a work permit.

2. National Regulations Governing LMIA

The LMIA process is governed by the Immigration and Refugee Protection Act (IRPA) and the Immigration and Refugee Protection Regulations (IRPR). Key principles include:

  • Protecting the Canadian labour market by prioritizing Canadian citizens and permanent residents for job opportunities.
  • Ensuring that foreign workers are treated fairly and that their employment does not negatively affect wages or working conditions in Canada.

Key LMIA Categories

There are two main streams for LMIA applications:

  1. High-Wage Stream: For positions where the wage offered is at or above the provincial/territorial median hourly wage.
  2. Low-Wage Stream: For positions where the wage offered is below the provincial/territorial median hourly wage.

Other specialized LMIA streams include:

  • Global Talent Stream (GTS): For highly skilled workers in tech and innovation sectors.
  • Agricultural Stream: For seasonal agricultural workers.
  • Caregiver Stream: For in-home caregivers.
  • Permanent Residence Stream: For foreign workers applying for permanent residency.

3. Costs of LMIA

The cost of applying for an LMIA depends on the stream:

  • Standard LMIA Application Fee: CAD $1,000 per position.
  • Global Talent Stream Fee: CAD $1,000 per position.
  • Agricultural Stream: No fee.
  • Caregiver Stream: No fee (if hiring for in-home caregiving for children, elderly persons, or persons with disabilities).

Refund Policy

The application fee is non-refundable, even if the LMIA is denied or withdrawn.

4. Standard LMIA Procedures

The LMIA process involves several steps. Below is a detailed breakdown:

Step 1: Determine Eligibility

Employers must ensure they meet the requirements for the LMIA stream they are applying under. For example:

  • High-Wage Stream: Employers must submit a transition plan to show how they will reduce reliance on foreign workers.
  • Low-Wage Stream: Employers must adhere to caps on the number of low-wage foreign workers they can hire.

Step 2: Advertise the Job

Employers must demonstrate that they made genuine efforts to hire Canadians or permanent residents before turning to foreign workers. This involves:

  • Advertising the job for at least 4 consecutive weeks on the Government of Canada’s Job Bank and at least two other recruitment methods.
  • Ensuring the job advertisement includes details such as job title, duties, wage, and location.

Step 3: Submit the LMIA Application

Employers must complete and submit the appropriate LMIA application form to ESDC, along with:

  • Proof of recruitment efforts (e.g., job postings, interview records).
  • Business legitimacy documents (e.g., business license, tax filings).
  • Payment of the application fee (if applicable).

Step 4: ESDC Assessment

ESDC will assess the application based on:

  • Labour market conditions in the region.
  • The employer’s compliance history with the Temporary Foreign Worker Program (TFWP).
  • The impact of hiring a foreign worker on wages and working conditions.

Step 5: Receive LMIA Decision

  • A positive LMIA means the employer can proceed with hiring the foreign worker.
  • A negative LMIA means the application was denied, and the employer cannot hire the foreign worker.

Step 6: Work Permit Application

Once the employer receives a positive LMIA, the foreign worker can apply for a work permit. They will need:

  • A copy of the positive LMIA.
  • A job offer letter and employment contract.

5. Processing Times

Processing times for LMIA applications vary depending on the stream and region. As of 2023:

  • Global Talent Stream: 10 business days.
  • High-Wage and Low-Wage Streams: 8-29 business days.
  • Agricultural Stream: 13 business days.

You can check current processing times on the Government of Canada website.

6. Country-Specific Considerations

While the LMIA process is standardized across Canada, there are some regional and sector-specific considerations:

Provincial/Territorial Median Wages

The wage threshold for high-wage and low-wage streams varies by province/territory. Employers must consult the latest median hourly wage data for their region.

Quebec-Specific LMIA Process

Quebec has its own LMIA process, which involves additional steps:

  • Employers must obtain a Certificat d’acceptation du Québec (CAQ) from the Quebec government.
  • The CAQ is required before ESDC can issue an LMIA for jobs in Quebec.

Seasonal Agricultural Worker Program (SAWP)

This program is specific to workers from certain countries (e.g., Mexico, Caribbean nations) and is designed to address labour shortages in the agricultural sector. Employers must meet specific criteria, such as providing free housing and covering transportation costs.

7. Employer Obligations

Employers hiring foreign workers under an LMIA must:

  • Pay the worker at or above the prevailing wage for the position.
  • Provide working conditions that meet provincial/territorial labour standards.
  • Comply with all program requirements, including regular inspections and audits by ESDC.

Failure to comply can result in penalties, including:

  • Fines of up to CAD $100,000 per violation.
  • A ban from hiring foreign workers for up to 10 years.

8. Tips for a Successful LMIA Application

  • Prepare Thoroughly: Ensure all required documents are complete and accurate.
  • Follow Advertising Requirements: Use the correct platforms and include all necessary job details.
  • Consult Experts: Consider hiring an immigration consultant or lawyer to assist with the process.
  • Monitor Deadlines: Keep track of application timelines and processing times.

9. Resources

By following this guide, employers and foreign workers can navigate the LMIA process effectively. If you have further questions or need clarification, feel free to ask!