If you’re looking to work in Canada, one of the first steps may involve securing a Labour Market Impact Assessment (LMIA). It’s a critical part of the process for many foreign workers, and understanding how the LMIA application works is essential if you’re hoping to get a Canada work permit or explore immigration options. A positive LMIA assessment clears the way for hiring a foreign national, while a negative one reinforces the priority of employing individuals already within Canada.
In this guide, we’ll break down the LMIA process, explore its requirements, and examine how it affects the work permit process in Canada.
LMIA Application: What’s Involved?
Hiring international talent through the Labour Market Impact Assessment application requires a strategic approach. Canadian employers looking to fill a role with a foreign national can initiate their LMIA application up to six months before the anticipated start date. This proactive timeline allows for thorough preparation and processing.
It’s crucial to understand that the procedures for the LMIA application are not one-size-fits-all. The wage associated with the position plays a significant role in determining the specific requirements. Employers must consult the median hourly wage for their respective province or territory to determine whether the role is high-wage or low-wage. This distinction is vital because low-wage positions typically require employers to meet additional criteria to demonstrate their recruitment efforts and the impact on the local labour market.
Beyond the standard streams, there are specialized pathways within the LMIA in Canada designed to address specific employment needs. These tailored streams streamline the process for employers seeking to hire individuals in key sectors, including:
- Hiring In-Home Caregivers
- Hiring Agricultural Workers
- Hiring Foreign Academics
- Hiring within the province of Quebec
Understanding these nuances and identifying the appropriate stream is a critical first step in successfully navigating the LMIA in Canada and welcoming global talent to your team.
Essential LMIA Application Requirements
Submitting a robust LMIA application is super important for Canadian employers seeking to hire foreign workers. Currently, applications are submitted in hard copy via mail to the designated Service Canada Processing Centre. To ensure a comprehensive submission, employers must provide documented evidence confirming the fulfillment of the following key criteria:
- Processing Fee: Each LMIA Canada application requires a non-refundable processing fee of $ 1,000 CAD. It’s worth noting that this fee applies regardless of the application’s outcome. However, specific applicants under the In-Home Caregiver Program may be eligible for an exemption.
- Business Legitimacy Documents: Establishing your standing as a legitimate Canadian business is a fundamental requirement. Your application must include documentation that unequivocally verifies your business’s legal operation within Canada.
- Transition Plan: A crucial component of the LMIA application is submitting a detailed transition plan. This plan must outline your strategy for reducing reliance on temporary foreign workers over time and transitioning towards hiring Canadian citizens and permanent residents for the role.
- Recruitment Efforts: Demonstrating genuine efforts to recruit within Canada is a core principle of the LMIA Canada process. Employers must provide compelling evidence of substantial recruitment activities undertaken to attract qualified Canadian citizens and permanent residents before considering a temporary foreign worker.
- Wages: Comprehensive information regarding the proposed wages for the temporary foreign worker is mandatory. This data is essential for distinguishing between high-wage and low-wage positions and for ensuring that temporary foreign workers receive compensation equal to their Canadian counterparts for the same work.
- Workplace Safety: Ensuring the well-being of temporary foreign workers is a priority. Employers must provide proof that the foreign worker will be covered by workplace health and safety standards equivalent to those afforded to Canadian workers in the same role. Furthermore, evidence of health insurance coverage that meets or exceeds the provincial or territorial standards where the business operates is required.
Meticulous attention to these requirements is important for a successful LMIA application and for facilitating the entry of skilled international workers to contribute to Canada’s workforce.
Hiring High-Wage Workers
When Canadian employers seek to hire high-wage workers through the Temporary Foreign Worker Program (TFWP), specific requirements apply to ensure the program serves its intended purpose. A crucial aspect of this process involves demonstrating a commitment to developing the domestic workforce.
Employers must submit transition plans along with their Labour Market Impact Assessments (LMIS). These plans outline the steps they are taking to reduce their reliance on temporary foreign workers over time. Acceptable evidence of such efforts includes proof of investment in skills training programs for Canadian citizens and permanent residents or documentation of hiring Canadian apprentices.
Alternatively, employers can demonstrate their active support in helping their high-skilled temporary foreign worker(s) obtain Canadian permanent resident status. This pathway acknowledges the value these workers bring and facilitates their long-term integration into the Canadian workforce.
It’s important to be aware that employers may be subject to inspections. Furthermore, when applying to renew their LMIA, they will be required to report on the progress and outcomes of the transition plan initially submitted. These measures are in place to ensure that employers are genuinely using the TFWP as a temporary solution to address immediate labour needs rather than as a long-term staffing strategy.
Factors such as the complexity of the application and completeness of documentation can influence LMIA processing times. Employers should, therefore, ensure they provide all required information accurately and comprehensively to avoid delays. Understanding these requirements is essential for navigating the LMIA processing times effectively and successfully hiring high-wage foreign workers.
Hiring Low-Wage Workers
When Canadian employers seek to hire low-wage workers through the Temporary Foreign Worker Program (TFWP), they are not required to submit transition plans with their Labour Market Impact Assessment (LMIA) application. However, they must adhere to a distinct set of guidelines designed to balance the needs of employers with the priority of ensuring Canadians are considered first for available jobs.
To manage the use of the TFWP for low-wage positions, the Government of Canada has implemented a cap on the number of low-wage temporary foreign workers a business can employ. Specifically, employers with 10 or more employees applying for a new LMIA are subject to a cap, limiting their low-wage temporary foreign workers to a maximum of 10 percent of their total workforce. Furthermore, certain low-wage occupations may be ineligible for LMIA processing altogether.
Employers offering wages below the provincial or territorial median hourly wage must also meet the following additional requirements:
- Cover Round-Trip Transportation
- Provide Affordable Housing
- Pay for Private Health Insurance
- Register with the Workplace Safety Board
- Provide an Employer-Employee Contract
The TFWP also considers regional unemployment rates, using the latest Labour Force Survey results. LMIA applications for low-wage or lower-skilled occupations within the Accommodation and Food Services sector and the Retail Trade sector will generally not be processed in economic regions where the unemployment rate is 6 percent or higher.
However, recognizing unique labour market conditions and as requested by the Government of the Northwest Territories, LMIA applications for positions located in Yellowknife within these sectors will be accepted for processing.
Expediting an LMIA: Occupations in Demand
In certain circumstances, the processing of a Labour Market Impact Assessment (LMIA) can be expedited. However, it’s crucial to understand the conditions under which Employment and Social Development Canada (ESDC) can meet the 10-day service standard for expedited applications.
Specifically, ESDC will adhere to this 10-day timeframe only if:
- The LMIA application is complete and contains all required documentation.
- ESDC does not require any additional time for consultation or clarification regarding the application.
- The employer has not been selected for a compliance review.
According to Immigration, Refugees and Citizenship Canada (IRCC), within the Canada immigration LMIA process, expedited labour market impact assessment processing, with a 10-business-day service standard, is available for workers in specific occupational categories deemed to be in the highest demand.
The 10-day service standard for this category is primarily focused on skilled trades positions where the offered wage meets or exceeds the median wage in the province or territory. These positions are recognized as essential to the progress of major infrastructure and natural resource extraction projects and are therefore considered vital to Canadian economic growth within the Canada immigration LMIA framework.
| NOC 2021 | OCCUPATION TITLE |
| 72011 | Contractors and supervisors, electrical trades and telecommunications occupations |
| 72013 | Contractors and supervisors, carpentry trades |
| 72014 | Contractors and supervisors, other construction trades, installers, repairers and servicers |
| 72310 | Carpenters |
| 72020 | Contractors and supervisors, mechanic trades |
| 72021 | Contractors and supervisors, heavy equipment operator crews |
| 82010 | Supervisors, logging and forestry |
| 82020 | Supervisors, mining and quarrying |
| 82021 | Contractors and supervisors, oil and gas drilling services |
| 83110 | Logging machinery operators |
| 82030 | Agricultural service contractors, farm supervisors and specialized livestock workers |
| 92010 | Supervisors, mineral and metal processing |
| 92011 | Supervisors, petroleum, gas and chemical processing and utilities |
| 92013 | Supervisors, plastic and rubber products manufacturing |
| 93100 | Central control and process operators, mineral and metal processing |
| 92100 | Power engineers and power systems operators |
| 92101 | Water and waste treatment plant operators |
| 72100 | Machinists and machining and tooling inspectors |
| 72102 | Sheet metal workers |
| 72104 | Structural metal and plate work fabricators and fitters |
| 72105 | Ironworkers |
| 72106 | Welders and related machine 1 operators |
| 72200 | Electricians (except industrial and power system) |
| 72201 | Industrial electricians |
| 72202 | Power system electricians |
| 72203 | Electrical power line and cable workers |
| 72204 | Telecommunications line 2 and cable workers |
| 72205 | Telecommunications installation and repair workers |
| 72300 | Plumbers |
| 72301 | Steamfitters, pipefitters and sprinkler system installers |
| 72302 | Gas 3 fitters |
| 72400 | Construction millwrights and industrial mechanics |
| 72401 | Heavy-duty equipment mechanics |
| 72402 | Refrigeration and air conditioning mechanics |
| 72403 | Railway carmen/women |
| 72404 | Aircraft mechanics and aircraft inspectors |
| 72406 | Elevator constructors and mechanics |
| 73500 | Crane operators |
| 73402 | Drillers and blasters – surface, mining, quarrying and construction |
| 72501 | Water well drillers |
| 83100 | Underground production and development miners |
| 83101 | Oil and gas well drillers, servicers, testers and related workers |
| 93101 | Petroleum, gas and chemical process operators 4 |
What Happens After LMIA is Approved?
Once an LMIA application has been processed, the employer receives a decision. The outcome will be either a positive or a negative LMIA.
- Positive LMIA: A positive LMIA allows the employer to move forward with hiring a foreign national. The employer must then notify the foreign national, who can use the positive LMIA to apply for their LMIA work permit or permanent residence in Canada. Positive LMIAs are valid for six months from the date of issue.
- Negative LMIA: A negative LMIA means the employer is not approved to hire a foreign national for that specific position.
In certain situations, employers can process their LMIA application more quickly (within 10 days). To qualify for this expedited processing, the employer must be located outside of Quebec and meet one of the following criteria:
- Highest-wage positions: The wage offered is among the top 10% of wages earned by Canadians in the province or territory of the job.
- Skilled Trades: The position is in a skilled trade, and the wage is at least the median provincial/territorial wage for that position.
- Short-term Positions: The position lasts for 120 days or less.
- Express Entry: The LMIA is being used to support an Express Entry candidate’s application. However, the LMIA is no longer used for points in the Express Entry system.
It’s important to note that some positions may be eligible for LMIA-exempt work permits, meaning a foreign national can work in Canada without needing an LMIA. However, most employers must meet the standard Canada LMIA requirements to hire foreign workers.
Median Hourly Wages by Province or Territory
In the LMIA in Canada process, an employer’s decision to pursue the high-wage or low-wage stream is directly determined by the wage offered to the Temporary Foreign Worker (TFW) in relation to the median hourly wage of the specific province or territory of employment.
- If an employer intends to pay the TFW at or above the median hourly wage for their province or territory, they must apply through the high-wage workers stream for their LMIA.
- Conversely, if the employer plans to pay the TFW below the median hourly wage, they are required to follow the low-wage workers stream.
Therefore, understanding the median hourly wage for each province and territory is crucial for employers navigating the LMIA process.
| Province/Territory | Wages prior to May 31, 2023 | Wages as of May 31, 2023 |
| Alberta | 28.85 | 28.85 |
| British Columbia | 26.44 | 27.5 |
| Manitoba | 23 | 23.94 |
| New Brunswick | 21.79 | 23 |
| Newfoundland and Labrador | 24.29 | 25 |
| Northwest Territories | 37.3 | 38 |
| Nova Scotia | 22 | 22.97 |
| Nunavut | 36 | 35.9 |
| Ontario | 26.06 | 27 |
| Prince Edward Island | 21.63 | 22.50 |
| Quebec | 25.00 | 26.00 |
| Saskatchewan | 25.96 | 26.22 |
| Yukon | 32 | 35 |
Exemptions to LMIA Requirements
In some situations, Canadian employers are not required to obtain an LMIA before hiring a foreign worker. These exemptions are primarily managed through the International Mobility Program.
A variety of circumstances can lead to an LMIA exemption, and these exemptions are often tied to specific LMIA exemption codes. These codes outline the reasons why a foreign national can work in Canada without the need for an LMIA.
It’s important to distinguish between exemptions from the LMIA requirement and exemptions from the work permit requirement. While an LMIA exemption means the employer doesn’t need to obtain an LMIA, the foreign worker may still need an LMIA work permit unless they also qualify for a Canada work permit LMIA exemption.
To fully understand the applicability of an exemption, employers and foreign workers should familiarize themselves with the relevant LMIA exemption codes and consult the latest guidelines from Immigration, Refugees and Citizenship Canada (IRCC).
Facilitated LMIA (Quebec)
The province of Quebec has a unique position in Canada, with considerable autonomy over its immigration policies and procedures. Consequently, the process of hiring foreign workers in Quebec has some distinct characteristics.
One such distinction is the Facilitated LMIA process. This process allows Quebec employers to apply for LMIAs without the standard requirement of providing evidence of prior recruitment efforts for Canadian citizens or permanent residents.
It’s important to note that while Quebec has this facilitated process, employers in other provinces will generally have different experiences. For instance, the LMIA processing time in Alberta may differ from Quebec’s system. Similarly, employers should be aware that the LMIA processing time in Ontario follows federal guidelines, which have their own set of requirements and processing standards.
Global Talent Stream
The Global Talent Stream (GTS) is a two-year pilot program initiated in June 2017 through a collaboration between Immigration, Refugees and Citizenship Canada (IRCC) and Employment and Social Development Canada (ESDC). The GTS aims to assist specific Canadian employers in hiring highly skilled global talent, enabling them to compete internationally. Employers successfully referred to the program can expedite the hiring process for foreign nationals through the Global Skills Strategy.
Intra-Company Transfers
Canada’s International Mobility Program also facilitates the entry of high-skilled foreign nationals for temporary work in Canada as intra-company transferees. If a foreign national is currently employed by a company outside of Canada, they may be eligible for an LMIA-exempt work permit to transfer to a Canadian branch or subsidiary of the same company. This intra-company transferee provision applies to individuals from all countries.
While an LMIA is not required for intra-company transfers, it’s important to note that other programs, such as the LMIA for Express Entry, no longer rely on the LMIA for awarding CRS points.
NAFTA Work Permits
The North American Free Trade Agreement (NAFTA) establishes a broad framework for trade relations between Canada, the United States, and Mexico. A key aspect of NAFTA includes provisions that facilitate the entry of US and Mexican citizens to work in Canada. Under NAFTA, eligible foreign nationals may be authorized to work in Canada without typically requiring a Labour Market Impact Assessment (LMIA) or a standard work permit.
CETA Work Permits
The Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) similarly establishes a comprehensive set of trade protocols, this time between Canada and EU member nations. CETA also includes provisions that create opportunities for citizens of EU countries to work in Canada. Like NAFTA, CETA allows certain qualifying foreign nationals to work in Canada without needing an LMIA or a conventional work permit.
Conclusion
Navigating the Labour Market Impact Assessment process can be tricky, but it’s an essential part of securing a Canadian work permit. Whether you’re an employer looking to hire foreign talent or a worker aiming to come to Canada, understanding the LMIA Canada process is crucial. If you’re unsure about your specific situation or need help with your LMIA application, consulting an immigration lawyer in Canada can make a huge difference.
If you’re ready to start your LMIA process or need more guidance, don’t hesitate to reach out for professional assistance.
FAQs
What is a positive Labour Market Impact Assessment LMIA?
A positive LMIA means that the Canadian government has determined there is a need for a foreign worker in a specific role because no suitable Canadian workers were available.
What is the salary in Canada for Labour Market Impact Assessment jobs?
Salaries vary widely by occupation and province, but employers must offer wages that meet or exceed the median hourly wage for the occupation in the relevant province.
Who is eligible for the LMIA Canada?
Employers are eligible to apply for an LMIA if they are offering full-time, long-term employment to a foreign worker and can demonstrate that the position is necessary.
What is the work permit processing time after the LMIA?
LMIA work permit processing duration can vary by province and other factors but generally takes a few weeks.
Does LMIA guarantee PR?
No, an LMIA is a requirement for a work permit, but it does not directly guarantee permanent residency.
How many points do you get for LMIA?
The Canadian government no longer grants additional Comprehensive Ranking System (CRS) points for a job under the Express Entry system. Previously, a valid job offer could add either 50 or 200 points to a candidate’s CRS score. Also, you may get LMIA points removal if the job offer supporting your Express Entry profile is no longer valid.
How much does the LMIA assessment cost?
The cost for an employer to apply for an LMIA varies by the type of application but typically ranges from $1,000 to $2,000.
How long is the LMIA valid for?
Once approved, an LMIA is typically valid for six months. The foreign worker must apply for their work permit within that period.
How to get an LMIA from Canada?
To obtain an LMIA, an employer must apply to Employment and Social Development Canada (ESDC) and meet the required criteria.
How many LMIA can an employer get in a year?
There is no strict limit on the number of LMIA applications an employer can submit, but they must demonstrate ongoing need and compliance with Canadian labour laws.
