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What is Labour Market Impact Assessment (LMIA)

A positive Labor Market Impact Assessment (LMIA) is a record issued by the Human Resources and Social Development Canada (HRSDC) which confirms that the activity offered to an outside national couldn't be filled by a Canadian laborer. Thus, as a rule, if a Canadian boss needs to contract an impermanent remote specialist, they need to apply for a LMIA to the Canadian government.

The processing time for a standard LMIA approval is three to four months. Upon endorsement, a positive LMIA enables the remote laborer to apply for a work license, which is an authoritative archive enabling them to work lawfully in the nation.

There are two ways through which an employer can hire a foreign worker; Temporary Foreign Worker Program (TFWP) and International Mobility Program (IMP).

Temporary Foreign Worker Program (TFWP): Canadian businesses who needs to hire foreign to fill transitory work and aptitude deficiencies can enlist through the TFWP. As a business you will require a positive Labor Market Impact Assessment (LMIA) from Employment and Social improvement Canada (ESDC) before you can procure the remote specialist. A LMIA confirms that the activity offered to a remote national couldn't be filled by a Canadian specialist and the outside laborer is expected to carry out the responsibility.

The employer, if applying to hire a foreign worker through the TFWP program, needs to pay a fee and it is subject to approval. After a positive LMIA is granted, the employer has to submit the document to the foreign worker, who can apply for a work permit to IRCC on the basis of that LMIA.

The International Mobility Program (IMP): Not all employers are required to get a positive LMIA from ESDC so as to procure an outside laborer. The International Mobility Program enables managers to enlist impermanent outside specialists without a LMIA. Under the IMP a few classes of foreign laborers are exempted from getting an affirmed LMIA before being contracted by a Canadian Employer. These exclusions depend on a more extensive financial, social or upper hands for Canada; and corresponding advantages delighted in by Canadian natives and lasting occupants.

The International Mobility Worker Unit (IMWU) has the authority to choose if the outside laborer falls under any of the exempted class. The employers are required to contact IMWU and pay a consistence expense of $230 while presenting the idea of work through the business entry.

An offer of business number is produced if the candidate fits the bill to work in Canada under this program. Employers are required to pass on this number to the foreign specialist they wish to employ. In view of that, the impermanent specialist can apply for their work grant and submit to ICCRC or Canada Border Services Agency (CBSA). The authorities check all archives and on endorsement, issue a work license or a Letter of Introduction (If the competitor is outside Canada).

Many elements depend for a LMIA endorsement, for instance, the position being offered, district, high pay or low pay and so forth. A high-wage laborer is somebody who has a compensation which is equivalent or over the commonplace middle time-based compensation. In the event that a business wishes to document a LMIA for a high-wage laborer, they have to present a change plan. This change plan is drafted to demonstrate the Canadian government on how the business is anticipating diminishing the dependence on the brief laborers and putting more endeavors to contract Canadians. While a low-wage laborer is somebody who has a time-based compensation which is lower than the commonplace middle pay. There is no prerequisite to present a progress plan if the business needs to enlist them.

A positive LMIA does not enable a foreign laborer to change their activity, area or manager in light of the fact that the approval depended on those particular elements. In the event that any of these condition changes, the laborer may need to look for another LMIA with the adjustment in conditions.

A temporary laborer on an open work permit does not require a Canadian Employer to hire them through IMP or TFWP. As a employer, in the event that you are enlisting a transitory specialist with an open work grant, you don't have to present an idea of business structure or pay the employer consistence fee.

Assessing the Merits of an LMIA Application

Obtaining a Canada work permit is typically a two-step process.First, the Canadian employer must submit a qualifying LMIA application to Employment and Social Development Canada (ESDC). It is incumbent on the Canadian employer to also submit a detailed list of Canadians who applied for the position; the number of Canadians interviewed for the position, and detailed explanations for why the Canadian candidates considered were not hired. Canadian employers may be subject to inspection for compliance once a work permit has been issued.

When assessing the merits of the applicant ESDC will consider:

  • Are there Canadians in the region available and willing to fill the job on offer?
  • Has the employer made sufficient efforts to fill the position with a Canadian worker?
  • Will hiring a foreign national help create or retain jobs in Canada?
  • Is the employer offering a wage or salary that is consistent with the regional average for the position at hand?
  • Are the working conditions acceptable by Canadian labour standards?
  • Is the employer or the industry in which the job sits engaged in ongoing labour disputes?
LMIA Processing Times

LMIA processing times can be somewhat unpredictable, ranging from a couple of weeks, to a few months. Employment and Social Development Canada (ESDC) has pledged to process certain LMIA applications within 10 business days. The following categories will now be processed with a 10-business-day service standard:

  • All LMIA applications for the highest-demand occupations (skilled trades), or
  • Highest-paid (top 10%) occupations, or
  • Short-duration work periods (120 days or less).
LMIA Fees and Additional Employer Requirements
  • A processing fee of CDN $1,000 applies to each Labour Market Impact Assessment application (unless the application is made strictly in support of permanent residency). A CDN $100 Privilege Fee is also required.
  • Canadian employers must undertake advertisement efforts (Canada Job Bank) for at least four weeks prior to submitting an LMIA application. Employers are further required to demonstrate at least two other recruitment methods used to target potential hires, other than the Canada Job Bank website. ESDC will also be looking for evidence that underrepresented groups of Canadians were pursued and considered for the position (e.g. disabled people, aboriginals, youth).
  • English and French are the only two languages eligible to be listed as employment requisites, for the purpose of LMIA application. ESDC officers are largely hesitant to approve an LMIA application if the employer has indicated a language other than English or French was used as a determinant.
  • Canadian employers must attest that they are prohibited from laying off, or reducing the hours, of Canadians if their company employs temporary foreign workers.