1. What is an LMIA?
A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) that an employer in Canada may need before hiring a foreign worker. The purpose of an LMIA is to ensure that hiring a foreign worker will not negatively affect the Canadian job market. It verifies that there are no Canadian citizens or permanent residents available to fill the position, and the employment of a foreign worker is necessary.
The LMIA process is different depending on whether the targeted employee is classified as “high-wage” or “low-wage”. Temporary foreign workers being paid under the provincial/territorial median wage are considered low-wage, while those being paid at or above the median wage are considered high-wage.
2. How do I know if I need an LMIA?
You need an LMIA if you are an employer in Canada looking to hire a foreign worker, unless the position is exempt from the LMIA process. Certain work permits under international agreements (like NAFTA), intra-company transfers, and positions with significant social, cultural, or economic benefits to Canada may be exempt. To determine if you need an LMIA, review the job’s requirements and consult the latest guidelines from the Government of Canada.
3. Why do I need another LMIA to extend my work permit?
If a foreign worker’s employment term is ending and the employer wishes to continue their employment, a new Labour Market Impact Assessment (LMIA )may be required to extend the work permit. This ensures that the job conditions remain the same and that no Canadians have become available to fill the position in the interim. The process also reassesses the impact on the Canadian labour market, maintaining the integrity of domestic employment opportunities.
4. Do I need an LMIA to work in Canada as an entrepreneur?
Entrepreneurs usually do not need an LMIA to work in Canada if they meet specific conditions under programs such as the Start-Up Visa Program. However, if an entrepreneur is coming to Canada to work for a business they do not own or control, they might require an LMIA, depending on the nature of the job and whether it qualifies for any exemptions. Each entrepreneurial scenario can differ, so it’s important to verify the specific requirements based on your situation.
5. How can an LMIA help me obtain more CRS points as an Express Entry applicant?
A positive LMIA can significantly boost an Express Entry applicant’s Comprehensive Ranking System (CRS) score. Job offers supported by a positive LMIA can add 50 to 200 points to your CRS score, depending on the type of job. This can improve your chances of receiving an Invitation to Apply (ITA) for permanent residence, as higher CRS scores are more likely to be selected in Express Entry draws.
LMIA Application Requirements:
Processing Fee: All Labour Market Impact Assessment applications require a non-refundable processing fee of CAD 1000. However, certain in-home caregiver positions may be exempt from this fee.
Business Legitimacy Documents: Employers must provide documentation proving their status as a legitimate Canadian business. This typically includes business registration, licenses, and financial statements.
Transition Plan: Employers need to submit a transition plan outlining how they will reduce their reliance on temporary foreign workers (TFWs) and increase hiring of Canadian citizens and permanent residents over time.
Recruitment Efforts: Evidence of substantial efforts to recruit Canadian citizens and permanent residents must be submitted. This includes details of job advertisements and recruitment activities conducted before seeking to hire a TFW.
Wages: The application must specify the wages offered to TFWs, ensuring they meet or exceed the median wage for the occupation in that region and are on par with wages paid to Canadian workers for the same job.
Workplace Safety: Employers must provide evidence that TFWs will receive workplace health and safety coverage equivalent to the standards offered by the province or territory where the business operates. This ensures TFWs are insured adequately and treated equally to Canadian employees.
Contact Donivia Overseas experts for a better understanding of the LMIA and how to start the Canadian immigration process.