A Labor Market Impact Assessment (LMIA) is a crucial document that evaluates whether a Canadian company needs to hire foreign workers on a temporary basis. The LMIA process is based on the premise that the job can only be performed by a foreign worker and that no qualified Canadian citizen or worker is available for the position. The employer must obtain the LMIA from Employment and Social Development Canada (ESDC).
The LMIA application process varies depending on the program through which the company is hiring, and the standards and procedures differ based on the type of employee being hired. Employers can hire the following employees under the LMIA process:
High-wage workers
Low-wage workers
Workers through the Seasonal Agricultural Worker Program
Workers through the Agricultural Stream
Once the employer receives a confirmation letter indicating a positive LMIA, temporary foreign workers (TFWs) can apply for an LMIA work visa. After submitting an LMIA application that meets the requirements, a foreign worker can then apply for a work visa. Depending on the employment sector, an LMIA may be necessary before a TFW can apply for a temporary work visa. It’s worth noting that LMIA was previously referred to as an LMO (Labour Market Opinion).
LMIA Application Requirements
LMIA applications should encompass the following elements:
Demonstrated efforts to locate available Canadians for the position.
Wages for the role align with the average pay rate in the region for Canadians or permanent residents in a similar occupation.
The working conditions of the occupation adhere to contemporary work market standards.
Identification of potential benefits of hiring a foreign worker to the Canadian job market, such as the generation of new positions or the transfer of skills and knowledge.
For high-wage positions, the inclusion of transition plans is essential, showcasing the employer’s commitment to progressively hiring Canadians in the long term.
Revert Of LMIA
Upon submission of the LMIA application, the employer must await approval from Employment and Social Development Canada. This approval, known as a positive LMIA, verifies that a foreign worker is necessary for the specific job and that no eligible Canadians are available for the position. Once the employer obtains the LMIA, the potential employee can proceed to apply for a work permit. To complete the work permit application, the foreign worker will need the following documents:
The offer letter from the Canadian employer.
A job opportunity contract.
A copy of the LMIA.
The LMIA number.
Types Of LMIAs
Canadian employers can only be authorized to employ a foreign worker to fill a vacant position if they have genuinely attempted to fill the role with a permanent resident or Canadian citizen initially.
The Temporary Foreign Worker Program comprises various streams, each with its own set of requirements and LMIA procedures that differ according to the specific stream: