What LMIA stands for and how it works, according to experts

The Temporary Foreign Worker Program (TFWP) uses the Labour Market Impact Assessment (LMIA), an official document that is verified and issued by the Canadian government. A positive labor market impact assessment, also known as a confirmation letter, indicates that the nation is experiencing a shortage of skilled laborers for particular occupations and is in need of foreign labor. Employers in Canada receive it upon filing the application for a labor market impact assessment. It gives Canadian firms the legal authority to hire highly qualified foreign labor.

The reason behind LMIA

The goal of putting the LMIA principle into practice is to treat natives fairly and provide them the opportunity to be chosen for open positions. The document demonstrates that Canadian firms require a highly skilled workforce to fill a specific position. It prohibits Canadian employers from doing favors for foreign employees. The authorities also adhere to a stringent, step-by-step process to guarantee that the application for LMIA is authentic and can be granted in order to import labor from non-native nations. By bringing labor from outside the country, the LMIA also guarantees that there won't be any effects on the labour market in Canada.

Impact assessment categories for the labour market

There are two categories for the LMIA request approval process: low-wage workers and high-wage workers. Workers who receive pay below the provincial/territorial median wage threshold are classified as low-wage workers, while those who receive pay at or above the threshold are classified as high-wage workers. Employers in both categories must demonstrate that despite doing a sufficient number of searches for qualified applicants, no hires were made. In addition, further limitations are in place to guarantee that no employer favors international employees over domestic ones. These requirements are also predicated on the categories shown below.

Conditions for Workers at High Wages:

For candidates to enter the nation on a work permit, employers must submit the LMIA application with a transition plan. The transition plan/scheme guarantees that the applicants for the LMIA have completed the essential actions to create a training program or temporarily hire freshmen in order to produce skilled workers in the nation. To provide a proof of your activities for the transition plan, it must be valid.

Low-wage workers are subject to these conditions:

Companies do not have to submit a transition plan if they want to hire low-wage workers under the labor market impact assessment. The application must be submitted. However, they must also consent to certain limitations that the Canadian government imposes. It limits the percentage of low-wage foreign workers that firms with ten or more employees can hire to twenty percent of the overall workforce.

Below is the list of Median hourly wages (offered by the IRCC)

Province/Territory
Median hourly wages effective May 11, 2020 (2019 Wage)
Alberta
$28.85
British Columbia
$26.44
Manitoba
$23.00
New Brunswick
$21.79
Newfoundland and Labrador
$24.29
Northwest Territories
$37.30
Nova Scotia
$22.00
Nunavut
$36.00
Ontario
$26.06
Prince Edward Island
$21.63
Quebec
$25.00
Saskatchewan
$25.96
Yukon
$32.00
Foreign workers paid under the provincial/territorial median hourly wage limit are provided some benefits listed here.
i. They are paid for round trips transportation
ii. They are offered affordable accommodation
iii. They are paid for private health insurance
iv. Employer-employee agreement also gets singed

Who requires LMIA?

LMIA is typically required by employers that wish to engage a foreign national to manage their business or activity. However, there may be situations in which neither employers nor employees require the paperwork. To determine whether you qualify for a labor market impact assessment

You can look up the LMIA-based work permit exemptions and exemption codes.
OR get in touch with the International Mobility Workers Unit.

Who requires LMIA?

• Hiring In-Home Caregivers
• Hiring Agricultural Workers
• Hiring Foreign Academics
• Hiring within the province of Quebec

Applying for an LMIA

An LMIA application may be submitted by an employer up to six months prior to the job's official start date. The application process is impacted by the employee's pay. To ascertain whether a position is high-wage or low-wage, employers must examine the median hourly salaries of their state or territory. Low-wage employment need the company to fulfill additional requirements. Applying online for a labor market impact assessment is safe, simple, and dependable with the TFWP's online application platform. The following features are available to you if you register for an account on the portal.

• Kindly send your LMIA application the employer must receive it at least 30 days prior to the position's actual start date in order
• Provide supporting documentation proving that there isn't a qualified Canadian citizen or resident to fill the position.
• If you qualify, pay the LMIA charge.
• Monitor the application
• Examine applications that have previously been submitted.
• To complete official procedures, you must have a legitimate bank account, which you can open on the IRCC website.

Applying for an LMIA

As per the IRCC website information, the processing time is tabulated below

Application type Average processing time
Global Talent Stream
10 business days
Agricultural stream
19 business days
Seasonal Agricultural Worker Program
14 business days
Permanent residence stream
20 business days
In-home caregivers
25 business days
High-wage stream
31 business days
Low-wage stream
35 business days

• The processing fee for each Labour market impact assessment is Can $1000. Employers also need to pay extra Can $100 privilege charges
• Valid proofs that showcase your potential engagements to generate skilled Labour within the country that should be conducted at least four weeks prior

Once the employers get the positive LMIA document, they must provide a copy of confirmation to the recruited foreign worker. Only then the selected candidate for the job will be able to proceed with applying for a work permit. For any doubt related to LMIA processing or applying for LMIA work permit, feel free to consult us. We are the best Canadian immigration consultants and offer our VISA services in different categories