LMIA, short for Labour Market Impact Assessment, is a tool used by Employment and Social Development Canada (ESDC)/Service Canada to assess the impact of hiring foreign workers on the Canadian labour market. The assessment aims to ensure that hiring foreign workers does not negatively affect job opportunities for Canadian citizens and permanent residents, and it is only approved when suitable local workers cannot be found.
Depending on the job position, potential employee’s citizenship, employer’s specific situation, etc., employers usually need to obtain LMIA approval before applying for a work permit for foreign workers through the immigration department. During the LMIA assessment, the immigration department considers various factors, including the employer’s recruitment efforts, wages and benefits, and labour market demand. If employers can prove that they have made efforts to recruit local workers in Canada but still cannot fill the job positions, they have the opportunity to obtain LMIA approval.
It is important to note that there may be exemptions from the LMIA assessment in certain situations, such as for professionals or individuals with special skills in specific fields. Additionally, Canada provides fast-track pathways for certain types of work to expedite the application process for work permits. Therefore, when considering working in Canada or when employers want to recruit foreign workers to work in Canada, it is important to first consider LMIA exemptions and only consider the LMIA pathway when exemptions are not applicable.
The LMIA application process is relatively complex and typically requires employers to provide a significant amount of documentation and evidence to support their application. Generally, applicants need to submit their applications to the Canadian labour department and pay the relevant fees. Once LMIA approval is obtained, employers and foreign workers can proceed with applying for a work permit.
LMIA is not only a necessary step in applying for a work permit (unless LMIA-exempted) but also a tool for foreign workers and employers to obtain additional points in the Canadian immigration system. Specifically, foreign workers who obtain a work permit based on LMIA can receive an additional 50 or 200 points in the Express Entry system, greatly increasing their chances of being invited to apply for permanent residency.
During the LMIA application process, there are several types of LMIA, including high-wage, low-wage, PR support, Global Talent Stream, and Agricultural categories. High-wage jobs typically refer to positions with salaries higher than the national average in Canada, while low-wage jobs are the opposite. LMIA under the PR support category is usually aimed at supporting employers in recruiting foreign workers who, after obtaining a work permit, are eligible to apply for permanent residency. Each category of LMIA has its own application requirements and processes.
In addition to the salary level of job positions, LMIA also has a series of requirements for employers’ qualifications and conditions. Employers must be able to demonstrate that they have a legitimate business license, sufficient financial capability to pay foreign workers’ wages and benefits, and have made the best efforts to recruit suitable local workers in the Canadian domestic market.
In summary, LMIA is a crucial component of the Canadian immigration system. For foreign workers, it is not only a necessary step in obtaining a work permit but also an important pathway to achieving long-term settlement in Canada. Similarly, for employers, the LMIA application process requires strict compliance with government requirements and standards, but successful LMIA approval will bring long-term benefits to their business development and human resource strategies. The introduction of LMIA aims to ensure the stability and fairness of the Canadian labour market, contributing to Canada’s economic prosperity and diversity.
If you need legal assistance on the LMIA application, please contact us.
