Labour Market Impact Assessment
“A document to hire a foreign worker”
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Introduction
Generally, Canadian employers need a positive Labour Market Impact Assessment (LMIA) to hire a foreign worker. LMIA applications are assessed and approved by Employment and Social Development of Canada. Canadian employers must prove in their application that Canadian citizens/permanent residents are not available or unwilling to fill that position. The processing fee for LMIA application is $1,000 except for a few certain groups who are exempt from paying the fee.
When reviewing an LMIA application, ESDC assess many factors including but not limited to-
- The employment offer is genuine, and the foreign worker is filling a labour shortage
- Canadian citizens/permanent residents are not available to fulfill the job position
- The wage and working conditions are equivalent to the Canadian workers at the same position.
- There will not be any labour dispute, and any Canadian employee will not be affected.
- Position will make a neutral or positive effect on the Canadian labour market
- Temporary foreign worker will transfer new knowledge and skills to Canadians.
Types of LMIA
Low wage LMIA – Employer may apply under this category if a wage being offered for the position is below the provincial/territorial median hourly wage. The job offer must be a full-time position that a foreign worker must get at least 30 hours/week of work. Employers can only hire 10% foreign workers of the total number of Canadian workers at a particular work site through this category.
High Wage LMIA – If the job being offered is at or above the provincial/territorial median hourly wage, employers can apply under this stream. A transition plan is required to hire a foreign worker under this stream. A transition plan describes how and what the employer will do to hire more Canadians instead of foreign workers.
LMIA to support Permanent Residency – A positive LMIA may be issued if an employer wants to hire a foreign skilled worker (NOC O, A & B) and support the foreign worker’s permanent resident visa application (Express Entry). LMIA under this category can be issued either to support permanent resident application only or a dual intent LMIA where not only will a job offer support the application but also make the foreign worker eligible for a work permit.
LMIA for Agriculture – This stream is further categorized into two sub-streams – Seasonal Agriculture Worker Program (SAWP) and Agriculture Stream.
SAWP allows Canadian employers to hire foreign workers during the peak agriculture periods when Canadian permanent residents/citizens are not available to fill the positions. The employers must offer a minimum of 240 hours of work within 6 weeks or less. Moreover, the job cannot be offered for more than 8 months between January 1st and December 15th. Employers can only hire temporary foreign workers from Mexico or participating Caribbean countries.
The agriculture stream is similar to SAWP since it allows employers to hire low skilled foreign workers to fill positions at farms. Nonetheless, employers can hire a foreign worker for a maximum of 24 months period instead of just 8 months, and there is no restriction to choose workers from a specific country.
LMIA for Global Talent Stream – Global Talent Stream has become popular due to the fast processing which allows employers to hire foreign workers in as little as four weeks. The processing time is approximately 10 business days for LMIA and another 14 days for the work permit application. To be eligible under this stream, the employer must receive a referral from a “designated referral partner” or the job position must be on the “Global Talent Occupation List”.
LMIA for Caregivers – Canadian families can hire temporary foreign workers to work as a caregiver in the private household if Canadian citizens/permanent residents are not available to fill the position. The job offer must be full-time work, and employers must pay a wage that is equal to or more than the prevailing wage in the economic region.
Caregivers can be hired under the two pilot programs – Home Child Care Provider and Home Support Worker. Immigration Canada has placed a cap of 2750 applications for each pilot program per year. These pilot programs permit foreign workers to bring their family members to Canada and also submit an application for permanent residence along with their work permit application if they meet the criteria. LMIA application processing fee for each position is $1,000; however, individuals with high medical needs or family income of $150,000 or less are exempt from the processing fee.