LMIA in Canada
What Is LMIA?
A Labour Market Impact Assessment (LMIA) is a document that Canadian employers may need before hiring a foreign worker. Employment and Social Development Canada (ESDC) issues it. It serves as an evaluation of how hiring a foreign candidate might affect Canada’s workforce. Suppose ESDC determines that hiring a foreign worker will not negatively impact the Canadian labour market. In that case, it will issue a positive LMIA. In contrast, a negative LMIA means the employer must first seek qualified Canadian citizens or permanent residents for the position.
Understanding the LMIA process is crucial for both employers and foreign job applicants seeking to work in Canada under the Temporary Foreign Worker Program (TFWP).
Why Is an LMIA Required?
The LMIA ensures that job opportunities in Canada are first made available to the domestic workforce. It also serves to protect foreign workers from potential misuse or unfair labour practices. By requiring employers to demonstrate a legitimate need for hiring international talent, the LMIA strikes a balance between economic needs and labour protections.
For employers, securing a positive LMIA is a key step in bringing foreign workers on board. For foreign workers, it can be a foundational document needed when applying for a work permit or even for future permanent residence through programs such as Express Entry.
When Is LMIA Needed?
Employers generally need to obtain an LMIA in the following scenarios:
- Hiring through the Temporary Foreign Worker Program (TFWP): Most streams under TFWP require a positive LMIA before a foreign worker can apply for a work permit.
- Permanent Residence Applications: Some provincial nominee programs (PNPs) or federal immigration streams may require a current or past LMIA-supported job offer.
- Low-wage or high-wage positions: Depending on the wage offered in comparison to the provincial or territorial median wage, different requirements will apply.
Employer Responsibilities
Employers who want to hire foreign workers must follow specific guidelines:
- Advertising the Job
Before applying for an LMIA, employers must demonstrate that they have made genuine efforts to hire Canadian citizens or permanent residents. It typically involves advertising the position across multiple platforms for at least four consecutive weeks.
- Wage Requirements
The wage offered must meet or exceed the median salary for the occupation and region. It ensures fairness and reduces the risk of undercutting wages in the domestic labour market.
- Workplace Conditions
Employers must provide a safe and healthy work environment, and in some streams (especially for low-wage jobs), they may be required to cover travel costs, provide housing, or ensure access to healthcare.
- Transition Plan (for High-Wage Positions)
Employers offering high-wage positions must submit a transition plan showing how they intend to reduce reliance on temporary foreign workers over time.
LMIA Application Process
Step 1: Determine Eligibility
Employers must first determine whether an LMIA is necessary for the position. Some work permits are LMIA-exempt under the International Mobility Program (IMP), but TFWP positions generally require one.
Step 2: Recruitment
Employers must advertise the role and meet recruitment requirements, including duration and diversity of platforms used for job posting.
Step 3: Submit the Application
The LMIA application is submitted to Service Canada with the required forms, supporting documents, and application fee. The documentation requirements may vary based on the stream (e.g., agriculture, caregiver, high-wage, low-wage, etc.).
Step 4: ESDC Assessment
ESDC will assess the employer’s application, considering factors such as the genuineness of the job offer, wage levels, working conditions, and the potential impact on the Canadian labour market.
Step 5: Outcome
If approved, the employer receives a positive LMIA. The foreign worker can then use this document to apply for a Canadian work permit.
Foreign Worker Responsibilities
If you’re a foreign national offered a job supported by a positive LMIA, you’ll typically need to:
- Submit a work permit application to Immigration, Refugees and Citizenship Canada (IRCC).
- Include a copy of the job offer and the LMIA document.
- Undergo a medical exam (if applicable).
- Provide biometric information and attend an interview if requested.
A work permit supported by an LMIA typically ties the worker to a single employer and a specific job. Any changes to the position or employer usually require a new LMIA and work permit.
Types of LMIA Streams
ESDC offers several LMIA pathways depending on the nature of the job:
- High-Wage Positions
- Low-Wage Positions
- Seasonal Agricultural Worker Program
- Agricultural Stream
- Caregiver Program
- Global Talent Stream (GTS) – designed to fast-track skilled roles in tech and innovation sectors
Each stream has its specific criteria, documentation, and timelines.
Processing Times and Validity
Processing times for LMIA applications vary by stream and region. In general:
- Global Talent Stream: Usually processed within 10 business days.
- High-Wage/Low-Wage Streams: This can take several weeks or longer.
A positive LMIA is typically valid for six months from the date of issuance. Foreign workers must apply for their work permits during this period.
Common Challenges in LMIA Applications
The process is detailed and can be difficult without proper planning. Common issues include:
- Incomplete or outdated documentation
- Inadequate recruitment efforts
- Misalignment between wage offered and job classification
- Lack of supporting evidence for the need to hire a foreign worker
Working with someone familiar with the application process can help reduce the chances of delays or refusals.
