What is a Labour Market Impact Assessment?
When a Canadian employer wants to hire someone from outside the country, they generally need to get approval from the Canadian government before the hiring can happen. This approval is known as a Labour Market Impact Assessment (LMIA), which was previously called a Labour Market Opinion (LMO).
Requirements for Applying for an LMIA
- Processing Fee: Every LMIA application comes with a processing fee of CAD 1,000. Unfortunately, this fee is non-refundable, even if the outcome of the application is not in the employer’s favor. However, there are exceptions for certain applicants, such as those applying for LMIA under the in-home caregiver category, who may be exempt from this fee.
- Business Legitimacy Proof: Employers must provide documents that show their business is legitimate and fully registered in Canada.
- Transition Plan: Employers need to submit a plan explaining how they plan to reduce their dependence on foreign workers over time. This plan helps ensure that, eventually, Canadian citizens and permanent residents will be hired for the position instead of foreign nationals.
- Recruitment Efforts: Employers must show that they’ve made real efforts to hire Canadian citizens or permanent residents before looking to hire foreign workers.
- Wages: The wage offered to a foreign worker must be clearly mentioned in the LMIA application, and it should reflect whether the position is high-wage or low-wage. This ensures that foreign workers receive pay equal to what a Canadian worker would receive in the same role.
- Workplace Safety: Temporary Foreign Workers (TFWs) are entitled to the same health and safety standards as Canadian workers in the same role. Employers must provide proof that foreign workers will have insurance coverage at least as good as the health coverage available in the province or territory where the business operates.
High-Wage Workers
When hiring high-wage workers, employers must submit a transition plan with their LMIA application. This plan should outline steps to reduce the long-term reliance on foreign workers. High-wage workers are those earning above the median hourly wage for the occupation in a specific region.
Low-Wage Workers
If an employer is hiring low-wage workers, the process is slightly different, and they don’t need to submit a transition plan. However, they must follow certain other guidelines:
- Foreign Worker Cap: Employers can hire a maximum of 20% foreign workers for low-wage positions in any given location.
- Transportation: Employers must arrange and pay for the transportation of low-wage workers to and from Canada.
- Housing: Employers must provide safe and suitable housing for low-wage workers for the duration of their employment in Canada.
In short, an LMIA is a document issued by Employment and Social Development Canada (ESDC) to assess how hiring a foreign worker will impact the Canadian job market. A positive LMIA means that no Canadian citizen or permanent resident is available for the job, allowing the employer to hire someone from abroad. If the LMIA result is negative, it means the job should be offered to a Canadian citizen or permanent resident instead.
Interested employers – Contact Us To Explore Your Options For hiring global talent for your business.
Looking for More Information or to Get Started?
Embark on your educational journey with confidence – let our expert team guide you through a seamless student visa application process.