Labour Market Impact Assessment (LMIA)

An LMIA, or Labour Market Impact Assessment, is a process where Canadian employers request permission to hire foreign workers if they could not find qualified Canadians for the job. Not everyone needs an LMIA for a work permit; exemptions include international students, spouses of students or foreign workers, certain nationalities based on agreements with Canada, and temporary policies for specific nationalities.

There are four main types of LMIAs: high wage and low wage LMIAs, LMIA with Permanent Residency support (with or without a work permit), and investor LMIAs. Each province has its own wage requirements to determine high and low wage LMIAs.

The timeframe for LMIA approval involves two stages: the preparation of the LMIA application and the government processing period. Preparation typically takes 6-8 weeks, including the mandatory 4-week advertising period and employer document provision. The government processing time can vary from 10 business days to 4-5 months, depending on the type of LMIA and the processing office.

The costs associated with an LMIA include professional fees, advertising fees, and government processing fees. Professional fees vary depending on the type of LMIA and the service provider. Advertising fees are customized to meet federal and provincial standards. The government processing fee for a Temporary Foreign Worker stream application is $1000. It’s important to note that all LMIA costs must be covered by the employer as it is illegal for workers to contribute.

Yes, Service Canada publishes quarterly lists of positive and negative LMIA decisions. However, it’s advised not to approach these employers directly, as they often work through recruitment agencies or have already designated workers.

There is no fixed limit to the number of LMIA approvals an employer can receive, as it depends on various factors and regional employment conditions. However, certain low-wage occupations have caps on the number of foreign workers that can be hired.

After receiving LMIA approval, the next step is for the worker to obtain a valid work permit. Employers must share the LMIA confirmation with the intended worker, who should act promptly on their work permit application as LMIA validity is limited to six months.

If a worker hired through an LMIA does not work out, employers can terminate the worker as per provincial labor laws. It’s important to notify Service Canada of the termination in a timely manner for compliance purposes.

Promotions for workers hired through an LMIA require a new LMIA and work permit, demonstrating a labor shortage in the new position

If the minimum wage changes after LMIA approval and the approved wage rate falls below the new minimum wage, employers must adjust wages to meet the minimum wage requirements as per provincial labor standards

In some provinces like BC, Saskatchewan, and Manitoba, employers need to register with the local government before applying for an LMIA. Additionally, for high wage LMIAs, employers must submit a transition plan outlining steps to reduce reliance on foreign workers over time.

The processing times vary depending on the type of LMIA and the province. Generally, PR-supported LMIAs take 55 to 75 business days, while low wage LMIAs are faster, especially in low-skilled occupations. Each province has its own processing time; for example, BC typically has longer processing times than Ontario

LMIA approval by Service Canada does not guarantee a work permit from IRCC. If the foreign worker fails to meet the job requirements or provide supporting documents, the work permit application may be rejected. However, employers can link the LMIA to another foreign worker until the LMIA expires.

The REP is a 3-year pilot program that grants approved employers access to simplified LMIA processes and 36-month validity LMIAs for high-frequency positions. Agricultural employers are automatically enrolled, while other employers can apply starting January 2024, provided they meet eligibility criteria

The LMIA approval letter is sent to the employer and includes details such as the employer’s name, work location, wage, contract term, occupation title, NOC code, and contact information. If it’s a named LMIA, the worker’s name is also included.

Employers must pay a non-refundable processing fee of $1,000 for each position or vacancy on the LMIA. Only the employer can cover this fee, except for caregiver applications, where exemptions apply

Obtaining an LMIA can be challenging as the government typically defaults to refusal to prioritize job opportunities for Canadians. However, with the assistance of experienced representatives, navigating the process effectively is possible. LMIA applications are submitted through Employment and Social Development Canada’s online portal.

A non-named LMIA allows the employer to process the LMIA without a specific worker in mind, while a named LMIA includes the worker’s name. Changing the name on a named LMIA requires reapplying unless it’s a PR-supported LMIA.

High wage LMIAs have no cap, but low wage LMIAs are subject to caps based on industry and existing payroll. However, certain exemptions apply, such as on-farm agricultural positions and PR-supported LMIAs.

There’s no minimum operational time or employee count required for LMIA eligibility. Service Canada assesses the employer’s genuine need and financial capacity, regardless of how long they’ve been in business.

For first-time applicants, Service Canada may conduct interviews to review application details. However, repeat applicants with previously approved LMIAs have lower chances of being interviewed

The same provincial and federal regulations apply, but additional requirements include covering travel expenses for low wage workers, ensuring affordable accommodations, and providing health coverage if provincial coverage does not start immediately

LMIA processing is based on the province where the worker will be employed, unless it’s a PR-supported LMIA

Work permit processing times vary depending on the region, ranging from 2 weeks to 4-6 months. The work permit is typically based on the closed work permit system, except for spouses of foreign workers who may be eligible for open work permits.